News release

Compaq Technology Provides Key Infrastructure to Microsoft Technology Center in Chicago

Compaq Computer Corporation (NYSE: CPQ) announced today that it has contributed $2 million in technology to the new Microsoft Technology Center (MTC) in Chicago, representing a substantial commitment in a marketplace hungry for e-business technology, hardware and services.

The MTC, which opens today, will serve as a world-class facility with top-of-the-line equipment and infrastructure powered and jointly staffed by Compaq and other industry partners. The center will focus on helping businesses adopt and deploy the Microsoft .NET Platform and develop XML-based Web services. The Chicago MTC will serve the entire Midwest region, providing businesses access to technical staff, industry partners, tools and information needed to develop and grow e-business on the .NET Platform. State-of-the-art equipment, consulting expertise, product support and a "best practices" development philosophy will provide the highest level of reliability, scalability and serviceability.

"Compaq is an established and long-time Microsoft technology partner and supporter of our .NET initiatives," said Peter Boit, vice president of E-Commerce at Microsoft. "The MTC is an affirmation of both companies' commitment to providing emerging and enterprise businesses with the technical solutions they demand in a rapidly, ever-changing environment."

"Our support of the Microsoft Technology Center underscores Compaq's ability to deliver total end-to-end solutions to companies in the new economy," said Bill Weaver, Compaq's vice president US Sales and Marketing. "Compaq offers the industry's deepest expertise in Microsoft technology and the broadest range of innovative and highly optimized products, ensuring customers the ability to deploy e-business solutions on the Microsoft .NET Platform."

The center's grand opening event will be held today, beginning at 4:00 p.m. at 77 West Wacker Drive, Suite 2300, in Chicago. Customers attending the event will get a first-hand look at the center and be able to meet with executives and technology consultants from Microsoft, Compaq and other industry partners supporting the center.

The center has five development laboratories; open 24 hours a day, where customers and technical staff can configure equipment in a specified environment. The majority of the private development labs are based on Compaq's Distributed Internet Server Array (DISA) Architecture for building scalable, available e-business solutions, and are equipped with Compaq ProLiant servers, the innovative Compaq Evo Workstation W6000, Compaq StorageWorks™, wireless networking equipment, and iPAQ handhelds.

Compaq and Microsoft

For nearly two decades, Compaq and Microsoft Corp. have been working together in their Front Line Partnership to drive industry standards through the joint development testing and preparation of leading PC and server solutions. The Windows 2000 operating system was designed, tested and deployed on Compaq ProLiant™ servers. In fact, Compaq's technology solutions power more than 90 percent of Microsoft's Information Technology Group's Data Centers.

Compaq continually invests in software integration and development, and in training as its Compaq Global Services experts in Microsoft technology. This close collaboration, and Compaq's continual innovation in industry-standard computing have made Compaq the platform of choice for the majority of customers deploying Microsoft Windows powered solutions.

About Microsoft Technology Centers

Microsoft Technology Centers are state-of-the-art facilities that provide emerging and enterprise businesses with a development environment designed from the ground up to accelerate the design, development, testing and deployment of the .NET Enterprise Servers, .NET Framework and XML Web services. MTCs are staffed with expert consultants, and offer customers hardware, software and services from Microsoft and more than a dozen industry leaders. The fifth and newest MTC, located at 77 West Wacker Drive in Chicago, serves leading companies throughout the Midwest. MTCs are also located in Austin, Boston, Silicon Valley and Toronto. Additional information can be found at http://www.microsoft.com/business/services/mtc.asp.

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.