News release

Off-the-Shelf Compaq AlphaServer Systems Power Sophisticated Military Airborne Surveillance System

An aircraft delivered to Robins Air Force Base in Warner Robins, Georgia, today is the embodiment of a new era in airborne surveillance and target acquisition. Northrop Grumman Corporation (NYSE: NOC) partnered with Compaq Computer Corporation (NYSE: CPQ) to outfit its latest super-sophisticated battlefield surveillance aircraft with commercial, off-the-shelf computers. While the aircraft being delivered today is the eleventh in the production series, it is the first to use commercial, off-the-shelf systems for that critical combat role.

Known as Block 20 E-8C Joint Strategic Target Attack Radar System (J-STARS), the plane uses 20 Compaq AlphaServer™ ES40CV systems running the OpenVMS™ operating system. The AlphaServer systems and other systems on J-STARS provide accurate, real-time data and analysis about vehicles on the ground and slow-moving aircraft for peacekeeping missions and decision-making on the battlefield.

"Traditionally, equipment used in the military surveillance and combat environments has been highly specialized and highly customized," said Rich Marcello, vice president and general manager of Compaq's High Performance Systems division. "The fact that commercially available technology like Compaq's OpenVMS-based AlphaServer ES40CV systems can be integrated into those environments is a testament to the performance, reliability and functionality of Compaq's industry-leading technology."

"We applaud the initiative to use Compaq's commercial, off-the-shelf AlphaServer systems in the J-STARS aircraft," said Ron Ross, president of Compaq Federal LLC. "And we're equally pleased that more and more government agencies are turning to Compaq—whether they need the mobility of an iPAQ™ Pocket PC, innovative Evo™ desktops or laptop units, market-leading Compaq ProLiant™ industry-standard servers, or a total services-led IT enterprise solution."

The announcement by Northrop Grumman of the use of off-the-shelf servers in the J-STARS aircraft is another in a series of announcements in which Compaq services and technology are being chosen to serve agencies of the U.S. Government.

This year alone, Compaq has been chosen by more than a dozen federal agencies to provide equipment, services or both. The value of Federal contracts awarded to Compaq over the past three months, including some large multi-year agreements, will total more than $1 billion if all options are exercised. Recent Compaq Federal contract awards involve agencies with very divergent needs and tasks.

Last week, the National Security Agency (NSA) awarded a 10-year contract worth more than $2 billion to a group of more than a dozen partner companies including Compaq. The companies have been given the task of modernizing the technological infrastructure of the NSA, part of which will include deployment of Compaq equipment to handle various tasks for the national security watchdog agency.

Earlier this year, the U.S. Postal Service (USPS) signed an agreement with Compaq to make Presario Internet PCs and a variety of Internet services options available at discounts to more than 800,000 post office employees. As a part of the contract, Compaq created a custom portal through which postal employees can securely access the USPS intranet.

The job of upgrading some 32,000 computers in the Social Security Administration was awarded to Compaq in April. The $30 million effort put the company to the test as it required Compaq's Global Services division to deploy the units to some 1,000 Social Security and state Disability Determination Service locations across the U.S. in only five months.

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.