News release

Avid Selects Compaq Workstations for Global Standard

Amherst, Avnet and CARA Customize Solutions and Deliver Services for Avid Customers

Compaq Computer Corporation (NYSE: CPQ) announced today a strategic alliance with Avid Technology, Inc. (NASDAQ: AVID) to deliver Avid's industry-leading video editing solutions on Compaq workstations. As part of the agreement, Compaq's Evo Workstation W8000 is the new global standard for the Avid® Media Composer®, Symphony™, and Avid Xpress® systems.

The alliance is expected to result in the global sale of more than 4,000 Compaq Evo Workstations per year—with an estimated value of more than $17 million annually during the ongoing relationship. Other aspects of this alliance include joint exploration of next generation solutions, joint product development, solution testing, and certification.

"Compaq's technical innovation, workstation leadership, and track record as a reliable partner are key reasons why Avid is standardizing on Compaq workstations," said Compaq's Mike Winkler, executive vice president, Global Business Units. "The entertainment and media vertical markets will benefit from the combined expertise of Avid and Compaq. This alliance demonstrates our strategic focus on delivering differentiated solutions to industry-specific computing problems."

"At Avid, we're constantly looking to deliver products to our customers that run on the fastest and most powerful platforms on the market," said Joe Bentivegna, Avid's vice president of video development and operations. "The 1.7 GHz Intel® Xeon™ processor in Compaq's Evo Workstation W8000 makes the system highly scalable and gives it the power our customers need to achieve even higher levels of performance on our Meridien®-based products."

According to IDC's Third Quarter 2001 report, Compaq Evo Workstations were ranked Number 1 in market share in the Economic and Financial Services segment and they are widely used in the design and computing intensive CAD-CAM vertical market. With its alliance with Avid, Compaq is well positioned to leverage these successes in the mission-critical film, television, commercial, and broadcast news markets.

The Compaq Evo Workstation W8000 offers an ideal combination of innovative technology, performance and affordability. Compaq optimized its highly scalable Intel Xeon workstation architecture for demanding applications like uncompressed video editing. The architecture and chassis design of the Evo Workstation W8000 provide maximum scalability and robustness that enable the system bandwidth required by high-performance video editing solutions.

The new workstation is certified for use on:

• Avid Symphony – the high-end choice for finishing uncompressed 601 programs offline on the Media Composer system
• Media Composer models – the premier system for offline, film and online editors who require top quality and maximum choice of effects
• Avid Xpress – unites Avid's legendary user interface and high-quality input/output at an aggressive price

Avid's broadcast news workstation solution is also expected to be qualified later this quarter. Avid's integrated systems are available from a network of Avid resellers and Compaq partners. Amherst Corporate Computer Sales & Solutions, Avnet Applied Computing Solutions (NYSE: AVT), and the CARA Group provide integration and distribution services.

Avid Technology Background

Avid Technology, Inc. delivers the solutions that Make, Manage and Move Media™. As a recognized digital standard for professionals who make the world's media—from video, audio and film to animation, special effects and streaming media—Avid's products are used to make more television and news shows, commercials, music videos and CDs, corporate/industrial productions and major motion pictures combined than any other nonlinear editing manufacturer in the world. Now, building on its Oscar®, Grammy® and Emmy® award-winning heritage in creating content, Avid is extending its reach by redefining how digital media is shared, stored and distributed.

To manage today's increasingly rich collection of dynamic media, Avid provides powerful servers, networks and media tools to help customers search files, share media and collaborate on new productions, both locally and globally. Avid's solutions also empower users to easily move media, whether on air, over cable or satellite or through the Internet. Like no other media company today, Avid's end-to-end solutions span the continuum of media creation, management, and distribution. The company's corporate headquarters are located in Tewksbury, MA. More information about the company is available at www.avid.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.