News release

Compaq Named Preferred Technology Provider For E*TRADE Center Opening Today In New York City

Compaq Computer Corporation (NYSE: CPQ) today announced that it has partnered with E*TRADE Group, Inc. (NYSE: ET) to provide technology investments, as well as to supply enterprise infrastructure hardware for the new E*TRADE Center located at 540 Madison Avenue.

From desktop computers to high-speed servers capable of processing millions of transactions per minute, E*TRADE's innovative financial services center prominently features top-of-the-line technology and infrastructure powered by Compaq. In addition to E*TRADE Center in New York, Compaq also provides enterprise solutions to facilitate the computing environment necessary to meet the high demands of E*TRADE's growing business in E*TRADE's facilities in Alpharetta, GA and Rancho Cordova, CA.

"We are very excited about our partnership with E*TRADE and view our involvement in their new facility in New York as a proof-point of their confidence in Compaq," said Leigh Morrison, vice-president of enterprise sales, Compaq Computer Corporation. "This affirmation of our capabilities demonstrates how we are developing innovative products, integrating them into solutions, and delivering them globally."

Compaq offers financial institutions the capability to perform any transaction - anywhere, anytime - through innovative products and bundled end-to-end solutions based on best-of-class partnerships and superior services. Last year, E*TRADE purchased several Compaq products such as Alpha-based hardware and storage, including new GS series servers and a contract for round-the-clock services support.

"E*TRADE Center is designed to deliver a richer educational experience for our customers and through our partnership with Compaq, we are able to offer investors simple access to technology that is essential for making important financial decisions," said Michael Sievert, chief sales and marketing officer at E*TRADE Group, Inc. "Compaq's involvement in our New York facility illustrates our belief in Compaq's ability to provide high-quality products that assist us in delivering added value to our more than three million accounts worldwide."

Compaq is the leader in providing technology solutions for the financial services industry. In addition to powering E*TRADE, Compaq technology powers NASDAQ, 14 of the 15 largest stock exchanges in the world, 75 percent of the world's 100 largest electronic funds transfer networks, 95 percent of the world's securities transactions, 80 percent of all automated teller machines, and 66 percent of all credit card transactions.