News release

Compaq Leads the Evolution of Portable Computing;
Unveils Tablet PC Prototype

Compaq Computer Corporation (NYSE: CPQ) today demonstrated its industry leadership in the design and development of innovative products by showcasing a prototype Tablet PC during the Comdex trade show in Las Vegas.

Comparable in size to a standard sheet of paper, the Compaq Tablet PC prototype is a full-function Microsoft Windows XP Pro-based PC that combines the computing power and convenience that users expect from a full-featured notebook with the simplicity of a pen interface.

"The comfortable, lightweight design of the Tablet PC will allow users to take handwritten notes, create drawings, or annotate existing documents on the screen in a way that is natural and intuitive to them, yet still provides all the performance and portability they've come to expect in a full-function mobile PC," said Ted Clark, vice president, Tablet PC, Compaq Computer Corporation. "Our Tablet PC prototype is just another example of how Compaq continues to extend the boundaries and functionality of today's personal computing technologies."

"Compaq is a worldwide leader in delivering innovative technology and solutions to the marketplace," said Alex Loeb, general manager of the Tablet PC at Microsoft Corp. "Together, we will help to lead the evolution of portable computing and bring the simplicity and power of digital ink to the everyday PC experience."

The Compaq Tablet PC functions like a notebook PC, running all of the existing Windows applications by supporting keyboard and mouse input. It also extends the functionality of the notebook PC with pen and speech technologies. Because you can write on the screen, it is optimized for tasks that are very common in business computing such as taking notes in meetings, working collaboratively or reading electronic documents.

While the Compaq Tablet PC is ideally suited for businesses of all sizes, it's also designed for use in legal firms, real estate and insurance offices, higher education, and health care environments—or anywhere a simple, highly mobile and more natural design is required for entering and accessing information.

Compaq expects to ship its Tablet PC when Windows XP Tablet PC Edition is released in 2002. Pricing is not yet available.

More information can be found at http://www.compaq.com/tabletpc.

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.