News release

Compaq and Cap Gemini Ernst & Young Partner to Provide Joint Delivery of Integrated Enterprise Solutions

Global Alliance Enhances Breadth and Depth of Services to Targeted Markets Worldwide

Compaq Computer Corporation (NYSE: CPQ) and Cap Gemini Ernst & Young today announced they have signed a global alliance agreement, which draws upon the strengths and capabilities of both companies, to provide best in class consulting and systems integration services worldwide. The intent of this global agreement is to combine Cap Gemini Ernst & Young industry leading consulting services with Compaq's IT Infrastructure and Global Services to provide integrated solutions to enterprise customers. Consistent with Compaq's strategy to better serve its customers by teaming with industry leaders, this move extends Compaq Global Services' capabilities and broadens Cap Gemini Ernst & Young's suite of technology-centered offerings. The alliance also provides enterprise customers with a single source for integrated solutions across multiple platforms.

As part of the agreement, Cap Gemini Ernst & Young and Compaq will help customers address business needs such as CRM, e-procurement and technical requirements such as bandwidth, scalability, next generation networks and security. The combined forces will provide a broader solution capability for enterprise global customers.

With the complexity of business today at an all-time high—faster cycle times, global competition, strategic disruption from Internet start-ups, customer pressure for greater efficiency and lower prices, renewed mergers and acquisitions activity, as well as increased difficulty in acquiring and retaining talented employees—competitive parity in companies' IT has become a strategic necessity. Now, more than ever, selecting IT partners who can reliably manage it all is critical to a company's success.

Initially, the two companies will integrate, implement and support Oracle-based solutions across Compaq's Windows 2000, Tru64 UNIX and OpenVMS operating environments. Already, the companies are providing complementary services for both infrastructure and software to help customers implement Oracle's Internet Procurement^® solutions—an offering that automates and centralizes procurement functions.

While both Cap Gemini Ernst & Young and Compaq plan to initially target e-business critical solutions, such as the Oracle E-Business Suite, their focus areas for the global alliance also include integrated solution offerings for the financial services and telecommunications industries.

"Our objective is to deliver world class service to our customers. With this alliance, our customers will have access to a more complete, combined offering that leverages each company's strengths," said Jeff Lynn, vice president and general manager, Compaq Global Services. "The alliance is a natural step for us. Already, 80 percent of Compaq's 80,000 installed clusters run Oracle solutions so with Cap Gemini Ernst & Young as a partner, we can provide our customers with a more complete service solution."

"Cap Gemini Ernst & Young is committed to providing enterprise clients worldwide with comprehensive services to meet their ever-changing needs," said Chell Smith, senior vice president and global leader, Advanced Development & Integration, Cap Gemini Ernst & Young. "This partnership is an example of our dedication to providing the best services available, and we're confident that we can grow and enhance this relationship with Compaq to meet clients' needs in a range of industries."

According to Randy DeMont, vice president of Compaq's Global Enterprises and Partnerships, the alliance allows Compaq to build on its recognized strengths in architecture and infrastructure services, outsourcing service and Compaq platform and technology disciplines, all of which are designed to help customers move their business critical functions to the Web. "We've entered into a broad-based, long-term global alliance with Cap Gemini Ernst & Young to improve our respective businesses by developing new business opportunities through collaboration on joint solutions."

"This partnership between Compaq and Cap Gemini Ernst & Young is great news for customers looking for complete and simple e-business solutions," said Juan Jones, vice president, System Platform Division, Oracle Corporation. "Customers can now turn to a single source for fast and reliable implementations of Oracle Internet Procurement on Compaq, which is already an industry leading software and hardware combination."

This latest announcement is yet another step in the realization of the Compaq global strategy to provide leadership in Internet access and infrastructure through superior technology services and partnerships that help companies maximize the benefits of the new Internet era and a global e-business economy.

About Cap Gemini Ernst & Young

Cap Gemini Ernst & Young is one of the largest management and IT consulting firms in the world. The company offers management and IT consulting services, systems integration, and technology development, design and outsourcing capabilities on a global scale to help traditional businesses and "dot companies" continue to implement growth strategies and leverage technology in the new economy. The organization employs more than 60,000 people worldwide and reports global revenues of about 8.5 billion Euros (2000 pro forma). More information about individual service lines, offices and research is available at http://www.cgey.com.

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.