News release

Compaq to Provide Technology Infrastructure for World-Class Construction Industry Data Center

Compaq Computer Corporation (NYSE: CPQ) today announced a strategic marketing agreement with American Reprographics Company (ARC) to provide $10 million over two years in enterprise infrastructure technology and services to support the company's new construction documentation platform and the ARC Technology Center.

Under terms of the agreement, ARC has selected Compaq as its preferred technology provider and will move its data storage onto Compaq's StorageWorks™ products and its current back-end server architecture will be standardized on market-leading Compaq ProLiant™ industry-standard servers. Compaq will also power ARC's extensive Web site.

Compaq, as a leading IT solutions provider, joins Microsoft Corporation to offer a competitive advantage for ARC's new operating system, providing its more than 110,000 customer companies access to one of the largest collections of digitized architectural, engineering and construction plans and specifications available in the construction industry. When copies of plans are needed, customers can log on to ARC's PlanWell™ system through their PC, or via Compaq's award-winning iPAQ™ Pocket PC and retrieve the plans or access other ARC online offerings, in the office or in the field.

"ARC selected Compaq and Microsoft because we were looking for technology partners who could put all the pieces together to deliver a robust, mission-critical and integrated solution to support our broad database of construction drawings and specifications," said Rahul Roy, ARC's chief technology officer and chief executive officer of MirrorPlus Technologies, a wholly owned subsidiary of ARC.

Earlier, ARC had conducted a three-week simulated traffic test of its converted database system at the Microsoft Technology Center - Silicon Valley (MTC), where Compaq has contributed more than $6 million in technology and equipment.

"The Microsoft Technology Center provided a place where Microsoft and Compaq could understand ARC's requirements, hear their concerns and deliver the services they needed in an accelerated and focused fashion," said Peter Boit, vice president of e-commerce at Microsoft and head of the company's MTC efforts.

For nearly two decades, Compaq and Microsoft Corp. have been working together in their Frontline Partnership to drive industry standards through the joint development, testing and preparation of leading PC and server solutions. The Windows 2000 operating system was designed, tested and deployed on Compaq ProLiant servers. This close collaboration and Compaq's continual innovation in industry-standard computing have made Compaq the platform of choice for the majority of customers deploying Microsoft Windows powered solutions.

"Together, Compaq and Microsoft offer the breadth and scope of IT expertise that will enable ARC to integrate new technology that is highly scalable, reliable and can provide the performance and database security that its customers require," said Bill Weaver, Compaq's vice president, U.S. Sales.

"Compaq's goal is to enhance the customer Internet experience by building high-performance Internet infrastructures and providing leading-edge products, devices and best-in-class solutions with key partners, like Microsoft," Weaver said.

Compaq and ARC are also planning on cooperative marketing efforts to promote Compaq's brand, products and services on the PlanWell Web site. In return, ARC anticipates serving as a Compaq sales agent, providing its customers with the ability to order a wide range of Compaq products online, generating mutual revenue opportunities.

About the American Reprographics Company

The American Reprographics Company, the largest reprographics firm in the world, is a $428 million enterprise serving more than 110,000 customer companies in 100 markets nationwide through its 41 divisions and over 3,500 employees. ARC is the leading supplier of reprographic services and technology to the construction industry, manufacturers, software/hardware development companies, corporate offices, marketing and advertising agencies, publishing firms, retail establishments and presentation graphics providers. Company headquarters is in Glendale, CA. For more information, visit http://www.e-arc.com.

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.