(Editor's Note: Compaq Advisor, powered by NeoPlanet's ViassaryTM, is included in the "Compaq 2001 Holiday Lineup of Products and Services." For more information, please click here.)

Compaq Launches Windows® XP® Lineup for Holidays Featuring All-New Presario Notebooks, Desktop and Printers

New Products Designed to Help Compaq Win Back Consumer Market Share

HOUSTON - Sept. 24, 2001 - Compaq Computer Corporation (NYSE: CPQ) today introduced a powerful new lineup of consumer products for the holidays, all of which will ship with the much anticipated Microsoft® Windows® XP® operating system. Featuring two all-new Presario notebooks, a sleek new Presario desktop form factor and three new alternatives in printers, the Compaq 2001 holiday line brings the latest technologies to consumers with Intel® Pentium® 4, AMD® AthlonTM 4 and Windows XP offerings at attractive price points. “Compaq’s new holiday products, coupled with the power of Windows XP, represents the strongest lineup of consumer offerings we’ve ever assembled,” said Mike Larson, senior vice president and general manager of Compaq’s Access Business Group. “As a result, we expect to win back share in the U.S. consumer market in the fourth quarter.”

The introduction of Windows XP is expected to establish a new standard in dependability and simplicity, providing a new, friendly and stable computing experience for consumers. The new operating system’s digital media features will also help Compaq customers extend their PCs’ multimedia capabilities, such as digital music and photo albums, and such applications as the popular MyMovieSTUDIO home movie-making solution. All new Presario notebook and desktop PCs will be available with either Windows XP Home or Windows XP Pro. “We believe the introduction of Windows XP is the most significant milestone for the consumer PC industry this year,” Larson continued. “By combining the attractiveness of the retail shopping experience with in-store, build-to-order direct kiosks, we’re giving our customers unmatched shopping choices, innovative products and a variety of Internet and wireless capabilities.” New for Christmas: Notebooks, Desktops, Printers and More Compaq today unveiled two totally new Presario Notebook PCs featuring a sleek new onyx and silver design - the Presario 2700 and Presario 700 Notebooks.

Redefining power, freedom and mobile design, the Presario 2700 Notebook PC offers desktop-like performance with the fastest Intel Pentium III processors at speeds up to 1.13 GHz, the fastest graphics processor available, and both a fixed optical drive and hot-swappable FutureBayTM for just $1,699, which includes a $100 manufacturer’s rebate. Even greater savings can be realized when ordered direct from Compaq. The new feature-rich Presario 700 is an innovative, aggressively priced, easy-to-use notebook PC. Capable of handling the most demanding applications with the fastest AMD processors up to 1.2 GHz, the Presario 700 is optimized for affordability for the home or small office starting as low as $999 direct from Compaq. Compaq also re-energized its popular thin and light Presario 1700 Notebook PC, offering Intel Pentium III processors at speeds up 1.13 GHz, starting at just $1,599 at retail, which also includes a $100 manufacturer’s rebate, or as low as $1,148 when configured direct from Compaq. Compaq also revealed today a sleek new Presario desktop form factor: the Presario 8000 Desktop PC. Available direct from Compaq at www.compaq.com, the Presario 8000 is the fastest PC on the market, configurable with either AMD or Intel processors at speeds up to 2 GHz. The ultimate PC for video editing and gaming, the Presario 8000 is still affordable with prices starting at just $1,199. Compaq has also enhanced the long-time favorite Presario 5000 desktop series to offer the latest Intel Pentium 4 processing power at speeds up to 2 GHz at the affordable price of just $899. Both the Presario 5000 and 8000 series PCs are packaged with new Quicken financial and Electronic Arts software, and when configured direct from Compaq, feature six months free AOL Internet service. Compaq also announced today an all-new lineup of imaging products, including a four-function all-in-one printer, a three-function all-in-one printer, as well as the ultimate in photo printing, the Compaq 1400P Color Inkjet Printer. The 1400P features stand-alone digital photo capabilities - users can print photos directly from their digital camera’s memory card, without the need for a PC. The 1400P also offers the highest resolution available (up to 2400x1200 dpi) at any price for PC users or digital camera owners, and is available for just $149.99. Two all-in-one printers, the A3000 and A4000 were also unveiled. The A3000 color inkjet all-in-one saves time and space by allowing users to create, edit, print, copy, scan and share projects, photos and documents quickly and easily for just $199.99. The Compaq A4000 is a powerful all-in-one device for professional projects, document management and small office tasks, featuring 10 MB of memory for incoming fax and speed dial storage, all for just $249.99.

For more information about the holiday lineup from Compaq, go to Compaq’s Web site at http://www.athome.compaq.com, or visit a Compaq kiosk located in more than 10,000 popular retail stores and many traditional retail locations. In addition to an exciting new line of products, Compaq customers can rely on Compaq award-winning customer care and service. Customers have the option of calling Compaq’s technical support line at 1-800-OK-Compaq or e-mailing their questions 24 hours a day, seven days a week to www.compaq.com/consumersupport, through which Compaq provides the fastest average response time of just one hour. Continually striving to simplify and secure computing and communicating for its customers, new Compaq Presarios feature out-of-the-box support a pplications, including Compaq Advisor, a messaging application that provides helpful, timely technical advice and information to ensure users are getting optimal performance from their Presario PCs; and links to the NetSmartz Internet safety workshop (www.netsmartz.org), an Internet safety web site that helps children and parents learn to avoid dangerous online situations and what steps to take if a situation occurs.

(Editor’s Note: For more information about the NetSmartz Internet Safety program, see related web advisory titled “New Presario PCs Make Internet Safety a Click Away for Children, Parents” at http://www.compaq.com/newsroom/pr/2001/pr2001092402.html .)

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Company Background
Founded in 1982, Compaq Computer Corporation ("Compaq") is a leading global provider of enterprise technology and solutions. Compaq designs, develops, manufactures and markets hardware, software, solutions and services, including industry-leading enterprise storage and computing solutions, fault-tolerant business-critical solutions, communication products, and desktop and portable personal computers that are sold in more than 200 countries. Information on Compaq and its products and services is available at www.compaq.com.
Compaq and the Compaq logo are trademarks of Compaq Information Technologies Group, L.P. This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the Hewlett-Packard/Compaq merger does not close or that the companies may be required to modify aspects of the transaction to achieve regulatory approval or that prior to the closing of the proposed merger, the businesses of the companies suffer due to uncertainty; the market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; that Compaq and Hewlett-Packard are unable to transition customers, successfully execute their integration strategies, or achieve planned synergies; other risks that are described from time to time in Compaq and Hewlett-Packard’s Securities and Exchange Commission reports; and other risks that are described from time to time in Compaq’s and HP’s Securities and Exchange Commission reports (including but not limited to Compaq’s annual report on Form 10-K for the year ended December 31, 2000, HP’s annual report on Form 10-K for the year ended October 31, 2000, and subsequently filed reports). If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Compaq’s results could differ materially from Compaq’s expectations in these statements. Compaq assumes no obligation and does not intend to update these forward-looking statements.

Media Contacts:

David Albritton

Tiffany Smith


New Presario Notebooks for the Home and Office

Presario 2700 Notebook PC -- In addition to lightening-fast processing speed, the Presario 2700 Notebook PC features both a fixed optical drive and hot-swappable FutureBayTM. The FutureBay is a second bay that allows the notebook to hold a second optical drive (CD-RW/DVD combo, CD-RW, DVD or CD), allowing users to copy data from one drive to another without having to save to the hard drive and swap disks - providing ultimate productivity and flexibility. The FutureBay can also hold a second battery, increasing battery life, or simply a floppy disk drive or weight saver.

With the ATI Mobility Radeon with 4X AGP and modular video memory, JBL Pro speakers for thunderous sound and 15-inch display, the Presario 2700 Notebook PC is a fusion of power and entertainment. At just over seven pounds and one-and-one-half inches thin fully loaded, the Presario 2700 is also broadband ready and includes Presario Wireless Mobility options, making it the ultimate mobile PC. Available with Microsoft Windows 2000, Windows XP Home or Windows XP Pro preinstalled, the Presario 2700 is a fully featured notebook suited to either the home or small office, with retail models starting at just $1,699, with a $100 manufacturer’s rebate. When ordered direct from Compaq, consumers can configure the Presario 2700 to reach price points as low as $1,299.

Presario 700 Notebook PC - Combining simplicity and functionality in an attractive dual-tone design, the new feature-rich Presario 700 offers users the fastest AMD Mobile DuronTM and Athlon 4 processors up to 1.2 GHz and can be configured with DVD/CD-RW combo drives, up to 20 GB hard drive and 384 MB SyncDRAM. Featuring a bright 14.1-inch display, integrated broadband capability with V.92 modem and Wireless Mobility Options, the well-connected Presario 700 provides ultra-fast networking capability for the connected home or office. Also available with either Windows XP Home or Windows XP Pro preinstalled, the Presario 700 is optimized for affordability for the home or small office with retail prices starting at just $1,299, configurable direct from Compaq as low a $999.

Presario 1700 PC - The ultimate balance of mobility, performance and functionality, the Presario 1700 provides leading-edge technology in a powerful thin and light notebook. Introduced earlier this year, the Presario 1700 has been enhanced to offer Intel Pentium III processors at speeds up 1.13 GHz, 133 MHz Front Side memory BUS, and ATI Mobility Radeon graphics solution with 4X AGP support. At just five pounds, the Presario 1700 is up to two pounds lighter than other notebooks in its class, and will be available with both Windows 2000 and Windows XP Home. Starting at just $1,699, less a $100 manufacturer’s rebate, the Presario 1700 notebook is also available with a large, 14.1-inch SXGA+ screen for a brilliant display and full-sized keyboard for maximum typing comfort. The Presario 1700 can be configured direct from Compaq starting at $1,148.

Powerful New Presario Desktop PCs

Presario 8000 Desktop PC - Available direct from Compaq at www.compaq.com, the ultra-fast Presario 8000 is configurable with either AMD’s Athlon with DDR memory or an Intel Pentium 4 processor at speeds up to 2 GHz. The Presario 8000 also features the latest in rewritable technology and Compaq’s exclusive MyMovieSTUDIO home movie-making solution. The MyMovieSTUDIO application offers consumers the latest in DVD authoring technology, allowing them to turn their PC into a TV and digital VCR with ATI All-in-Wonder Radeon card. A gamer’s dream machine, the Presario 8000 also features the nVidia GeForce 3, 64 MB DDR graphics card for mind-blowing speed and color graphics. The new Presario 8000 also incorporates the Presario line’s ease-of-use features, which include two USB ports and an IEEE 1394 port on the front of the machine for quick and easy set up, and tool-less entry for simple access to internal components. Available with either Windows XP Home or Windows XP Pro preinstalled, prices for the Presario 8000 start at just $1,199.

Presario 5000 Desktop PC - With its new microtower form factor, the Presario 5000 Desktop provides power and flexibility with enhanced Internet access features such as Internet Explorer 6.0, Outlook Express 6.0, and MSN Net Meeting for improved business communications or chatting with groups of friends. Additional multimedia applications, such as Windows Media Player 8.0 and CD-R/CD-RW support enhance digital music, video and picture capabilities. Great for the home and small offices, the Presario 5000 is available with either Windows XP Home or Windows XP Pro; AMD Duron or Athlon, or Intel Celeron or Pentium 4 processors; and can be configured with up to 512MB of Sync DRAM PC133 memory (expandable to 3 GB), 120GB hard drive and 4X AGP nVidia GeForce graphics cards to improve gaming action or enhance business application performance, all at the affordable price of just $899.

In addition, both the Presario 5000 and 8000 series PCs are packaged with Quicken Financial Center/Quicken New User Edition and the Compaq-exclusive Electronic Arts Sports and Games bundle featuring five full-title versions of the most popular EA games, which include Madden NFLTM 2001, Triple PlayTM 2001, Tiger Woods PGA TOUR® 2001, Need for SpeedTM - Porsche® Unleashed and SimCity 3000TM Unlimited. And when configured direct from Compaq, both series PCs include six months free AOL Internet service.

Compaq Rejuvenates Imaging Line With Three New Printing Products

Compaq 1400P Ink Jet Printer - Features stand-alone digital photo capabilities at a breakthrough price, the 1400P has a built-in CompactFlash card slot that allows the memory card from a digital camera to be inserted directly into the printer. Memory card adapters for SmartMedia and Memory Stick will be available from Compaq. With the touch of a button prints an index of thumbnail-size photos for quick photo selection before printing full-size prints. An easy-to-use control panel then allows users to choose the photos they wish to print, photo size, paper size, as well as the type of paper. The 1400P was designed with value and flexibility in mind, printing up to 15 ppm black and 7 ppm color, making it an excellent printer for document, reports and printing from the Internet. The printer’s small form factor takes up little desk space and the printer supports ColoReal color management technology, which ensures accurate color printing from the Web. Available for just $149.99, the 1400P can be found at most major retailers or at www.athome.compaq.com.

Compaq A3000 All-in-One Printer -The A3000 color inkjet all-in-one is designed with convenient custom copy button allows users to create t-shirt transfers, scan and copy textbook pages and print standard-size photos. Scanning is made easy with preprogrammed scan functions, including scan-to-fax, scan-to-email and scan-to-application capabilities. The A3000 offers value and convenience at just $199.99.

Compaq A4000 All-in-One Printer - With a 10 MB internal memory and internal JBIG compression, the A4000 supports simultaneous scanning and printing, up to 70 sheets of fax memory 70 speed dials, including groups. The A4000 will be available in October for $249.99.

At 2400x1200 dpi resolution, the A3000 and A4000 provide incredibly rich color depth to give documents, presentations, handouts, transparencies, photos and posters that professional look. Both all-in-ones offer fast print speeds of 15 ppm in black and seven ppm in color.

Count on Compaq

Compaq Service & Support - Compaq Presario PCs come with free 90-day software technical support and one-year hardware warranty (parts and labor). Customers also have the option of calling Compaq’s technical support line at 1-800-OK-Compaq or e-mailing their questions, to which Compaq provides the fastest average response time of just one hour. Compaq eServices offer assistance for customers of all technical skill levels. For the fastest path to accurate answers, customers can visit www.compaq.com/consumersupport 24 hours a day, seven days a week. This consumer support site contains original drivers, convenient access to current product information and warranty information. In addition, Compaq Update delivers automatic updates of enhancements from Microsoft and Compaq.

Compaq’s built-in maintenance and preventive care features maintain peak product performance while placing self-help assistance at consumers’ fingertips. Anti-virus software, Internet security, restore and recovery solutions as well as the new Compaq Help and Support Center are built right into the PC. Compaq also offers a variety of flexible service options for extended warranty care. For details, call 1-888-866-8106.

Compaq Makes Computing Easier, Safer Right Out of the Box

Compaq Advisor - Compaq Advisor is a service that increases the intelligence of Presario PCs to simplify and enhance the computing experience for consumers. Currently available on Compaq Presario desktop and notebook PCs, the Compaq Advisor messaging application provides helpful, timely technical advice and information to ensure users are getting optimal performance from their Presario PCs, as well as information about technology advances, services and offers relevant to their computing interests.

The information spans a variety of different topics, ranging from increasing PC operating efficiency to maximizing broadband service and extending battery life on Presario notebook PCs. The combination of Compaq Advisor, Windows XP enhancements and Compaq’s existing E-Services tools will allow Compaq to provide the best customer experience by simplifying user interaction with the PC, offering technical advice and helping consumers realize the full potential of their computing environment.

NetSmartz Workshop - Dedicated to educating children and parents about safety on the Internet, Compaq will feature an icon link on the desktop of all new Presario desktop PCs for NetSmartz Workshop (www.netsmartz.org), an Internet safety web site that helps children and parents learn to avoid dangerous online situations and what steps to take if a situation occurs.

Designed to reach the user in a variety of ways, NetSmartz also will be introduced as Presario desktops are first booted on the “Out-of-Box-Experience” page highlighting the PC’s special features, as well as have a presence on the Presario Info Center Page, accessible through the new Windows XP.

Start Menu. There also will be a message delivered by Compaq Advisor directing users to NetSmartz. In addition, parents can participate in the Compaq Customer Communities Web site (www.compaq.com/communities) to share information and tips for online safety with a NetSmartz expert.

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