News release

American Express and Compaq Sign Global Services and Technology Contract

Compaq Computer Corporation (NYSE: CPQ) announced today that it has been awarded a five-year, multi-million dollar contract to provide technology, services, and support to American Express (NYSE: AXP) operations worldwide.

Under the terms of the agreement, Compaq Global Services professionals will architect, deliver, and manage a server-based computing infrastructure for American Express. The contract calls for Compaq to deploy 25,000 Thin Clients—supported by 400 Compaq ProLiant industry-standard servers—mostly in the U.S., as well as in Europe, Asia, and South America. The server-based and Thin Client computing solutions are anticipated to provide a cost-effective approach for American Express employees who perform task-oriented, transactional functions, such as customer service representatives.

Compaq Global Services will provide design, deployment, and ongoing management services for the infrastructure. These services include infrastructure and application test labs, monitoring and management of the server environments, and help desk and desk-side support for users of the Thin Client devices.

Compaq's Thin Client devices process keyboard, mouse, and display enabling input/output offloading of application processing and data storage to centralized servers. The solution is designed to simplify administration and support for the user desktop, resulting in lower overall operational and ownership costs.

"Adopting Compaq's server-based computing and Thin Client solution supports our overall strategy of using technology that can reduce infrastructure costs, re-engineer our computing environment, and bring operational savings to the bottom line," said Glen Salow, executive vice president and chief information officer, American Express. "As we set our sights on becoming the world's most respected service brand, we will seek and deploy cost-effective, flexible technology solutions like Compaq's that allow us to better align our technology resources with the demands of our internal and external customers."

"Compaq has all the elements for IT success to offer American Express: leading-edge enterprise products, integrated solutions, and one of the largest and most experienced global services organization in the world," said Peter Blackmore, Compaq's executive vice president of worldwide sales and services. Blackmore noted that the agreement is a continuation of a long and productive business relationship with American Express that dates back more than a decade.

Compaq accelerated the delivery of approximately 2,000 of its T1010 Microsoft Windows-based Thin Clients to American Express offices in New York, New Jersey, and Connecticut to support employees relocated following the September 11th damage to the company's headquarters in lower Manhattan.

Computing on Demand

"This contract with American Express reflects Compaq's overall strategy that is focused on providing integrated solutions that create real value for our customers," Blackmore said. "Compaq's Computing on Demand approach to managed services, which offers customers the ability to acquire IT at a fixed price per user per month, was an especially attractive financial model for American Express."

Introduced in July, Compaq's Computing on Demand initiative provides a set of new solutions that give customers a broad range of computing resources when they need them, where they need them, and at a predictable price and performance level—similar to buying IT as a utility. With Computing on Demand, enterprise customers have greater flexibility and control over the design, deployment and management, and cost of their IT infrastructure.

Compaq 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.