News release

Compaq Selected to Provide Service for Blue Cross Blue Shield of Michigan and its 4.8 Million Subscribers

Compaq Computer Corporation (NYSE: CPQ) has signed a five-year, multi-million dollar Technology Lifecycle Services agreement to provide operations management and support services effective immediately for Blue Cross Blue Shield of Michigan (BCBSM), the largest nonprofit, single-state Blue Cross Blue Shield plan in the U.S. BCBSM, which provides or administers health care prepayment services for nearly 4.8 million members, made the decision to be more efficient and focus on its core competencies. Compaq Global Services will provide custom enterprise help desk support, on-site desk-side software support, remedial maintenance, and asset management services at BCBSM locations statewide.

"One of our primary concerns is to identify cost-effective solutions while providing superior health care coverage to our members," said David Doney, director of IS Customer Service for BCBSM. "Working with Compaq helps us meet that goal by enabling us to support our end users more efficiently, which in turn allows us to focus more closely on our customers."

"Compaq Global Services is a leader in our industry, providing superior service and support for our customers," said Peter Blackmore, executive vice president, Sales and Services at Compaq. "Companies such as Blue Cross Blue Shield of Michigan are recognizing the business benefit of turning to Compaq for their service needs so they can better meet their customers' requirements."

Before selecting Compaq, BCBSM looked at more than 15 other service providers. Compaq Global Services will help ensure the continued success of BCBSM by providing tailored services to manage and deploy desktop computing assets, and support services to keep its end-users productive. The Compaq Operations Management Center in Colorado Springs is providing custom enterprise help desk support.

In addition, Compaq Direct configured new desktop and laptop systems with a standard BCBSM software image. These systems have been deployed from a central Compaq-staffed facility that also is providing complete asset management services including system staging, asset tagging and tracking, and logistics management. A Compaq Program Management Office oversees the entire BCBSM service delivery infrastructure, ensuring effective quality and process management and providing a single point for client contact.

"Blue Cross Blue Shield of Michigan wanted a service partner, not a service vendor. Our Global Services has the expertise to deliver a complete end-to-end solution including acquisition, deployment and ongoing management," said Bill Weaver, vice president, Great Lakes Region, Compaq. "Our teamwork approach convinced Blue Cross Blue Shield of Michigan that this would set the stage for the long-term partnership they wanted."

Blue Cross Blue Shield of Michigan is Michigan's largest health benefits company with 4.8 million members. It offers a wide range of health care options, including Traditional Blue Cross Blue Shield, Blue Care Network HMO, Community Blue and Blue Preferred PPOs, and Blue Choice Point of Service.