News release

El Paso Corporation Partners With Compaq to Provide Keep-at-Home Personal Computers to Employees

El Paso Corporation (NYSE:EP) announced today that it has launched a unique personal computer program that will provide a keep-at-home PC to its eligible employees. Implemented in partnership with Compaq Computer Corporation (NYSE: CPQ), the personal computer program helps to ensure that the information necessary for El Paso's continued success is readily available to the company's employees. With this PC program, El Paso Corporation employees benefit from improved corporate communications, enhanced access to El Paso's intranet, around-the-clock access to the company's benefit programs, and subsidized Internet connectivity at home. This is the first program offered under e³, El Paso Empowers Employees, the company's recently implemented enrichment program umbrella.

"Since its launch in November last year, almost 7,000 El Paso employees have participated in the EP HomeLink program," said Joel Richards III, executive vice president of Administration at El Paso Corporation. "This is an outstanding program that empowers employees to meet today's workplace realities successfully. As the workplace continues to evolve, keep-at-home PCs will help El Paso's employees stay abreast of the world's latest technologies, trends, and information. It will place information readily at the fingertips of El Paso's employees and will provide a benefit not only to the company's employees but to their families as well."

El Paso's two-year PC program provides participating employees with a subsidy for Internet connectivity as well as a keep-at-home PC. El Paso has partnered with Compaq to provide a Compaq Presario 5000 desktop computer equipped with Windows XP Home Edition to every program participant at no cost to the employee. Employees also can upgrade the PCs at their expense. A discount will apply to any additional Compaq options purchased under El Paso's program.

"Compaq is committed to providing customers access to information, communication, and entertainment anytime, anywhere," said Jim Milton, senior vice president and general manager of Compaq North America. "We are excited to participate in El Paso Corporation's innovative program. The award-winning Compaq Presario is designed to make the PC and Internet experience easier and more enjoyable than ever before, and Windows XP Home Edition makes it even easier for the home user to achieve this experience."

The El Paso Corporation model—strong in assets, market expertise, valuation skills, and risk discipline—has proven itself year after year, resulting in a company with great financial strength and a reputation for integrity. El Paso has core businesses in natural gas production, gathering and processing, and transmission, as well as in international project development, energy financing, power generation, liquefied natural gas transport and receiving, and merchant energy services. The company is committed to developing new energy sources and technology to supply energy to communities around the world. For more information, please visit www.elpaso.com.

Company Background

Founded in 1982, Compaq Computer Corporation 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.