News release

Compaq Breaks into Top 10 on Interactive 500

Compaq Computer Corporation (NYSE: CPQ), an industry leader in providing global enterprise technology and solutions, jumped to the No. 6 position on Interactive Week's 2001 Interactive 500, moving up 13 spots from the No. 19 position last year. Compaq currently generates nearly one-half of its annual revenue, or about $20 billion, through its e-commerce operations. The Interactive 500 is a complete listing of the most successful online players based on revenue generated from the companies' e-commerce operations.

"Clearly, to remain competitive in today's marketplace, e-commerce must be an integral part of a company's business model," said Michael Capellas, Compaq chairman and chief executive officer. "Our e-business team has driven tremendous, continuous growth, giving Compaq an aggressive advantage over our competitors. Every day we make it easier for our customers to work with us either online, through our own sales force, or through our network of the world's best resellers."

Since Compaq.com completed site improvements in 2000—including a new design and new streamlined navigation that improves usability and integration of online purchasing options—Compaq has not only recorded a significant increase in online revenue, but also has received a steady stream of accolades for its worldwide e-business systems efforts.

"Compaq's much-improved ranking on the Interactive 500 tops off an incredibly successful year where our efforts in the e-commerce space have pushed us ahead of many competitors, including Dell," said Marius Haas, vice president, Worldwide E-Business Systems, Compaq. "We pulled about $2.5 billion more through e-commerce sales in 2000 than Dell, which dropped two spots from its 2000 ranking. Our worldwide e-business strategy has clearly established Compaq as an Internet leader. We will continue to evolve our e-commerce offerings to further serve our customers and to put even more distance between us and our competitors."

In September 2001, International Data Corporation's (IDC) Worldwide Quarterly PC Tracker reported that Compaq's market share grew 70 percent year-over-year, moving Compaq into second place in Internet direct sales. The following month, a separate report published by Boston-based research firm Summit Strategies, reported that site improvements have made Compaq.com an exceptional source of product information and customer service for potential buyers.

"The new Compaq site is a stunning example of e-selling principles at their best," wrote Summit Strategies' Marty Gruhn in a recent issue of the firm's newsletter, SummitVision. "In fact, by today's standards, there's no doubt that Compaq.com's new design ranks right up with IBM.com as an e-selling powerhouse in the making."

Compaq.com receives more than six million customer visits each week, making the site one of the most visited IT destinations on the entire World Wide Web.

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.