News release

Compaq Included in $37 Million Technology Initiative for Ohio Education

Ohio SchoolNet Commission Combines Best of Traditional Education With Advantages of Learning Technology

Students and teachers in Ohio will be able to increase their access to computers and technology, thanks to an agreement between Compaq Computer Corporation (NYSE: CPQ) and the Ohio SchoolNet Commission, an agency of the State of Ohio. Through the agreement, Compaq becomes a key provider of hardware and services under the fifth round of the SchoolNet Plus program, which will total $37 million during fiscal years 2002 and 2003.

Part of a statewide initiative begun in 1995 to make technology an integral part of education, the SchoolNet Plus program already has provided resources for districts to install more than 180,000 multimedia computers in grades K-5. The contract calls for Compaq to provide computers to public school districts, nonpublic school districts, and other K-12 educational entities in the state.

"Ohio SchoolNet is fortunate to be able to continue its efforts to provide students and teachers across Ohio access to classroom technology," Dr. Julie Fox, chief program officer, stated. "Compaq is one of our key partners in the implementation of the SchoolNet Plus program. We are pleased to be working with them as we improve the learning environment for all Ohio children."

Jim Weynand, Compaq vice president for government and education, said the multi-year agreement is another example of Compaq's commitment to education and the success of its strategy. "Compaq's participation in the SchoolNet Plus program further underscores our tremendous momentum in the education marketplace," Weynand said. "The ability to build and deliver integrated, repeatable solutions distinguishes Compaq from other vendors in the education and government sectors. This ability often represents the difference between being able to use technology to advance children's education and simply using a PC like an expensive blackboard."

Ohio schools will have access to Compaq's innovative Evo family, including breakthrough designs in desktops, notebooks, workstations, and thin clients that are simple to purchase, deploy and manage. All machines come with CarePaqs, which provide for installation and warranty upgrades to same-day service versus next day. In addition, Ohio school districts will accumulate Compaq Bonus Points on all purchases, which can be redeemed for educational products and services for teachers, administrators and IT professionals. The Compaq Bonus Points Web site is http://bonuspoints.edmin.com/main.cfm.

Results and Achievements in Ohio

The Ohio SchoolNet Commission completed the most recent round of SchoolNet Plus funding for grade 5 at the end of the FY 2000-2001 biennium. SchoolNet Plus Round 5 will provide Ohio public schools with funding to purchase approximately 22,000 to 40,000 multimedia computers for 6th grade classrooms to meet the state goal of one computer workstation per five students.

In just six years, Ohio has made significant improvement in its student access to technology. Reported by one national survey as 46th among the 50 states in 1996, Ohio now ranks third nationally in student access to current technology.

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.