Compaq And Xerox Corporation Solidify Global IT Relationship.

World's Document Market Leader Awards Compaq Prestigious

"Certified Supplier Status"

HOUSTON--(BUSINESS WIRE)--Feb. 15, 1999--Compaq Computer Corporation (NYSE:CPQ) today announced that it has received Xerox's Certified Supplier Status, the highest honor bestowed upon a supplier. This award solidifies the companies' nine year global IT relationship, which represented over $100 million in revenue to Compaq in 1998. Under the current contract, Compaq provides Xerox with its award-winning line of Armada portables, Deskpro desktops, Professional AP workstations, ProLiant servers and monitors. Compaq also provides Xerox with global enterprise service and support, which includes maintenance of numerous high-end systems. Compaq, through its reseller partners EDS and Inacom, delivers products to Xerox in the U.S, Canada, Europe, the Middle East, Africa, Latin America and Asia.

"We are thrilled with the level of service we get from Compaq," said Arthur C. Fornari, Vice President of Global Purchasing at Xerox Corporation. "As an integrated company they offer us comprehensive IT business solutions backed by the muscle of a great global services organization.

"We are delighted that Compaq will continue to fortify systems and solutions that will expedite the attainment of our most critical business objectives," Fornari added. "Compaq's ability to meet the ever-evolving needs of Xerox in the global marketplace serves as a foundation on which to enhance Xerox's growth and productivity for years to come."

"Compaq greatly values its global relationship with Xerox and the Certified Supplier status validates our proven capacity for delivering the highest levels of quality, cost efficiencies, on-time-delivery, and service to Xerox on a global basis," said Graeme Woodley, Vice President, Global Accounts at Compaq Computer Corporation. "Compaq is dedicated to creating and implementing performance-based IT systems on behalf of Xerox, helping the company maintain its global leadership in delivering document solutions."

Compaq Computer 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.

Xerox Corporation

Based in Stamford, Conn., Xerox Corporation has successfully recreated itself as The Document Company, which means unrivaled expertise in the production and management of documents: color and black and white, paper and digital, across networks, for the small office/home office or the global enterprise. Xerox and its partner, Fuji Xerox Co., Ltd. of Japan, offer the broadest array of document products and services in the industry: copiers; printers; fax machines; scanners; desktop software; digital printing and publishing systems; supplies; and comprehensive document-management services, from the running of in-house production centers to the creation of networks.

Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.