News release

State of Texas Awards Minority Reseller Another Major Compaq Technology Deal

Compaq Computer Corporation (NYSE: CPQ) will provide upwards of 5,000 desktops and key services during the next six years to the Office of the Attorney General for the State of Texas (OAG) through its reseller Texas Electronic Information and Computer Corporation (TEICC). The expected revenue is $5 million within the first year of this contract.

"The State of Texas has once again affirmed Compaq's value by choosing us to be the OAG's preferred technology solutions provider," said Jim Weynand, Compaq vice president of Government & Education Markets. "Compaq's record as a market leader of quality, innovative products and integrated solutions underscored our merit with the OAG over the other companies bidding on this project."

Growing Service in the State

During the scope of this six-year agreement, Compaq will provide more than 5,000 units to the OAG. Within the first three months of the project rollout, TEICC is scheduled to install 2,700 desktops. This agreement comes on the heels of the Texas Department of Transportation agreement for which Compaq was also chosen over a number of other competitors as the desktop and portable standard.

The OAG also has a substantial investment in Compaq industry-standard Compaq ProLiant servers, as do other State departments.

Emphasizing Value in Reseller Alliance

This is the more recent of two State of Texas contracts to be awarded through TEICC, one of Compaq's major minority resellers. The OAG indicated that TEICC, a HUB (Historically Under-utilized Business) company, offered the best price/performance value.

"TEICC is pleased to be awarded this additional state contract in alliance with Compaq," said Jay Patel, vice president of Marketing at TEICC. "Our strong association with an innovative technology leader like Compaq reinforces our ability to build long-term customer relationships, as with the OAG," Patel concluded.

"Our reseller partners, like TEICC, deliver a lot of value to Compaq by helping us extend our reach within the marketplace," said Weynand. "The fact that they are a minority reseller gives us an added advantage. Working with resellers that exhibit the professionalism and attention to quality that TEICC does is a rewarding experience and enables us to meet the technology needs of our customers in a personalized and professional manner."

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.