News release

Compaq Introduces First Access on Demand Packages

Leading a change in how technology is purchased, deployed and managed in a business environment, Compaq Computer Corporation (NYSE: CPQ) today announced five services-based Access on Demand packages—featuring Compaq's competitively priced evolutionary line of Evo™ PC products.

Building on Compaq's expertise as a provider of custom, managed computing offerings, Access on Demand offers a single point of contact and simplifies the procurement and support of enterprise computing environments by pricing the solutions on a per seat/per month basis. Customers pay only for the computing services and hardware they need—at predictable price and performance levels—giving them the control and flexibility to maximize their technology investment.

Access on Demand brings global, multi-level service and support together with the new line of Evo desktop and portable products. The packages are sold on a price-per-seat basis for a three-year period, and include a defined set of hardware and services. The services offerings include basic installation and warranty, help desk assistance, technology updates, asset reporting and program management.

"Access on Demand is another proof point of our Computing on Demand strategy which we announced in July," said Peter Blackmore, executive vice president, Sales and Services, Compaq Computer Corporation. "Customers will now have greater flexibility and control over the design, deployment, management and cost of their IT infrastructure. With flexible leasing and financing options, Access on Demand allows the customer to exchange large up-front capital outlays for a monthly expense covering their entire computing needs. We will work aggressively with our partner community to enhance their ability to sell and market Access on Demand and extend this capability to a broader market."

If a customer's needs extend beyond the scope of the packaged Access on Demand offerings, Compaq can configure a fully customized solution based on its complete range of desktop lifecycle services, including asset recovery, automated backup and restore services, data migration and desk-side support.

"We selected Compaq for the combined strengths of its services and technology, which we believe are critical to support a global company like ours with operations in 30 countries," said Allen Gula, president and CIO of Franklin Templeton Technologies. "With an initial global rollout of 6,000 desktops and laptops and hundreds of servers, we were looking for a solutions partner that could provide the same level of support for us in India as in the U.S., and after an exhaustive process, we chose Compaq to be that partner."

Access on Demand Packages

Access on Demand packages start with a $99 per seat/per month entry-level solution featuring a Compaq Evo Desktop D300v Microtower, on-site warranty, help desk support and program management. The enterprise-level desktop Access on Demand packages are priced at $129 per seat/per month and feature the new Compaq Evo Desktop D500, and Compaq Evo Desktop D500 SFF (small form factor). These offers include services such as basic installation and on-site warranty, help desk, technology refresh, asset reporting and program management. Both Compaq Evo Desktop D500 solutions offer a balance of performance and technology, featuring an Intel® Pentium® 4 1.5 GHz processor, 128 MB of SDRAM, 20 GB hard drive, CD-ROM and Microsoft® Windows® 2000. For more information on the Evo Desktop D500 Access on Demand packages, visit http://www.compaq.com/cod/access.

For customers in mobile environments, Compaq offers two packaged solutions for $169 per seat/per month, featuring either the Compaq Evo Notebook N400c or the Compaq Evo Notebook N600c. These offers also include services such as basic installation and warranty, help desk, technology refresh, asset reporting and program management.

The new Compaq Evo Notebook N400c, with its sleek new industrial design, weighs only 3.5 pounds and measures less than one inch thin. It features the low-voltage Intel Pentium III 850 MHz processor, a stunning 12.1-inch TFT XGA screen, dual battery support, and full-size keyboard. The Evo Notebook N400c provides all the features one would normally find on a larger notebook without having to make the tradeoffs usually associated with an ultra-light notebook.

The Compaq Evo Notebook N600c provides customers a powerful, lightweight notebook that's easy to use, yet still provides the processing power users need for the most demanding business applications. Weighing only 4.8 pounds and measuring a thin 1.2 inches, the N600c comes equipped with a 1.066 GHz Mobile Intel Pentium III-M Processor, ATI Mobility Radeon graphics adapter with 16MB of DDR (double data rate) SDRAM memory, 14-inch XGA TFT display and dual pointing device.

For more information on the Evo Notebook Access on Demand packages, visit http://www.compaq.com/cod/access

(Editor's Note: For additional information on new Compaq Evo products available for custom configuration, please see the Compaq release entitled, "Compaq Powers Access on Demand with New Line of Evo Desktops and Notebooks.")

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.