News release

Compaq Enhances Consumers' PC Experience with 'Smart' Computers

Compaq Computer Corporation (NYSE: CPQ) today introduced Compaq Advisor™, a new service that increases the intelligence of Presario PCs to simplify and enhance the computing experience for consumers.

"Compaq Advisor is the result of our continuous search for opportunities to improve our customers' experience with the PC and Internet," said Bob Brewer, vice president of solutions for Compaq's Access Business Group. "The combination of Compaq Advisor, upcoming Windows XP enhancements and our existing E-Services tools will allow Compaq to provide the best customer experience by simplifying user interaction with the PC, offering technical advice and helping consumers realize the full potential of their computing environment."

Currently available on Compaq Presario desktop and notebook PCs, the Compaq Advisor messaging application provides helpful, timely technical advice and information to ensure users are getting optimal performance from their Presario PCs, as well as information about technology advances, services and offers relevant to their computing interests. The information spans a variety of different topics, ranging from increasing PC operating efficiency to maximizing broadband service and extending battery life on Presario notebook PCs. While Compaq has successfully provided similar PC management services to corporate customers, Compaq Advisor is the first of such services to be provided to consumers.

When a user performs specific actions on a Presario desktop or notebook PC, a small message will appear in the lower right corner of the computer screen. If the user clicks the small message for additional information, a larger message will appear, with related content to increase the user's productivity or simplify a task. If the user doesn't click the small message, it disappears into the task bar after just five seconds.

For example, the service can monitor the available space on the user's hard drive. When the hard drive reaches a certain capacity, this triggers the Advisor to deliver a small message alerting the user hard drive space is low. If the user clicks the small message, a full message appears with directions on how to clean and defragment a hard drive and offers more information about optional storage solutions. If the customer ignores the small message, then the full message waits in the task bar. The user can choose to close the full message, ask to be reminded later or request that it not be shown again.

While the customer's PC is online, Compaq Advisor automatically downloads the most current technical information updates, with no interruption to the user's Internet experience. This allows Compaq Advisor to proactively warn consumers of potential hardware or software issues and directs them to the appropriate site for assistance and prevention tips, increasing reliability and reducing the risk of downtime or costly repairs. To enhance the Compaq Advisor service based on the activities and needs of its customers, Compaq also receives encrypted data regarding the services and offers delivered to each user, but no data collected from a computer reveals the user's identity or any other personally identifiable information to Compaq.

"Products can offer the advantages of both personalization and privacy, but companies must build in privacy during the development phase," said Ari Schwartz, associate director of the Center for Democracy and Technology. "To offer the most user control, companies should give consumers up-front notice about the collection, provide an active choice in how information will be used, and personalize services on the user's computer rather than on a remote server." Designed in accordance with these privacy policies of the Center for Democracy and Technology, all customers are provided information about data collection and usage during the registration process. In addition, all decisions about which messages are shown to individual customers are self contained in and made solely by the software that resides on the PC, not on a remote server. Users will also have the opportunity to simply disable or remove the software.

Coupled with Compaq's broad portfolio of E-Services and online tools already available to Presario and iPAQ customers, and the Automatic Update, System Restore and Remote Access service features of the upcoming Windows XP platform, Compaq Advisor will complete a total "smart" computing solution that will help consumers take advantage of the full functionality of their PCs.

"Customers who take advantage of the Compaq Advisor service can get more out of their technology investment by learning to maximize the full capabilities of their PCs," said Lindy Lesperance, director of Technology Business Research's Computer Business Quarterly. "Compaq is definitely headed in the right direction by offering these types of services, which can potentially improve customer satisfaction with the company's products and services."

Additional Compaq service tools include the Compaq Customer Community (http://www.compaq.com/communities), an online forum where Compaq Presario and iPAQ customers can access other users and experts to share information and advice on technical and usage issues; the consumer support site (http://www.compaq.com/consumersupport), offering e-mail support and access to original product drivers, latest updates, and online documentation; and the Compaq Knowledge Center, which integrates self-help assistance features from Compaq and Microsoft with the efficiencies of the Internet for the fastest time to solution.

The new Compaq Advisor service is built on NeoPlanet's new generation of technology, the Viassary™ suite of customer-empowering products and services. Viassary enables companies to communicate effectively with their customers through multiple digital touch points. Components of the modular suite include: a smart rules engine that activates the intelligent delivery of communications and applications; a graphics engine that allows for custom-designed interfaces, branding and functionality; and push/pull adaptive technology that discretely downloads applications, content, functionality and product updates in the background without interrupting customers' computer experience.

For information about how Compaq treats data collected online, read our online privacy statement at http://www.compaq.com/privacy.html.

Company Background

Founded in 1982, Compaq Computer Corporation ("Compaq") is a leading global provider of enterprise technology and solutions. Compaq designs, develops, manufactures and markets hardware, software, solutions and services, including industry-leading enterprise storage and computing solutions, fault-tolerant business-critical solutions, communication products, and desktop and portable personal computers that are sold in more than 200 countries. Information on Compaq and its products and services is available at http://www.compaq.com.