Compaq Announces Strategic Relationship with Bell Atlantic to Accelerate Availability of Broadband ADSL Internet Solutions.

HOUSTON--(BUSINESS WIRE)--Oct. 5, 1998--

Bell Atlantic Infospeed DSL Service Available Today on Compaq

Presario Internet PCs in Select Markets

As part of its groundbreaking Internet PC strategy, Compaq Computer Corporation (NYSE:CPQ) today announced a strategic relationship with Bell Atlantic in the U.S. that will bring higher-speed Internet access to the home.

The relationship includes a new joint marketing and promotional campaign that will feature Compaq Presario Internet PCs with Bell Atlantic Infospeed DSL (Digital Subscriber Line) service. This service is now available from Bell Atlantic in Washington, D.C. and Pittsburgh, and will roll out in other Bell Atlantic markets through the end of this year and throughout 1999.

Compaq's innovative technologies and products, such as the world's first Internet PCs, Easy Access Internet Keyboards, and onboard network interface cards (NICs), combined with its consumer market leadership, complements Bell Atlantic's affordable high-speed Infospeed DSL service and gives consumers significantly faster access to enriched Web graphics and content.

"Compaq continues to be at the forefront of bringing the Internet home," said Rod Schrock, Senior Vice President and Group General Manager, Consumer Products Group, Compaq Computer Corporation. "Through this synergistic relationship, consumers will be able to sign on to an outstanding Internet experience. The strategic relationship with Bell Atlantic is part of Compaq's comprehensive strategy to deliver broadband Internet access to consumers. Compaq is focused on driving the industry to make the out-of-box-experience as pleasant as possible, and on getting consumers onto the Internet quickly, easily, and at an affordable price point."

The relationship formed with Bell Atlantic reinforces Compaq's commitment to providing consumers with choices for high-speed Internet Access and introduces ADSL (Asymmetric Digital Subscriber Line) as a solution for users looking for download speeds of to up to 7.1Mbps over existing phone lines. The Compaq Presario Internet PC is the clear PC choice for those individuals interested in increasing their speed of Internet travel and discovering the latest and greatest Web services that offer high-bandwidth content. Select models of Compaq Presarios include an onboard NIC that makes it easier than ever for users to upgrade to high-speed access services like Bell Atlantic's Infospeed DSL.

"Compaq is leading the way in the consumer market by driving high-speed Internet access services like Bell Atlantic Infospeed DSL into consumers' homes," said Amy McIntosh, Vice President-Consumer Marketing, Bell Atlantic. "Compaq is successfully bringing faster Internet speeds to the home by equipping their PCs with the hardware necessary to make DSL installations as seamless as possible. Bell Atlantic applauds Compaq's many efforts to make it easier for consumers to get high-speed access to the Internet including its work to establish standards such as Universal ADSL (UADSL)(1)."

Compaq Leading Mass Market Deployment of UADSL

The strategic relationship announced today with Bell Atlantic is only part of Compaq's leadership in delivering broadband Internet access to consumers. Compaq and Bell Atlantic are charter members of the UAWG(2), through which both companies are aggressively pursuing mass-market availability and distribution of high-speed Internet service offerings. UADSL, complementary to current ADSL, will facilitate a single common solution for mass market high-speed network access. UADSL will make access to broadband Internet services as simple to the consumer as plugging a phone into the wall. UADSL technical specifications have been agreed to by the PC and telecommunications industries. Full ratification of a global standard, called G.Lite, is expected in the first half of 1999. The availability of initial UADSL-based consumer services is also expected in early 1999.

Company Background

Founded in 1982, Compaq Computer Corporation is a Fortune Global 100 company. Compaq is the second largest computer company in the world and the largest global supplier of personal computers. Compaq develops and markets hardware, software, solutions and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, networking and communication products, 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 on the World Wide Web at http://www.compaq.com and are available by calling 1-800-OK-COMPAQ. Product information and reseller locations are available by calling 1-800-345-1518.

(1) Universal Asymmetric Digital Subscriber Line.

(2) Universal ADSL Working Group was established to define and support an interoperable standard for mass deployment of low cost, low complexity consumer broadband access.

Note to Editors: Compaq, Registered U.S. Patent and Trademark Office. Other brand and product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.