News release

McDonald's^® and Compaq Join Forces to Bring New Technology to Kids

McMagination™ Kiosks Powered by Compaq and Available at McDonald's

McDonald's Corporation (NYSE: MCD) and Compaq Computer Corporation (NYSE: CPQ) have collaborated to invent McMagination—a specially designed interactive kiosk for kids (ages 4-7) and Tweenagers (ages 8-15). Powered by Compaq technology, McMagination is a stand-alone kiosk coming to participating McDonald's restaurants that allows customers to play the latest video games via an in-store computer system.

Compaq and McDonald's worked closely to develop a kiosk that will enable kids everywhere to enjoy the latest games and technology in an environment that parents trust. McMagination runs on Compaq's Deskpro computers and Compaq S710 color monitors in kiosks shaped as Ronald McDonald^® and Grimace^®. Kids will be able to play up to twelve different games based on off-the-shelf titles developed by the top software manufacturers in the industry. The games are scheduled to be updated every six weeks.

"McDonald's introduced the first McDonald's Play Land in 1971, followed by the Happy Meal^® in 1979," said Joe Jasper, McDonald's owner/operator and co-creator of the McMagination concept. "McMagination is the next generation of kid fun at McDonald's, and we are excited to give our customers yet another reason to visit our restaurants."

Compaq delivers the end-to-end business solutions that keep McMagination up to date. As the general contractor, Compaq is the main partner on the project and is responsible for all aspects of the program including ordering, delivery, services and support, as well as software updates. Compaq Financial Services provides lease financing for the kiosks, software and services.

"As the leader in providing Internet infrastructure, access, services and solutions, we recognize how partnerships with world renowned brands like McDonald's can broaden access to technology—and to economic opportunities—across geographic and socioeconomic levels," said Bill Weaver, vice president of the Great Lakes Region for Compaq. "McMagination is one example of how Compaq technology helps children unleash their creativity and reach their potential."

About McDonald's

McDonald's is the world's leading global food-service retailer, with more than 28,000 restaurants serving more than 43 million people a day in 120 countries. Approximately 85 percent of McDonald's U.S. restaurants are owned and operated by independent franchisees.

About Compaq

Compaq Computer Corporation, a Fortune Global 100 company, is a leading global provider of technology and solutions. 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 that are sold in more than 200 countries. Information on Compaq and its products and services is available at http://www.compaq.com.