News release

Compaq Unveils New ProLiant Server Solutions to Satisfy the Technology Needs of SMB Customers

Compaq Computer Corporation (NYSE: CPQ) today further extended its solutions for small-to-medium business (SMB) customers, with the announcement of a new Multifunction Small Enterprise solution based on the industry-leading Compaq ProLiant™ server platform. The new ProLiant server offering is an affordable turnkey network and security solution that integrates the robust technology and capabilities of high-end ProLiant servers with Linux-based software and services from Mitel Networks, to provide small and medium businesses enterprise-class flexibility, scalability and support for a variety of applications.

The Multifunction Small Enterprise solution was developed to meet the needs of cost-conscious small businesses that are looking for reliable, simplified and secure solutions for running their day-to-day business operations. The new solution is a fully configured hardware and software package that includes applications such as e-mail, file/print sharing, Internet access, firewall, Web hosting and network-delivered services.

"Compaq has listened to our SMB customers and has brought to market a truly integrated solution developed specifically to provide the right performance, features, and price point for their growing businesses," said Brad Anderson, vice president, Mainstream Servers, Compaq Industry Standard Server Group. "Compaq does not compromise—our SMB customers can expect to find the latest server-proven Intel Pentium® processor in every ProLiant server. We aggressively bring innovation and value to the small and medium-sized business customer based on market-leading industry-standard ProLiant server platforms."

The fully configured Multifunction Small Enterprise solution delivers simplicity without sacrificing scalability to meet networking and security needs. It integrates the best-of-breed Compaq ProLiant ML300 series of servers with the full-featured, upgradable and customizable Mitel Networks' SME Server V5 with ServiceLink, based on Linux.

"We're excited to be working with Compaq to help introduce Mitel's new SME Server V5 with ServiceLink," said Kim Morrison, GM, Network Server Solutions Group, Mitel Networks. "The combination of Compaq's industry-leading ProLiant server platform with our award-winning software and services delivers an unbeatable solution to small to medium-sized businesses and remote branch offices."

Compaq is leveraging its deep heritage with the channel distribution model to deliver this SMB solution. As part of a key initiative targeted for small businesses, PC Connection will initially distribute the solution for 120 days as a proven, tested, supported and ready-to-run solution.

"While other vendors offer Celeron-based technology, or closed boxes that limit expandability and flexibility, Compaq provides advanced, cutting-edge Intel Pentium III technology and the versatility to support growing business needs, said Bob Gregerson, president of PC Connection Sales Corporation. "We are pleased to be working with Compaq in launching this new Multifunction Small Enterprise solution on ProLiant servers. SMB customers can rely on PC Connection to provide the guidance and support to satisfy their IT needs so that they can focus on their business."

The solution will be available to order through PC Connection on September 4, 2001. Pricing for the new solution will start at $1199. For more details, please visit http://www.compaq.com/products/servers/linux.

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.