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Compaq's First Application of Microsoft Office XP Small Business Edition Offers Best-in-Class Value

HOUSTON, October 15, 2001

As part of a special promotion to enhance technology access for small and medium size businesses, Compaq Computer Corporation (NYSE: CPQ) today announced the latest solution to office efficiency with the introduction of Microsoft® Office XP and Small Business Edition XP pre-loaded on new Evo™ D300s desktops purchased between now and Oct. 31st.

Pre-configured Evo D300s systems with Pentium® 4 processors and a S720 17" monitor are available for prices starting at $899. And, if they prefer, customers can configure this affordable, specially priced system to meet their own personal or business requirements. Benefits include context sensitive 'Smart tags' that offer helpful automatic assistance to help speed productivity, 'Task Panes' for rapid formatting and file search, plus a 'Reminders' window that manages appointments and memos all in one window.

"As a trusted advisor to small businesses, we are committed to providing the latest productivity tools currently available on the market," said Robyn West, vice president of North America SMB Sales, Compaq Computer Corporation. "The Evo D300s offers best-in-class business computing and software that offers immediate return on investment." In conjunction with this special promotion, leasing options are available for customers who qualify through Compaq Financial Services Corporation. "Leasing allows purchasers more technology for their money and helps improve cash flow since there is no large up-front cash outlay and no large down payment," said West.

The Evo Desktop D300s offers the optimal mix of performance and price for businesses needing a simplified technology solution at an unbeatable value. Designed to deliver industry-leading value with the latest technology at the lowest initial cost, these new models offer business customers a secure, managed solution for diverse networked environments, featuring the latest in mainstream processor offerings from Intel and industry standard, mainstream PC components designed to perform efficiently and effectively with the latest operating systems, including Microsoft Windows XP SBE. Additional information regarding Compaq's small business promotions can be found at www.directplus.compaq.com or by calling 1-800-888-3124.

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.


Notes:

Compaq and the Compaq logo are trademarks of Compaq Information Technologies Group, L.P. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. This news release may contain forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the Hewlett-Packard/Compaq merger does not close or that the companies may be required to modify aspects of the transaction to achieve regulatory approval or that prior to the closing of the proposed merger, the businesses of the companies suffer due to uncertainty; the market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; that Compaq and Hewlett-Packard are unable to transition customers, successfully execute their integration strategies, or achieve planned synergies; other risks that are described from time to time in Compaq and Hewlett-Packard's Securities and Exchange Commission reports (including but not limited to Compaq's annual report on Form 10-K for the year ended December 31, 2000, HP's annual report on Form 10-K for the year ended October 31, 2000, and subsequently filed reports). If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Compaq's results could differ materially from Compaq's expectations in these statements. Compaq assumes no obligation and does not intend to update these forward-looking statements.

 


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