News release

Compaq Helps Close the Digital Divide in Hillsborough County, Florida

In a bold step aimed at closing the digital divide in Hillsborough County Public Schools, Compaq Computer Corporation (NYSE: CPQ) today signed an exclusive five-year agreement that not only reduces technology costs for the district, employees, and parents, but also gives the district one percent back on Compaq products purchased under the agreement.

"To our knowledge, this is the first time any computer manufacturer has implemented an aggressive educator/parent purchase program where a percentage of the purchase price will be rebated to the school district, which can use it for programs like closing the digital divide," said Jim Weynand, Compaq vice president of Government and Education Markets. "We recognize that this is a first step in solving what is a complex challenge, and we applaud the School District of Hillsborough County for taking the initiative."

The five-year agreement, estimated to be worth more than $50 million, provides the 11th largest school district in the country with leverage to lower its total cost of ownership through volume discounts. Hillsborough County Schools can choose from a variety of Compaq's innovative technology that can be used to build end-to-end solutions—from desktop computers to notebooks to servers and a variety of IT services.

"One of the School Board priorities is updated and integrated technology. Another is improved internal and external communication. This agreement will help us fulfill both priorities, while greatly enhancing student performance," said Hillsborough Schools Superintendent Earl Lennard.

In addition to volume discounts and the rebate program, Hillsborough County educators will benefit from Compaq's strong commitment to education.

"Through the employees' and parents' rebate program, the district can earn credits that can be redeemed for additional Compaq products, professional development and other resources that will help them maximize their technology investment," said Weynand.

The agreement with Compaq helps Hillsborough provide equitable access to technology for all students, their parents and staff members.

Further, Compaq can address all of the County's technology goals, from connectivity within and between schools to an e-mail system for the teachers.

Information on the technology purchase program can be obtained by calling the Hillsborough Schools Office of Technology Services at (813) 272-4700.