News release

Compaq Announces New IT Utility for Microsoft Exchange 2000

Exchange "On Demand" Simplifies Deployment, Migration and Management of Microsoft Exchange 2000

Compaq Global Services, the $7.8 billion services arm of Compaq Computer Corporation (NYSE: CPQ), today announced a new IT Utility—Applications on Demand for Microsoft Exchange 2000 Server (Exchange "on demand")—enabling customers to take advantage of Microsoft Exchange 2000—without the cost, complexity and risk of building and maintaining their own infrastructure.

Compaq's latest Computing on Demand offering, Exchange "on demand" is available on a fixed-fee, per-mailbox basis—the number of mailboxes can be increased or decreased as business conditions warrant. Exchange "on demand" encompasses all aspects of delivering Microsoft Exchange 2000 application services, including: Exchange installation, setup and management; server installation; account administration; performance monitoring; backup and recovery; virus and security protection; and monthly usage reporting.

For customers with 2000 seats or more, Compaq offers three service and delivery strategies for Exchange "on demand":

• On the customer site – remotely managed by Compaq
• Off-site – located at a Compaq Service Provider partner and monitored and managed by Compaq from a Compaq Customer Solution and Support Center (CSSC)
• Off-site – located at a Compaq CSSC in areas outside the US.

"By delivering a dedicated hosted environment with a measurable level of service at a predictable cost, Compaq simplifies the transition to next generation messaging, reducing risk, complexity and cost," said Joe Hogan, worldwide managing principle, Computing on Demand, Compaq Global Services. "With Exchange 'on demand,' customers can quickly and easily deploy Microsoft Exchange 2000."

Prescriptive Architecture

A key component of Exchange "on demand" is the "prescriptive architecture for hosted Exchange." This architecture is finely tuned and tested—enabling a scaled and validated messaging solution quickly and cost effectively. With this implementation Compaq is able to offer the full range of messaging services built into Microsoft Outlook and Exchange—including shared calendars, public folders, and collaboration services—to tens of thousands of concurrent users.

In the U.S., Compaq is offering the world-class data center infrastructure capabilities of its service provider partners, including WorldCom (NASDAQ: WCOM), for the hosting of Exchange "on demand" systems. The Exchange "on demand" hosting relationship with WorldCom is a non-exclusive, co-location arrangement, leveraging WorldCom's recently announced agreement to become a Compaq Strategic Service Provider Alliance Partner.

Based on more than 10 years of IT management outsourcing solutions, years of successful collaboration with Microsoft, and more than 15 million Exchange seats deployed or under contract (over 1.8 million Exchange 2000 seats), the Exchange "on demand" service solution is one of Compaq's core competencies. Recognized as Prime Integrator for Microsoft solutions, Compaq, with more than 34,000 services employees in 150 countries, can deploy a secure, reliable Exchange "on demand" service saving customers time, money, and ensuring peace of mind due to Compaq's vast experience.

Compaq's Exchange "on demand" is immediately available in the United States and the United Kingdom. For more information on Applications on Demand, please visit http://www.compaq.com/cod/apps/.

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.