News release

Compaq Brings Benefits of Networking Mainstream with Innovative Solutions for the Home and Small Office

Compaq Computer Corporation (NYSE: CPQ) today unveiled a compelling array of eight easy-to-use iPAQ™ networking products for the home and small office that take the guesswork out of networking.

Primarily designed for use in homes and small offices that have multiple PCs and broadband Internet subscriptions, this new class of iPAQ networking devices supports the most popular networking technology available today; including 802.11b wireless, HomePNA 2.0 phoneline (HPNA) and 10/100 Fast Ethernet; on all brands of Windows 98 and higher PCs—and will also support Microsoft Windows® XP® upon release. In addition to desktops and notebooks this flexibility enables greater connectivity for products such as the iPAQ Pocket PC through wireless networking⁽¹⁾ and the iPAQ Music Center through phoneline networking.

The proliferation of multi-PC households is growing rapidly, with 23.4 million homes expected to have more than one computer by 2003. Combined with the explosion of high-speed Internet usage (broadband penetration is expected to be 40 percent by 2003), there is increasing interest among consumers to create a home or small office network to share Internet access, files, software, printers, music and pictures. A secondary driver for home networking includes the increasing popularity of digital entertainment applications such as head-to-head gaming and music sharing.⁽²⁾

"With the Internet penetrating every aspect of our lives, broadband access is becoming a necessity more than a convenience. And the types of access devices are changing as well, as we move to communicating from simply computing," said Sean Burke, vice president and general manager, iPAQ Products & Connected Devices Division in Compaq's Access Business Group. "Networking is the critical link pulling the digitally connected world together, enabling new devices and services, and new ways of communicating."

Compaq Makes Networking Easy to Understand and Use

While many understand the general concept of networking, it has historically been difficult for even an experienced PC user to determine which networking technologies to use, what components are needed or how to configure and install a network in their home or small office.

"Networking products available today target early adopters and technically advanced users. Compaq recognizes that networking must be simple to enable mainstream consumer adoption, and that's why Compaq has created iPAQ Networking—a complete, secure, end-to-end networking solution to help our customers network their homes and offices quickly and with ease," says Burke.

Whether a person is a computing expert or novice, these new products are designed to set up and operate with ease. To help customers understand how to network their home or small office, assistance is available via a Web site at http://www.athome.compaq.com and at participating retailers. This Web site will allow users to input the number and type of devices they have, what type of operating system is in use and which networking technology they would like to use. By answering a short list of questions, a suggested list of products is created to assist in the purchasing decision.

Each new iPAQ Networking product is also bundled with valuable extras to help customers understand how to network their home or small office. For the novice, helpful information and diagrams have been included on the packaging for all iPAQ networking products to help them decide which products they need. During installation, a simple-to-follow setup guide and software wizard walks the user through the installation and setup process for typical networking activities such as Internet or file sharing. For the more experienced user, each iPAQ Networking card or adapter includes powerful Internet sharing software, diagnostic tools and built-in NAT firewall.

For users who want to create a network with multiple networking types, such as adding wireless to an existing Ethernet network, the iPAQ networking software packaged with each device also includes "Advanced Bridging Technology," which supports networking all or a combination of Ethernet, wireless (802.11b) and phoneline technologies.

Affordable Networking Tools for the Home & Office

Broadband Gateway

The iPAQ Connection Point CP-2W Wireless Broadband Gateway is the second device of its kind in the iPAQ family of products and comes cable/DSL-ready, seamlessly integrating 10/100 Fast Ethernet and 802.11b wireless networks. Priced at only $299.99, the iPAQ Connection Point CP-2W has a wireless range of up to 300 feet at speeds up to 11Mbps and a built-in, four-port 10/100 Mbps Fast Ethernet auto sensing switch that allows up to four PCs on the network without an additional hub.

For the power user, this broadband gateway packs a powerful combination of security and management tools sought after in both home and small office environments, such as a built-in firewall, wireless encryption, VPN (Virtual Private Networking) pass-through and more.

Wireless Products

The iPAQ 11 Mbps Wireless USB Adapter allows users to experience the freedom of wireless networking with desktop PCs. With an effective range of up to 300 feet, home and small office users can place their computers where it is most convenient and still enjoy connections speeds of up to 11 Mbps. The iPAQ 11 Mbps Wireless USB Adapter is priced at $139.99.

The iPAQ 11 Mbps Wireless PC Card allows users to connect a notebook to their home or office 802.11b wireless network and enhance its portability. Users can experience the freedom of networking from up to 300 feet away without the hassle and restrictions of a traditional hard-wired network. This fast, on-the-go networking is also affordable at only $129.99.

Phoneline Products

The iPAQ 10 Mbps Phoneline Networking USB Adapter is value-priced at only $79.99. It allows users to tap into their existing home or office phone lines through everyday phone jacks and powerfully connect any PC to their network at speeds up to 10 Mbps without interfering with regular phone calls, DSL service or fax.

Ethernet Products

The iPAQ 5-Port 10/100 Fast Ethernet Auto Sensing Switch works seamlessly with other iPAQ Fast Ethernet products. Featuring advanced switching technology, the iPAQ switch provides store and forward functionality to optimize data flow, and embedded memory that creates a flow buffer to prevent data loss. The compact design allows it to be placed inconspicuously in any environment and the advanced wiring design allows for any of the five ports to function as the uplink port. This industry-standard technology establishes the best connection speeds of up to 100 Mbps and is compatible with a range of configurations and platforms to meet customer demands. The iPAQ 5-port switch is available for $59.99.

The iPAQ 10/100 Fast Ethernet PC Card allows users to quickly and affordably equip their notebook PCs with fast 100 Mbps data transfer on an Ethernet network. Unlike most Ethernet PC cards on the market today, the iPAQ 10/100 Fast Ethernet PC card is very durable and comes with a built-in connector, so there are no dangling, external connectors to lose or break. The iPAQ 10/100 Fast Ethernet PC Card is available for only $49.99.

The iPAQ 10/100 Fast Ethernet USB Adapter allows homes and offices that are hard-wired for Ethernet to easily connect their USB-enabled computers to the network. The simple USB plug and play allows users to enjoy the high performance of Ethernet without opening their computer to install additional technology. Just plug it into any notebook or desktop PC, connect the Ethernet cable and users are connected with family members or employees, regardless of their networking platforms. It is priced at just $39.99.

The iPAQ 10/100 Fast Ethernet PCI Card allows users to transform their PCs into a home or office networking station. It is simple to install and operates powerfully across networking platforms, auto sensing 10BaseT and 100Base TX networks to seamlessly connect users at speeds up to 100 Mbps. It also supports Wake on Local Area Network (WOL) remote wake-up technology. The iPAQ 10/100 Fast Ethernet PCI Card is priced at only $24.99.

The breadth of these new offerings from Compaq is available immediately through Compaq's Web site at http://www.athome.compaq.com, by calling 1-800-888-0220, and through Compaq kiosks located in more than 10,000 popular retail stores and many traditional retail locations. As part of their purchase, Compaq customers can expect quick and effective product care and customer service available for the life of the product. This includes a comprehensive product protection plan available for purchase, as well as lifetime services through http://www.compaq.com/consumersupport for the fastest path to accurate answers.

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.