News release

Special Promotions Enhance Compaq's Position as the Leading Provider of Server Technology to Growing Businesses (Advisory)

Continuing its efforts to provide emerging enterprises and small businesses with access to robust, reliable and affordable technology solutions, Compaq Computer Corporation (NYSE: CPQ) launched special promotions and discounts on certain models of its market-leading⁽¹⁾ industry standard Compaq ProLiant servers.

"Compaq is committed to being the technology provider of choice for small businesses and emerging enterprises," said Dan Busse, director of North America Small & Medium Business (SMB) Marketing, Compaq Computer Corporation. "Businesses of all sizes view Compaq as a 'virtual one-stop shop' for their current and future technology needs to help build their business and achieve sustained and profitable growth."

Business Tuesday Weekly SMB Promotion

Beginning today through midnight on November 23rd, Compaq is offering a free 18 GB hard drive on purchases of select Compaq ProLiant DL380 servers. With the new "2U" chassis, the ProLiant DL380 G2 addresses the performance and space requirements of growing businesses. For example, the DL380 is the only 2U server providing the exceptional performance necessary for today's most demanding Web and database applications, with powerful Intel Pentium III processors, expanded memory support, improved system architecture, and a next-generation embedded array controller—all in a density optimized form factor.

The ProLiant DL380 server's innovative design and rich feature set earned it the distinction of winning NetworkWorld's 2001 "Best of the Tests" award on Nov. 12. "The Compaq DL380 is probably the most well thought-out server we've seen," noted John Bass, technical director, Centennial Networking Lab, North Carolina State University, in his award review. For more information about Compaq's weekly Business Tuesday offerings, visit http://www.smb.compaq.com.

Technology Deal of the Month Promotion

Each month, Compaq offers small and medium size businesses (SMBs) special discounts on select products through its Technology Deal of the Month Program. These are month-long promotional offers that are designed to provide small and medium-size businesses with unprecedented values with special hardware and/or service offerings. For example, through the end of 2001, Compaq will offer free hardware installation when customers purchase select Compaq ProLiant servers. In addition, when customers purchase online, they get free shipping and can defer payments until March 2002 via Compaq's "4 for Free" program. This offer is available for both Technology Deal of the Month offers and "Business Tuesday" promotional activities. For more information about the free server installation promotion, visit http://www.smb.compaq.com.

Compaq Financial Services Server Trade-In Program

Compaq Financial Services has recently stepped in with a special promotion that will allow customers to trade in current servers and options through the end of 2001. This innovative program enables customers to migrate to the fastest and most up-to-date Compaq technology on the market. This allows customers to leverage the remaining value from their older hardware and eliminates the issue of disposal, making it easier to upgrade to new Compaq ProLiant and TaskSmart servers.

Through this program, customers receive up to 15 percent in trade-in rebates for existing Compaq 486/Intel Pentium based servers, plus a five percent rebate for all eligible internal server options on a new server purchase. And, for a limited time, when customers trade in non-Compaq Intel-based severs, they receive up to a 30 percent rebate on the purchase of new ProLiant and TaskSmart servers.

The trade-in program is available for purchases through Compaq's monthly and weekly promotions. For more information about the trade-in program, visit http://www.compaq.com/financialservices/tradeup.html.

Company Background

Founded in 1982, Compaq Computer Corporation ("Compaq") is a leading global provider of enterprise technology and solutions. Information on Compaq and its products and services is available at http://www.compaq.com.