News release

Compaq Donates Technology to Help Dominican Families Climb from Poverty

Compaq and Esperanza Power Technology Labs to Provide Skills, Restore Self-Worth, Finance Loans in Dominican Republic

Technology donated by Compaq Computer Corporation (NYSE: CPQ) will be used to expand a program for disbursing low-interest business loans to disadvantaged women seeking a better way of life in the Dominican Republic.

Compaq's $250,000 contribution to Esperanza International will assist in improving technology skills, growing small businesses and simplifying the loan process for women who have lost hope but are regaining their self-worth through entrepreneurial action. Compaq desktops, notebooks, iPAQ Pocket PCs and industry standard ProLiant servers are being assembled at two new computer labs in the rural towns of San Pedro de Macoris and Conseulo.

Since 1996, the nonprofit Seattle organization Esperanza has distributed more than 12,000 low-interest loans and has created about 10,000 jobs, mostly to unemployed single-parent families and women who fall below the poverty line. Now, the organization wants to introduce technology and expand those women's computer skills.

"We believe that giving these women access to information technology will make a big difference in boosting their dignity, and make it easier for them to build better lives for themselves and their families," said David Valle, Esperanza founder and executive director.

"Finding a technology partner like Compaq that has a global reach and understands small business will also give these women the power to track the finances of their growing businesses and lower the cost of doing business, because there is an increasing need and ability to link globally to suppliers, buyers and customers," Valle said.

Esperanza will also use the technology in the computer labs for its own administration, fund-raising and accounting and to track the more than $3 million in micro loans. But some of the technology—such as Compaq iPAQ Pocket PCs—will also be used in the field. Loan officers who travel to the villages on motorcycles over bumpy dirt roads used to have to fill out documents by hand. But now, they will begin uploading that information from loan recipients on the iPAQ handheld devices.

The average loan is $150, and the women pay commercial bank rate interest and fees. The loans have given women the opportunity to start local businesses and provide income for their families, while also boosting the economy of their communities.

"I now have a small but thriving grocery," said Rosa Bil de Borsa, who used to work 12 hours a day selling trinkets in the street, often not making enough to feed her family or pay for the bus fare home.

Women have used the loans to finance startup businesses, like selling sweet cakes, coffee, blended fruit drinks, fried bananas or chicharonis, deep-fried pork rinds. Where unemployment used to be as high as 80 percent, along these rugged roads now stand a village diner, beauty parlor, wedding gown rental shop and a framing business.

It is Esperanza's hope that the Compaq donation of technology will increase job opportunities by providing these women with basic computer skills to either expand their existing businesses or start new ones, such as office management, word processing businesses, even Internet cafes. The computers are loaded with QuickBooks accounting software from Intuit and Windows 2000 software from Microsoft.

"Esperanza does a phenomenal job of providing an opportunity for these women and families to escape poverty," said Dave Fusco, regional vice president for Compaq's West Region. "Compaq wanted to help another step of the way by providing technological knowledge and management tools to allow this program to grow. Our hope is that through technology training at the labs, these women will acquire the necessary skills to not only run their business but can become candidates for hire by regional businesses."

The idea for Esperanza—hope in Spanish—started as a pipe dream in 1985, when Valle, a former baseball catcher for the Seattle Mariners, was in the Dominican Republic with his wife Vicky, while playing winter league baseball. One day, after a ball game, children started to swarm around him for what he thought was his autograph. What they really wanted was food. Struck by the devastating poverty around them, Valle promised he would someday return to the country with the mission to free these children and their families from high unemployment, through a program that generated income, education and health.

Over the years, Esperanza has relied on corporate donations from companies such as Compaq to make the program successful and to grow. The organization recently opened a health clinic, where for $1.25 per month, women who hold loans with Esperanza can get preventative healthcare for themselves and their families.

Esperanza International Background

The mission of Esperanza International is to free children and their families from poverty through initiatives that generate income, education and health, restoring self-worth and dignity to those who have lost hope. The mission is being accomplished by focusing programs on three sectors: Micro-enterprise development, Training and Education, and partnering with other community institutions for Community Development initiatives.

Compaq 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.