News release

Compaq Breaks the 1 Gig Barrier with the Fastest and Most Powerful Line of Notebook PCs

Compaq Computer Corporation (NYSE: CPQ) today unveiled its fastest and most powerful line of notebook PCs, with consumer pricing starting as low as $2,099. Compaq's new Presario 1800 notebook, available today through Compaq's Web site and participating retailers, features the fastest processor ever available in laptop computers, as well as a larger, more powerful hard drive to help deliver many of the benefits of desktop computing to laptop customers.

"Mobile customers deserve to have the power and speed of desktop computing—and we are delivering on this with today's announcement," said Kevin Frost, vice president, Access Business Group, Compaq Computer Corporation. "As the leader in notebook computing, Compaq is once again breaking new barriers and redefining the Internet experience to enable individuals and families to better communicate, connect, work, play and learn."

Compaq's new notebooks are among the first to feature Intel's new mobile Pentium^®III 1 GHz processors—boosting processing speeds by more than 15 percent over existing notebook PCs. The company will also introduce its new Armada E500 and Armada M700 models that will allow business users working in processor-intensive, multi-tasking environments to take advantage of the power and performance of the new mobile 1 GHz processors.

The new Presario 1800 is available immediately for purchase through Compaq's "Built for You" program through the Web at http://athome.compaq.com and at participating retailers, by calling 1-800-888-0220. The "Built for You" program allows consumers to customize their Compaq PCs to meet their specific needs, such as the speed of the microprocessor, the amount of memory and the size of the hard disk drive they desire. The Presario 1800 can be configured with a DVD/CDRW combination drive that enables consumers to watch DVD movies or create custom audio CDs with the same drive.

Armada E and M Series Notebooks

Designed for professional users needing expandability, dependability and mobility, Armada E500 models equipped with 1 GHz processors feature displays up to 15 inches, 30GB hard drives and a wide range of optical drives such as DVD or CD-RW. The Armada E500 offers the simplicity of an all-in-one notebook without sacrificing flexibility in drive configurations.

Weighing less than 5 pounds, the Armada M700 is one of the lightest notebook solutions in the industry. By combining the thin, lightweight design of the Armada M700 with long battery life, top-notch power and cutting-edge technology such as the new mobile 1 GHz processor, Compaq delivered what mobile professionals need and expect in a notebook solution.

Both new Armada E500 and Armada M700 models continue to simplify the business computing experience by offering common docking solutions and the most robust common peripheral solutions in the industry.

Compaq expects to ship the new Armada E500 and Armada M700 models in early April. Additional information on the Compaq Armada family can be found at http://www.compaq.com/products/notebooks/index.shtml.

For more information on Compaq Presario products mentioned in this release, please go to http://www.compaq.com/athome/notebooks.