News release

Compaq Unveils New Products, Services and Solutions for Growing Businesses

Compaq Computer Corporation (NYSE: CPQ) today unveiled in North America a host of ultra-value, end-to-end products, services and solutions for small and medium sized businesses (SMBs), giving them access to the power of the Internet to start, grow and manage their business in today's connected business environment.

The cornerstone of today's announcement is Net Solutions for Business - a set of integrated, online tools to help customers use the Internet to extend their competitive edge with effective online marketing; increase their sales through e-commerce capabilities; and run the day-to-day tasks of a growing business.

Net Solutions for Business

Leveraging Compaq's key industry partnerships and strong channel/value-added reseller relationships, Net Solutions for Business provides both individual and bundled Internet-based services to help SMBs start, grow and manage a business online at affordable prices. From administration and sales to office automation and remote productivity, Net Solutions is a cohesive Web site that helps companies streamline their business processes, reduce costs and increase market reach with easy-to-use online tools.

While online services have been available for several years, Compaq is providing both a powerful set of integrated applications from Microsoft bCentral, as well as a high-touch solution by working through the company's VAR and Agent channels to help growing businesses find custom-made services (available beginning in May).

Compaq, in partnership with Microsoft bCentral, provides daily-use services such as Business Card, Business Web, Traffic Builder, Customer Manager, Commerce Manager and Finance Manager. These services work together to allow a growing business to do everything from getting a Web address and building a Web site to establishing company-branded email accounts and selling goods and services through an online catalog. Customers may start with the Business Web Service and gradually add other capabilities as their business needs expand.

Net Solutions grows with customers to offer Web site management, additional company branded email accounts, search engine listings, banner exchanges, E-newsletter, and a listing in the MSN Yellow Pages. Net Solutions also provides customer and commerce management tools to automate the selling of goods online through multiple marketplaces.

Compaq Access is a new SMB connectivity service that makes conducting online business easy with secure, high-speed connectivity at a reasonable price. The service includes Compaq DSL (digital subscriber line) for Business, a high-speed Internet access service, or Compaq Dial-Up for Business for companies who don't require high-speed access.

Other options include Online Meeting Center for real-time interactive meetings on the Web, and Online Backup for economical, online file backup services to safeguard PC data in case of disaster. Compaq Net Solutions also adds behind-the-scenes capabilities such as public relations, online advertising, direct mail and print ads, sales and marketing, recruiting, credit reports and debt collection.

The Small Business Resource Center provides sales and marketing, finance and legal services. Secure File Delivery is an Internet alternative to express courier delivery, while RingMeNow allows simple Web site customization for easy technical support and online collaboration from anywhere on the web. For more information, please see http://www.compaq.com/netsolutions.

ProLiant Servers Deliver Industry-Leading Performance Starting at $999

The ProLiant ML330e is an ultra-affordable, fully optimized server that enables small businesses to build their first network or expand their existing Internet capabilities. The new Compaq ProLiant small business server is fully equipped with the latest ProLiant server innovations at a breakthrough price starting at $999 ⁽¹⁾, including the latest Intel® Pentium® processors, Compaq Intelligent Manageability tools and industry-leading reliability features.

The ProLiant ML330e gives small businesses the features and capabilities of enterprise-class computing, with the right technology and IT support that enables them to stay focused on running their business. The ProLiant ML330e offers proven industry-standard server technology coupled with a wealth of experience and support from Compaq channel partners for small businesses. For more information, please see http://www.compaq.com/products/servers/proliantml330e.

First Deskpro Workstation Under $1,400

The Compaq Deskpro Workstation AP230 is designed for engineers, creative professionals and power-hungry users who demand the high performance and maximum value that a single-processor workstation provides.

Starting at a breakthrough price of $1,399, the AP230 comes standard with an Intel Pentium 1GHz ⁽²⁾processor and will be available in mid to late April. Based on Intel's 815e chipset, the AP230 offers memory support of up to 512MB of SDRAM ⁽³⁾, allowing users to keep pace with their ever-growing data sets. Standard models also include a 48X CD-ROM, integrated audio, integrated 10/100 NIC ⁽⁴⁾, and Ultra ATA/100 or Ultra160 SCSI ⁽⁵⁾hard drives. Outstanding 2D, multi-display and 3D workstation graphics performance is possible with choices such as the NVIDIA Quadro2 MXR, ELSA Synergy II, and the Matrox Millennium G450 dual head.

The AP230 is ideal for mainstream CAD, CAE, DCC, GIS ⁽⁶⁾and software development applications. For more information on Compaq workstations, see http://www.compaq.com/products/workstations/.

Armada 110 Notebook PC

The new Compaq Armada 110 combines powerful features with essential computing solutions in a price-performance combination ideal for growing businesses. Starting at only $1,099, the Armada 110 models feature Intel Pentium III 800MHz ⁽⁷⁾and Celeron® 700MHz processors, a stunning TFT ⁽⁸⁾display with screen sizes up to 14.1-inches, 64MB ⁽⁹⁾of memory, a 10GB ⁽¹⁰⁾hard drive and the latest in multimedia options to provide an economical, robust notebook PC ⁽¹¹⁾.

Weighing less than seven pounds, the Armada 110 is a durable, all-in-one notebook that offers convenient, simultaneous access to the hard drive, diskette drive, and CD-ROM drive. The Armada 110 also features a full-size keyboard with four easy-access Internet buttons that can be programmed for one-touch access to Net Solutions for Business content or other favorite Internet sites, files, or applications.

A new Portable CarePaq^SM, part of Compaq's family of service and support offerings, includes 36-month Accidental Damage Protection for Compaq's commercial notebooks. Four easy-to-buy plans include a warranty extension or on-site upgrade with accidental damage protection. For more information, see http://www.compaq.com/smb/notebooks.

New Models in Popular Deskpro EX Series

The affordable Deskpro EX Series is a perfect fit for growing businesses needing simplified choices for general business computing at unbeatable values. The latest versions of the Deskpro EX come in a space-saving microtower design with 64MB of SDRAM, a 10GB Ultra ATA hard drive, 48X CD-ROM, PCI ⁽¹²⁾10/100 NIC, and Microsoft® Windows® 98 SE. An Intel Celeron 667MHz model starts at $499, while an Intel Pentium III 733MHz model starts at $699.

The Deskpro EX Series also offers Intel Pentium 4 processors at 1.3GHz and 1.4GHz. Starting at $1,549, each model features 128MB PC800 RDRAM (13), a 20GB Ultra ATA hard drive, NVIDIA TNT2 Pro 16MB AGP graphics, and Windows 2000 Professional. The products also come with an Intel Pro/100+ Management Network Adapter, 48X CD-ROM, and an Easy Access Internet Keyboard. For further information, please see http://www.compaq.com/products/desktops/exmt/index.shtml.

Financial Services

Financing is increasingly important to SMBs who need to maximize cash flow, yet want the flexibility to upgrade technology easily and affordably as their businesses grow. Compaq Financial Services offers several programs for growing businesses to make it possible to get the technology they need. New programs include the Compaq ProLiant $0 Down - 0% Interest Program ⁽¹⁴⁾. Customers can acquire the ProLiant solution they need now and make lease payments over 30 months with no interest and no down payment. Qualifying servers include the ProLiant ML330, ML350, ML370, CL380, DL320, DL360 and DL380. In addition, CFS offers special leasing programs for companies in business less than two years - designed to help them when they need it most.

Advantage Protection Plus protects customers against theft and full/partial loss or damage to all leased products at a low fee. There's no deductible, customers can make affordable monthly payments, and users benefit from a simplified claims service 24x7. For more information, see http://www.compaq.com/financialservices.

Bequipt, The Accessory Store

Compaq announced the addition of Bequipt, the Accessory Store - a time-saving, one-stop shop for computing peripherals and supplies online - to its Web site at Compaq.com. Bequipt offers more than 50,000 products from over 300 industry-leading manufacturers, plus a broad selection of Compaq products at competitive prices. It is easy to use over the web or telephone and offers rapid delivery - generally, orders received by 4 p.m. local time will ship that day. See http://www.bequipt.comfor details.

eSupport for Growing Businesses

The company also enhanced its eSupport program for growing businesses. This Web site is ideally suited for SMBs and makes it easy to access Compaq's web-based services, resources and expertise all through a single portal. For more information, see http://www.compaq.com/support.

Business Advantage Program

Compaq Business Advantage is a Business-To-Business program targeted at mid-sized companies (100-999 employees) who wish to buy Compaq commercial products, services, and solutions directly from Compaq's DirectPlus store through a customized web page. Business Advantage allows customers to browse and select products and options to create unique corporate standard configurations. This can help reduce a company's administration costs by allowing employees to make purchase requests online, with management approval. Customers may participate in this program with assistance from their local Compaq reseller or agent.

All products announced today will be available in the U.S. from Compaq directly through http://www.directplus.compaq.comor through the company's extensive network of value added resellers and agents.