News release

Compaq Ignites its Access Business with Bold New "Evo" Corporate Product Lineup

Delivering on its promise to help customers evolve from computing to communicating, Compaq Computer Corporation (NYSE: CPQ) today unveiled Evo™— a new family of access solutions that raises the standard for simplicity, innovation and value for business customers. The company premiered several of the new Evo models, showcasing the Evo N400c ultra-light notebook whose optional, modular MultiPort solution offers a choice of both wired and wireless networking, and allows a user to switch between Bluetooth™ and 802.11b for wireless connectivity. Compaq also announced aggressive introductory pricing across the Evo product line.

Today's announcements are the first of several the company will make over the next weeks to extend its leadership in the access market, which comprises conventional PCs, Internet access products and technologies, entertainment devices and personal wireless mobility solutions. Compaq's access business realized $20 billion in revenue in 2000, and the company continues to drive its access market strategy with groundbreaking technologies such as the flexible wireless offering demonstrated today, and in developing new product fields such as the handheld and microportable projector categories.

In addition, Compaq provided a behind-the-scenes look into its own design lab with the unveiling of conceptual models from its "visioneering" team whose most recent hit, the iPAQ Pocket PC, is among the company's most popular products ever. Futuristic hybrid desktop/portable devices called "Dual Worlds" and Tablet PC models, developed in close collaboration with Compaq customers, previewed possible future generations of Compaq access devices while showcasing the design, flexibility and innovation introduced with the Evo family today. For more information, visit http://www.compaq.com/newsroom/presspaq/052101/visioneering.html.

Created for business customers with demanding networked environments, the new Compaq lineup includes Evo notebook solutions, Evo thin client offerings and Evo workstation class products — introduced worldwide today — along with Evo desktops that will roll out during the fourth quarter of this year. The single sub-brand, a streamlined set of product models, global availability, and manageability tools make the Evo offerings simple to purchase, deploy and manage. Industry-leading innovation and flexibility across the product family enable each customer to evolve the enterprise at his or her own pace. Compaq's current commercial PC products, including Armada, Deskpro, iPAQ Desktop, Professional Workstation and Thin Client lines will be gradually retired over the next 12 months to ensure customers a smooth transition to the new lineup. (Editors: see today's Compaq press release " Compaq Drives Next Era of Business Computing" for additional product information.)

"Today's introduction of the Evo family marks a new chapter for Compaq and our customers alike. Evo is a terrific new technology lineup that raises the bar for innovation and value, especially for the mobile professional," said Mike Larson, senior vice president and general manager for Compaq's Access Business Group. "Fundamentally, Evo represents the evolution from the traditional PC to a new level of simplicity and assured connectivity. The competitive landscape in the access space changes today — not just with Evo's compelling pricing, but also its extraordinary customer value including visionary engineering and design, built-in wireless capability, and no-compromise performance."

Evo's competitive introductory prices underscore Compaq's intent to become more aggressive in the access market. Over the next months, Compaq will roll out unique, innovative solutions and services built around the Evo platform to address specific customer needs in security, wireless access, asset management and power conservation. Continued improvements in internal processes will also reflect in enhanced value for the customer.

All Evo products feature a sleek new carbon and silver industrial design that blends with the myriad office environments of today's business user. The new look and feel highlight Compaq's evolution of the beige box to the streamlined access device providing on-demand connection to content and data.

With an eye on the increasing demand for wireless, mobile access to information and data anytime and anywhere, Compaq is integrating MultiPort wireless connectivity into select Evo notebooks. Other Evo highlights announced today include Compaq's first legacy-free thin clients with embedded Windows NT that enable 100 percent remote client management, and cutting-edge processing power in the Evo workstations. Products announced today will be available worldwide either directly from Compaq online or over the phone, or through Compaq Authorized Resellers.

"With Evo, Compaq has managed to rebrand its commercial line in a fashion that clearly distinguishes it from the consumer and 'lifestyle' lines," said Roger Kay, director of PC hardware at IDC. "This distinction will allow Compaq to develop each without the inhibition of having to meet the goals of the others. Ultimately, this clarity should be a benefit for Compaq's customers."

For more about today's announcement, visit Compaq's virtual press kit at http://www.compaq.com/newsroom/presspaq/052101/index.html.

Access Business Group

Compaq's Access Business Group delivers simple, innovative access solutions for work, home and play, extending anytime, anywhere communication across the work/life balance. In addition, Compaq designs its products, services, and programs with improved usability and accessibility for all customers. Compaq is a leader in environmentally sound practices and product design.