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New Intel(R) Mobile Pentium(R) 4; Entertainment Bundles for Presario PCs Unleash Endless Possibilities for Productivity, Creativity and Fun

For select new Presario desktop PCs, Compaq introduced the new nForce platform, which combines AMD processing power, including the just-announced AMD Athlon(TM) XP 2100+ processor, with integrated NVIDIA GeForce(TM) 2 4X AGP graphics to create the industry's most balanced, powerful platform for supporting digital video and audio, gaming, digital photography and personal productivity needs.

``Compaq has created a new platform for Presario customers which combines industry-leading technology from AMD and NVIDIA to produce a PC that empowers our customers to create, share, and enjoy the digital experience to its fullest,'' said Mike Larson, senior vice president and general manager of Compaq's Access Business Group. ``The nForce platform provides Presario users with the power and advanced graphics of a 32 MB AGP video card, but in a more cost-efficient, integrated design for uncompromised video performance.''

Compaq's new consumer line also features a stylish carbon and silver design -- from the new Presario desktops and notebooks to a Compaq printer and coordinating monitors. Available direct from Compaq (www.athome.compaq.com ) immediately, the new product line will be found in retail outlets by early April.

``Compaq developed the look and feel of the new consumer lineup to closely mirror design trends emerging in the consumer marketplace, from cars to appliances to home electronics -- and the new Compaq Presario products complement that design style,'' Larson said. ``Coupled with the power of the new Intel Mobile Pentium 4 processor and the nForce platform, this is the most exciting new Presario lineup yet.''

``The Compaq consumer product line fully reflects the company's expertise in industrial design,'' said IDC analyst Roger Kay. ``The new style, advanced graphics, and entertainment offerings should generate a fair amount of interest among the buying public.''

New Presario Desktops Offer New Look, Latest Technology, Easy Access

The new consumer desktops include the Presario 4000, 6000 and 8000 series Internet PCs for the home or home office. Starting at just $649, the Presario 4000 offers great value in a dependable, easy-to-use Internet PC, available with Intel Celeron(TM) processors up to 1.3 GHz.

Priced at $799, the Presario 6000 goes beyond basic computing with fast Intel Pentium 4 processors AMD Athlon processors, support for DVD-R/RW and CD-RW combo drives and built-in networking for easy broadband service or home networking. And for extreme performance with the greatest scalability, the Presario 8000 supports the newest and fastest technology -- such as the new AMD Athlon XP 2100+ and Intel Pentium 4 2.2 GHz processors -- 72000RPM hard drives up to 120 GB, DVD-RW technology and 1 GB DDR memory, starting as low as $1099.

New Display Line Includes Compaq's First 17-Inch Flat Panel for Consumers

Compaq also redesigned its consumer monitor line and the IJ650 Series ink jet printer in the new carbon and silver color-scheme. The company now offers four series of cathode ray tube (CRT) monitors from $129 and two flat panel monitors from $418. The newest entry in Compaq's flat panel display line is the FP7020, a 17-inch viewable image size that offers a screen size comparable to a 19-inch CRT. The newly redesigned IJ650 Series Ink Jet printer is priced at just $99.99.

Compaq Brings Integrated Wireless to Consumer Notebooks

The all new Presario 2800 delivers the performance and technology needed to stay productive while on the go, featuring the new 1.7 GHz Mobile Intel Pentium 4-M processor and integrated 802.11b wireless MultiPort and USB 2.0 support.

Originally introduced with the Evo line of notebooks, Compaq's innovative MultiPort wireless solution (available in 802.11b or Bluetooth) provides users the convenience of integrated wireless access without being limited by the location of their PC, external PC card or wires. For additional information to pre-order a system, go to www.compaq.com/athome/2800 . Pricing for the Presario 2800 notebook starts at $2,399.(1)

In addition, Compaq has also enhanced its feature-rich Presario 700 notebook to include the new AMD Athlon 4 1600+ processor, making it an affordable mobile solution for personal productivity or small business users starting at just $1109.

Options and Bundles for Gaming, Digital Video and Audio Enthusiasts

The new Compaq Presario offerings also include a variety of options for gaming and digital video, photo and audio buffs. For advanced graphics at an affordable price, the new nForce integrated graphics platform is available standard on select Presario 6000 and 8000 systems, offering the with integrated performance of an NVIDIA GeForce2 4X AGP graphics card and an additional 4X AGP slot for further graphics upgrades.

For game lovers, Compaq offers two new options to enhance the gaming experience, including the NVIDIA GeForce(TM) 4 Ti 4600 on Presario 8000 PCs or choose the Compaq-exclusive ATI ALL-IN-WONDER® RADEON(TM) 8500 all-in-one 3D graphics and multimedia solution for unbelievable realism.

In addition, digital video and photo enthusiasts will appreciate enhancements to Compaq's popular MyMovieSTUDIO solution, and new MyPhotoSTUDIO and MyMusicSTUDIO bundles. Now even more simple and intuitive, the award- winning Presario MyMovieSTUDIO home video editing suite now also features Sonic(TM) AuthorScript® technology in MyDVD 3.0, and also includes Pinnacle Systems' Studio 7 for more advanced video editing enthusiasts. Visit www.compaq.com/showroom/options.html for more information.

As always, Compaq customers can rely on award-winning product care and customer service. Customers have the option of utilizing Compaq's industry leading Help & Support website (www.compaq.com/consumersupport ) 24 hours a day, 7 days a week, through either its Compaq Customer Communities (www.compaq.com/communities ) or its best in class email-assisted support -- or by calling 1-800-OK-Compaq or by purchasing an extended service plan by calling 1-888-445-0115.

For more information about how to purchase these and other Compaq products, visit Compaq's Web site at http://www.athome.compaq.com , a Compaq kiosk located in more than 10,000 popular retail stores and many traditional retail locations, or call Compaq at 1-800-888-0220.

Company Background

Founded in 1982, Compaq Computer Corporation is a leading global provider of information technology products, services and solutions for enterprise customers. Compaq designs, develops, manufactures and markets information technology equipment, software, services and solutions, including industry- leading enterprise storage and computing solutions, fault-tolerant business- critical solutions, communication products, personal desktop and notebook computers, and personal entertainment and Internet access devices that are sold in more than 200 countries directly and through a network of authorized Compaq marketing partners. 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. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. This document 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 (including but not limited to Compaq's annual report on Form 10-K for the year ended December 31, 2001, HP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001, 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.

    (1) Based on estimated U.S. selling prices.  $2599- $200 rebate = $2399.
        $200 rebate only available through retail Built for You kiosks.
        Reseller prices may vary.

SOURCE: Compaq Computer Corporation