Honeywell and Compaq Sign Global Services Agreement.

PHOENIX--(BUSINESS WIRE)--Aug. 3, 1998--Honeywell Industrial Automation and Control and Compaq Computer Corporation today announced a multi-year global services agreement that expands the relationship with Compaq and Honeywell to an estimated value of more than $20 million per year. Honeywell will become a preferred Authorized Warranty Service Provider (AWSP) for Compaq in the process and manufacturing industries. As an AWSP, Honeywell will deliver desktop, software, help desk and support services on Compaq products to Honeywell customers worldwide. In addition, Compaq Services will augment Honeywell's services and support capabilities with:

-- Technical and parts support for Compaq products - 24 hours per day, 7 days per week

-- International help desk support for more than 200 shrink-wrap software applications

-- Desktop lifecycle services including hardware and software support.

Honeywell has also been authorized by Compaq to providewarranty support on entry-level models in the Digital Alpha product line. In May, just before Compaq's acquisition of Digital Equipment Corporation, Digital Worldwide Services announced the first opportunity for partners to deliver warranty services on the Alpha 4100 and 4300 models. Honeywell is among the first to receive authorization to deliver these services.

"Honeywell has enjoyed a 12-year business relationship with Digital - now Compaq - as an end user and Original Equipment Manufacturer (OEM), and as a Value Added Reseller (VAR) of both Digital and Compaq products," said Rob Baxter, vice president of Honeywell's Services Business Unit. "This agreement enables Honeywell and Compaq to improve customer satisfaction by offering seamless service and support for the entire breadth of Honeywell's TotalPlant(R) solutions worldwide - including hardware and software from Compaq."

"This relationship highlights the complementary service capabilities of Compaq and Honeywell to ensure comprehensive support for customers in the process and manufacturing industries around the world," said Peter Mercury, vice president and general manager, Compaq Customer Services. "Furthermore, it underscores Compaq's stated commitment to working with channel partners to meet the increasing demand for superior information technology services delivered globally. Here is a perfect example of our strategy at work."

Honeywell's desktop, software and help desk services are part of a full portfolio of Industrial Information Technology (IT) Services that includes application and network and integration services. These consulting, design, installation, and support services meet the unique industrial IT requirements of process control installations.

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

For additional information, write to: Honeywell Inquiries, 2800 Wells Branch Parkway, Austin, TX 78728. Inquiries also may be made by phone, 1-800-288-7491, by fax, 512-244-9222, or via the Worldwide Web www.iac.honeywell.com.

Honeywell is a global controls company focused on creating value through technology that enhances comfort, improves productivity, saves energy, protects the environment and increases safety. The company services customers worldwide in the homes and building, industrial, and aviation and space markets. Honeywell employs 57,500 people in 95 countries, and had 1997 sales of $8 billion.

Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. (R)TotalPlant is a U.S. registered trademark of Honeywell Inc.

    CONTACT: Honeywell
              Anne McCarthy, 602-313-5586
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              or
              Compaq Computer Corporation
              Theresa Parenteau, 978/496-9981
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