Compaq Appoints Michael D. Capellas President and Chief Executive Officer.

HOUSTON--(BUSINESS WIRE)--July 22, 1999--

Compaq Computer Corporation (NYSE:CPQ) announced that its Board of Directors voted unanimously today to appoint Michael D. Capellas, 44, president and chief executive officer, effective immediately. He was also elected to the Board of Directors. "With this appointment, Compaq now has in place everything necessary to be at the forefront of the accelerating revolution in information technology," said Compaq Chairman Benjamin M. Rosen. "Michael Capellas will lead the company through the next and greatest phase of its growth."

Capellas has been Compaq's Chief Operating Officer, with responsibility for overall strategic planning, organizational realignment and all operations, since June 2. His extensive business background balances cutting-edge understanding of information technology with broad experience in line management. An expert in information technology and supply chain management, he was recruited last year as Chief Information Officer and planned and implemented the tranmanagement team around a sound strategic busine a better understanding of where information tevement in information technology and eCommerce; the perspective of having been a sophisticated information t"We have assembled the greatest team in the indurs will demand as eBusiness proliferates. We occupy the Enterprise space with a full range of high-availability server technology. We power an enormous installed base of effective supply chain, is focused clearly on them with a renewed sense of pride, commitment and confidence. We are already under way, and the momentum feels great."

Compaq also announced that having completed its mission of selecting a new CEO and actively leading the company d About Michael Capellas

Michael D. Capellas is a seasoned general manager with particular expertise in information technology, eCommerce and supply chain management. He has significant product development experience, including sofhnology executive with a rare balance of strategic insight, operational expertise, technological and financial skills, and sales/marketing savvy.

Capellas joined Co technology organization, including a dramatic ctegies; participation in hundreds of sales calls; executive oversight of several global accounts; and ongoing counsel to the Board and senior management on various operational as well as technological issues.

Capellas most recently served as Compaq's acting Chief Operating Officrowing out of his information technology and supply chain management consulting work at Benchmarking Partners, of Cambridge, Massachusetts, a leading information managem His accomplishments there included reorganizing and refocusing the unit's global sales force, resulting in a 100 percent increase in business unit revenue. At SAP America (1996-97), he was Director of Supply Chain Management; his accomplishments included spearheading a business-development effort that led to approval by General Motors' Delphi unit of a $1 billion SAP implementation project.

From 1981 to 1996, Capellas held several senior positions at Schlumberger Ltd, including serving as the company's first co and common manufacturing processes; the global ew up in Warren, Ohio and also spent time livingporation, 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 markedly 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, or by calling 1-800-345-1518.

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