News release

Compaq Extends Capital Market Leadership with Exchange Wins in Toronto, Montreal and Sydney

Ninety-Five Percent of Securities Transactions Worldwide Run on Compaq-Based Solutions

Compaq Computer Corporation (NYSE: CPQ) today announced significant new business wins at three leading worldwide securities and futures exchanges: the Toronto Stock Exchange, Bourse de Montréal Inc, and the Sydney Futures Exchange. Each of the three exchanges is pursuing an aggressive growth strategy that is expected to generate higher daily trading volumes.

The high-end Compaq systems provide the significant processing capacity necessary to handle higher transaction rates. They also provide a highly scalable architecture that accommodates growth while also providing the industry's highest levels of full application availability.

The Toronto Stock Exchange (TSE) has purchased four Compaq NonStop™ Himalaya™ S74000 servers. These servers are being deployed as part of the TSE's technology overhaul and will be used in operating the TSE's STAMP Gateway (AFE) and New Trading Engine. Previously, Himalaya servers had hosted the TSE's STAMP Gateway.

Barbara Stymiest, President and CEO, Toronto Stock Exchange, said, "As the Toronto Stock Exchange focuses on our future technology strategy, we need to be sure we have trusted and proven technology partners. Compaq has been just such a partner for many years, and our new Himalaya servers reflect the continuing confidence we have in Compaq."

Bourse de Montréal Inc., which focuses on futures and options, selected NonStop Himalaya S72000 servers to run its SAM (Montréal Automated System). The new Himalaya-based SAM accelerates transaction speed, reduces costs, and creates new capacity to accommodate future growth.

The Sydney Futures Exchange (SFE) will run its new Allocation, Clearing and Settlement application on an array of Compaq AlphaServer™ DS20E systems running OpenVMS™, with Fibre Channel-based SAN (storage area network) and Oracle relational database.

Based on their high availability and scalability leadership, both NonStop Himalaya and OpenVMS on AlphaServer systems have long been the platforms of choice among the world's stock exchanges. More than 100 stock exchanges worldwide have deployed these Compaq systems, including 14 of the 15 largest. In the United States, both the New York Stock Exchange and Nasdaq rely on Compaq systems. Worldwide, approximately 95 percent of all securities transactions are handled by Compaq NonStop Himalaya and OpenVMS on AlphaServer systems.

Andrea Klein, Vice President, Marketing, Compaq Financial Services, said, "The trading of securities and the settlement of transactions are among the world's most mission-critical enterprise applications. Our many exchange customers know that Compaq systems - and our aggressive 24 x 7 support - are designed specifically to safeguard every single transaction. We have a proven track record, and these latest wins reflect customer confidence in Compaq's ability to provide the technology needed for advanced electronic trading in the future.

The Toronto Stock Exchange is Canada's premier market for senior equities, accounting for approximately 95 percent of all equity trading in Canada. In 2000, the exchange handled approximately CAN$3.7 billion a day in transactions.

Bourse de Montréal Inc. is recognized as the Canadian Derivatives Exchange^®. It provides both individual and institutional investors with a full range of products adapted to market needs.

Sydney Futures Exchange is a leading financial futures and options exchange in the Asia Pacific region, with over 31 million contracts traded last financial year. SFE's recent merger with Austraclear Ltd. makes the combined entity the major provider of clearing, settlement and depository services for all Australian and New Zealand dollar denoted debt securities plus futures, options, OTC debt, NZ equity and commodity products.

About Compaq

Compaq Computer Corporation, a Fortune Global 100 company, is the largest supplier of computing systems in the world. Compaq designs, develops, manufactures, and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, and communications products, commercial desktop and portable products, and consumer PCs.

Compaq products and services are sold in more than 200 countries directly to businesses, through a network of authorized Compaq marketing partners, and directly to businesses and consumers through Compaq's e-commerce Web site at http://www.compaq.com. Compaq markets its products and services primarily to customers from the business, home, government, and education sectors. Customer support and information about Compaq and its products and services are available at http://www.compaq.com.