News release

Compaq Expands its Zero Latency Enterprise (ZLE) Initiative with New Global Services Program

Compaq Computer Corporation ( NYSE: CPQ) today launched a comprehensive services program focused on delivering the benefits of its Zero Latency Enterprise technology to customers around the world.

Under the plan, Compaq Global Services, leading consultants/system integrators (C/SI) and technical implementers, will provide valuable enabling services to help businesses design and deploy a Compaq ZLE solution. Customers can select Compaq Global Services or a C/SI partner or a combination of both to best suit their ZLE implementation.

In addition to Compaq Global Services capabilities to reach customers on a worldwide basis, Compaq will build upon previously established partnerships with Cap Gemini Ernst & Young and Lockheed Martin. Compaq also announced today that it has signed agreements with Deloitte Consulting, EDS and KPMG Consulting, Inc. that enable Compaq to collaborate with the companies on joint client engagements and potential joint solutions.

Agreements have also been signed with the following technical implementers: Baldwin Hackett & Meeks, Inc. (BHMI), Digital India, Opsol Integrators, Inc., Roundarch, Science Applications International Corporation (SAIC) and TATA Consultancy Services (TCS).

Compaq is the first to create zero latency technology to meet customer demand for solutions that enable business to be conducted in real time and today's announcement follows Compaq's recent naming of nine leading independent software vendors (ISVs) as business partners in its Zero Latency Enterprise initiative.

"Compaq ZLE enables customers to create and deploy real-time enterprises," said Howard Elias, Compaq senior vice president and general manager, Business Critical Server Group. "And crucial to delivering the benefits of the real-time enterprise is a strong global services capability complemented by partnering with world-class consultants, systems integrators and ISVs. Together we will provide customers with the in-depth experience and integration resources required to implement ZLEs, particularly in telecommunications, retail and financial services, our key target markets."

"Compaq Global Services and our partners have the expertise and global reach to provide customers with an end-to-end ZLE solution, from planning, design & implementation, through ongoing operations management and support," said Jeff Lynn, vice president, general manager, Compaq Global Services. "With our years of expertise in designing and deploying enterprise solutions, Compaq Global Services simplifies the complexity of ZLE for our customers while ensuring high availability for these mission-critical applications."

Compaq's investment in pre-integration activities and development of repeatable core solution elements supports faster time to market, reduced risk and lower cost to implement and manage. The combined strengths of Compaq Global Services with those of select consultants and systems integrators helps ensure customers a robust, secure ZLE implementation.

ZLE Brings Real-Time to the Enterprise

ZLE is a transaction-oriented solution providing a single, integrated view of business and customer transactions as they occur, no matter where they occur in the enterprise, in real time. In a zero latency environment, the flow of internal information is accelerated to the point where transactions are instantaneously propagated within the enterprise and can be acted upon in real time. The Gartner Group, Inc., which originated the zero latency concept, forecasts that almost every successful business will have some form of ZLE infrastructure.

Compaq Targets Key Markets

Compaq is building ZLE solutions today aimed at the highly competitive telecommunications, retail and financial services markets where immediate insight into customer actions and business transactions offers a compelling advantage.

In the telecommunications industry ZLE benefits may include instant response to customer service requests and searches for patterns of fraudulent activity in real time. In the retail sector, ZLE is redefining the customer relationship model and integrating in real time the many channels by which a customer can buy goods and services. Financial services provider benefits may include real-time account balances and asset values, intra-day borrowing, and global asset management.

Additional information on Compaq's ZLE initiative, technology, and demonstrations is available at http://www.compaq.com/zle.