News release

Compaq Wins $5.2 Million Customer Care and Billing Contract with Manitoba Telecom Services Inc. (MTS)

Compaq Canada Corp. announced that it has been awarded a $5.2 million systems integration contract to provide MTS Communications Inc. (MTS) with an integrated solution for its next generation billing and customer care needs for 2001 and beyond. Under the terms of the contract, Compaq will supply MTS with the UshaComm Customer Care & Billing system, professional systems integration services, Compaq's leading-edge AlphaServer™ platform running Tru64™ UNIX, StorageWorks™ technology, and three years of Customer Services support.

"The selection of Compaq & Ushacomm to support a set of critical business functions within MTS reflects Compaq's extensive experience in architecting customer care and billing solutions," said Andy Canham, vice president, Western Canada, Compaq Canada Corp. "MTS has a long standing reputation for outstanding customer service and Compaq is proud to be a part of their new customer centered programs. Compaq will help MTS achieve its business objectives by working quickly to implement an effective and flexible solution that both meets current needs and allows for future growth."

"After an extensive evaluation process, the Compaq & UshaComm solution emerged as the clear winner to provide us with support on critical business functions," said David Rourke, executive vice president of Operations, MTS Communications Inc. "ISP Next Generation billing and customer care are very important areas for MTS as we develop market-leading offerings for our customers."

"UshaComm's software is specifically designed for advanced telecommunications service providers like MTS," said James Latham, executive vice president, Global Alliances for UshaComm. "Telecommunications customers require increasingly tailored service, as more communications options are made available. In conjunction with Compaq Canada, we will tailor and configure our inherently flexible Broadband and Telecom Billing and Customer Care platform that will serve MTS and its customers well for years to come. Our joint proposal with Compaq illustrates the strengths of both organizations in both products and professional services. The strong information technology experience of MTS adds a third dimension and will help ensure a successful implementation."

Company Backgrounds

Manitoba Telecom Services is Manitoba's preeminent, full-service telecommunications company. Seamlessly blending innovative solutions and world-class technology, MTS connects its customers to the world. Qunara Inc., MTS's e-commerce, e-business and Internet Data Centre subsidiary, provides business solutions across North America.

MTS's majority-owned subsidiary, Bell Intrigna Inc., offers leading-edge telecommunications services, including next-generation IP-broadband services, to businesses in Alberta and British Columbia. The company's common shares are listed on The Toronto Stock Exchange (trading symbol: MBT).

Usha Communications Technology (UshaComm) is a software solutions company offering a comprehensive product suite for Next Generation service providers needing Billing and Customer Care (BACC) systems for the convergent market. UshaComm's technology is differentiated by a unique ROI backed by a world-class customer service organization. UshaComm's corporate headquarters in Portland, Oregon, USA can be reached at 1.503.274.8777, or toll-free in North America at 1.877.567.5588, or www.ushacomm.com.

About Compaq

Compaq Computer Corporation (NYSE: CPQ), 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.

With headquarters and distribution facilities in Richmond Hill, Compaq Canada Corporation (http://www.compaq.ca) has 3,800 employees located in 41 offices across Canada, including Vancouver, Edmonton, Calgary, Regina, Winnipeg, London, Mississauga, Markham, Ottawa, Montreal, Quebec City, Moncton, Halifax and St. John's. With the exception of its larger scale technologies and services, Compaq products and services are sold and supported through a network of more than 3,900 marketing partners across the country.