News release

Compaq Helps Make Holiday Shopping Easier with "Gifts That Go" Online Gift Center and Wish List

While online shopping has made holiday gift hunting faster and more convenient, it still doesn't solve the problem of knowing what to buy. Compaq Computer Corporation (NYSE: CPQ) today announced its solution: the "Gifts That Go" Gift Center and Wish List Web site of great tech gifts for today's busy lifestyle.

Found at www.compaq.com/gtg, the "Gifts That Go" Gift Center features a Wish List function that allows visitors to "browse" a selection of portable digital audio and computing products and choose items they would like to receive as a gift. After browsing, the visitor can choose to send an e-mail, including information and details about how to purchase the gifts chosen, to as many friends and family members as he or she wishes.

"Compaq and many other companies are helping to take the guesswork out of holiday shopping with wish lists and similar online services, to help consumers save time and reduce stress during one of the busiest times of the year," said Trey Litel, marketing manager in Compaq's Access Business Group. "Compaq is taking that concept one step further, by also offering a selection of portable products that help consumers bring balance to their work and home lives by providing anytime, anywhere access to information and entertainment."

A PC that Fits in a Stocking

The perfect holiday gift for the busy professional, the six-ounce Compaq iPAQ Pocket PC is truly a new-generation "access device," giving people access to their personal and business information, the Internet, and their company intranet anytime, anywhere.⁽¹⁾

Available on the "Gifts That Go" Web site are Compaq's recently announced iPAQ Pocket PC H3765, offering unsurpassed performance and expandability to meet the widest range of handheld computing needs. The $499 H3765 supports Microsoft Pocket PC 2002 software; featuring Pocket Word, Excel, Outlook, and PowerPoint so customers can work from home and home from work more efficiently.

Holiday Favorites Sound Better on Digital Audio

Also found in the "Gifts That Go" Gift Center is Compaq's family of portable digital audio products, which includes the recently announced iPAQ PM-1 Personal Mini-CD Player. Small enough to fit in a holiday stocking, this affordable mini disk player stores six hours of MP3 music burned on a pint-sized CD that's half the size of a traditional CD. Priced right for gift-giving at just $99.

A perfect gift to take to the gym, the iPAQ PA-2 Personal Audio Player provides two hours of music and 64MB of memory in a tiny three-ounce package. This award-winning MP3 player is priced at just $149.

Great for those holiday trips to see family or personalizing CD playlists of favorite songs, the iPAQ PCD-1 Personal CD Player stores over 300 songs in MP3 format on one CD, as well as plays regular CDs, recordable and rewritable CDs and features an AM/FM tuner. The iPAQ PCD-1 is just $169.

PCs That Slide Discreetly Under the Tree

The "Gifts That Go" Wish List site will also feature a trio of Compaq notebook PCs: the Presario 700, Presario 1700 and Presario 2700 notebooks. The new Presario 700 notebook makes a great gift for the college-bound teen or anyone needing an affordable portable PC. Capable of handling the most demanding applications with the fastest AMD processors up to 1.2 GHz, the Presario 700 is optimized for affordability for the home or small office, starting as low as $999 direct from Compaq.

An ideal gift for the frequent traveler, the Presario 1700 notebook provides the ultimate balance of mobility, performance and functionality in a powerful thin and light notebook. Featuring Intel Pentium III processors at speeds up 1.13 GHz, a brilliant 14.1-inch SXGA+ display and weighing just five pounds, the Presario 1700 starts at just $1,148 direct from Compaq.

For the power user who needs the functionality of a desktop with the portability of a notebook, the Presario 2700 notebook is the perfect PC for this holiday season. With lightning-fast processing speed, the Presario 2700 Notebook PC features the latest in Intel Pentium III processors and both a fixed optical drive and hot-swappable FutureBay™, providing ultimate productivity and flexibility. The Presario 2700 notebook starts at $1,299 direct from Compaq.

All "Gifts That Go" products for the holidays are available online and in retail outlets across the country. For more information visit www.compaq.com/gtg or a local retailer.

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.