News release

Compaq Provides Key Infrastructure to Microsoft Technology Center-Silicon Valley

Compaq Computer Corporation (NYSE: CPQ) announced today that it has contributed $6 million to the new Microsoft Technology Center (MTC) - Silicon Valley, representing a substantial commitment in a marketplace hungry for e-commerce technology, hardware and services.

The MTC will serve as a world-class facility with top-of-the-line equipment and infrastructure powered and jointly staffed by Compaq and other industry partners. The center will focus on the Valley community, providing access to technical staff, industry partners, tools and information needed to develop and grow e-business. State-of-the-art equipment, consulting expertise, product support and a "best practices" development philosophy will provide the highest level of reliability, scalability and serviceability.

"Compaq, as an established and active contributor to the Silicon Valley community, believes its investment in the MTC shows our affirmation to a highly productive engineering collaboration and our commitment to sharing deep technical knowledge in a rapidly, ever-changing environment," said Shane Robison, Compaq's senior vice president and chief technology officer.

"Compaq offers the industry's deepest expertise in Microsoft technology and the broadest range of innovative and highly optimized products, ensuring customers the ability to deploy e-business solutions on Microsoft platforms."

The center's grand opening event today, beginning at 3:00 p.m. at 1250 Charleston Rd., Mountain View, will feature remarks from Robison, as well as a keynote presentation from Microsoft Chairman and Chief Software Architect Bill Gates. Customers attending the event will get a first-hand look at the center and be able to meet with executives and technology consultants from Microsoft, Compaq and other industry partners supporting the center.

For nearly two decades, Compaq and Microsoft Corp. (Nasdaq: MSFT) have been working together in their Frontline Partnership to drive industry standards through the joint development, testing and preparation of leading PC and server solutions. The Windows 2000 operating system was designed, tested and deployed on Compaq ProLiant™ servers. Compaq continually invests in software integration and development, and in training its Compaq Global Services experts in Microsoft technology.

This close collaboration and Compaq's continual innovation in industry-standard computing have made Compaq the platform of choice for the majority of customers deploying Microsoft Windows powered solutions.

In addition to scalability testing, transaction cost analysis and platform upgrades to Windows 2000 and SQL Server 2000, the MTC will offer advanced development and application capabilities assessment through stress-testing products and services to minimize customers' risks. The center has 10 development laboratories, open 24 hours a day, where customers and technical staff can configure equipment in a specified environment. Each private development lab is based on Compaq's Distributed Internet Server Array (DISA) Architecture for building scalable, available e-business solutions, and is equipped with Compaq ProLiant servers, Compaq Deskpro desktops, Compaq Professional Workstations and Compaq StorageWorks™ hardware. A hands-on technical briefing and training room, with a fully networked Compaq Deskpro desktop for each seat, is also available to customers and developers for instructor-led courses and seminars from Microsoft and its industry partners.