News release

Compaq and NetCentrex Form Alliance to Deliver IP Solutions for Next Generation Voice Networks

Compaq Computer Corporation (NYSE: CPQ) and NetCentrex announced today that they have formed an alliance to supply convergent next generation telecommunications solutions that enable service providers to migrate to networks that handle both voice and data. The combined offering creates a single network convergence point that seamlessly integrates voice calls whether they are circuit-switched with traditional PSTN (public switched telephone network) technology or routed with packet-based Internet Protocol (IP) technology.

Working with NetCentrex, a leading global provider of products for converged voice-data VoIP networks and services, Compaq will now offer technologies, products, and services that support the convergence of the voice and data networks and enhanced services using next generation protocols. The two companies will also jointly develop and market key infrastructure and application solutions for both PSTN and packet-switched networks. These solutions allow service providers to offer both PSTN and VoIP services and migrate their voice networks and services toward VoIP.

Under the terms of the agreement, both NetCentrex and Compaq will offer the NetCentrex VoIP/PSTN product line on Compaq's highly available AlphaServer™ platform with Tru64™ UNIX, including Compaq's Central Office AlphaServer platform. Designed to meet the needs of large global carriers, Compaq's NEBS level 3 certified Central Office AlphaServer platform is hardened and tested to provide disaster-proof performance.

Compaq's commercial and central office servers also incorporate Compaq's IN7 signaling software based on the industry-standard SS7 protocols. The agreement also allows Compaq to OEM certain NetCentrex products and includes plans for the joint development and marketing of additional products to aid traditional service providers in the migration towards convergent networks.

The products are shipping in limited quantities now and will be generally available worldwide in July.

Mitesh Desai, vice president of Marketing and Business Development for Compaq's Telecom Division, said, "Today's agreement between Compaq and NetCentrex will deliver significant economic benefit for service providers. Compaq will continue to deliver highly reliable, telco-grade solutions for the emerging broadband IP-based networks. Our partnership with NetCentrex will enable us to complete our product suite and help telco customers implement next generation networks and deliver new IP-based services seamlessly and cost-effectively."

Olivier Hersent, NetCentrex chief executive officer, said, "Our partnership with Compaq allows us to offer our products on the leading carrier-class platforms, including the line of NEBS-level 3 certified AlphaServer platform, giving VoIP solutions the high availability and performance Compaq has traditionally provided to the PSTN world. The combination of NetCentrex with Compaq's platform, products, and services creates a unique and comprehensive offering for incumbent service providers that will enrich their PSTN services while facilitating their adoption of VoIP."

These solutions are supported by Compaq Global Services engineers who will provide worldwide service, support, planning, deployment, optimization, and management services.

About NetCentrex

NetCentrex™ delivers next-generation networking products and network-based applications for Voice-over-IP (VoIP), PSTN and Mobile networks. The products enable service providers to build converged networks and to offer network-based multi-media services for the eCRM, consumer and enterprise markets. Products include multi-protocol media server platforms, an application development and execution platform, and applications for multi-media contact centers, VoIP VPNs, IP Centrex services, and residential telephony. With NetCentrex, Service Providers can build next-generation networks and drive network demand through innovative new services.

Founded in 1998, NetCentrex has over 100 customers across North America and Europe, including France Telecom, GlobalOne, Telecom Italia, Telefonica, and Tiscali. Worldwide partners include Cisco, Compaq, Nortel Networks, Pagoo, and Siemens. The privately held company is backed by leading US and European venture capital firms. For more information, please visit www.netcentrex.NET.