Compaq, Microsoft and Intel Announce Program to Enhance Speed-to-Market for Internet Startups

speedStart Program Delivers Reliable, Scalable e-Business Solutions

HOUSTON, June 21, 2000 - Compaq Computer Corporation (NYSE: CPQ), Microsoft Corporation, and Intel Corporation today announced speedStart, a program specifically designed to accelerate speed-to-market for Internet startup companies. The program will help Internet startups rapidly deploy proven, scalable, and reliable e-business solutions based on Compaq/Microsoft/Intel technologies. The program offers startups the products, services, and resources they need to help their growing businesses achieve success, including:

• Comprehensive services from Compaq and its designated partners to help startups design, build and manage IT infrastructures
• Pre-defined robust, enterprise-ready solutions based on Compaq hardware, featuring Intel Pentium® III processors, and Microsoft® software
• Links to Web integrators, key incubators, and service providers such as Exodus Communications™, that offer specialized Internet services for rapid deployment
• Flexible financing arrangements from Compaq Financial Services that build on the $1.1 billion commitment to the Service Provider and Internet market that Compaq made in May.

Compaq, Microsoft and Intel expect to provide information, services, and infrastructure for up to 10,000 program members. These three industry leaders bring years of technology and service experience to the program. By providing access to scarce technical resources, world-class IT platforms and architectures, and flexible financing, speedStart helps developing startups quickly enter the market, and achieve profitability.

"Startup companies are working against ever compressing timelines," said David Parsons, Vice President, eBusiness Solutions, North America, at Compaq. "They have only one chance to get it right and many are working with limited technical and monetary resources. Compaq, Microsoft and Intel can ease the pressure by helping startups accelerate their speed to market. Whether a startup company is still in the garage or out on the road with venture capital support, our speedStart program can help with equipment, financing, consulting services, and more. It is the only program on the market today sponsored by three industry leaders and based on the most widely used industry-standard solutions in the industry."

"speedStart is a tremendous set of services for Internet startups that are looking to get to market more quickly than their competition, and achieve rapid profitability," said Peter Boit, Vice President of U.S. eBusiness Solutions at Microsoft Corp. "We are excited to be working with Compaq and Intel to help developing Internet companies take advantage of scalable, reliable e-business solutions that utilize the Windows® DNA 2000 platform."

"Intel is committed to providing e-business solutions for the Internet economy. Our efforts with the speedStart program further reflect our desire to accelerate Internet startups' speed to profitability using the reliable and scalable Intel Architecture," said Tom Lacey, Intel Vice President, Sales and Marketing Group; President, Intel Americas, Inc. "Nothing beats Intel architecture-based servers for building a scalable infrastructure that can grow with the business as well as world-class price/performance."

Access to Industry Leading Partners
A key feature of the speedStart program is the link with Internet service providers and solution partners to provide targeted solutions and services that meet startups' specific needs. Exodus® Communications - a leading provider of complex Internet hosting for companies with mission-critical Internet operations - is the first service provider to partner with Compaq in the speedStart program. Exodus® will work with Internet startup companies who want to quickly enter the market. Within days, Exodus can rapidly deploy and host a solution based on Compaq, Microsoft and Intel solutions. This reduces the normal deployment time from weeks or months to days.

"Time-to-market is essential for developing a successful and competitive online offering and speedStart provides startup with ready access to the industry-leading technology and services they need to quickly build and launch their e-business sites," said Beverly Brown, Executive Vice President and Chief Marketing Officer for Exodus. "Through programs such as speedStart and the Exodus Rapid Deployment Initiative, Exodus provides startups with the Web hosting services they need to rapidly deploy a successful e-business operation."

Comprehensive Services
Compaq and Microsoft are already involved in building the most complex Internet sites. Organizations such as Radioshack Canada, MSN™ and barnes&noble.com have worked with Compaq and Microsoft for "get-it-right-the-first-time" results. speedStart can assist Internet startups in every phase of their life cycle with comprehensive services from business vision planning to implementation to ongoing support.

Services to help Internet startup companies design, build, and manage IT infrastructures, include:

• eBusiness Vision Workshop - to help startups effectively target their customer base and market.
• Velocity Engagement Workshop - to help startups define business objectives before they set a technology solution in motion.
• Readiness Review - to scan and assess the Internet startup web site before it is launched, avoiding a technology stumble.
• Proof-of-Concept-Lab-Testing - to demonstrate, characterize, benchmark and test the dotCOM Web site with experts at one of Compaq's Solutions Centers.
• Microsoft Business Internet Solution Centers - designed to help companies realize the potential of the digital economy by integrating e-business solutions throughout their operations.
• Microsoft Developer Network - for developer service and technical assistance, access to subscriber information, and support materials, publications and development software.
• Support Services - a broad portfolio of services to help Internet startup companies meet their ongoing needs for high availability, optimum performance, and security.

Cost-effective Standards-based Solutions
Speed to profitability starts with a comprehensive, scalable IT infrastructure that enables companies to run their businesses and go online fast. Compaq, Microsoft and Intel provide the most cost-effective, scalable and widely used solutions in the industry. In addition, Compaq's innovative client products allow Internet startup customers to stay connected to important business and technical information anytime, anywhere.

Through the speedStart program, startup companies can choose a pre-defined solution to meet their unique requirements based on Compaq's ProLiant Servers featuring Intel Pentium III processors, Compaq's DISA architecture and Microsoft's Windows DNA 2000 platform.

Designed for groundbreaking performance and scalability, Compaq's ProLiant platforms are ideal for startups because they offer superior manageability, security and uptime. When used with Compaq Insight Manager, the platform offers simple remote management and other features startups and hosting providers want for ease of administration and high availability. For increased availability, these configurations feature Compaq's DISA architecture - a blueprint for designing environments to support highly elastic and volatile demand situations. DISA allows load balancing so servers and storage are seamlessly added for real-time scalability. It also reroutes traffic if any one system in a cluster has a problem.

Windows® DNA 2000 is Microsoft's platform for rapidly building and deploying next generation Web applications - from high-traffic e-commerce Web sites to corporate intranets to enterprise supply chain integration - that easily integrate with customers, partners, and existing applications. With Microsoft Windows 2000 as its foundation, other components of Windows DNA 2000 include: SQL Server™ 2000, BizTalk™ server 2000, Commerce Server 2000, Application Center 2000, Host Integration Server 2000, Internet Security and Acceleration Server 2000, Exchange 2000 and Visual Studio® - all best-of-breed products that take advantage of the deepest pool of developer talent and third-party markets in the industry. With Windows DNA 2000, customers can quickly and easily turn a business into an e-business.

Flexible Financing Options
Earlier this year, Compaq Financial Services (CFS) announced a $600 million commitment to support the development of Internet companies through lease programs, a significant portion of which is now earmarked for qualifying Internet startups. As part of the program, startups can also obtain trade-in credit for other proprietary brands of PCs and servers. Internet startup companies can apply for financing online. Compaq will also provide startup companies with the names of recommended venture capital firms.

speedStart Portal
Affordable marketing resources are available to Internet startups through the speedStart program. They can accelerate their speed to profitability through free or discounted products and services and extend their market reach through brand affiliation with Compaq, Microsoft and Intel. Through the speedStart portal at www.compaq.com/solutions/speedstart.com/, Internet startups gain instant access to a wealth of Internet startup information and resources. They can also use the portal to register for monthly mailings and can apply for membership in the program. A speedStart information hotline is also available at 1-800-244-1407.

About Compaq
Compaq Computer Corporation, a Fortune Global 100 company, is the largest supplier of computing systems in the world. Compaq designs, develops, manufactures and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, and communications products, commercial desktop and portable products, and consumer PCs.

Compaq products and services are sold in more than 200 countries directly to businesses, through a network of authorized Compaq marketing partners, and directly to businesses and consumers through Compaq's e-commerce Web site at http://www.compaq.com. Compaq markets its products and services primarily to customers from the business, home, government, and education sectors. Customer support and information about Compaq and its products and services are available at http://www.compaq.com.

About Microsoft
Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software - any time, any place and on any device.

* Other names and brands may be claimed as the property of others.

This press release may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include: delays in the implementation of changes in delivery models, increased competitive environment and pricing pressures, delays in product rollout schedules, component shortages, slow acceptance for new form factors, employee retention, disruptions related to restructuring actions, the financial condition of resellers, delays in new systems implementation, operational inefficiencies related to sales cycles, equity investment volatility, and emerging market political or economic instability. Further information on the factors that could affect Compaq's financial results is included in Compaq's Securities and Exchange Commission (SEC) filings, including the latest Annual Report on form 10-K and the latest Quarterly Report on Form 10-Q.