Compaq Launches Far-Reaching Convergence Solutions Strategy for the Telecom Marketplace.

GENEVA--(BUSINESS WIRE)--Oct. 11, 1999--

Zero Latency Engine Delivers World's Largest Real-Time

Data Store for Telecom;

Aero GSM Suite Gives Wireless Users NonStop(TM) Information Access;

New Compaq Telecommunications LOB to Drive Convergence Strategy

Compaq Computer Corporation (NYSE:CPQ) today announced dramatic advances that will accelerate the arrival of convergent solutions for customers - and for the businesses that serve them. First, Compaq unveiled the world's largest "zero latency" solution to help telecommunications companies build the convergent infrastructures they need to efficiently manage and serve the millions of new - and demanding - Internet-driven consumers. At the heart of this breakthrough engine, Compaq revealed an integration services hub that tightly couples applications and data in real time - and handles transactions at a scale unparalleled in the industry. In addition, Compaq launched its Aero GSM Connectivity Suite, which combines Windows CE-based Compaq Aero handhelds and wireless phones to deliver seamless, NonStop(TM) information access, anytime, anywhere.

"Compaq seeks to remove barriers to the free, unstoppable flow of information, and convergence is making it easier for people to access information anytime, anywhere," said Michael Capellas, president and CEO of Compaq. "In this new world of NonStop(TM) information access, telecommunications companies must operate not only 24x7, but also with speed and insight to serve 'next generation customers' who demand NonStop(TM) services. By helping telecommunications companies instantly combine disparate sources of customer information - such as billing and call transaction data - into one holistic picture, Compaq is enabling them to turn vast amounts of data into competitive advantage."

First shown at Telecom 99, the sheer scale of Compaq's zero latency engine is unprecedented. For example, it processes more than one billion call detail record (CDR) transactions per day, which is roughly equivalent to the world's five largest telecommunications companies combined. At the same time, its 111-terabyte transaction-based data warehouse, or operational data store (ODS) provides a single, integrated view of the customer, in real-time, so that 40,000 customer service agents have up-to-the-second information to enhance the value of customer interactions.

Compaq Announces Convergent Solutions Linking Aeros and Wireless to Internet

To deliver convergent voice and data capabilities for wireless customers, Compaq launched the Aero GSM Connectivity Suite, a one-stop solution that will allow customers to use a Compaq Aero palm-size PC with a GSM mobile phone to access Internet-based data.

The solution provides users with a suite of applications needed to instantly access the Internet and email, browse the Web and WAP-enabled pages, and send and receive faxes and SMS messages. In addition, the Connectivity Suite enables telecommunications providers to roll out new services to customers on their existing mobile phones.

Compaq is also collaborating with Yahoo! to demonstrate Yahoo! Messenger and other Yahoo! services on Compaq's GSM-enabled palm-size PCs. Finally, Compaq is announcing a marketing trial with diAx of Switzerland to offer mobile information solutions through a GSM phone. A separate Compaq press release on the Aero GSM Connectivity Suite and other handheld solutions is available at http://vcmproapp04.compaq.com/telecom99/press.html.

Compaq's Zero Latency Engine Breaks New Ground in Convergent Infrastructure

Compaq's zero latency engine is a dramatic step forward in the Compaq NonStop(TM) eBusiness Solutions infrastructure and technology. While this first implementation is designed for global telecommunications companies, zero latency solutions are broadly applicable to other industries. It essentially enables a company to build a highly convergent infrastructure in which data flows instantly and seamlessly throughout all operations of the business - and which is available in real-time for immediate use with customers and partners.

Compaq's zero latency engine fully integrates all key business applications in real-time and tightly couples them to a single ODS. The result is a single view of the customer that customer service agents can use instantly, while on the phone, to respond to changes in preference or usage, such as a change in customers' call patterns.

"Compaq's zero latency engine is a solution that addresses the growing convergence in four key areas of business operation: customer management, global supply chain management, business intelligence and knowledge management," said Enrico Pesatori, senior vice president and group general manager, Compaq Enterprise Solutions and Services Group. "For environments that demand real-time information exchange, zero latency infrastructure can provide companies with the speed, control and insight they need to stay close to their customers."

"With its zero latency engine, Compaq has demonstrated that it is a leader at the highest levels," said Kathy Boeschesnstein, International General Manager, GTE Data Services. "Zero latency infrastructures can give companies a single, integrated view of the customer and the organization. This gives companies the ability to deliver instant response to customer service requests -- and help them bring to market innovative, convergent solutions that are well founded on market intelligence gleaned from up-to-the-minute data in call detail records."

The Gartner Group, which first described zero latency, anticipates that most companies will need to implement some form of zero latency infrastructure in order to be competitive and profitable as ebusinesses.

A separate press release is available at http://vcmproapp04.compaq.com/telecom99/press.html.

New Integrated Line of Business to Drive Compaq Strategy in Telecommunications Industry

To drive these powerful solutions, Compaq has formed a single, highly focused line of business under the leadership of Larry Schwartz, Vice President and General Manager, Compaq Telecommunications. As a single point of contact for worldwide customers, Compaq Telecommunications is driving a clear strategy to help carriers and service providers leverage convergent trends to deliver the integrated, high value services that a customer-driven market demands. The new organization is a part of Compaq's Enterprise Solutions and Services Group. A separate Compaq press release on the new telecommunications organization is available at http://vcmproapp04.compaq.com/telecom99/press.html.

Compaq Background

Compaq's Telecommunications Line of Business develops, markets and delivers integrated solutions for global communications carriers and enterprises in the areas of Enhanced Network Services, Business Support Systems, Operations Support Systems and Customer Premise Equipment. Combining its heritage of communications industry expertise, its world-renown customer service and delivery capabilities and one of the broadest portfolios of computer platform and application choices, Compaq provides a deeply integrated, single point of accountability to its communications customers.

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, Aero, NonStop Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.