News release

Compaq Powers "Access on Demand" with New Line of Evo Desktops and Notebooks

Compaq Computer Corporation (NYSE: CPQ) today announced a new suite of Evo™ products, including the Evo Desktop D300, Evo Desktop D500, Evo Notebook N400c and Evo Notebook N600c models, all designed to support Compaq's new Access on Demand, a full-service solution that delivers products and simplified PC lifecycle management from a single source of contact.

The Access on Demand model shifts the burden of PC infrastructure cost from a capital expenditure to a monthly price-per-seat expense, much like a person pays a monthly bill for a common utility such as gas, electric or water service. The service delivers a predictable price and performance level that is designed to match a customer's exact business requirements, and gives them a lower cost of ownership without compromising end-user satisfaction. Access on Demand services allow mid-size and large organizations to manage change, contain costs and reduce complexity in their IT environment.

"Compaq is not only driving the next era of innovative and simplified client computing with new Evo products, but we're delivering these products in a way that allows customers the flexibility and control to lower their overall technology costs," said Mike Larson, senior vice president and general manager of Compaq's Access Business Group. "Just like you or I would pay our monthly gas or electric bill, Compaq is providing customers the option to purchase Evo-driven solutions on a monthly, per unit basis."

As part of the base Access on Demand offering, customers can chose one of five aggressively priced, packaged offerings that feature Evo Desktop D300v, Evo Desktop D500, Evo Notebook N400c or Evo Notebook N600c configurations. The base packages feature a set of services, which include basic installation and warranty, help desk assistance, technology updates and asset reporting. For businesses with unique needs, customers may also opt for a custom Access on Demand solution with customer-configured hardware and services.

(Editor's Note: For additional information on Compaq Access on Demand, please see the Compaq press release entitled "Compaq Introduces First Access on Demand Packages" at http://www.compaq.com/newsroom/pr/2001/pr2001092501.html.)

Compaq also continued the evolution of business computing, started last May with the introduction of the Evo family of products, by today unveiling the Evo Desktop series and new Evo notebook PCs. These new Windows XP-ready Evo models offer business customers a range of secure, managed solutions for diverse networked environments in a sleek industrial design featuring the company's new carbon and silver color scheme.

Evo products also offer customers flexibility when it comes to managing their own IT infrastructure. In addition to the Compaq-managed Access on Demand services, Evo products are inherently designed for simple deployment and management in demanding networked environments. The Evo family of products also includes PC lifecycle management tools such as Compaq Insight Manager and Altiris Express, enabling customers to focus their resources on managing their business, not the technology that runs it.

"Compaq is delivering innovative, integrated solutions that reduce the complexity of our IT environment and enable us to focus on our core business," said Chris Rogers, IT manager at William Blair & Company, L.L.C. "Compaq products and solutions offer a stable lifecycle that help us realize a lower cost of ownership."

The Compaq Evo desktop series features industry-standard components and tool-less features for quick and easy access to internal components, as well as industry-leading security solutions to protect physical and intellectual property. The new desktops are also designed and tested for compatibility with all major operating systems and business applications to ensure a reliable, quality IT solution, all backed by Compaq global service and support.

Compaq Evo Desktop D500 – Stable, Manageable, Secure Desktop

For global enterprises or other large businesses requiring top value and the lowest total cost of ownership, plus maximum stability and manageability, Compaq offers the new Evo Desktop D500 series. The ultimate balance of performance and technology, the Evo Desktop D500 series offers the latest in processor technologies with Intel® Pentium® 4 processors and 845 chipsets, allowing processor speeds up to 1.9 GHz. The Evo Desktop D500 series can be configured with up to 3 GB SDRAM, SMART II hard drives; a selection of Microsoft® Windows® operating systems, including Windows XP; and also supports a common and stable software image across products with a common chipset for quick and easy deployment and management.

The Evo Desktop D500 series also provides maximum flexibility for users to customize their work environments. The product line is available in three form factors, which include a newly-designed desktop; a convertible mini-tower featuring rotating drives, allowing the unit to be used as either a mini-tower or desktop; and an industry-leading Pentium 4 small form factor that is the smallest, most expandable form factor available in the market today. A selection of predefined Evo Desktop D500 models are also available in more than 100 countries to assist global corporations in worldwide IT deployment, significantly reducing procurement and management costs. Prices for the Evo Desktop D500 series start at just $719.⁽¹⁾

More information on the Evo D500 series can be found at http://www.compaq.com/newsroom/presspaq/052101/index.html.

Compaq Evo Desktop D300 – Desktops for Essential Business Computing

Designed to deliver industry-leading value with the latest technology at the lowest initial cost, the Evo Desktop D300 series offers the optimal mix of performance and price.

Offering breakthrough performance and ready-to-run convenience, the Evo Desktop D300 is an ideal solution for businesses needing a simplified technology solution at an unbeatable value. The Evo Desktop D300 is available in pre-configured models designed to optimize mainstream computing requirements or can be custom-configured with the latest Intel Pentium 4 processors at speeds up to 2.0GHz. A full range of upgrade options is also available for this Windows XP Ready PC, including pre-installed Microsoft Office XP and Norton AntiVirus software, nVidia GeForce2 graphics solutions, up to 60GB hard drives; choice of DVD, CD-RW, or Zip drives; and a range of CarePaq warranty extensions.

The Evo D300 series also features the simple, affordable D300v model, a PC designed to meet the most common business computing needs. With its space-saving microtower chassis, the Evo Desktop D300v is available ready-to-order in optimally configured models designed for mainstream computing in both value-oriented Intel Celeron and Pentium III configurations. Standard models include up to 128MB of SDRAM, a 20GB Ultra ATA/100 hard drive, 48X CD-ROM, Integrated Intel Pro 10/100 networking, and Microsoft Windows 98 SE or Windows 2000 operating systems, as well as Windows XP Pro when available.

The Evo Desktop D300 series is available immediately, with prices beginning as low as $499.⁽²⁾ Visit http://www.compaq.com/newsroom/presspaq/052101/index.html for more information.

Compaq Evo Notebook N600c – Ultimate Balance of Technology and Mobility

With a rugged magnesium alloy construction and enhanced ergonomic design, the Compaq Evo Notebook N600c provides customers a powerful, lightweight notebook that's easy to use yet still provides all the processing power a user needs for the most demanding business applications.

Weighing only 4.8 pounds and measuring a thin 1.2 inches, the N600c comes equipped with either an 866 MHz-M or 1.066 GHz-M 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 a dual pointing device. Yet this powerful notebook still delivers more than four hours of battery life on a single charge, making it the perfect balance of technology and mobility.

The N600c features integrated wireless and security solutions via MultiPort, a Compaq exclusive. MultiPort is an interchangeable module that slides into place on the back of the notebook and becomes integral to the screen. This flexible, innovative solution allows users to connect to multiple wireless standards such as 802.11b or Bluetooth™ by simply changing out the wireless module. It also provides customers a means to migrate to future wireless standards as they become available. The MultiPort interface is based on USB 1.1 standard specification.

The Evo Notebook N600c is available immediately, starting at $1,999. Additional information on the Evo N600c can be found at http://www.compaq.com/newsroom/presspaq/052101/index.html.

Compaq Evo Notebook N400c – Anytime, Anywhere Wireless Connectivity

Designed with the mobile professional in mind, the new Compaq Evo Notebook N400c, with its sleek industrial design, weighs only 3.5 pounds and measures less than one inch thin.

Available immediately and starting at only $1,999, the Compaq Evo Notebook N400c features the Mobile Intel Pentium III 850 MHz processor; a stunning 12.1-inch TFT XGA screen; 20 GB hard drive; 128 MB of memory; a full-size keyboard (unique in an ultraportable); dual battery support, which allows for maximum battery life; a full set of system ports; optional Mobile Expansion Unit (MEU) which provides for floppy, CD, DVD or CD-RW support; and provides compatibility with all Evo common options and docking solutions.

Like the Evo Notebook N600c, the Evo N400c also incorporates MultiPort. Both models are currently available with either an 802.11b Local Area Network (LAN) MultiPort module or a Bluetooth Personal Area Network (PAN) MultiPort module. Compaq is also developing a series of high-speed Wide Area Network (WAN) MultiPort modules that are expected to ship in the first quarter of 2002.

For additional information on the Evo Notebook N400c and MultiPort technology, visit the Compaq PressPaq Web site at http://www.compaq.com/newsroom/presspaq/052101/index.html.

New Rapport™ Administrative Software for Compaq Evo Thin Clients

Designed to simplify computing in enterprise environments, Evo Thin Clients lower total costs of ownership and increase resource efficiency for each end user. With new Rapport™ Administrative Software for Compaq Thin Clients v. 3.01, IT managers can now communicate directly with defined groups of clients within a thin client network from one central management server using a familiar Microsoft Windows Explorer interface. This enhanced software solution also dramatically simplifies the installation process, automatically installing or detecting third-party programs that must be configured for the software to run at full potential. For more information on Evo Thin Clients or Rapport software, please see http://www.compaq.com/products/thinclients.

S920 CRT Monitor

Compaq also announced the new 19-inch S920 CRT monitor, delivering precise edge-to-edge images, minimal glare and superior color richness. Priced at just $319, the S920 is an affordable, high-resolution color monitor with 1600 X 1200 maximum resolution, perfectly suited for businesses whose employees need the maximum viewable screen size at the most economical price. The S920 has been tested for forward and backward compatibility on all leading desktops, notebooks and workstations, and when purchased as part of a total Compaq solution, customers are guaranteed end-to-end product serviceability and support from Compaq. For more information on monitors from Compaq, visit http://www.compaq.com/products/monitors.

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.