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Anne Arundel Schools to Use Compaq Equipment in Innovative $25 Million Technology Upgrade Project

HOUSTON, TX and ANNAPOLIS, MD, June 19, 2001

Anne Arundel County Public Schools have signed an innovative three-year, $25 million equipment lease agreement for the use of Compaq equipment that provides for timely upgrades of desktop computers and servers used in the 74,000-student system and virtually eliminates obsolete computer technology in system classrooms and offices.

The contract covers the deployment of some 12,000 Compaq Deskpro™ EN computers and 400 Compaq ProLiant™ ML370 servers for use in the system's administrative offices and classrooms in its 120 schools. The technology upgrade effort is part of the school system's Advanced School Automation Project (ASAP), an ongoing technology plan initiated in 1995. Establishing equipment and implementation standards for the school district was part of the responsibility given to the ASAP committee by the system leadership.

Joe Hebler, manager of applied technology for the school system, said a move to leasing computer equipment has been in the making for some time. He said school system experience has shown that a standard, systemwide technology platform is the most efficient way to manage technology. He added that, for Anne Arundel County Schools, a lease arrangement made good education sense as well as good business sense.

"For a school system, just as for a business, investment in new technology is an investment in enhanced capabilities and increased efficiency," Hebler said. "The desktop units and servers in this contract are highly regarded for their quality and manageability. This arrangement will provide the best technology situation for the system students as well as for our 5,000 teachers."

The Deskpro EN series of computers is known for its flexibility, expandability, serviceability and general stability. The industry-leading ProLiant servers are highly regarded for their reliability and high level of serviceability, and were recently cited by Technology Business Research (TBR) as number one in customer satisfaction for these reasons.

Under the agreement, each desktop machine will be imaged with a package of software selected by the school system that is aimed specifically at the elementary, middle or high school teaching environment, or an administrative setting.

Hebler said deploying current technology throughout the system will ensure that the equipment will be robust enough to be managed effectively from a central location. That, he said, will mean additional savings in the cost of maintaining the equipment during its life cycle.

Daly Computers was named principal contractor for the project. In that role, the Clarksburg, Md., company will provide project manager services including coordinating the purchase orders, along with the installation and imaging of the equipment. Daly was among 16 companies that replied to the system's Request For Proposals.

The lease of the equipment was arranged through Compaq Financial Services, a wholly owned subsidiary of Compaq established in 1997 as a leasing and financing vehicle for Compaq customers around the world.

Jim Weynand, Compaq vice president for government and education markets, said the final decision to go with Compaq equipment and a lease arrangement was based on several factors.

"In a cosmopolitan school system like Anne Arundel County, it is important for students, teachers and administrators to have up-to-date computer technology with which to conduct their studies or do their job," Weynand said. "The three-year refresh aspect of this agreement ensures that there will be no more than three years' difference between the oldest computer in the classrooms and the newest. Add to that the cost benefit which comes with economies of scale, and the virtual technological parity that such a short refresh cycle will ensure, and it quickly becomes clear that this is definitely the way to go."

The new computers will be deployed in administrative offices within the school system right away. The first group of 4,000 desktop units for use in classrooms will be installed during the summer months and readied for the students to begin using with the start of school in the fall.

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.


Notes:

Compaq and the Compaq logo Registered U.S. Patent and Trademark Office. Other product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. This press release may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include, among others: market conditions, particularly in the U.S.; increased competitive environment and pricing pressures; disruptions related to restructuring activity and delays in the implementation of changes in delivery models. Further information on these and other factors that could affect Compaq's financial results is included in Compaq's Securities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K and the latest quarterly report on Form 10-Q.

 


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