News release

Compaq and CMG Accelerate Wireless Messaging With First End-to-End GPRS Multimedia Messaging Solution

CMG Wireless Data Solutions (LSE: CMG) and Compaq Computer Corporation (NYSE: CPQ) today jointly announced a major step forward in wireless messaging. Continuing a long-time partnership, the two companies unveiled the industry's first end-to-end, GPRS multimedia messaging solution.

Building on success in Short Message Services (or "SMS," a text only service), CMG and Compaq are now offering mobile operators a new solution that enables wireless users with powerful handsets to send and receive messages that include color images, color video, and audio. The CMG-Compaq solution seamlessly integrates a GPRS-enabled PDA (personal digital assistant) with a network-based Multimedia Messaging Service Center (MMSC). It is the industry's first end-to-end solution to be delivered for GPRS networks.

The Multimedia Messaging Service (MMS) builds on the proven business model of SMS, which today accounts for 10-20 percent of some of the leading mobile operators' revenues (CSFB, 3G Mobile, 2001). MMS extends these business models with a richer user experience and increased ease of use, which will likely make it a very popular application for mobile packet networks, GPRS and 3G.

The Arc Group predicts almost five-fold mobile messaging growth in the next five years. Reflecting the high growth potential, mobile operators have expressed strong interest in this MMS solution, particularly in Europe and Asia.

The new fully-integrated solution includes CMG's powerful MMSC based on Compaq's reliable and scalable AlphaServer™ platform running Tru64™ UNIX, and, on the end user side, Compaq's popular iPAQ™ Pocket PC with a color screen and a 200 MHz Intel® processor. The key differentiator for CMG's MMSC is its guaranteed Quality of Service and immediate service response, even at the extreme data traffic peaks that are foreseen for Multimedia Messaging.

The wireless iPAQ Pocket PC is enabled for MMS (which has been standardized by the Third Generation Partnership Program, 3GPP) by CMG's MMS User Agent. Future versions of MMS terminals are expected to also include built-in digital cameras and connectivity to external multimedia devices such as cameras and MP3 players.

Geert Kolthof, vice president, Mobile Internet for CMG Wireless Data Solutions, said, "Compaq and CMG have jointly achieved major successes in the Short Message Service market. Therefore, it was a natural choice for us to also select Compaq as one of the technology partners for Multimedia Messaging, where we aim to take the same leading market position as we have in SMS."

David Bealby, vice president and general manager, Compaq's Telecom Division, said, "CMG Wireless Data Solutions has proven that it is a successful innovator and market leader, and Compaq is pleased to be the main partner for this solution." Bealby added, "This multimedia solution illustrates Compaq's core strategy to combine our many technologies, from handheld devices to deep network infrastructure, to help service and equipment providers deliver advanced next generation services."

The end-to-end MMS solution will be marketed globally by the two companies.

About CMG Wireless Data Solutions

CMG Wireless Data Solutions is the leading global supplier of messaging, mobile Internet and Customer Care & Billing solutions for the wireless industry. CMG develops high-end solutions in close co-operation with its partners. To date, more than 200 of these quality solutions have been delivered to over 100 operators worldwide. They are widely recognized to be "best-of-breed," combining minimum operator intervention with maximum performance and availability. The portfolio includes solutions based on the Wireless Service Broker™, Unified Communications, Multimedia Message Service Center, Short Message Service Center, Cell Broadcast System and EPPIX (Customer Care & Billing System).

CMG Wireless Data Solutions is a division of CMG plc (www.cmg.com). CMG was established in 1964 and currently employs over 13,000 employees. The Group is listed on the London and Amsterdam stock exchanges. More information about CMG Wireless Data Solutions can be found on the Internet at www.cmgwds.com.

About Compaq

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.