News release

Compaq Chosen by BB&T Corporation to Provide Desktop Computers and Workstations

BB&T Corporation (NYSE:BBT) of Winston-Salem, North Carolina, has signed a two-year agreement with Compaq Computer Corporation (NYSE: CPQ) to purchase a variety of desktop PCs, workstations and monitors valued at up to $8 million.

The agreement calls for Compaq to provide Deskpro EN small form factor and configurable minitower PCs and AP250 and AP550 professional workstations to be deployed in BB&T corporate offices, branches, and several subsidiaries in nine states and the District of Columbia.

"Being responsive to the needs of its customers is a hallmark of BB&T," said Bill Creech, a BB&T vice president in information technology. "To ensure that responsiveness going forward, it is critical that we deploy a quality product with a compatible platform and a high level of reliability. The equipment going into our offices under this agreement will help us continue to meet the continually rising expectations of our customers."

The Deskpro EN platform is noted for its stability and is designed to allow maximum serviceability.

Tom Baber, Compaq vice president, Southeast Region said the agreement is a continuation of a long and productive business relationship between Compaq and BB&T.

"When upgrading its technological infrastructure, companies like BB&T look for a provider that brings to the table a combination of innovative products, corporate stability and a history of service." Baber said. "We are delighted to have been selected from among several companies vying for this business to serve BB&T again."

The technology upgrade effort will begin during the second quarter of this year and will be completed in early 2003.

Based in Winston-Salem, North Carolina, BB&T is the seventeenth largest financial holding company in the United States.

About BB&T

Winston-Salem, N.C.-based BB&T Corporation, with $63.7 billion in assets, operates 929 banking offices in the Carolinas, Georgia, Virginia, Maryland, West Virginia, Tennessee, Kentucky, Alabama and Washington, D.C.

BB&T and its subsidiaries offer full-service commercial and retail banking and additional financial services such as insurance, investments, retail brokerage, corporate finance, international banking, leasing and trust. More information is available at the bank's Web site, www.BBandT.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.