Compaq Expands Thin Client Product Offering With New T1000 and T1500.

HOUSTON--(BUSINESS WIRE)--Oct. 4, 1999--

New Windows- and Linux-Based Products Offer Cost-Effective,

Easy-to-Manage Access to Servers and Network Resources

Compaq Computer Corporation (NYSE:CPQ) today announced in the U.S. two new thin client products, the Compaq T1000 and T1500, easily managed client devices designed for delivering seamless access to network resources, including Windows-based applications. The Windows CE-based T1000 and Linux-based T1500 -- along with the Compaq Aero 8000 mobile thin client -- provide a full suite of solutions for customers who demand cost-effective, exceptionally manageable thin client devices.

"Our customers demand solutions that lower their costs and minimize risk," said Ben Williams, Director of Displays & Peripherals Marketing, Compaq North America. "The Compaq T1000 and T1500 thin clients deliver this solution by providing an easy setup, lower lifecycle cost of ownership and an easy-to-maintain networked client. These new products, along with our mobile thin client, the Aero 8000, and superior Compaq enterprise servers and services, clearly demonstrate that Compaq is the choice for thin client solutions."

Seamless Access to Network Resources

The Compaq T1000 and T1500 thin clients are ideal solutions for customers who require easy-to-manage access to legacy systems without a huge investment in client systems and support. The T1000 and T1500 deliver seamless implementation of Windows NT-based applications, concurrent multiple sessions and simultaneous, multi-protocol access to Windows NT and legacy servers, all based on industry-standard operating systems. These compact, modular terminals come preloaded with Microsoft Remote Desktop Protocol (T1000 only) and Citrix Independent Computing Architecture (ICA)(R) 3 clients and a wide variety of terminal emulation utilities for accessing resources on a variety of servers. Multiple server operating systems are supported on the systems, including Microsoft Windows NT Server 4.0, Terminal Server Addition, Citrix WinFrame and Citrix MetaFrame.

The Compaq T1000 is powered by Microsoft Windows CE, while the T1500 is powered by the Linux operating system and ships with an integrated Netscape Internet Browser and Java Virtual Machine. Both units include an integrated 10/100BaseT Fast Ethernet connection, supporting point-to-point (PPP) protocol and TCP/IP with DNS and DHCP. They also have two serial, one parallel, one PCMCIA slot and two USB ports, as well as audio input and 16-bit stereo output. Both products ship with a standard VESA connection with video support up to 1280 x 1024 resolution at 85 Hz to allow users to select the display that best suits their particular needs.

The Compaq T1000 will be available in mid-October starting at a price of $649(1). The T1500 will be available in November. Pricing for the T1500 has not yet been set. Both units can be purchased through Compaq's broad family of authorized resellers. For more information on Compaq's thin client offering, see the Compaq Web site at http://www.compaq.com/products/thinclients.

The Compaq Advantage

The Compaq T1000 and T1500 support industry-standard network management strategies, including SNMP and DHCP, allowing for remote configuration management and firmware upgrades. Furthermore, the T1000 and T1500 support Compaq Insight Manager. With Compaq Insight Manager, network administrators can manage hundreds of Compaq PCs, thin clients and enterprise servers form a single Insight Manager console. This greatly increases the productivity of the network administrator and the efficiency of the network.

Plus, with Compaq's extensive product line, companies can single source all of their enterprise needs including servers, PCs, workstations, portables, handhelds, displays and now thin clients.

In addition, the Compaq T1000 and T1500 are protected under Compaq's generous support umbrella known as CompaqCare. The service and support package includes a 3-year parts and labor warranty, round-the-clock support provided by technical support hotlines and online support forums. See http://www.compaq.com/support for further details.

Reduced Lifecycle Cost of Ownership

The Compaq T1000 and T1500 lower IT administrative costs in several ways, starting with the unit setup. With the T1000 and T1500, setup time takes minutes. Plus, software changes and hardware upgrades are done once on one central server, not many times on each individual PC. Since the Compaq T1000 and T1500 merely display applications and data, not process them, there is no need to upgrade hardware such as processors and hard drives on the units.

The design of the Compaq T1000 and T1500 also reduces the cost of maintenance because the T1000 and T1500 have no moving parts, not even a fan. This results in fewer maintenance events and less down time. Furthermore, with no hard drive, no floppy drive and limited expandability, there are fewer hardware and software conflicts and configurations as well as a dramatic reduction in the threat of viruses or data theft. And if a problem does arise, diagnosing the Compaq T1000 or T1500 is simpler than a standard PC where configuration variables are greater.

Compaq Aero 8000, the Mobile Thin Client

Announced on June 7, 1999, the Compaq Aero 8000 is not only a "handheld device" but is perfect as a mobile thin client that provides instant access all day. The Compaq Aero 8000 provides exceptional mobility weighing less than 3 pounds. It has a long battery life of seven hours (12 hours with optional battery) and provides instant on/off capabilities, so there is no more waiting for the PC to boot. With a 10-inch SVGA screen, touch-typeable keyboard, 64-bit processor and fast SDRAM, the Compaq Aero 8000 is easy, fast and comfortable to use. It also provides the best security for corporate environments, including a built-in SmartCard reader/writer. With Citrix ICA client software standard in ROM, an integrated 56K V.90 modem, optional Ethernet and wireless Ethernet cards, the Compaq Aero 8000 performs superbly as a mobile thin client.

For more information on the Aero 8000, visit the Compaq Web site at http://www.compaq.com/products/handhelds/8000/index.html

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

(1) All pricing listed herein is U.S. estimated street price. Actual reseller prices may vary.