News release

Compaq Seeks to Improve the Educational Experience with New Web-Based Learning Tools and E-Books

Forms Alliance to Offer Furello E-Book Series and Educational Tools

Compaq Computer Corporation (NYSE: CPQ) today announced plans to provide educators with Web-based learning tools and e-books, along with its computers sold to educational institutions around the United States. The company has formed an alliance with Houston-based author, Hariett Fabrick, and Wildflower USA Publishing, to include her Web-based educational materials and popular Furello book series (in electronic-book format) to schools to enhance the overall learning experience for youth.

Furello books, which focus on non-violent messages and include characters from a broad base of cultures, recently received an award from the Native American Arts Council. The series has been used extensively throughout Texas as an educational tool for K-12 to bolster reading comprehension and vocabulary-building skills. In addition, Furello has been used to teach children English as a second language.

Compaq's Web site will include a link to the Furello e-book series, along with student workbooks and teacher manuals, including interactive crossword puzzles, word searches, riddles, scrambles, graphic organizers, charts and more. By making the tools available over the Internet, Compaq hopes to make the experience even more interactive for children.

"We believe that combining innovative educational content, such as the Furello series, with Compaq's innovative computers will create an experience for students that is unmatched in the industry," said George Warren, Compaq director of K12 education.

"Compaq provides end-to-end educational solutions for schools—not just low-cost boxes. Compaq solutions are an integral part of education throughout America," Warren added.

Compaq expects to have the first Furello Web tools available for its customers this month. Because the materials are already in use in many schools and pre-approved by state education associations, they can be put to immediate use.

"We are proud to be associated with a company like Compaq that cares about education and youth," said Hariett Fabrick, the award-winning author. "Furello has already had a significant impact on many of our youth, so we are ready to expand our reach significantly by working with Compaq."

According to Warren, education is a key market focus for Compaq. Last year, the company announced the signing of several multimillion dollar / multi-year agreements to provide complete computing solutions. One example is the Tracy Unified School District (TUSD) Learning Center in California, which provides the backbone of the Center's Discovery Charter School, the first school in the nation to commit to comprehensive technological strategies—or eEducation—as its primary method of delivering instruction. The eEducation initiative, designed to propel student achievement, offers students customized, interactive learning programs that enrich the classroom environment by including resources from the community and around the world.

"By adding new Web-based learning tools like Furello to our notebooks, desktops and iPAQ Pocket PCs, we can take electronic-based education being introduced at TUSD to a new level," Warren said. "Wireless and distance learning are the educational wave of the future, and Compaq is proud to be at the forefront of this technology."

Furello e-books and educational materials are linked off Compaq's Bonus Points Web site at http://www.compaq.com/k12/bonuspoints.

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.