News release

Compaq Financial Services Launches Comprehensive Repair and Replacement Program for Leased Technology

Compaq Financial Services (CFS) launched a repair and replacement program today that will help customers keep their business up and running in the event that leased information technology is damaged, destroyed, stolen or lost. Advantage Protection Plus is the most comprehensive program in the IT equipment leasing industry, helping companies safeguard their IT investments and ensuring quick access to critical data in the event of a negative incident.

Customers obtain Advantage Protection Plus by simply indicating they choose Advantage Protection Plus during the lease process and paying a low monthly fee of 0.2 percent of the total equipment cost. The program fulfills the risk coverage requirement of lease contracts under $500,000 and has no deductible. Advantage Protection Plus covers all hardware including non-Compaq equipment for immediate repair or replacement.

"There's no room for downtime in today's 24x7 world," said Irv Rothman, president and chief executive officer of Compaq Financial Services. "Customers need peace of mind and the means to get up-and-running quickly if their information technology is damaged, destroyed, stolen or lost. Through Advantage Protection Plus, CFS assumes responsibility for repairing or replacing customers' technology."

Small and medium businesses are key market segments for the repair and replacement program. They typically have fewer financial and insurance resources to draw upon when adding additional assets to their enterprise, and are less prepared than large companies with contingency plans in the event of a negative incident.

"Small and medium enterprises have the same needs as multinational corporations when it comes to business continuity measures and disaster planning," said Rothman. "Advantage Protection Plus provides them with a cost-effective solution for protecting their assets and for providing them with access to the data they need to run their businesses."

CFS promptly sets the service process in motion after being notified of a claim. A local, authorized Compaq Service team is dispatched to repair or replace damaged, destroyed, stolen or lost equipment. Compaq installs, configures and tests the new or repaired system and handles critical aspects of the service effort, including equipment procurement, system restoration and vendor relations. Equipment covered under Advantage Protection Plus is repaired or replaced in a priority status.

About Compaq Financial Services

Compaq Financial Services Corporation is a wholly owned subsidiary of Compaq Computer Corporation (NYSE: CPQ). Compaq established Compaq Financial Services in January 1997 to provide information technology leasing and financing solutions for Compaq customers around the world. Today, Compaq Financial Services is the sole authorized provider of Compaq-branded financing, serving customers in 41 countries from regional headquarters in Dublin and Sydney, as well as from its worldwide headquarters in Murray Hill, N.J., which covers the Americas. The company serves all of Compaq's individual and business customers, including small and mid-sized businesses, government agencies, educational institutions and large, multinational corporations. Typical transactions range in size from $499 to $100 million. Additional information on Compaq Financial Services' financing and leasing programs is available at http://www.compaq.com/financialservices.

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.