News release

Compaq Redefines the Computing Experience for Spanish-Speaking Customers in the U.S.

Furthering its commitment to its customers, Compaq Computer Corporation (NYSE: CPQ) today announced it will launch a robust new marketing initiative early this summer, specifically designed to make the overall computing experience, from PC purchase to out-of-box usage, easier for Spanish-speaking customers. Available exclusively on the Presario "Built for You" 5000T Series Desktop Internet PCs sold in the U.S., this new marketing initiative is targeted at both home and office customers and will feature PCs that include:

• A dedicated toll free number (1-800-230-5752) with automated phone menus in Spanish and bilingual sales representatives that can assist Spanish-speaking customers in ordering their Presario PCs direct from Compaq.
  
  
• Specific links in Spanish on Compaq's Web site (www.compaq.com) that help guide Spanish-speaking customers through the simple process of purchasing their PCs through Compaq's "Built for You" program in the language of their choice.
  
  
• A Spanish version of Microsoft Windows^®Millennium (Me).
  
  
• A Spanish version of the Microsoft^®Home Suite, which provides popular software applications such as MS Works 2000^®, MS Encarta On-line Deluxe Encyclopedia 2000^®(1 year free subscription) and MS Money 2000^®.
  
  
• Built-in access to America Online^®with Spanish links to U.S. Web sites that contain bilingual features.
  
  
• Keyboards featuring Spanish characters.
  
  
• Representatives in Compaq customer service and tech support who are bilingual.
  
  
• Spanish-language documentation that arrives with the unit and, in addition to providing general information, it explains how to set up the PC and use it.

"After months of planning, we're very excited to announce this Spanish language initiative and have great expectations for how our Spanish-speaking home and office customers will respond to it," said Mark Vena, director, Configure-to-Order Products, Home and Office Division in Compaq's Access Business Group. "Research has shown that among the six largest PC manufacturers, Compaq is the most popular brand purchased by Hispanics, so this initiative further underscores Compaq's commitment to widening the appeal of the Presario brand to this rapidly growing segment of the U.S. population." ⁽¹⁾

A Fast-Growing Market

A recent Washington Post report stated that based on early data from the 2000 Census, the Hispanic population in the United States has grown much faster than expected and is roughly equal to that of African-Americans. Additionally, the number of Americans who described themselves as Hispanic grew by nearly 60 percent and now totals 35.3 million--roughly 3 million more than the Census Bureau had predicted.

In another announcement today, Compaq highlighted a one-year agreement with the Latin Business Association (LBA) to become the group's preferred technology provider. Compaq will provide technology hardware, software, services and support for the LBA, the largest Latino business organization in the U.S., which represents the business interests of more than 440,000 Latino businesses in Southern California.

"As evidenced by our recent initiatives, the Spanish-speaking market is a very important segment of Compaq's home and office access business, so we will continue to pay close attention to how technology solutions can be made easier to use and more accessible for this important segment of the U.S. population," Vena said.

Affordable Inspiration - The Presario 5000T Series Offers Great Fun, Great Prices

The new Spanish-language Presario 5000T Series Internet PCs will be offered at the same value prices that are currently offered for standard 5000 series models. Recent enhancements to these PCs bring a whole new set of features to the line of products. A recordable CD-RW drive on most models allows users to create custom CDs from his or her personal music library or to back up large files to take along. With a choice of upgraded processors, including the Intel Pentium^®III 1 GHz (on some models), it brings a whole new level of speed and performance to the 5000T Series. In addition, each PC features four USB ports (two each in front and back), Microsoft Windows Millennium Edition (Me) software, Compaq's USB Internet keyboard with one-button access to the most popular and useful sites on the Web and a free MyStyle Accent Color Kit. The Spanish-language Presario 5000T Series will be available for purchase in summer 2001 through Compaq's "Built for You" kiosks at participating retailers, on Compaq's consumer Web site at http://www.compaq.com/athome/5000seriesand by calling 1-800-230-5752.