News release

Compaq to Provide High-Performance Computing for Entelos' Virtual Laboratory Environment

Compaq Computer Corporation (NYSE: CPQ) and Entelos, Inc., a leader in predictive biosimulation for in silico drug discovery and development, today announced a three-year IT agreement that will provide pioneering technology to support new drug development, disease research, and improved patient care.

Under terms of the agreement, Entelos has adopted Compaq's high-performance AlphaServer™ systems running Tru64™ UNIX and Compaq ProLiant™ industry standard servers running Linux as the computational platforms for its current and next-generation high-throughput PhysioLab™ systems. Using Compaq systems, Entelos will have a scalable, virtual laboratory that can be integrated with the drug discovery and development processes of its customers. Compaq will assist Entelos in continuing to expand its computational capabilities by providing industry-leading computation and storage platforms and solutions. In addition, Compaq and Entelos will undertake joint marketing activities and provide coordinated customer support.

"Entelos selected Compaq because of the company's leadership in high-performance systems and their commitment to the life science industry," said James Karis, president and chief executive officer for Entelos. "Through our partnership with Compaq, we will significantly increase our computational capacity and develop next generation PhysioLabs. These PhysioLabs will enable the large-scale generation of virtual patients, the simultaneous simulation of experiments on many virtual patients, and the assessment on a systems biology level of gene and protein functions in the full context of patient disease states."

"By significantly increasing the computational capability of our technology, Entelos will remain at the cutting edge of in silico R&D and continue to maximize our value to our partners," Karis said.

Entelos develops large-scale mathematical models of complex, chronic diseases. Researchers use the virtual experimentation environment of the PhysioLab to rapidly simulate experiments on a computer, using virtual patients, targets and therapies that otherwise could take months or years to accomplish in the laboratory or clinic. Pharmaceutical companies use this information to identify novel pathways, prioritize drug targets and candidates, optimize experiments and clinical trials, understand variable patient responses to treatment, and increase productivity throughout the drug development pipeline. Entelos currently has eight major pharmaceutical customers and PhysioLab systems in asthma, obesity and diabetes.

Compaq AlphaServer systems running Tru64 UNIX were selected to provide the high-performance computing capability for Entelos' systems biology approach. The computing power of the AlphaServer systems will empower Entelos to further accelerate drug discovery, drug development, and disease research. In the future, Compaq and Entelos will work closely together as Compaq transfers key enterprise-class Alpha processor technology, tools and resources to the Intel® Itanium™ processor family architecture, ensuring continued advantage of Compaq high-performance enterprise technology.

"Entelos is pioneering a significant and highly promising systems biology approach, and I believe their technology will be of immense value to drug development, disease research, and to patient care," said Bill Blake, vice president of High Performance Technical Computing at Compaq. "We're pleased to provide the systems, technology and expertise that will help make their visions a reality, and we look forward to a productive alliance."

About Entelos, Inc.

Entelos, Inc. (www.entelos.com), headquartered in Menlo Park, California, is the commercial leader in predictive biosimulation for in silico drug discovery and development. The company's patented PhysioLab™ technology provides a breakthrough platform for testing experiments and hypotheses in silico, predicting the results through simulation, and creating knowledge out of fragmented discovery and clinical data. Entelos provides integrated expertise in the metabolic, immunologic, and respiratory areas, and currently offers PhysioLab systems for asthma, obesity, diabetes, and adipocytes. Access to Entelos technology and expertise is available through R&D collaborations, research agreements, and licensing. The company plans to expand its in silico R&D capabilities based on its PhysioLab technology for a wide variety of disease areas.

About Compaq

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.