News release

Compaq Again Chosen to Revitalize State of Texas Technology Needs

Compaq Computer Corporation (NYSE: CPQ), a leading global provider of enterprise technology and solutions, announced today that it has been chosen through its reseller partner Logicon, a Northrop Grumman Company, to provide technology solutions for two additional agencies in the State of Texas.

"We have enjoyed a lot of success in our relationship with Compaq," said John Davis, account executive for the State of Texas Accounts, Logicon. "The quality and reliability of Compaq's products make Compaq a good fit for our State of Texas customers."

During the yearlong information technology (IT) refreshes, Logicon will install 165 industry-standard Compaq ProLiant™ ML370 servers for the Texas Rehabilitation Commission (TRC) and over 1,100 Compaq Deskpro™ desktops and Armada™ laptops for the Texas Workers Compensation Commission (TWCC). Both state agencies chose Compaq technology based on its technical ratings and overall price/performance. Together the two contracts are valued at $3.3 million.

"Compaq has gained a significant leadership position for its market-leading ProLiant servers, as was demonstrated with the TRC's technical rating of 'best' in its evaluation of our equipment. And, projects like these with TRC and TWCC attest not only to Compaq's ability to deliver the best technology solutions, but to do so at a very competitive price," said Jim Weynand, Compaq vice president of government and education markets. "Compaq's considerable strength in the government marketplace is a result not only of the engineering excellence of its innovative products, but also its best-in-class partnerships with resellers like Logicon."

Reseller Partnerships a Key Strength

Over the last several months, Compaq has been working with its reseller partners on a number of technology solutions for agencies within the State of Texas. In June, Compaq announced agreements through its leading minority reseller, Texas Electronic Information and Computer Corporation (TEICC), with the Office of the Attorney General (OAG) for the State of Texas and the Texas Department of Transportation (TxDOT). Today, Compaq announced agreements through Logicon with TRC and TWCC, in addition to a second TxDOT agreement, again through TEICC. With the contracts announced today, Compaq is now the preferred technology partner in the majority of State of Texas agencies, a fact that is due in part to its strong relationships with key reseller partners.

"Working through resellers like TEICC and Logicon adds significant value to the overall solution that Compaq offers," said Weynand. "These quality reseller partners enable us to extend the reach of our sales team and assure our customers that they will receive high-level, personal service backed by the strength of the Compaq brand."

Compaq 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.