Beyond.com Chosen as Compaq's Online Partner for Software and Services; Compaq.com Taps Software Superstore Leader.

SUNNYVALE, Calif.--(BUSINESS WIRE)--March 2, 1999--Online software superstore Beyond.com(TM) (Nasdaq:BYND) today announced that it has signed a strategic agreement with Compaq Computer Corporation (NYSE:CPQ) to deliver software and support services via the Internet.

Under terms of the agreement, Beyond.com will provide online software services to Compaq customers and business partners, leveraging its digital download technology.

"We are extremely pleased that Compaq has chosen Beyond.com to be an online partner for software delivery to its customers," said Mark Breier, president and chief executive officer of Beyond.com. "This enables us to support Compaq's aggressive Internet vision. The agreement combines the software leadership of Beyond.com with Compaq's preeminent market position as a worldwide supplier of computing solutions to consumers, small businesses and enterprises."

Compaq.com Vice-president and General Manager Kenny Kurtzman said, "The agreement with Beyond.com underscores Compaq's commitment to expand the range of solutions available to our customers via the Internet and to partner with industry leaders, such as Beyond.com, across many categories. This strategy gives our customers more software choices and a better, more integrated online buying experience."

The agreement will make available new online software services to members of the Compaq Solutions Alliance (CSA) program, which offers independent software vendors, consultants and system integration and service providers worldwide, an unparalleled level of support in developing and marketing better business solutions. Those services will include a preferred software procurement and distribution Web site, operated by Beyond.com, that will offer software applications via digital download to CSA members.

Additionally, Beyond.com plans to be a strategic partner for software and related services offered through Compaq.com, the computer manufacturer's Web site. As such, Beyond.com would provide support to Compaq.com customers who order software from the Compaq.com Web site. Compaq plans to make available future online services that will offer commercial customers the ability to purchase software directly or through channel partners.

"With partners such as Beyond.com, we can rapidly add a complete line of software to our Internet offerings," Kurtzman said. "Our customers today expect a variety of computing solutions delivered to them in Internet time. Together, with Beyond.com, we can deliver this."

"This agreement is clearly a win-win deal for both parties," Breier said. "This strategic partnership further validates Beyond.com as a major Internet player in the software category."

About Beyond.com

Beyond.com sells commercial, off-the-shelf software to the government enterprise, corporate and consumer markets, offering its customers a better place to buy software. Visitors to the company's online store http://www.beyond.com enjoy a comprehensive selection of software backed by customer service and competitive pricing. Approximately 44,000 software stock-keeping units (SKUs) are available for online purchase with 5,600 SKUs available for immediate, electronic delivery, including software from such major publishers as Adobe, Lotus, Microsoft, Sun Microsystems and Symantec. The company has established strategic marketing alliances with America Online, Inc., Excite, Inc., Netscape Communications Corporation and Yahoo!. Additionally, Beyond.com offers publishers transaction processing, physical and electronic order fulfillment, customer support, site design consultation, marketing support and reporting. The company has applied for federal registration of the marks BEYOND.COM and BEYOND DOT COM. Beyond.com Corporation trades on the Nasdaq National Market under the symbol ("BYND"). More information on the company can be found in the company's filings with the Securities and Exchange Commission ("SEC").

To the extent that this news release discusses expectations about Beyond.com's plans to grow the company's revenue or customer base as a result of its agreement with Compaq Computer Corporation and Compaq.com, these statements are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to substantial risks and uncertainties. Actual results for the first quarter of 1999 and subsequent quarters could differ materially from any future performance suggested above. Among the factors that could affect subsequent periods include: Reductions in or cancellations of customer orders, changes in relationships with software suppliers, changes in relationships with strategic partners, changes in the product mix sold by the company, competition from other online software resellers or publishers, inability to raise sufficient capital on satisfactory terms, or at all, and other factors described in the company's filings with the SEC. Beyond.com news and product/service information is available at the company's World Wide Web site located at http://www.beyond.com

About Compaq Corporation

Compaq Computer Corporation, a Fortune Global 100 company, is the second largest computer company in the world and the largest global supplier of computer systems. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, enterprise and network storage solutions, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices. Compaq products are sold and supported in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products are available at http://www.compaq.com.