News release

Newest Compaq Presario Desktop and Notebook Line Deliver Leading Performance at a Breakthrough Value (Advisory)

Compaq Computer Corporation (NYSE: CPQ) today introduced the latest in its award-winning consumer line of Presario desktop and notebook products, featuring leading technology and digital innovation at a breakthrough value.

The new Compaq Presario 5000 desktop models deliver leading technology and a wide mix of affordable features designed to meet the most popular computing needs. Starting at $749*, models include 128 MB of memory, 40 GB hard drives and popular CD-RW drives - allowing consumers to create their own custom CDs to store and share music, videos, images and more. Plus, with the purchase of a Compaq MV monitor and Compaq printer, consumers receive an even greater value with a three-piece $200 rebate offer.

Compaq also announced that it is now shipping its powerful Presario 7000 series PCs with the MyMovieSTUDIO solution that features DVD-R technology. Compaq's exciting MyMovieSTUDIO solution allows consumers to easily create professional-quality home movies and share them with friends and family. The MyMovieSTUDIO solution is also available on the new power-packed Presario 7000Z series, which includes the latest AMD® Athlon™ 1.33 GHz processor and DDR memory technology. Consumers can configure a custom-built PC through the Compaq Built for You program by visiting: http://athome.Compaq.com

The new Compaq Presario 1200, 1700 and 1800 notebooks offer consumers an enriched, fully-loaded computing experience with more powerful features - all packaged in sleek designs at great values. Starting below $2000, the new Presario 1800 notebook models feature a 15" TFT screen and the choice of Pentium® III processors, including the Pentium® III 1 GHz processor, the most powerful processor available in notebooks today. In addition, the newest Presario 1200 series notebook starts at a low $1099** and the Presario 1700 series with a DVD/CD-RW combo drive starts at $2199. Consumers are offered more powerful processing, larger TFT screens, enhanced memory systems, and DVD/CD-RW drives, all at affordable prices. As with the desktops, consumers can take advantage of several rebate offers on the new notebook line. For more information on these products, please visit http://athome.Compaq.com.

*After $50 mail-in rebate
** After $100 mail-in rebate