News release

College-Bound Students Can Now Turn to Compaq as Their Trusted Technology Advisor

In Return, Compaq Offers Two Tuition Reimbursement Scholarships

College-bound high school seniors, faced with a myriad of decisions that will affect the next four years of their lives, will find it easier to make the right choice about which computer to buy when they visit Compaq Computer Corporation's (NYSE: CPQ) new dedicated College Bound Web site at www.compaq.com/athome/collegebound. Also, to help offset some of the students' educational expenses and in appreciation of their interest in this program, Compaq will award two $5,000 scholarships to defray tuition at the students' campus of choice.

Compaq is uniquely positioned to help college-bound students make intelligent hardware decisions because of its in-depth understanding of the higher education marketplace and its experience putting together solutions that scale from one individual through multi-campus enterprises.

Through the new program, Compaq will help students select and configure their computers to meet specific study needs and ensure easy access to campus networks.

"For the most part, today's students step onto college campuses highly computer literate, having grown up with PCs, digital televisions, DVDs, and cell phones with Internet access. They are comfortable with Instant Messaging and fearless of technology," said Michael Humke, Compaq director of higher education. "Through our new College Bound program, Compaq can advise students on the best equipment—not only for school needs, but configured in a way that allows them anywhere, anytime access to vast quantities of information presented in a variety of formats."

Freshmen information packets sent from participating colleges will include a flyer from Compaq detailing this program. The flyer will provide students with a unique URL to a Web site that offers guidance on what technology to buy for best functionality in their campus environment. From this Web site, students will find discounts, financing information and promotional offers on specially configured PC products that can be delivered right to their door. They will be able to click directly through to Compaq's online shopping site to place an order for a Presario PC, iPAQ Pocket PC, and/or the new Evo desktop and portable solutions. Most of these cutting-edge computers are pre-loaded with Microsoft® Windows® XP Professional Edition, and all include an integrated network interface card for easy access to campus networks.

Students whose colleges are not participating in the College Bound program are invited to visit Compaq's College Bound Web site at www.compaq.com/athome/collegebound to get valuable tips on buying for their college needs. They will be offered the same discounts and support as program participants.

Students or parents wishing to place an order by phone should call 1-800-696-4662.

New Scholarships Offered

As a way of giving something back to the students, Compaq will award two scholarships, each worth $5,000, payable to the recipient's school to defray the cost of tuition. One scholarship will be presented in August and the other in November. Information about registering for the scholarships can be found on Compaq's college bound Web site.

"These are extraordinary times for our country, and higher education is where we will find America's research advancements and future leaders," said Humke. "Compaq is committed to supporting students and campuses in as many ways as it can. If our scholarship can help one person graduate and in some way make the world a better place, we will feel extraordinarily proud to have had a part in it."

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.