News release

Compaq Selected for Department of Veteran's Affairs PCHS-2 Contract

Award Continues Compaq's Strategic Partnership With VA

Compaq Computer Corporation (NYSE: CPQ) has been selected to provide hardware, services, and enterprisewide solutions to the Department of Veteran's Affairs (VA) under the $1.375 billion Procurement of Computer Hardware and Software-2 (PCHS-2) contract.

One of four vendors named in the new contract, Compaq revenues under the previous contract - PCHS-1 - totaled approximately $500 million for products and services. Compaq was the VA's leading IT solution supplier during the last five years.

"Building on a relationship that goes back 15 years, we are honored to be selected as a technology provider to the VA once more," said Ron Ross, president of Compaq Federal LLC. "This decision shows their trust in Compaq and underscores their recognition of our commitment to their organization."

Under the contract, Compaq will provide an array of products that include, but are not limited to: advanced notebook and desktop PCs, workstations, industry-standard servers, software, storage, networks, and peripherals. Compaq also will provide customized, enterprisewide solutions to support VA mission-critical programs, such as VistA—the VA's hospital information system that runs on OpenVMS-based AlphaServer systems—as well as the VA's world-class medical imaging system.

Compaq was selected based on the VA's satisfaction with the company's performance on earlier major contracts. Also, the quality of Compaq products and services was instrumental in the PCHS-2 selection process.

The Department of Veteran's Affairs is one of Compaq's largest federal customers and is managed by a dedicated Compaq team committed to high levels of customer satisfaction. The Department of Veteran's Affairs consists of three major entities to serve military veterans: the Veteran's Health Administration (VHA) with 163 medical centers nationwide; the Veteran's Benefits Administration (VBA), providing benefits to veterans at more than 58 regional offices; and the National Cemetery Administration (NCA), providing burial benefits and managing 120 National Cemeteries nationwide.

"It's truly gratifying to work with the VA and help further their mission to provide a better quality of life for our nation's veterans," said Chuck Kinzel, director for the Department of Veteran's Affairs for Compaq. Compaq provides equipment to the Blinded Veterans Association and is a national sponsor of the Paralyzed Veterans of America (PVA).

"Compaq's sponsorship includes support for the annual PVA Games," said Kinzel. "Compaq assists in funding transportation for veterans who would otherwise not be able to compete."

Also, Compaq provides the equipment used in scoring at the PVA Games. Scoring for this year's PVA Games—scheduled for July in Cleveland, Ohio—will operate with wireless technology including innovative iPAQ Pocket PCs. Last year's PVA Games were held in New York City.

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.