News release

Compaq Vaults to #1 in Overall Market Revenue, Says IDC High Performance Technical Computer Qview Report

Compaq Computer Corporation (NYSE: CPQ) today announced that it has vaulted into the number one overall market revenue position in the technical systems and servers market with 21.6 percent market revenue share and $1.3 billion in sales revenue, according to a recent International Data Corporation (IDC) High Performance Technical Computer QView Report.

The report, along with IDC's Compaq Technical Computing Profile bulletin, confirms that Compaq's focused strategy for high performance technical computing has propelled the company into the leading position through major supercomputer contract wins in genomics, life sciences, research, computer simulation and animation during the past 12 months.

In the IDC report, Compaq continues to lead the Divisional Segment (systems averaging from $250,000 to $1 million, and used to address capacity workloads) with a 34.1 percent share.

In the Enterprise Server market (capacity systems sold for more than $1 million), Compaq moved into the number two slot with 15.2 percent revenue share.

In the Departmental Server market (systems less than $250,000), Compaq ranked third at 21.3 percent based on its powerful low-end AlphaServer DS Series.

And, in the high-end Capability Systems market (systems purchased to address the most demanding challenges), Compaq captured a 10.8 percent share.

For more details, please visit Compaq's Web site at http://www.compaq.com/hpc.

"Over the last three years, Compaq has made a determined effort to extend and solidify its position in the technical server market and has been rewarded with a leadership position," said Debra Goldfarb, group vice president, Worldwide Enterprise Systems for IDC. "We believe that Compaq is positioning itself as a technical leader in the industry—that is, the company is actively working to advance the field and gain the support and confidence of the overall technical computing market."

Proof of Leadership

This impressive movement by Compaq validates Compaq's emergence in the past year as the leader in the high performance technical computing market based on such wins as:

• A Compaq system being built for the Australian Partnership for Advanced Computing (APAC) for research is such areas as molecular modeling for new drugs and pattern discovery for fraud detection—announced on February 14, 2001.
  
  
• A 100 TeraOPS system Compaq is building through an agreement between the U.S. Department of Energy (DOE), Sandia National Laboratories, and Celera Genomics, which will be the world's largest supercomputer when completed in 2004 to be used for a range of life sciences applications—announced in Washington, D.C. on January 19, 2001.
  
  
• A 30+ TeraOPS system Compaq is building for the DOE's National Nuclear Security Administration (NNSA) to simulate nuclear testing—announced on August 22, 2000.
  
  
• A 6 TeraOPS system Compaq and the Pittsburgh Supercomputing Center are building and managing for the National Science Foundation for non-military scientific applications—announced on August 3, 2000.
  
  
• A Compaq system built for Celera Genomics to complete the initial mapping and sequencing of the human genome—announced in a ceremony at the White House on June 26, 2000.
  
  
• And, a 5 TeraOPS system Compaq is building for the French Atomic Energy Commission as the largest supercomputer in Europe—announced in February 2000.