Compaq Expands Year 2000 Healthcheck Service Offerings to Include Networks and Intel-based Desktops and Servers.

HOUSTON--(BUSINESS WIRE)--March 24, 1999--Compaq Computer Corporation (NYSE:CPQ) is now offering a full suite of Year 2000 Healthcheck Services to meet the needs of customers using Intel-based desktops and servers running Microsoft Windows, Windows NT, and Novell NetWare operating systems. Two new services announced today, Year 2000 Desktop Healthcheck Service and Year 2000 Network Healthcheck Service, complement existing Year 2000 Systems Healthcheck and other Compaq services, to provide a full spectrum of Year 2000 (Y2K) readiness services covering a broad range of both Alpha- and Intel-based operating systems and networks.

Organizations of All Sizes Face Year 2000 Risks

"Many users of Intel-based systems running Microsoft and Novell software are getting a late start on Year 2000 readiness," said Tom Iannotti, Vice President of Worldwide Marketing and Sales, Compaq Customer Services. "The Gartner Group industry analyst firm recently predicted that 55 percent of all small companies worldwide will have at least one system failure, along with 40 to 45 percent of midsize companies. Year 2000 problems can exist in older PC hardware and in some commercial application software and user-created spreadsheets and databases," Iannotti added. "Our Year 2000 Desktop Healthcheck targets the needs of this market segment in an affordable and easy-to-use service that gives customers a jump start on addressing their readiness status."

Year 2000 Desktop Healthcheck

Year 2000 Desktop Healthcheck from Compaq Services can detect problem areas for Intel-based desktops and servers. The service is provided either by a team of Compaq professionals or by authorized channel partners, using Compaq-developed Year 2000 desktop tools as well as Tally Systems Corp.'s NetCensus(TM) and Centennial 2000(TM) tools. These tools work across local-area networks (LANs) or wide-area networks (WANs) and can be managed from a single point of access. The remediation team conducts on-site assessment tests on the BIOS and operating system in each of the customer's Intel-based servers and desktops. The tools also inventory the most popular software products running on the customer's Intel-based systems, including standard applications such as Microsoft Exchange and Lotus Domino, and report on their Year 2000 readiness status. The team provides recommendations and, if desired, will provide additional remediation services.

In addition, many customers have critical, custom-developed data files created by popular desktop and client/server applications such as Microsoft Access and Microsoft Excel; Lotus 1-2-3 or Lotus Basic, Visual Basic, and C and C++ sources. Using leading-edge Y2K application assessment tools from IST, Inc., Compaq Services also will help customers assess and correct these data files. Once the assessment and remediation are complete, the Compaq Services team meets with the customer again and recommends any necessary further action.

Year 2000 Network Healthcheck

The backbone of customers' information technology (IT) infrastructures, networks are critical to conducting a thorough, IT system-wide Y2K assessment. With components often literally out of customers' view, networks are easily overlooked, and any single device that is not Y2K compliant could bring down an entire network.

"Most of the attention given to the `Millennium Bug' has been focused on legacy applications," Iannotti noted. "However, the time and money spent fixing these applications is wasted if the networks upon which those applications depend are not Year 2000 compliant."

Using sophisticated tools, Compaq's Year 2000 Network Healthcheck navigates the network and identifies the various components, regardless of their physical location. Year 2000 Network Healthcheck assesses the status of most devices on multivendor networks, both LANs and WANs, with a methodology designed to:

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--   Perform a network audit to identify and list networking equipment
     from routers and switches to servers, workstations and PC devices
     on the customer network;

--   Identify Year 2000 compliance status as published by the
     equipment vendors for these network devices;

--   Generate detailed reports on the results of the network audit and
     device status, highlighting compliance information provided by
     device vendor.

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Comprehensive Portfolio of Year 2000 Solutions

Compaq Services, together with its partners, offers a comprehensive portfolio of Year 2000 solutions that span all phases of the Year 2000 readiness lifecycle: inventory and assessment; planning; remediation; and implementation and testing. Compaq Services can manage any or all segments of the process. Solutions range from the desktop to the data center, from the PC to the network, and from Windows NT and Novell NetWare to Compaq's OpenVMS, Tru64 UNIX, and Tandem NSK.

Year 2000 Desktop Healthcheck is Compaq's lead service to assist customers in bringing their Intel-based servers and desktops to Year 2000 readiness. Year 2000 Healthcheck services are also available for Compaq's OpenVMS and Tru64 UNIX customers. Complementary services are available for NSK customers.

In addition to the Year 2000 Healthcheck portfolio, Compaq Services offers full Y2K networked systems and applications inventory and assessment triage analysis; independent Year 2000 application and system validation and verification (IVV); application code changes and data migrations; Y2K testing and test planning; enterprise client/server renovation; and Y2K production systems implementation services.

Compaq offers these services and solutions for enterprise customers from its dedicated hub and satellite Year 2000 Expertise Centers, which are staffed by engineers and consultants who use proven methodologies and processes to reduce costs and risks for customers. In keeping with its emphasis on customer choice, Compaq uses a flexible tools matrix strategy, enabling best tools for specific customer environments on Compaq, including Tandem and Digital brand platforms as well as on other vendors' platforms.

Easy-to-Buy, Easy-to-Use, Fixed-Price Service

Compaq Services is reinforcing its commitment to making services easy to buy and use by making its Year 2000 Desktop Healthcheck service available for sale and delivery by trained and authorized channel partners as well as directly from Compaq. This delivery model provides customers with an expanded team of qualified professionals to help them address their Year 2000 problems in a timely and cost-effective way. The approach also supplements the service offerings authorized channel partners are currently offering in areas such as Year 2000 readiness.

Additionally, Compaq Services and its partners will offer Year 2000 Desktop Healthcheck services on a fixed-price-per-seat basis, with prices quoted based on volume. Through this combination of predictability, cost-effectiveness and wide availability, Compaq is addressing the business and budgetary requirements of all business customers who need this service most as the millennium approaches.

Availability

Year 2000 Desktop Healthcheck and Year 2000 Network Healthcheck are available today to Compaq's customers worldwide. Compaq will also provide these services for its customers who use other vendors' Intel-based desktops and servers. Year 2000 Network Healthcheck is available direct from Compaq.

Tally Systems Corp.'s NetCensus is one of the industry's most accurate hardware and software asset management software tools. Centennial 2000 is a leading enterprise-wide Year 2000 BIOS verification product. IST, Inc.'s Year 2000 Packs are among the leading tools for desktop data file assessment and remediation. These tools also are available separately from Compaq Services for customers who elect to perform their Year 2000 desktop audit with in-house staff.

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 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.