News release

North Carolina's Rural Internet Access Authority Gets Boost From Compaq Purchase Credit Program

Program to Accelerate Efforts to Bridge Digital Divide

A first-of-its-kind technology program will benefit North Carolina residents and speed bridging of the state's "digital divide." Compaq Computer Corporation (NYSE: CPQ) today announced the North Carolina Purchase Credit Program, a program that will boost efforts by the state's Rural Internet Access Authority, to bring dependable, affordable, high-speed Internet access to all parts of the state.

"Rural development and rural high-speed access is absolutely critical, not only for businesses, but also for the growth of our schools, universities, community colleges, medical facilities, and for families," said North Carolina Governor Mike Easley. "By taking the initiative to create this program, Compaq has shown their commitment to help North Carolina bridge the digital divide."

Under the program, Compaq gives financial credits to the Authority for all Compaq equipment purchased by state and local government agencies, schools and colleges, and state employees who buy Compaq products under the North Carolina State Employees Purchase Program. The Authority may then apply these financial credits to future purchases of Compaq equipment.

The goals of the Authority and e-NC Initiative are to increase the availability of high-speed Internet access, inventory the state's telecommunications infrastructure and services, establish model telecenters across the state, provide public access to the Internet and train citizens on how to use it, and promote ownership of Internet access devices.

"Compaq's program will benefit citizens in outlying areas of North Carolina and the state as a whole," said Jim Weynand, vice president, Government and Education Markets for Compaq. "Compaq developed the North Carolina Purchase Credit Program to support efforts by Governor Mike Easley, the state legislature, and the e-NC Initiative to bring the benefits of the Internet to every North Carolinian."

Credits under the program will apply to equipment ranging from the handheld Compaq iPAQ Pocket PC to industry-standard Compaq ProLiant servers. The value of credits to the state will be determined by the total value of the equipment purchased by the various government agencies and state employees.

The purchase credit program was activated immediately and is expected to continue for at least a year.

About the e-NC Initiative and the North Carolina Rural Internet Access Authority

The goal of the e-NC Initiative is to link all North Carolinians, particularly those in rural areas, to the Internet. The Rural Internet Access Authority leads the initiative and was created Aug. 2, 2000, by the N.C. General Assembly. The Authority and the initiative are housed within the N.C. Rural Economic Development Center. For more information, visit www.e-nc.org or call 1-866-NCRURAL.

About Compaq

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.