News release

For the fourth time in five years, Compaq (NYSE: CPQ) has been honored with the United States Postal Service Quality Supplier Award in the Large Manufacturing Category.

Out of some 55,000 contracts that the U.S. Postal Service (USPS) has with suppliers, only nine firms were selected to receive the 2001 Quality Supplier Award.

"Achieving the United States Postal Service Quality Supplier Award for the fourth time is a tremendous honor for Compaq," said Peter Blackmore, Compaq executive vice president for sales and services. "Because the USPS award program is so rigorous and well managed, striving to win makes Compaq an even stronger partner. The USPS award recognizes Compaq's commitment to quality and continuous improvement, as well as to customer satisfaction."

All USPS award nominees go through a rigorous evaluation process, consisting of an eight-category evaluation, as well as a full on-site inspection and oral presentations.

The categories are as follows:

• Organizational commitment to quality
• Customer satisfaction
• Quality system
• Supplier management and initiatives
• On-time performance
• Contract management
• Human resource and development
• Corporate responsibility

In addition to 2001, Compaq was honored with the USPS Quality Supplier Award in 1997, 1998 and 1999. Compaq has also received the USPS Postmaster General Award in recognition of its successful partnership with the Postal Service and for consistently providing USPS with innovative technology that helps them solve their challenging business requirements.

The U.S. Postal Service is one of Compaq's largest customers and a long-standing partner in a relationship that began in 1979. The account is managed by a large Compaq team dedicated to providing a wide range of services and to integrating innovative products into solutions that consistently ensure high levels of customer satisfaction.