News release

Compaq and Allscripts Drive Solution Sales With Expanded Partnership Agreement

First Year Yields $20 Million in Sales; Agreement Steps Up Marketing

Compaq Computer Corporation (NYSE: CPQ) today announced that its year-old physician mobility partnership with Allscripts Healthcare Solutions (NASDAQ: MDRX) has produced $20 million to date in sales of Allscripts TouchWorks™ suite and related hardware and services running on Compaq technology including its primary mobile platform, the iPAQ Pocket PC. Simultaneously, the companies announced expansion of their partnership to encompass a wider range of service options and stepped-up marketing of their joint solutions.

Under their expanded agreement, the two companies will increase funding and staffing of joint marketing and sales programs, continuing their present focus on healthcare enterprises while adding easily deployable solutions for small medical practices. Joint service offerings will include options for advanced architecture and infrastructure services—such as enterprisewide wireless and mobility strategy and implementation, data center and help desk management, and business continuity services. The enhanced agreement will include new financing models like 'pay as you go' pricing through Compaq's Computing on Demand initiative, all to be supported by the joint efforts of Allscripts and Compaq Global Services.

"Partnering is an essential skill in healthcare information technology because no one company can deliver everything a large healthcare provider requires for a true end-to-end solution," said Peter Blackmore, executive vice president, Worldwide Sales and Services for Compaq. "Compaq excels at matching our services and technology with innovative applications to meet an enterprise customer's unique needs, and Allscripts has proven that they are a leader in development and deployment of clinical ambulatory solutions. They have been very effective in gaining physician adoption of these leading-edge solutions."

"The current and future success of TouchWorks is a function not only of innovative software, but hardware partners who can deliver the solutions in a very demanding environment," commented Glen Tullman, chief executive officer of Allscripts Healthcare Solutions. "This expanded agreement underscores Compaq's and Allscripts confidence in the growing need for and acceptance of wireless handheld tools and enterprise clinical information solutions to improve the quality and control the costs of healthcare."

Compaq and Allscripts partnered in March, 2001 to offer physicians in enterprise-class practices, academic medical centers, and integrated delivery networks wirelessly enabled tools that increase productivity and clinical workflow efficiency, reducing administrative costs and errors, as well as helping reduce clinical errors and malpractice risk. Allscripts provides services to integrated delivery networks and other prestigious organizations, such as George Washington University Medical Faculty Associates and Dartmouth-Hitchcock Medical Center.

The following examples demonstrate the successes that contributed to the $20 million sales in the partnership's first year:

• The University of Minnesota Physicians group chose Allscripts to implement its TouchWorks suite of clinical applications for a total of 1,800 users, including 450 physicians. The Allscripts TouchWorks solutions selected include TouchWorks Rx+™, TouchWorks Charge™, TouchWorks Dictate™, TouchWorks Document™, TouchWorks Note™, TouchWorks Order™, TouchWorks Result™ Physician Homebase™, and Workflow™.
• The Facey Medical Group, a 110-physician practice in Southern California, will implement the TouchWorks modules for e-prescribing, charge capture, dictation, lab orders and results, document management, and accessing clinical reference information.
• USC Care Medical Group, Inc. selected Allscripts TouchWorks solutions, including TouchWorks Rx+, FirstFill and TouchWorks Charge, for physicians at the group's new state-of-the-art clinic in downtown Los Angeles. The Allscripts solution will enable automation of key physician and staff functions, such as capturing charges and writing prescriptions, while offering additional services to patients at the point of care.
• Temple University Health System in Philadelphia purchased the TouchWorks e-prescribing application, the Pocket Library™ electronic reference guide, and Allscripts FirstFill solution.

"With a solid first year behind us, we relish the opportunity to accelerate the success of our joint solutions—and much of that success is already in the pipeline," said Compaq's Blackmore.

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.