News release

TxDOT Signs New Four-Year Exclusive IT Agreement as Texas State Agencies Continue to Choose Compaq

Compaq Computer Corporation (NYSE: CPQ) announced today an additional agreement with the State of Texas through its reseller Texas Electronic Information and Computer Corporation (TEICC). The four-year exclusive contract to provide all laptop PC systems to the Texas Department of Transportation (TxDOT) is valued in excess of $2 million.

"Compaq strives to be more than just a hardware vendor," said Jim Weynand, Compaq vice president of Government & Education Markets. "We want to be an IT partner with our customers, providing integrated solutions that help them achieve their business goals. We're excited to be working with TxDOT again and believe this additional contract says a lot about the relationship value Compaq brings beyond a competitive price."

Statewide Strength in Technology Standard

According to the four-year agreement, Compaq will provide 750 Armada™ laptops to the State agency. This deal follows on the heels of a previous agreement with TxDOT announced in June. Under the earlier contract—won based on Compaq's technical ratings, pricing, and service capabilities—the company is providing 14,000 desktops and key services.

Additionally, the Office of the Attorney General (OAG) for the State of Texas recently choose Compaq as the agency's technology standard despite significant price cuts by other competitors. And today, Compaq announced reseller-awarded contracts with the State of Texas Workers Compensation Commission (TWCC) and the Texas Rehabilitation Commission (TRC). Compaq is now the premier technology vendor for the majority of departments in the State of Texas.

Confirmed Value in Reseller Alliance

This agreement is the most recent of three State of Texas contracts awarded through Texas Electronic Information and Computer Corporation (TEICC), a leading Compaq minority reseller. TEICC is classified as a HUB (Historically Under-utilized Business) company by the State of Texas and was recently awarded one of the largest minority IT contracts ever issued by TxDOT.

"Our relationship with Compaq goes beyond just being a reseller," said Jay Patel, vice president of Marketing, TEICC. "We've enjoyed a true partnership, focused on the added value we bring to the overall solution. Compaq is truly a leader in product innovation and quality, and that is one of the reasons our customers routinely request their products," Patel concluded.

"The professionalism that TEICC demonstrates has made this relationship a highly positive and rewarding one," said Weynand. "As a Compaq reseller, TEICC delivers the highest quality services to meet demanding customer requirements. Together with our channel and reseller partners, Compaq is able to meet and exceed the technology needs of our customers."

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.