Compaq Leverages 40 Years of Services Experience to Create Powerful PC Lifecycle Solutions; Comprehensive Offerings Reinforce Compaq's Commitment to Customer Choice.

HOUSTON--(BUSINESS WIRE)--April 14, 1999--

Drawing on the combined strengths of its PC Products Group and its Compaq Services Group, Compaq Computer Corp. (NYSE:CPQ) is delivering the first and most comprehensive suite of 29 PC Lifecycle Solutions for its enterprise customers. The PC client-based solutions consist of hardware, services, and tools. They are designed to help enterprise customers reduce the complexity of their computing environments, control overall computing costs, and more easily integrate and manage Compaq Deskpro PCs, Armada portables, and Professional Workstations, enabling them to concentrate on their business, not their PCs.

"Our enterprise customers are looking for PCs that deliver more than just great technology and great value," said Michael Winkler, Senior Vice President and Group General Manager, PC Products Group. "They want comprehensive lifecycle services and support that will alleviate the burden of planning, deploying, managing and transitioning PCs in an enterprise environment, and that will allow customers to concentrate on what they do best, managing their business. With these solutions, we are delivering lifecycle services to enterprise customers who demand a single point of accountability from a full-service PC technology partner who understands their business and technology needs."

The comprehensive set of Compaq PC Lifecycle Solutions ranges from Year 2000 assessment and PC deployment tools, to Intelligent Manageability and PC technology transition. Compaq PC Lifecycle Solutions help customers dramatically improve their ability to manage the rapid pace of technology change and allow them to more readily focus their IT resources on projects that add tangible value to their bottom line. Compaq's customer choice model offers four levels of support:

-- Assist customers in implementing lifecycle solutions on their own with Compaq tools and information.

-- Augment customers' PC lifecycle capabilities with services that address specific needs or issues.

-- Manage customers' entire PC environment, from planning through end-of-life disposition or anywhere in between.

-- Partner with customers' preferred hardware and service provider to deliver expanded capabilities.

Customers have the flexibility to choose how involved they want Compaq to be in managing their IT environment, while ensuring they always maintain complete control over the desired result.

Compaq PC Lifecycle Solutions include benefits such as control and predictability of PC computing costs, reduced risk, and improved ability to manage technology changes without disrupting business operations. To achieve these benefits, Compaq provides customers with a broad array of tools and services to assist customers throughout the four phases of the PC lifecycle:

-- Planning: capabilities that help customers to develop their PC strategy around their business requirements. For example, Total Cost of Ownership (TCO) Assessment offers a choice of an easy-to-use TCO Snapshot tool, an in-depth TCO Assessment service or an extensive TCO Analysis consulting service.

-- Deployment: capabilities that enable fast, seamless integration of PC technologies into the enterprise. For example, the new PC Custom Configuration Service can help enterprise customers develop customized hardware and software configurations. Compaq will then manufacture and ship these systems from its factories worldwide.

-- Management: capabilities that help customers control the day-to-day complexities of their IT environment. For example, Change Control and Change Notification minimizes hardware and software changes, accumulates them and notifies enterprise customers in advance via e-mail and the Change Notification Web site.

-- Transition: capabilities that help customers quickly and painlessly take advantage of the latest PC technologies. For example, OS Migration services help customers migrate to Microsoft Windows NT and Microsoft Windows 2000 quickly and smoothly.

For more information on Compaq PC Lifecycle Solutions, including a complete list and detailed descriptions of individual services, programs and capabilities, visit Compaq's Web site at: http://www.compaq.com/pcsolutions.

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.

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                         Questions and Answers
                     Compaq PC Lifecycle Solutions

Q: What is Compaq's experience as a PC service provider?

A: Compaq has been in the IT services business for 40 years. When
Compaq merged with Digital in 1998, it integrated into the overall
company a service capability that began in 1957 when Digital first
began selling computer products. But the experience and expertise
accumulated through 40 years of service business, and indeed 15 years
of PC hardware and software service, makes Compaq a leader in this
area.

Q: Is Compaq the first to provide a program like PC Lifecycle
Solutions?

A: Compaq is the first company to, under one umbrella program,
integrate PC hardware with PC-based services, acquisition leasing and
financing, hardware-based tools and other capabilities to provide
customers a full choice of how much assistance they receive from
Compaq. Specifically,

-- Compaq can help customers administer their PCs themselves with
   tools and information

-- Compaq can augment their capabilities with specific services like
   PC Custom Configuration and Year 2000 Healthcheck

-- Compaq can manage their PC environment for them, from acquisition
   to end of life and anywhere in between

-- Compaq can partner with their preferred hardware and service
   provider to deliver expanded capabilities

Q: Isn't PC Lifecycle Solutions just a different way of packaging
capabilities already available from Compaq?

A: In some ways that is true, but there are new programs too. For
instance, the PC Custom Configuration and PC Certification Testing
services are new. These services are intended to help enterprise
customers adapt Compaq PCs to their specific needs and ensure that the
results will integrate smoothly into their environment. In addition,
the customer choice model is also new. By providing customers with a
choice of tools, specific services, comprehensive services, and
working closer with their reseller, Compaq is providing assistance in
any form that the customer desires. This is new in the industry.
Finally, this introduction of PC Lifecycle Solutions is just the first
step in a plan that will continue to evolve with new services, tools,
and capabilities. Watch out for more new capabilities in the next few
months.

Q: Is Compaq trying to circumvent resellers and sell services
directly?

A: No. In fact, resellers and third-party service providers
are a key part of the PC Lifecycle Solutions Program. For those
customers with strong relationships to service providers, PC Lifecycle
Solutions offers additional services that may not be available today.
In this situation, Compaq can act as a subcontractor while the service
provider maintains the primary relationship with the customer. On the
other hand, if the customer wants a more direct relationship with
Compaq, then we can act as the prime contractor and subcontract
specific services to the service provider. Our role in the overall
solution depends on the needs of the customer.

Q: Do PC Lifecycle Solutions provide Compaq with a competitive
advantage?

A: Yes. For direct-selling competitors, our competitive advantage is
significant. For example, one large direct vendor provides only a few
services, including PC custom configuration. For other services, it
typically contracts with other companies, an arrangement that provides
the customer with neither the accountability nor the global
hardware/service expertise available from Compaq. It is difficult to
imagine a smooth service engagement when two separate companies have
to focus on how they will work together before they can figure out how
to work with the customer. For non-direct competitors, our advantages
are less dramatic, but certain competitive advantages do stand out as
industry-leading, including PC Certification Testing Services, PC
Deployment Tools, the Change Control program and Intelligent
Manageability.

Q: Are PC Lifecycle Solutions available to all Compaq PC customers?

A: No. These services are targeted at our enterprise commercial PC
customers that typically have 500 employees or more. Some services,
like our Hardware Installation and Deskpro/Armada Hardware Support
CarePaqs, are available to smaller customers while our tools are
available to all commercial PC customers.

Q: How does a customer buy PC Lifecycle Solutions?

A: That depends on which program they want to purchase. For
instance, if the customer wants to use our tools like Intelligent
Manageability or our Change Notification site, the price is included
as part of the value of buying Compaq Deskpro, Armada PC hardware as
well as Professional Workstation hardware. Customers can access these
tools directly on the Compaq web site. On the other hand, if they want
to purchase our OS Migration service or utilize all the components
included in a leasing arrangement, then the customer should contact
their Compaq account representative.

Q: Are PC Lifecycle Solutions available today? Are they available
worldwide?

A: All of the programs under the PC Lifecycle Solutions umbrella are
available today and most are available worldwide. However,
availability does vary from program to program so the customer is
asked to check the PC Lifecycle Solutions web site
(www.compaq.com/pcsolutions) or contact their Compaq account
representative.

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Q and A notice: Compaq computer corporation shall not be liable for technical or editorial errors or omissions contained herein, nor for incidental or consequential damages resulting from the furnishing, performance, or use of this material.

(c)1999 Compaq Computer Corporation

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