News release

Tracy Unified School District Selects Compaq Technology for Innovative Learning Center

Compaq Computer Corporation (NYSE: CPQ) announced today that it has signed a three-year, multimillion dollar agreement to provide complete computing solutions to the Tracy Unified School District (TUSD) Learning Center. The Tracy Learning Center's first phase, called Discovery Charter School, opened this week for 125 fifth and sixth graders and is the first school in the nation to commit to comprehensive technological strategies—or eEducation—as its primary method of delivering instruction. The eEducation initiative, designed to propel student achievement, offers students customized, interactive learning programs and enriches the classroom environment by including resources from the community and around the world.

According to Dr. Keith T. Larick, Superintendent of TUSD and CEO of Tracy Learning Center, the district was searching for a technology partner, not just a vendor. "We wanted a partner that not only would provide access to current and emerging technologies at a reasonable price but also would listen and accept our input—Compaq has been just that," Larick said. "We believe that as an innovative district we have a lot to offer. The two-way dialogue in the relationship has tremendous benefit for both parties. With Compaq's commitment to the K-12 education market, it was a good fit."

TUSD selected the charter school model for the flexibility it offers in both operations and staffing. Traditional textbook instruction will no longer be the principal source for learning. Discovery students will forgo textbooks for Compaq Armada™ 110 notebook computers. The notebooks will connect to a wireless network to access a district intranet or eLibrary and students will use Internet access provided by the district to conduct online research, tap into the vast resources on the World Wide Web, collaborate with students in other parts of the world and submit homework assignments to instructors via e-mail. The model will allow for the majority of all instructional and enrichment material to be distributed to students in an electronic format.

Along with the totally digital experience comes an extended instructional day, an hour longer than a standard day (8 a.m. to 4 p.m.), and a longer school year, 205 days versus the traditional 180. In their course of studies, students also will have the option to follow an applied course of study or to pursue a college curriculum.

Compaq has been a technology provider to TUSD for more than five years, providing market-leading Compaq ProLiant™ industry-standard servers, Compaq Presario™ desktop computers, Compaq iPAQ™ Pocket PCs, and Compaq Professional Services. As the concept for the Tracy Learning Center moved closer to reality, Compaq offered its expertise to shape the technological vision for the innovative learning environment.

"The ultimate goal at Tracy is to make technology in the classroom ubiquitous—accessible to everyone, at all times," said George Warren, director of K-12 Education Marketing, Compaq Computer Corporation. "We worked with four Tracy teachers who took a year-long sabbatical to help develop plans for the Tracy Learning Center and to incorporate the right technologies for each of TUSD's technological goals."

"Compaq was a natural choice for us. The company stands behind its products and provides a complete lifecycle solution to reduce the complexity of managing more than 14,000 computers throughout our district," said Kerry Johnson, director of technology for TUSD. "Compaq provides fully integrated PC systems, preloaded with district-standard software packages, and provides ongoing maintenance, technical support, and a dedicated project manager. With one technology partner to oversee all this, we can focus on evaluating and delivering state-of-the-art education-related technical services to our schools."

The first three years of the Tracy Learning Center will be dedicated to establishing the initial phase of the K-12 program, Discovery Charter School, for grades five though eight at a temporary site. By 2004, officials expect the center to move to a permanent location and expand to accommodate the next two components, the primary school and the high school, and create a seamless K-12 learning setting. In the future, the center will serve pre-school through university students and feature businesses on campus to enrich the learning environment. There are also plans for the center to serve as a major teacher-training center, where teachers can learn the latest advancements in educational technologies and their applications in the classroom.

The agreement, with an estimated value of $3 million, will provide the district with Compaq ProLiant industry-standard servers, Compaq Deskpro™ EN desktop computers, Compaq Armada notebook computers, Compaq iPAQ Pocket PCs and Compaq iPAQ desktops.

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.