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Supply Chain Excellence: Compaq Global Services Recognized by the Supply-Chain Council (Advisory)

HOUSTON, May 3, 2002

The Global Supply Operations group of Compaq Global Services, the $7.8 billion services arm of Compaq Computer Corporation (NYSE: CPQ), was awarded the supply chain industry's Supply Chain Operational Excellence award, as well as the Global Award for Supply Chain Excellence.

The Supply-Chain Council (SCC), formed in 1996, announced its Awards for Excellence during the North America Supply Chain World Conference and Exposition in New Orleans in April. Designed to recognize world-class performance and contributions in the area of supply-chain management, this is the second year that the SCC has awarded excellence among practitioners, technology companies, consultants, system integrators, and academics. In all there were over 40 submissions for these awards.

Compaq's Global Supply Operations (GSO) group—comprised of more than 2,000 employees worldwide—works to continuously enhance the services supply chain by providing superior value, reliability, and responsiveness. While catering to the unique service requirements of Compaq's different products, service offerings, and channel service partners, GSO has more than 350 part stocking locations around the world.

Supply Chain Operational Excellence Award

The Industry Award for Supply Chain Operational Excellence was presented to Compaq for their Global Supply Operations (GSO) Spare Parts Availability Initiative.

This initiative exemplified the Plan, Source, Deliver, and Return metrics of the SCOR model and specifically focused on:

  • Fill Rate
  • Inventory
  • Warranty/Returns Processing

A worldwide cross-functional, Spares Availability Process Improvement Team (PIT) was established to review and scope spare part availability issues and determine processes that would maintain a consistent level of fill performance and attain customer satisfaction.

Global Award for Supply Chain Excellence

The Global Award for Supply Chain Excellence recognizes the organization that was judged by the SCC Selection Committee to have made the greatest contribution to demonstrating or advancing the supply chain management body of knowledge during the last year. The winner was selected from the four categories of the Supply-Chain Excellence Awards, which includes the US Department of Defense, Industry, Technology, and Academia.

Company Background

Founded in 1982, Compaq Computer Corporation is a leading global provider of information technology products, services and solutions for enterprise customers. Information on Compaq and its products and services is available at http://www.compaq.com.


Notes:

Compaq and the Compaq logo are trademarks of Compaq Information Technologies Group, L.P. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

This document contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the Hewlett-Packard/Compaq merger does not close or that prior to the closing of the proposed merger, the businesses of the companies suffer due to uncertainty; the market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; that Compaq and Hewlett-Packard are unable to transition customers, successfully execute their integration strategies, or achieve planned synergies; other risks that are described from time to time in Compaq and Hewlett-Packard's Securities and Exchange Commission reports (including but not limited to Compaq's annual report on Form 10-K for the year ended December 31, 2001, HP's annual report on Form 10-K for the fiscal year ended October 31, 2001, and subsequently filed reports and HP's registration statement on Form S-4 filed on February 5, 2002). If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Compaq's results could differ materially from Compaq's expectations in these statements. Compaq assumes no obligation and does not intend to update these forward-looking statements.

 


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