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Compaq ProLiant ML370 Server Is First to Break $4.00 Price:Performance Barrier

Next Generation Compaq ProLiant ML530 to Support New Intel Xeon Processors and Offer Enhanced Memory and I/O Capabilities

HOUSTON, February 25, 2002

Compaq Computer Corporation (NYSE: CPQ) today announced greater levels of performance and value in its two-processor (2P) ProLiant line of servers. Compaq is the first company to achieve TPC-C price:performance results of less than $4, on the latest version of the Compaq ProLiant ML370 server. The new record-breaking benchmark results, published February 13, 2002, recorded 17,078 transactions per minute (tpmC) at a cost of only $3.99 per tpmC while running Microsoft Windows 2000 and Microsoft SQL Server 2000 on a ProLiant ML370 server with two Intel Pentium III 1.26GHz processors.

Compaq also announced that it will extend the performance capabilities in its 2P ProLiant ML530 G2 server by integrating new Intel® Xeon™ processors, enhanced I/O technology, and new Advanced Memory Protection capabilities.

"Addressing customers' requirements for performance, management and cost effectiveness are hallmarks of Compaq's adaptive infrastructure strategy for industry standard computing," said Brad Anderson, vice president of mainstream servers, Compaq Industry Standard Server Group. "We continue our tradition of innovation today by delivering even greater levels performance, value, and fault resilience in 2P Compaq ProLiant servers."

Today's performance achievement marks the fourth time Compaq ProLiant servers have been the first to cross a major milestone for price:performance using the TPC-C benchmark. In addition to being the first company to achieve the under $100 tpmC benchmark in 1996, Compaq also broke the under $10 tpmC record in 2000, and the under $5 tpmC benchmark in 2001.

Boosts 2P Server Performance with Xeon Processors, Memory, and I/O

Compaq will initially offer the new Intel Xeon processor in the next-generation 2P ProLiant ML530 G2 server, and in future generations of ProLiant 300 Series dual-processor servers. The ProLiant ML530 G2 is designed with balanced system architecture to maximize application performance and user workload through optimized processor, I/O and memory technologies. With new Intel Xeon processors and leading ProLiant design, customers will be able to add more users or applications per server while significantly increasing system performance.

In addition, new support for 64-bit 100MHz PCI-X will provide the highest available levels of I/O performance. As part of the Compaq Advanced Memory Architecture, the ProLiant ML530 G2 will be the first server to offer Compaq Advanced Memory Protection, which provides greater fault resilience from memory failure. Combined, these new technologies will enable workload capabilities to be expanded 40-60 percent over existing 2P server solutions.

Company Background

Founded in 1982, Compaq Computer Corporation is a leading global provider of information technology products, services and solutions for enterprise customers. Compaq designs, develops, manufactures and markets information technology equipment, software, services and solutions, including industry-leading enterprise storage and computing solutions, fault-tolerant business-critical solutions, communication products, personal desktop and notebook computers, and personal entertainment and Internet access devices that are sold in more than 200 countries directly and through a network of authorized Compaq marketing partners. Information on Compaq and its products and services is available at http://www.compaq.com.


Notes:

Compaq and the Compaq logo are trademarks of Compaq Information Technologies Group, L.P. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. This document contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the Hewlett-Packard/Compaq merger does not close or that the companies may be required to modify aspects of the transaction to achieve regulatory approval or that prior to the closing of the proposed merger, the businesses of the companies suffer due to uncertainty; the market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; that Compaq and Hewlett-Packard are unable to transition customers, successfully execute their integration strategies, or achieve planned synergies; other risks that are described from time to time in Compaq and Hewlett-Packard's Securities and Exchange Commission reports (including but not limited to Compaq's annual report on Form 10-K for the year ended December 31, 2001, HP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001, and subsequently filed reports). If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Compaq's results could differ materially from Compaq's expectations in these statements. Compaq assumes no obligation and does not intend to update these forward-looking statements.

 


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