Compaq Announces New Aero 8000, World's Most Secure, Mobile and Easy to Use Handheld PC Pro; First H/PC Pro Device to Offer Built-in Smart Card Technology.

HOUSTON--(BUSINESS WIRE)--June 7, 1999--

Compaq Computer Corp. (NYSE:CPQ) today announced worldwide the new Aero(R) 8000, Compaq's first Handheld PC Professional (H/PC Pro) device and the first mobile device to offer built-in Smart Card technology enabling more secure remote access to corporate data. The Aero 8000 is the first H/PC Pro device in Compaq's comprehensive lineup of Windows(R) CE-based handheld products, which includes the Aero 2100 Color Palm-size PC and C-Series Handheld PC devices.

Weighing just 2.9 pounds with a 10-inch SVGA screen, a keyboard 95 percent the size of standard portable keyboards and up to 13 hours of battery life(1), the Compaq Aero 8000 offers exceptional mobility and ease of use. The Aero also includes an embedded Smart Card reader/writer and a suite of advanced security applications, enabling the most secure and robust access to remote data available through a H/PC Pro device. With these unique features, the Aero 8000 is the ideal Windows terminal or thin client for mobile workers in field sales, service and healthcare organizations, and it provides a secure PC for reading and sending confidential e-mail.

"Compaq continues to provide innovative handheld PC products with the introduction of the Aero 8000. It is the ideal solution for today's increasingly mobile workforce, who demand exceptional mobility and ease of use but still require secure access to corporate data," said Ben Williams, Director, Displays and Peripherals Product Marketing, North America, Compaq Computer Corporation. "It provides the best features of a handheld -- it's very light and portable with instant on and off capabilities -- combined with all-day battery life, a large screen, nearly full-sized keyboard and lots of room for expansion with CompactFlash and PC Cards."

Unparalleled Security and Connectivity for Corporate Environments

The Aero 8000 is the most secure H/PC Pro device available, thanks to its embedded Smart Card reader/writer. Through this unique feature, access to the device can be limited to users that have the authorized Smart Card, a password or both. Optional software is available to encrypt files and e-mails and check digital signatures to ensure files haven't been opened or tampered with. These features are key for customers such as field sales organizations who need to place orders, check inventory and update customer records remotely or field service organizations who reference repair procedures, check spare parts lists and complete reports onsite.

The embedded Smart Card feature also makes the Aero 8000 the first low-cost platform for developing Smart Card-enabled enterprise applications for industries such as E-commerce, electronic banking and healthcare.

Unmatched Capabilities Through Software Partners

Compaq partnered with numerous third-party software vendors to provide robust enterprise solutions for the Aero 8000. By utilizing optional software from the River Run Software Group, the Aero 8000 provides full synchronization of e-mail, calendar and contacts on Lotus Notes and Novell GroupWise servers, as well as synchronization of Microsoft Exchange servers provided by Windows CE.

Furthermore, numerous additional capabilities are available for the Aero 8000 through software partners, including the following:

-- Mobile thin client. The standard Citrix ICA Client software allow users to run full Windows applications across the network.

-- Terminal emulation. FutureSoft DCS software enables access to corporate mainframes.

-- Sales automation. Sales automation tools from Siebel lets users access pricing, inventory and order entry systems, as well as track and update account histories.

-- Wireless WAN and LAN. Wireless capabilities from Proxim and Sierra Wireless let users connect to a server or a remote host without a phone jack.

-- Non-Microsoft File viewer. Inso's file viewer lets users view non-Microsoft files on the Aero.

In addition, because the Aero 8000 is based on Windows CE H/PC Professional Edition, customers can use the Aero as a Windows CE development platform. Using Windows-based development tools, customers can develop their own applications for the Aero, port legacy applications to Windows CE or develop CE interfaces to existing corporate databases to provide access to these databases through the Aero 8000.

Superior Handheld Power and Ease of Use

The Aero 8000 offers not only the most secure H/PC Pro device; its performance and ease of use are unmatched in the handheld category. The system is powered by a 64-bit, 128 MHz SH4 processor, up to 64 MB of SDRAM and a 56K V.90 modem(2). And, the 10-inch SVGA (800 x 600) panel with 256-color support is the biggest, clearest screen available on a H/PC Pro device. Furthermore, with a nearly full-size, 18mm key pitch keyboard, a familiar TrackPad pointing device and touch-button voice recording and playback, the Aero 8000 is unrivaled in ease of use.

Upgrading the Aero 8000 is easy too. Numerous Compaq and third-party options are available to extend the battery life, memory capacity and external storage (e.g. CompactFlash cards, Iomega Clik! Drive, SuperDisk drive and IBM MicroDrive).

Ethernet network cards, airline/auto power adapters and printer adapters are available to enhance the Aero's capabilities even further.

Exceptional Mobility

The Aero 8000 also delivers exceptional mobility features. With its instant-on and instant-off capability, there's no waiting for the Aero 8000 to boot up or shut down. And, the Aero 8000 is designed to be durable to withstand the rigors of the road. Returning to the office is easy too, because the Aero 8000 synchronizes automatically with the user's office PC. For ultimate mobility, wireless communication options are available, such as modems and wireless LAN and WAN solutions.

Pricing, Availability and Service and Support

The Compaq Aero 8000 is available immediately(3) through Compaq's broad family of authorized resellers. The Compaq Aero 8000 will also be available directly through Compaq DirectPlus at www.directplus.compaq.com or at 1-800-888-5858. It starts at $949(4) for a model featuring 16 MB of memory. For information on the Aero 8000 or other Compaq handheld products, see http://www.compaq.com/products/handhelds/

The Compaq Handheld PC Pro is backed by a one-year worldwide mail-in limited warranty. Additional services are available to enhance the standard limited warranty(5). See http://www.compaq.com/support/ for further details.

Company Background

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.

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

(1) Actual results may vary with individual use.

(2) The K56flex protocol is designed only to allow faster downloads from K56flex compliant digital sources. Maximum achievable download transmission rates currently do not reach 56 KB/s, and will vary with line conditions. Modem supports Windows 95 and Windows NT 4.0.

(3) The Aero 8000 is available immediately in the U.S. and Canada. Availability dates for other countries will vary.

(4) All prices listed herein are estimated U.S. selling prices. Actual reseller prices may vary.

(5) Certain restrictions and exclusions apply. Consult the Compaq Product Information Center for details.