News release

Compaq to Market eFACTS to State Environmental Agencies

Compaq Computer Corporation (NYSE: CPQ) will begin marketing a multimedia environmental compliance information system called eFACTS (Environmental Facility Compliance Tracking System), which state governments can use to track the results of inspections, enforcement actions and permit reviews and make that information available to the public.

The eFACTS system was developed in cooperation with the Pennsylvania Department of Environmental Protection (DEP) to assist with its efforts to protect the Commonwealth's air, land and water from pollution and provide for the health and safety of its citizens through a cleaner environment.

"At Governor Tom Ridge's direction, Pennsylvania has been using technology to make government more user friendly," said DEP secretary David E. Hess. "The eFACTS program that Compaq developed for us is a terrific example of using cutting-edge information technology to make information available to the public through the Internet and developing a management tool so we can run our programs more effectively.

"This is the first time any environmental agency in the country has used an information system to get a single view of activities across all of our programs," Hess said. "We are glad to be working with Compaq to allow other states to benefit from the work we've done."

Since its inception five years ago, eFACTS has helped to manage 150,000 environmental permits processed through DEP's Money Back Guarantee Permit Review program, helped DEP for the first time establish baseline compliance rates for all programs, and helped manage facilities to achieve higher levels of compliance. It also has made that information available to the public via the Internet. Because of the considerable benefits of this system, DEP is allowing Compaq to sell it to other states.

"Compaq's considerable strength in the government marketplace is a result not only of the engineering excellence of its innovative products but also its best-in-class partnerships with agencies like Pennsylvania DEP," said Jim Weynand, Compaq vice president of government and education markets. "We applaud Governor Ridge for his environmental efforts and for allowing Compaq to market this effective e-government solution to other agencies."

Information About eFACTS

Compaq helped DEP develop eFACTS, which is an online database that the public can access to search for owners and operators, and regulates sites, the compliance history of DEP permit holders and the status of all permits at a site. They can search by the name of the permit holder or by county or municipality.

Since its implementation, eFACTS has been used to track relevant information about environmentally regulated clients and their facilities. A comprehensive Geographic Information System application, eFACTS enables an agency to integrate data from different sources so all information about regulated organizations, individuals, sites and facilities can be viewed. Using eFACTS, agencies can track permit applications, approvals, inspections, violations, enforcement actions, bonding and forfeiture activities and self-monitoring reports.

Such information includes: names of regulated clients and their facilities, maps, permits and compliance data (inspections, violations, enforcements and penalties). In addition, people can sign up for eNOTICE, an electronic mail notification of permit activity of interest to them—by county, municipality or borough. The eFACTS system contains six core modules for:

1. Authorization application processing
2. Program-specific inventory details
3. Compliance
4. Bonding and forfeitures
5. Licensing
6. Self-monitoring report tracking.

Through authorization application processing, eFACTS makes all permit applications "visible" as they are processed, including those that involve multiple DEP programs. For instance, a proposed power plant might need permits for air quality, waste management and water quality; eFACTS makes the status of the applications and permits available over the Internet.

The compliance module is similar, allowing users to record and track inspections, violations, enforcement actions and penalties. Additionally, eFACTS modules include program-specific inventory details (water quality, radiation protection, hazardous waste, municipal/residual waste, oil and gas management, mining and reclamation, air quality), bonding, forfeitures, licensing and self-monitoring functionality.

The Council of State Governments selected the DEP eFACTS Compliance Reporting System as one of 1999's eight most innovative programs. It is now available to state environmental agencies as a solution through Compaq's eGovernment practice.

Agreement Terms

Under the agreement, Compaq becomes the owner of the eFACTS software. For every license that Compaq sells, DEP receives a "service credit" to purchase professional, technical, consulting, maintenance and support services from Compaq.

DEP also retains the right to use the eFACTS software without paying royalties and can modify it for other uses.

eFACTS Background

For more information on eFACTS, visit DEP's Web site http://www.dep.state.pa.us (directLINK "eFACTS").

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.