News release

Compaq Honors Top Service Provider Partners

Twelve Partners Recognized for Outstanding Performance as Part of All Star Rewards Program

Compaq Computer Corporation (NYSE: CPQ) announced today the first annual recipients of the Hall of Fame Award, part of the All Star Rewards and Recognition program for service delivery partners in the United States. The All Star Rewards program was created in 2001 to recognize top-performing service delivery partners in each of 12 Compaq business districts. Winners were selected based upon customer satisfaction and operational performance metrics for the entire year.

"As services become increasingly important in today's market, service-delivery partners continue to be critical to our success. All of the Compaq Business Partners recognized today have consistently provided their customers with excellence in service and support backed by the Compaq brand," said Walter Mello, director, Compaq Global Services, Channel Services and Warranty. "The All Star Rewards program allows Compaq to recognize partners' best-in-class service sales and delivery."

Compaq Global Services is the $7.8 billion services arm of Compaq Computer Corp., providing system integration, customer support and outsourcing services to help enterprise clients build, deploy and manage IT environments. Compaq has over 3,000 Authorized Compaq Service Partners in the United States.

Hall of Fame Award Winners

Compaq recognizes and congratulates the following Hall of Fame Award winning partners for their exceptional work and support: Networks 2000, San Diego, CA; cyberCSI, Santa Clara, CA; HyperFormance Computers Inc., Richmond, VA; Attronica Computers, Inc., Gaithersburg, MD; Micro Solutions Plus, Inc., Colmar, PA; Precision Computer Services, Shelton, CT; Jade Systems Corporation, New York, NY; Prosys Information Systems Inc., Atlanta, GA; Absolute Systems Inc., Dallas, TX; Vincent Associates, Inc., Pittsburgh, PA; Tushaus Computer Services, Inc., Oshkosh, WI; and GCI Systems, Minneapolis, MN.

To achieve the Hall of Fame award, Compaq expects its business partners to consistently deliver superior service quality scores. Customer satisfaction levels, how efficient partners are with parts, and how well service partners fix problems on their first visit to a customer's site determine scores.

Hall of Fame, Most Valuable Partner and All Star Awards

The All Star Rewards and Recognition Program is part of the Enhanced Pay for Performance Program for Compaq Service Delivery Partners. Awards consist of three levels of recognition: All Star, Most Valuable Partner (MVP) and Hall of Fame.

Hall of Fame. This award is based on the highest 12-month average of customer satisfaction scores and operations performance at the partner branch level. This is an annual award given to the top partner in each Compaq business district.

Most Valuable Partner (MVP). The MVP Award is based upon branch level customer satisfaction and operational performance scores. The top partner per Compaq customer business district is recognized on a quarterly basis.

All Stars. This award level recognizes the top 10 percent of all partners for their customer satisfaction and operational performance. For more information about the All Star Rewards Program, visit http://www.compaq.com/csn.

New Pay for Performance Program Highlights

Compaq Global Services announced significant enhancements to its U.S. Pay for Performance Program that will simplify business and offer increased revenue.

Under the enhanced program, partners will receive some of the highest financial incentives in the industry. Partners also benefit from Compaq's accelerated investments in e-service delivery tools, access to remote support and Web training. The program is based upon three-tiered reimbursement designation that Compaq Authorized Service Providers and System Service providers can achieve: Premier, Preferred and Basic. Evaluated quarterly, these designations are based upon operational performance and customer satisfaction metrics. One of the key features of the enhanced Pay for Performance Program is a higher reimbursement rate for partners who achieve above-average or outstanding performance.

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.