News release

Compaq Receives Intel's Preferred Quality Supplier Award

Compaq AlphaServer, ProLiant Servers, Enterprise Storage, Customer Support Cited

Compaq Computer Corporation (NYSE: CPQ) was named a recipient of Intel Corporation's 2001 Preferred Quality Supplier (PQS) award for outstanding performance in providing products and services deemed essential to Intel's success. The company was awarded for its efforts in supplying Intel with industry-standard Compaq ProLiant servers, high-performance AlphaServer systems, Enterprise Storage solutions, and customer support services. Compaq and other PQS award winners were honored last night at a banquet in Burlingame, Calif.

"Congratulations to Compaq Computer Corporation on winning Intel's Preferred Quality Supplier award," said Jeff Knepper, director of IT Strategic Procurement at Intel. "It clearly reflects Compaq's commitment to quality, technological innovation and flexibility supporting Intel's computing infrastructure."

"Compaq is honored to receive the Preferred Quality Supplier award from Intel for our products and services," said Mike Winkler, executive vice president, Global Business Units, Compaq. "This award is not only a testament to Compaq's relentless commitment to quality and customer satisfaction, but to our leadership in delivering global enterprise computing solutions that address real customer needs."

Currently, Compaq ProLiant servers, AlphaServer systems, Enterprise Storage solutions, and customer support services support Intel's IT infrastructure, its microprocessor fabrication plant operations, and its mission-critical applications worldwide.

The PQS award is part of Intel's Supplier Continuous Quality Improvement (SCQI) process that encourages suppliers to strive for excellence and continuous improvement. To qualify for PQS status, suppliers must score high on a report card that assesses performance and ability to meet cost, quality, availability, technology, and responsiveness goals. Suppliers must also manage and deliver on a challenging improvement plan and a quality systems assessment.

Intel also recognizes PQS award winners today with an advertisement in the U.S., European and Asian editions of The Wall Street Journal.

About Intel

Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.

About Compaq

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.