News release

Compaq Tops Competitors in Worldwide Internet Sales Growth

Compaq Computer Corporation (NYSE: CPQ) announced today substantial growth in its share of the worldwide direct Internet PC shipments among computer manufacturers for second quarter 2001. According to International Data Corporation's (IDC) Worldwide Quarterly PC Tracker, Sept. 2001, Compaq's market share grew 70 percent year over year, moving Compaq into second place in the Internet direct sales.

The rise in market share can be attributed to a focused worldwide e-business strategy driven to execution by strong alignment across business and regional operations teams globally. The aggressive rollout of a comprehensive B2B extranet strategy and the optimization of the company's Compaq.com Web site are key components of this success. Site improvements have included a new design and streamlined navigation to increase usability and integrate online purchasing options throughout the site, resulting in increased sales conversions.

According to a separate report published by Boston-based research firm Summit Strategies, the improvements have made Compaq.com an exceptional source of product information and customer service for potential buyers. "The new Compaq site is a stunning example of some e-selling principles at their best," states Summit Strategies' Marty Gruhn in the October issue of the firm's newsletter, SummitVision. "In fact, by today's standards, there's no doubt that Compaq.com's new design ranks right up with IBM.com as an e-selling powerhouse in the making."

"Our top objective is to establish Compaq as an Internet leader by driving our e-business strategy and efforts worldwide," said Marius Haas, vice president, Worldwide E-Business Systems, Compaq. "We monitor very carefully how customers use our site and that data helps us set clear business objectives that enable us to substantially drive revenue. The market share growth is proof that we are on target and are building momentum."

Compaq.com receives more than six million customer visits each week, making the site one of the most-visited IT destinations on the Web. By using customer feedback and data, the current design simplified the previous homepage by clarifying categories and reducing the number of links, allowing users to get to the areas they are most interested in quickly. Particular attention was paid to making the site more accessible by adhering to guidelines set forth in Section 508 of the Rehabilitation Act. As a result, user satisfaction has increased significantly.

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.