APW Ltd. and Compaq High Performance Server Group Announce Exclusive Engineering Prototyping Agreement.

Business & Technology Editors

ST. MICHAEL, Barbados & MARLBORO, Mass.--(BUSINESS WIRE)--Oct. 3, 2001

APW Ltd. (NYSE: APW), a leading Technically Enabled Manufacturing Services (TEMS) Company and Compaq Computer Corporation (NYSE: CPQ), a leading global provider of enterprise technology and solutions, announced today their exclusive agreement for APW to perform all of Compaq's High Performance Server Group's (HPSG) new product engineering prototyping.

Compaq is known worldwide for their state-of-the-art products and constant efforts to extend the limits of technology. This agreement with APW will allow Compaq's HPSG to concentrate its resources on its core competencies while utilizing the industry leading prototyping capabilities of APW. The engineering team at APW has unique insight into the new product development needs of Original Equipment Manufacturers (OEM's) that will allow HPSG to rapidly develop production capable prototypes with enhanced efficiency.

The APW Hudson (New Hampshire) New Product Integration Center (NPIC) has seen a dramatic increase in business with Compaq. The HPSG within Compaq is the group responsible for designing and managing all of Compaq's Alpha servers for the Business Critical Division.

APW will be the preferred supplier on all new products and pre-production builds. This agreement will allow the APW Hudson NPIC Team the opportunity to assist Compaq in the pre-production builds in the Integration unit.

During October, the APW Hudson Facility will begin the pre-build of Compaq's new high-end systems. These systems were designed and developed by Compaq Marlboro along with cooperative participation in the design of chassis and cabinets by APW sites in Erie, Pennsylvania and Hamilton, Scotland. These sites have excellent long-term relationships with Compaq.

The APW NPIC Team is supplying program management, rapid prototyping of sheet metal and machining, and integration services to Compaq. This team continues to see significant increases in NPIC activities.

About Compaq Computer Corp.

Founded in 1982, Compaq Computer Corporation ("Compaq") is a leading global provider of enterprise technology and solutions. Compaq designs, develops, manufactures and markets hardware, software, solutions and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, communication products, and desktop and portable personal computers that are sold in more than 200 countries. For more information, visit the company on the Internet at www.compaq.com.

      For further information contact:
         Compaq Computer Corp.
         HPSG/Marlboro
         Holly Ryan

About APW Ltd.

APW Ltd. is a Technically Enabled Manufacturing Services "TEMS" company that designs and manufactures large, complex infrastructure products for OEM's in the communications, large enterprise hardware and Internet markets.

APW Ltd. has particular skills in the areas of manufacturing enclosures, thermal management, power supplies and backplanes; as well as core competencies in product and system design, integration and supply chain management. APW Ltd. operates in over 40 locations throughout North America, South America, Europe and Asia.

Safe Harbor Statement

Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. APW Ltd.'s results are also subject to general economic conditions, market conditions in the computer, semiconductor, telecommunications, and electronic industries in North America, South America, Europe and Asia, continued market acceptance of APW's existing products and new product introductions, the successful integration of recent acquisitions, competitive product and pricing pressures, foreign currency risk, interest rate risk, and APW's ability to access capital markets. See our Form 10 and Form S-3 for further information on risk factors.