News release

TxDOT Awards Major Compaq Equipment Deal to Keep Them Rolling Down the Information Superhighway

Compaq Computer Corporation (NYSE: CPQ) through its reseller TEICC, has signed an agreement valued at more than $20 million with the Texas Department of Transportation (TxDOT) to provide computers and services to the department over the next four years.

"We worked hard to convince TxDOT of the merits of a Compaq solution and are really pleased they selected us as their new technology vendor," said Jim Weynand, Compaq vice president of Government & Education Markets. "Several companies bid on this project, but Compaq's technical ratings, pricing and service capabilities demonstrated to TxDOT our ability to deliver innovative products and integrated solutions at a competitive price."

Personal Computers, Personal Service

Compaq will provide up to 14,000 desktop computers over the next four years, under a blanket agreement. During the first 25 days, more than 2,500 units were ordered and shipped to over 60 locations around the state.

In addition to providing attractive pricing, TxDOT indicated one of the determining factors of choosing Compaq was its ability through Compaq Global Services to directly service the PCs. TxDOT is also a large user of Compaq's industry-standard servers and portables.

Strength in Reseller Relationship

This agreement, one of the largest minority IT contracts issued by TxDOT, was awarded through one of Compaq's major minority resellers, Texas Electronic Information and Computer Corporation (TEICC). TEICC is classified as a HUB (Historically Under-utilized Business) company by the State of Texas.

"We're extremely happy to be awarded this contract along with Compaq," said Jay Patel, vice president of Marketing, TEICC. "We've enjoyed a long-standing relationship with Compaq based on true partnership. Compaq is truly a leader in product innovation and quality, and that is one of the reasons our customers routinely request their products," Patel concluded.

"Working with a reseller of the professional caliber of TEICC has been a highly positive and rewarding experience," said Weynand. "As a Compaq reseller, TEICC delivers the highest quality services to meet demanding customer requirements. Together with our channel and reseller partners, Compaq is able to deliver the technology needs of our customers."

About Compaq

Compaq Computer Corporation, a Fortune Global 100 company, is a leading global provider of technology and solutions. Compaq designs, develops, manufactures, and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, and communications products, commercial desktop and portable products, and consumer PCs that are sold in more than 200 countries. Information on Compaq and its products and services is available at http://www.compaq.com.