News release

Compaq Announces Two New iPAQ Pocket PC Expansion Packs and New Third-Party Options

Growing Support for the iPAQ Pocket PC Gives Customers and Developers Greater Flexibility and Expansion Options

Compaq Computer Corporation (NYSE: CPQ) today announced two new Expansion Packs with removable, rechargeable batteries for the iPAQ Pocket PC Series, plus a host of new third-party options, giving customers even greater flexibility and longer battery life for the world's top-selling Pocket PC. In addition, Compaq announced it is sponsoring a technical event for iPAQ Pocket PC developers in conjunction with the Pocket PC Summit, on May 31st in Philadelphia.

The new PC Card Expansion Pack Plus and CompactFlash Expansion Pack Plus accommodate Type II Personal Computer (PC) or CompactFlash (CF) cards. Each Expansion Pack Plus incorporates the new Cover Pack design, with a removable display cover to protect the screen and buttons on the front of the unit. With a PC Card or CF Card Expansion Pack Plus, customers can purchase industry standard cards that increase the file storage space on their iPAQ Pocket PC, access their company's wireless local area network (WLAN) for e-mail and Web browsing, and access the Internet wirelessly through a cellular data network—plus a number of other functions.

"Today's mobile workers are constantly looking for new ways to increase their productivity and flexibility for on-the-go computing and communicating," said Cindy Box, Compaq's director of marketing for iPAQ Mobile Solutions. "These new products allow our customers to make the most out of their iPAQ Pocket PC by giving them added battery life and more creative expansion solutions, enabling them to do more with their iPAQ than ever before."

In addition to complete compatibility with existing iPAQ Pocket PC products, the new Expansion Packs include a new removable, rechargeable battery for improved productivity when away from the office. This removable 920mAh (milliamp hour) Lithium-Ion battery provides power to the PC or CF card in the Expansion Pack and supplemental power to the iPAQ Pocket PC main battery. An optional 1840 mAh Lithium-Ion Extended Battery is also available. About the size of a business card case, the new batteries fit both of the new Expansion Packs.

A new battery charger is also available for the Expansion Pack Plus batteries, allowing a customer to simultaneously charge two batteries in approximately two hours, depending on configuration. When a user is on the go, the battery charger conveniently converts from a desktop charger to a slim, portable design that can easily be tucked into a briefcase or purse.

Suggested resale prices⁽¹⁾ are $150 for the PC Card Expansion Pack Plus, $100 for the Compact Flash Expansion Pack Plus, and $50 for the Battery Charger. Optional Slim Batteries are available for $50, and an optional 1840mAh Lithium Polymer Extended Battery is available for $99.

iPAQ Pocket PC Developer Event Announced

Compaq will be hosting an iPAQ Pocket PC Developer Event in conjunction with the Pocket PC Summit, May 28 - 31 at the Loews Hotel in Philadelphia. Compaq's one-day event on May 31st will be filled with technical presentations and information about designing products and solutions for the iPAQ Pocket PC. Presentations will include information on the iPAQ Pocket PC Expansion Pack interface and driver design, as well as sessions on creating wireless enabled applications for the iPAQ Pocket PC. For more information about the event, please see http://csa.compaq.com/CSA_PPC_Summit.shtml.

Bluetooth Compatibility Grows

In support of industrywide efforts to ensure interoperability among Bluetooth devices, Compaq continues to extend the list of Bluetooth devices that are compatible with the iPAQ Pocket PC. Recent additions to this matrix include:

• Mobile Phones
  Ericsson T68, GSM/GPRS
  Nokia 6310, GSM/GPRS
  Motorola Timeport 270c, CDMA
• Printing Solutions
  HP 995c Deskjet Printer
  Windconnect Bluetooth Print Adapter
  Bluetooth Print Adapter from Epson - C1200BT
• Access Points
  Red-M 1050 AP
  PicoBlue Internet Access Point
• The 3Com Wireless Bluetooth PC Card

A complete list of Bluetooth devices compatible with the iPAQ Pocket PC can be found at www.compaq.com/products/wireless/wpan/btcompmatrix.html.

Micro Keyboard Now Available for H3700, H3600 and H3100 Series

Due to high customer demand for the Micro Keyboard, Compaq today announced a Micro Keyboard for owners of the iPAQ Pocket PC H3700, H3600 and H3100 Series. This remarkably small and lightweight keyboard fits seamlessly and securely onto the iPAQ Pocket PC with or without an Expansion Pack attached. Its streamlined design and standard layout let customers conveniently type quickly and comfortably anywhere. The suggested resale price is $59.99.

New Third-Party Options Expand iPAQ Pocket PC Flexibility

New options announced today for the iPAQ Pocket PC expand its flexibility even further. Nexian Corporation has released the NexiCam, the first digital camera manufactured exclusively for the iPAQ Pocket PC, and the NexiPak expansion pack.

As an expansion pack, the NexiCam integrates nicely with the iPAQ Pocket PC, using its bright, 64,000-color screen for viewing pictures. Hundreds of pictures can be stored or even wirelessly transmitted using wireless LAN card capabilities with an optional CompactFlash card in the available slot of the NexiCam. Customers can quickly upload photos to their desktop or notebook PC and access full-color photographic images (24-bit SVGA at 800x600 resolution). In addition, the NexiCam provides up to 45 seconds of video recording capability, and future versions will include video teleconferencing options.

The NexiPak provides two CompactFlash expansion slots allowing for increased memory, connectivity or applications plus more than twice as much power to extend the life of the iPAQ Pocket PC between charges. The unit's detachable and rechargeable battery provides further versatility for the mobile professional. Suggested Resale Prices are $199 and $149, respectively. See www.nexian.com for details.

Pocket CoPilot 2.0 GPS Jacket Edition is an all-in-one navigation solution that integrates the latest CoPilot software technology with a GPS Expansion Pack and CompactFlash memory slot. This sleek, highly integrated solution takes perfect advantage of the iPAQ Pocket PC's powerful processor, crisp and clear panel and robust audio capabilities. As a result, Pocket CoPilot 2.0 provides powerful dynamic route guidance to deliver spoken, turn-by-turn directions to any address nationwide. If you miss a turn or get off track, Pocket CoPilot automatically reroutes you. Widely recognized as the experts' choice for in-vehicle navigation, Pocket CoPilot combines with the iPAQ Pocket PC to provide detailed, convenient directions for motorists. For more information, visit www.travroute.com/ipaq.

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.