News release

Compaq Makes Purchasing the iPAQ Pocket PC Even Easier (Advisory)

In response to growing customer demand for the convenience of purchasing options and wireless airtime together with the iPAQ™ Pocket PC, Compaq Computer Corporation (NYSE: CPQ) today announced two new U.S. promotions for the world's best-selling Pocket PC. These promotions make it easier than ever for customers to purchase and use an iPAQ Pocket PC to access information anytime, anywhere.

Customers who buy any iPAQ Pocket PC H3600 Series model by September 30 get the following free accessories: a Compact Flash Expansion Pack, an Expandable Case, and an upgrade to a two-year warranty⁽¹⁾ — a $125 value⁽²⁾. This offer is available through all Compaq Authorized Partners. The Compact Flash Expansion Pack allows customers to use industry-standard compact flash cards that will let them increase their file storage space on the iPAQ Pocket PC; access their company's network (LAN) for e-mail and Web browsing using a standard network cable; or access their Internet account through a regular phone line.

A separate Wireless Professional Bundle includes everything a customer needs to use the iPAQ Pocket PC wirelessly. It includes an iPAQ Pocket PC H3650, a PC Card Expansion Pack, a Sierra Wireless AirCard® 300 wireless network card, and a free upgrade to a two-year warranty⁽¹⁾, all for $849—a savings of $263. This bundle requires a one-year airtime agreement through iPAQnet, provided in partnership with GoAmerica, sold separately starting at $39.95 per month. The above promotions run from August 9th through September 30th.

The iPAQ Pocket PC H3600 Series features a dazzling color display, a 206MHz Intel StrongARM microprocessor, and 32MB or 64MB of Random Access Memory (RAM). The Expansion Pack System allows users to add functionality on the fly by sliding Expansion Packs on the back of the iPAQ Pocket PC. This enables users to add industry standard PC and CF Cards to their iPAQ Pocket PC.

For information about these promotions, or to order an iPAQ Pocket PC online, please see http://www.compaq.com/ipaqppc. The award-winning iPAQ Pocket PC is readily available for immediate purchase worldwide.

Company Background

Founded in 1982, Compaq Computer Corporation ("Compaq") is a leading global provider of enterprise technology and solutions. Information on Compaq and its products and services is available at http://www.compaq.com.