News release

Compaq Delivers Services and IT Infrastructure Outsourcing to GE Aircraft Engines

Compaq Computer Corporation (NYSE: CPQ) announced today that it has entered a five-year agreement to deliver services and IT infrastructure outsourcing to GE Aircraft Engines in North and South America. This deal, valued at $95 million, further expands the existing service arrangement started between the two companies in 1993.

"Compaq Global Services' objective is to help companies achieve greater flexibility and lower risk while controlling the costs for procuring, supporting and managing their IT infrastructures," said Jeff Lynn, vice president and general manager, Compaq Global Services. "This ability to deliver customer value through outsourced IT services is a key reason we are able to meet the high-quality global needs of companies such as GE."

Under the agreement, Compaq Global Services will deliver: operations management, desktop support services, database services, mail and mail platform support, multi-vendor mid-range server management, as well as Web infrastructure and information security management services. All of the services are centrally managed through a dedicated Compaq program office, which constantly monitors operations and seeks ever-improved performance and efficiency.

"In our e-business and digitization initiative, we are highly focused on programs that will deliver the highest level of service to our customers with the greatest level of productivity to our business," said Russ Mayer, CIO, GE Aircraft Engines. "Compaq's dedication to customer support and service complements our business focus, making them a valued member of our e-business service provider network."

GE Aircraft Engines is the world's leading manufacturer of military and commercial aircraft jet engines. The company produces and services large and small jet engines for airlines, charter and leasing companies, and military aircraft. GE also supplies marine and industrial engines based on their successful jet engine designs and provides extensive aviation services.

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.