News release

Compaq Unveils New iPAQ Pocket PC Family Featuring Best Combination of Handheld Technology in the Industry

Compaq Computer Corporation (NYSE: CPQ), the world's leading manufacturer of Windows-powered Pocket PCs, today unveiled two new members of its iPAQ™ Pocket PC family—the H3700 and H3800 Series—offering unsurpassed performance and expandability to meet the widest range of handheld computing needs.

"The best Pocket PC in the industry—the iPAQ Pocket PC—just got even better, giving customers the ultimate blend of performance, connectivity and expandability," said Sean Burke, vice president of iPAQ Products and Connected Devices, Compaq Computer Corporation. "Compaq is providing an unparalleled selection of iPAQ Pocket PC products and wireless connectivity, with the broadest range of industry support and backward compatibility in the Pocket PC market."

Premiering at the Microsoft Pocket PC 2002 launch event in San Francisco, the new iPAQ Pocket PC H3800 Series offers a standard Secure Digital (SD) Memory slot for integrated memory expansion, a brilliant TFT screen with more than 65,000 colors, and increased battery life⁽¹⁾. One new model also incorporates Bluetooth personal area networking capabilities.

New Compaq-supplied applications for the iPAQ Pocket PC H3800 Series include iPAQ File Store (which provides 6MB of additional storage on flash ROM); iPAQ Task Manager (utilities for Backup/Restore to Memory Card, Self Test, Auto Run, Align Screen, Clock, Expansion Pack, Microphone AGC, Power Status, Sounds, Memory); and Dashboard (a plug-in for the "Today Screen" that allows the customer to customize their screen to show two days of appointments, program launcher, and power status).

Additional software applications from Compaq include IBM Embedded ViaVoice Mobility Suite, for voice command and control of Calendar, Contacts and Inbox; F-Secure FileCrypto for Pocket PC Personal Edition; Insignia Jeode JVM; iPresentation Mobile Converter for PowerPoint conversion; Sega Virtual Game Gear and Vegas Game Pack by Synovial; Wordlogic Predictive Keyboard; Quick View Plus for viewing up to 12 different file formats; Callex with ET Player-Voice Mail Messaging; XcelleNet Afaria™ mobile and wireless device management software; eWallet; and ListPro.

The iPAQ Pocket PC H3700 Series preserves the same outstanding features as the acclaimed H3600, while incorporating 64MB of internal memory. The H3700 Series includes iPAQ File Store, iPAQ Task Manager and Compaq Dashboard, and both the H3700 and H3800 Series include Pocket PC 2002 Premium Edition software from Microsoft Corp.

The new iPAQ Pocket PC models feature the sleek, elegant design of the original iPAQ Pocket PC, and work with thousands of applications and options from a broad community of solution providers. They also incorporate the fastest processor available—the Intel StrongARM 206MHz—and offer the new iPAQ File Store for non-volatile storage of critical data. In addition, both products are fully compatible with the current Expansion Packs.

New models are shipping today in North America, with availability expected next week for the H3700 Series and in mid-November for the H3800 Series. Prices⁽²⁾ are $499 for the H3700 Series, $599 for the H3850 and H3835 (without Integrated Bluetooth capabilities), and $649 for the H3870 with Integrated Bluetooth.

Wireless Pack for GSM/GPRS Networks

Also debuting at the San Francisco event is the highly anticipated Wireless Pack for GSM/GPRS⁽³⁾ Networks. This remarkable extension of the Expansion Pack family combines the power of the award-winning iPAQ Pocket PC, the reach of a GSM world phone, the urgency of a pager, and the pervasiveness of the Internet with fast GPRS wireless data access.

The Wireless Pack for GSM/GPRS Networks and the iPAQ Pocket PC enable high-speed "always-on"⁽⁴⁾ Internet access, WAP browsing, e-mail, SMS messaging and phone calls. In addition, the Wireless Pack is a tri-band device enabling seamless use on GSM/GPRS networks throughout the world. It will also deliver four hours of talk time and 180 hours of standby time, along with ease-of-use features like one-touch dialing from the Contacts List, an integrated speaker and microphone, and "plug and play" software.

Compaq is currently testing the Wireless Pack for GSM/GPRS Networks with key wireless carriers such as AT&T and VoiceStream in the U.S., and BT CellNet and Vodaphone in Europe. Worldwide shipments are expected to begin in December.

New Options for the iPAQ Pocket PC

In addition to the thousands of third-party products for the iPAQ Pocket PC, the company today unveiled a number of Compaq accessories for use with the iPAQ Pocket PC family. The new iPAQ options will start shipping in late October with availability in November. They include:

• A new Bluetooth Wireless Pack with Compact Flash (CF) Slot adds Bluetooth personal area networking capabilities to an iPAQ H3700 or H3600 series product. Bluetooth devices include cellular telephones from Ericsson, Motorola, Nokia and Vodaphone, the Compaq MultiPort option for Evo notebook PCs, and other devices such as printers and access points.
• Secure Digital (SD) Memory cards—highly sophisticated memory devices about the size of a postage stamp—add internal storage of 64MB or 128MB. SD Memory cards are non-volatile, which means they do not require power to retain the information stored on them.
• A new remarkably small and lightweight Micro Keyboard fits seamlessly on the bottom of the iPAQ Pocket PC H3800 Series, with or without an Expansion Pack attached. Its simple design and standard keyboard layout allow users to type quickly and comfortably anywhere.
• The new Cover Pack (standard with the H3800 Series) protects the iPAQ Pocket PC screen from scratches and smudges without compromising size. The convenient slide-on design allows it to be quickly removed, so users can customize their iPAQ Pocket PC with other versatile Expansion Packs.
• AC and Auto adapters that allow for rapid recharging of the iPAQ Pocket PC anywhere in the world.

Third-party Bluetooth products will be listed on Compaq's Bluetooth Compatibility Matrix at http://www.compaq.com/bluetoothmatrix.

Pocket PC 2002 Offers All-Around Enhancements

Pocket PC 2002 represents an even better Pocket PC experience with new user interface, improved personalization, new navigation model, groundbreaking enterprise features and improved connectivity.

Providing a comprehensive and secure handheld for corporations, Windows-Powered Pocket PC 2002 software adds improved support for strong passwords and anti-virus hooks. Mobile professionals can now access their corporate networks via virtual private network (VPN) or the Terminal Services Client (TSC).

"The new iPAQ Pocket PC H3700 and H3800 Series products give customers a winning combination of expandability, performance and flexibility, while taking full advantage of Pocket PC 2002 software with its improved features, enterprise software, and technology that provides for the broadest selection of wireless connectivity in the industry," said Ben Waldman, vice president of the Mobile Devices Division at Microsoft. "We are proud to work with Compaq to once again raise the bar in handheld computing for Pocket PC customers."

iPAQ Pocket PC 2002 Upgrade Available

Customers who buy an iPAQ Pocket PC H3600 or H3100 between September 6th and November 30th can receive a free⁽⁵⁾ upgrade to Pocket PC 2002 Professional Edition software via a CD. Compaq is also offering a purchase option, which allows customers who purchased their iPAQ before September 6 or after November 30 to purchase the upgrade at $29.95, plus shipping, handling and applicable tax.

Through its built-in Flash ROM (Read-Only Memory) capability, the iPAQ Pocket PC can take advantage of the new Pocket PC 2002 software in a user-friendly upgrade process. Compaq has worked with Microsoft to give iPAQ Pocket PC customers the full benefit of Pocket PC 2002 through a combination of ROM Upgrade and RAM-installable applications. By simply installing the upgrade utility from the upgrade CD onto the host computer, the software is quickly and easily loaded onto the iPAQ Pocket PC. See http://www.compaq.com/products/handhelds/pocketpc/ipaq2002.html for details.

For additional information on today's announcement, please see Compaq's PressPaq Virtual Press Kit at http://www.compaq.com/newsroom/presspaq/100401/index.html. For more information on the Compaq iPAQ Pocket PC products and options, see http://www.compaq.com/ipaqpocketpc.

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.

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