News release

Compaq to Deliver Services & Equipment to Bank of America Nationwide

Yes, you can reduce costs and improve services at the same time. That's what Bank of America (NYSE: BAC) believes and why the company has just chosen Compaq Computer Corporation (NYSE: CPQ) to provide single-source service and support as well as hardware to the bank's corporate offices and banking center locations in the United States.

The Bank's decision caps a comprehensive internal analysis and competitive review of sources for "distributed" computing support services and hardware across the nation's largest financial services network. The review addressed hardware and software services and support for banking center equipment, small servers, desktop and laptop computers, as well as the acquisition of desktop computers.

"Bank of America is continually improving service levels to our customers," said Tim Arnoult, Technology & Operations executive for Bank of America. "For our technology group, that means becoming ever more efficient in delivering services to our internal business partners who work on the front line. By consolidating the sourcing of these services and products across the country through Compaq, we'll secure efficiencies that mean lower costs and improved service at the same time," Arnoult concluded.

"We can't think of a better argument for the value of integrating our delivery of services and products than the simple phrase, 'Bank of America,'" said Peter Blackmore, Compaq executive vice president, Worldwide Sales and Support. "Indeed, it's an honor to be chosen on the basis of our service capabilities by a company that is itself a recognized leader in one of the most service-driven industries of all."

The contract calls for Compaq to support the bank's existing client level computer resources throughout the United States. For ongoing new and replacement hardware, Compaq will provide its market-leading Compaq ProLiant industry-standard servers, Deskpro EN desktop computers, and professional workstations. The ProLiant servers will provide the backbone for file and print services, e-mail, remote access, database needs, and some banking center operations, among many applications. The desktop units will be used at the front lines of administration and customer service at Bank of America offices and some banking centers, while the workstations will support the company's trading operations.

Compaq Global Services will handle support and service, including a financing component from Compaq Financial Services, while Compaq Direct will configure, image, and fulfill the various product orders.

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.