News release

Compaq Ships One Millionth iPAQ Pocket PC; Showcases Innovative Wireless Data and Voice Capability

Compaq Computer Corporation (NYSE: CPQ), the world's leading technology solutions company, today showcased a new technology for the hot-selling iPAQ™ Pocket PC that enables both wireless data and voice capabilities. This makes Compaq the first company to show a wireless data and voice enabled handheld computer that can be used across the globe. The product is in development and will soon begin carrier trials.

In addition, Compaq extended the value and flexibility of the iPAQ handheld product family with a variety of new services, software and wireless solutions.

"Compaq continues to expand the capabilities of the industry's most popular handheld devices—as a matter of fact, we will ship our one millionth iPAQ Pocket PC this month," said Sean Burke, Compaq's vice president and general manager, iPAQ Products and Connected Devices Division. "Not only are we introducing more services delivering robust wireless capabilities today, but we're driving innovative technologies that will deliver high-speed wireless connectivity with even broader coverage," Burke added.

The Next Revolution in Wireless Communication

Today in Stockholm, Compaq Chairman and CEO Michael Capellas announced that the company is developing the first worldwide tri-band GSM/GPRS wireless data and voice capability for a handheld computer, the iPAQ Pocket PC. On one device—the iPAQ Pocket PC—customers will be able to browse the Internet, manage e-mail wirelessly, send and receive short messages (SMS), and have full mobile phone capabilities. Compaq has already successfully placed data and voice calls on several wireless networks in both Europe and North America. The product is well into the development phase, with availability expected later this year. For more information on the Stockholm wireless event, see http://www.compaq.com/newsroom/EMEAwireless/index.html.

iPAQ BlackBerry Enhancements

For the first time, customers in North America can access Lotus Domino messaging through the iPAQ BlackBerry Wireless Email Solution. In addition, BlackBerry Exchange Server for Exchange 2.1 is now available, providing the ability to wirelessly synchronize Microsoft Exchange-based calendar events on iPAQ BlackBerry devices. iPAQ BlackBerry customers can now accept and reject meeting notices.

The Compaq iPAQ BlackBerry Wireless Email Solutions—innovative handheld and wearable devices, along with complete server and service packages—provide remote wireless e-mail access from almost anywhere nationwide. The iPAQ BlackBerry Wireless Email Solution is provided in conjunction with Research in Motion. The new capabilities and offerings announced today are available immediately. For more information, see http://www.compaq.com/blackberry.

Premier Content on iPAQnet Mobile Internet

In North America, Compaq enhanced its iPAQnet Mobile Internet wireless service with premier content providers such as ABC News, Business Week, ESPN, USATODAY.com and Yahoo! Wireless streaming audio and video is available for iPAQnet Mobile Internet customers using the Ricochet network and the new Microsoft Windows Media Player 7.1 for Pocket PC via a new wireless digital media guide, WindowsMedia.com Mobile and Filmspeed. In addition, the iPAQnet mobile home page has been updated for easier navigation and reduced scrolling. For more information, see http://www.compaq.com/iPAQnet.

iPAQnet Mobile Email now includes wireless calendar management on both iPAQ Pocket PCs and Compaq notebook PCs. Customers can now wirelessly accept or reject meeting notices; create meetings, invite others, and check schedule conflicts; and search company address lists for co-worker information. iPAQnet Mobile Email is part of the iPAQnet Mobility Solutions suite, offering access to Microsoft Exchange-based corporate email, in conjunction with Infowave Software and version 4.1 of the Infowave Wireless Business Engine.

Expanded Wireless Network Access

Expansion Packs bring tremendous flexibility to the iPAQ Pocket PC platform, allowing customers to add a variety of capabilities via PC Cards and CF (CompactFlash) Cards. One such capability is adding CDMA wireless network access. In North America, Sierra Wireless has added Pocket PC support for the Sierra Wireless AirCard 510, and Compaq has added that card to the PC Card list at http://www.compaq.com/products/handhelds/pocketpc/pccardlist.html.

Easy ROM Upgrade

The latest ROM update for the iPAQ Pocket PC is now available, free of charge, in five languages on the Compaq Web site. The newly released upgrade enhances the performance of the product with a number of QStart and QMenu enhancements, as well as improved audio quality, USB driver improvements and more. The update is designed to change only the ROM image on the iPAQ Pocket PC, leaving the RAM (data and installed applications) intact.

The iPAQ Pocket PC is unique in its ability to allow end users to upgrade the core operating software. Customers can quickly and easily perform the ROM upgrade by visiting http://www.compaq.com/support/files/handhelds/us/index.html.

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.