CompuCom "Co-Locates" with Compaq to Increase Manufacturing Efficiency and Reduce Product Delivery Time and Cost.

HOUSTON--(BUSINESS WIRE)--July 7, 1998--In a move to provide fully -configured products more efficiently and affordably, Compaq Computer Corporation (NYSE:CPQ) and CompuCom Systems, Inc. (NASDAQ:CMPC) today announced execution of a manufacturing co-location effort in which CompuCom will configure and ship Compaq systems from its new 78,000 square-foot Configuration Services Center located on Compaq's Houston-based campus. CompuCom's Configuration Services Center, linked to other Compaq buildings by enclosed walkways, is staffed entirely by CompuCom technicians, engineers and managers. This new center will perform final assembly, software loads, and advanced configuration services on Compaq commercial desktop computers, workstations and servers.

This co-location program eliminates shipping time from Houston to CompuCom's two Configuration and Distribution Centers in Paulsboro, N.J. and Stockton, Calif., thereby allowing Compaq, CompuCom, and its resellers to improve supply-chain efficiencies and reduce total costs. The just-in-time delivery model ensures immediate product availability -- shortening the delivery cycle up to ten days -- and eliminates resellers' need for and expense associated with carrying excess inventory.

"The key to combating the direct sales model is to do it better than stand-alone direct sellers," said Ed Anderson, CEO of CompuCom and a longtime proponent of the configure-to-order concept. "By combining CompuCom's strong background in complex configuration processes and Compaq's excellence in systems design and manufacturing, we strengthen the value proposition to the customer. I'm confident the co-location model will exceed previous channel assembly efforts in terms of improved asset turns, reduced costs to the manufacturer and better service to the customer."

"Co-location is one of several ways Compaq is enhancing its Optimized Distribution Model (ODM) and partnering with the channel to aggressively streamline the supply chain," said Greg Petsch, Compaq's Senior Vice President and General Manager of Manufacturing and Quality. "Our co-location partnership with CompuCom signifies Compaq's commitment to promoting the value and efficiencies of the channel and delivering customers with the best products, services and prices."

ODM is Compaq's ongoing worldwide initiative that focuses on evolving and optimizing Compaq's operational and customer models. The model leverages Compaq's Build-to-Order (BTO), Configure-to-Order (CTO) and Channel Configuration Program (CCP) to deliver customized products to customers quickly and affordably. CompuCom is among Compaq's eight CCP partners authorized to perform custom assembly on Compaq desktops.

CompuCom Background

CompuCom Systems, Inc., headquartered in Dallas, Texas is a leading worldwide provider of network integration services to both large and medium-sized corporate customers. CompuCom's services include LAN/WAN projects, consulting, asset tracking, network management, help desk, field engineering, configuration, software management, distribution and procurement. CompuCom is accessible via the Internet at www.compucom.com.

Company Background

Founded in 1982, Compaq Computer Corporation is a Fortune Global 200 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 sells and supports its products in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products are on the World Wide Web at http://www.compaq.com and are available by calling 1-800-OK- COMPAQ. Product information and reseller locations are available by calling 1-800-345-1518.

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

    CONTACT: Compaq Computer Corporation
              Jean Alexander, 281/927-8405
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              Compaq Computer Corporation
              Simon Eastwick, 281/514-2702
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              CompuCom Systems, Inc.
              Mary Thiele, 972/856-5365
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