News release

Compaq and Cardinal Health Sign Multi-Year IT Agreement

Compaq Computer Corporation (NYSE: CPQ) announced today that Cardinal Health, a global healthcare company based in Dublin, Ohio, has chosen Compaq as its exclusive provider of distributed IT equipment, including Compaq's ProLiant servers, Deskpro desktop PCs, and Armada laptops. Cardinal also is now under a Self Maintainer Program, with Compaq technicians training selected Cardinal Health employees to become certified Compaq support technicians. According to Cardinal Health officials, the decision was based on Compaq's global reach, reliable service performance, and the two companies' successful long-term relationship.

"Compaq has been a key strategic partner for us in many of our information-technology initiatives," said Kathy Brittain White, executive vice president, e-Business and chief information officer of Cardinal Health. "We are pleased to build on our relationship in this new effort to further enhance Cardinal Health's IT infrastructure. This is another important investment in our leadership in e-business and information technology designed to help us bring greater value and efficiency to healthcare."

"We've always believed the healthcare industry is a great example of where Compaq's global delivery and service capabilities combine with our broad product lines to offer enterprise customers cost effective, end to end solutions," said Peter Blackmore, executive vice president, worldwide sales and services, Compaq. "We're very happy Cardinal Health agrees and has chosen to take our relationship to a new level."

First product shipments under the new agreement will be to refresh equipment at Cardinal Health's corporate headquarters in Dublin, Ohio; its Allegiance Healthcare subsidiary in McGaw Park, Illinois; and distribution centers in Ohio and California. Under the new contract, Cardinal Health adds Compaq ProLiant servers, Deskpro desktop PCs, and Armada laptops to its well-established use of Compaq AlphaServer systems running Tru64 UNIX and StorageWorks storage products for the company's IT infrastructure.

With delivery of these new systems, the Houston-based provider of IT solutions and services replaces Dell, Hewlett-Packard, and IBM as providers of industry standard systems in various Cardinal divisions. The multi-year contract is valued at more than $20 million per year.

Company Backgrounds

Cardinal Health, Inc. (http://www.cardinal.com) is a leading provider of products and services supporting the healthcare industry.

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.