News release

Compaq and Schlumberger Form Alliance to Market Global IT Solutions

Compaq Computer Corporation (NYSE: CPQ) and global technology services company Schlumberger (NYSE: SLB) have announced an agreement to develop and offer joint, global IT solutions that combine their respective services and technologies. Initial offerings will focus on markets where Compaq and Schlumberger have complementary strengths, including oil and gas, finance, telecommunications, transport, energy and utilities, and the public sector.

The alliance builds on long-term cooperation between the companies in the oil and gas industry as well as other key market sectors. Over the past ten years the two companies have established a common installed base of several hundred customers in the telecommunications, financial services and utilities markets. Earlier this year, Schlumberger and Compaq delivered an integrated security solution based on Compaq products running Microsoft Windows™ and the Schlumberger DeXa.Badge offering that incorporates SchlumbergerSema smart cards and readers.

"Compaq's solutions strategy is gaining momentum as we work with partners like Schlumberger to create solutions meeting industry-specific needs," said Peter Blackmore, Compaq executive vice president, Worldwide Sales and Service. "Schlumberger offers deep insight into many industries of mutual interest and offers world class solutions that integrate seamlessly with Compaq's technology platforms and service expertise. The alliance of these two great companies will offer global enterprises effective solutions with superb economy of deployment."

"Schlumberger is a leading aggregator and IT solutions provider. The alliance combines our domain expertise in key markets, project management, systems integration, secure IT services and smart card-based technologies with Compaq's industry-leading platforms to offer customers world-class IT solutions," said Jean Chevallier, vice president, Business Development, SchlumbergerSema. "The alignment of the technology and service strengths of each company will allow us to rapidly design and develop innovative integrated solutions in response to customer needs."

About Schlumberger

Schlumberger is a global technology services company consisting of two business segments, Schlumberger Oilfield Services that includes Schlumberger Network Solutions, and SchlumbergerSema. Schlumberger Oilfield Services supplies technology services and solutions to the international petroleum industry while Schlumberger Network Solutions provides IP network security to a broad range of industries. SchlumbergerSema provides IT consulting, systems integration, managed services and related products to the telecommunications, energy and utilities, finance, transport, and public sector markets. More information is available at: www.slb.com.

About Compaq

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 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.