Compaq Launches New U.S. Internet Program for Dealers; Authorized E-Retailers Now Selling Compaq Presario Internet PCs Over the Web.

HOUSTON--(BUSINESS WIRE)--May 12, 1999--

Compaq Computer Corporation (NYSE:CPQ) announced an innovative program in the U.S. for retail dealers who are interested in selling Compaq's leading Presario home computing products over the Web.

The initial companies authorized include Cyberian Outpost and Value America, who have already begun selling Presario Internet PCs on their Web sites. Compaq is in the process of reviewing applications from traditional retail partners that sell PCs on their Web sites. Compaq will continue to evaluate additional e-retailer applications for advertising and selling Presario products over the Internet during the coming months.

"Compaq believes in giving consumers a choice in how they buy our Presario products -- whether they prefer to buy on-line or visit a traditional retail location," said Ray Robidoux, Vice President, Sales and Marketing, U.S. Consumer. "Our new program is designed as a solid complement to our retail strategy, where we continue to lead in all form factors."

Recent data from market research firms shows that Presario continues to be America's favorite PC brand. According to Intelect ASW, Compaq was number one at retail for all form factors with a 37 percent share for the month of March 1999. Also PC Data shows Compaq Presario was the number one consumer brand at retail for first quarter 1999, with a 33 percent unit share -- nearly two times that of the closest competitor.

"In typical Compaq fashion, we are setting new standards to ensure that Web-shoppers have a satisfying and safe purchase experience -- similar to the level of service and support they receive when shopping at retail stores," said Robidoux. "Considering the positive response from our reseller partners, we are confident our guidelines are right on the mark and that this program will enable Compaq to grow its business in this important emerging channel."

Industry Leading Guidelines for Authorized Dealers

The program for advertising and selling Compaq consumer products outlines specific and comprehensive advertising guidelines for Internet-only retailers as well as dealers that support both traditional retail locations and Web sites. In addition, it defines the level of service and support that is required. For example, retailers must provide front-line product support via the Web and telephone, maintain a customer support phoneline between 9 a.m. and 9 p.m. EST  Monday through Saturday, clearly state product availability, and provide around-the-clock customer service via email. Also, customers must be able to purchase Compaq Presario PC products via a toll free telephone number between 9 a.m. and 9 p.m. EST Monday through Saturday.

Shortly after Compaq issued the guidelines, several dealers commented on the new program.

"Compaq has come up with a brilliant and industry-leading program for dealers that sell over the Web -- one which set a new standard for doing business online and will be emulated throughout the industry," said Darrell Peck, President and CEO, Cyberian Outpost. "As a consumer-focused company, Cyberian Outpost understands what customers expect when buying over the Internet. With Compaq's guidelines to follow, we are certain we will provide consumers with a very satisfying experience."

"We are pleased to see Compaq lead the industry with a program for advertising and selling consumer products over the Internet," said Paul Ewert, President, Technology Division, Value America. "Compaq and Value America's mutual goal is to provide a safe and pleasant shopping experience for consumers who shop and purchase products on the Web. We applaud their efforts for a well conceived program."

"Compaq's new Consumer Dealer program contains all the right elements to be well received by e-retailers, end users and the industry," Dave Nalley, Vice President and General Manager, Consumer and Internet Resellers, Ingram Micro. "It allows Compaq to protect its brand equity, while giving an entirely new set of resellers an opportunity to sell the popular Presario line. For customers who like to shop on the Web, it promises an experience without compromise and full of choices."

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 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, or by calling 1-800-OK-COMPAQ. Product information and reseller locations are available by calling 1-800-345-1518.

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