Compaq And Intel Will Enhance The Trading Cycle For Capital Markets Institutions

"Compass" Program Optimizes ISV Solutions For Industry Standard Technologies, Targets Global Capital Markets Operations

HOUSTON and SAN FRANCISCO, March 5, 2002 - Compaq Computer Corporation (NYSE: CPQ) and Intel Corporation today announced the launch of the Compass program, a collaborative technology and marketing program designed to deliver the full range of trading cycle solutions on Compaq's industry standard ProLiant servers, powered by cost effective Intel® technology.

The program will initially focus on delivering leading trading applications to investment banking, brokerage, and asset management operations in North America and Europe. The portfolio of solutions will include order routing, order management, transaction processing, trading analytics, risk management and messaging applications, clearing, settlement and accounting - all key elements of the automated trade cycle which will realize Straight-Through Processing (STP) and facilitate T+1 settlement.

Compaq and Intel are already working with leading Independent Software Vendors (ISVs) to optimize and expand the availability of their mission-critical solutions across North America and Europe. Participating ISVs will work with Compaq and Intel®, who will tune, optimize and scale their flagship solutions to run on industry-standard Compaq ProLiant servers, powered by the Intel® Xeon™ and Itanium™ family of processors.

"The Compass program offers financial firms a powerful competitive opportunity, enhancing their capabilities with new products and services at lower costs of solution acquisition, implementation and operation," said Randy DeMont, vice president, Global Solutions Group, Compaq Computer Corporation. "Compaq has led the drive to apply industry standard technologies to enterprise solutions through our extensive line of ProLiant servers, and our services professionals will work with participating ISVs to optimize and prove the performance of their applications in any scale on this platform."

"Next generation Capital Market solutions require secure, flexible and scalable platforms to support the new era of dynamic trading relationships," said John Davies, vice president, Solutions Market Development Group, Intel Corporation. "By delivering pre-configured, optimized and affordable Intel®-based solutions to speed time-to-market and time-to-money, the Compass program will help mitigate both risk and costs for our customers."

"Our trading clients are increasingly squeezed between customer demands for new value adds, competitive pressures, and increasing costs," said Bryce Byers, president and CEO of Neovest Inc., a leading trading and analytic ISV. "Compaq and Intel® have understood this and presented us with a way to serve all of those needs by enabling and marketing our applications on Intel® Architecture-based, industry standard Compaq ProLiant servers and workstations. Now the quality and features of our trading solutions have even greater appeal because of the flexibility, scalability and speed of deployment we're able to achieve."

"We are excited to be working with Compaq and Intel to deliver STP solutions for the financial industry through the Compass Program," said Pamela Pecs Cytron, executive vice president of Netik. "Netik has a lot of history and experience working with these two organizations successfully deploying 'end to end' STP solutions for some of the largest global financial institutions. Netik's approach of using 'plug and play' components coupled with Intel and Compaq platforms can scale to meet any STP need, in a cost effective manner."

"SunGard is pleased to see that two industry giants, Compaq and Intel, have teamed up to facilitate STP and we are excited about participating in this initiative that will lead to optimized solutions for financial services," said Mack Gill, director of Alliances, SunGard, a global leader in integrated IT solutions for financial services and leading provider of information availability services.

Compaq and Intel are committed to enabling the financial industry to generate a higher return from its technology investments, and the Compass program has been designed to provide greater investment protection to customers through broad interoperability, lower up-front cost and a lower total cost of ownership for their transaction solutions. Compaq and Intel will work with each participating ISV to deliver solutions and services that offer fast deployment, rich functionality and price performance based on industry standard platforms.

How Compass Works
The Compass program aims to accelerate the adoption of Intel® Architecture-based systems and solutions in the highly-specialized financial industry by providing a customized program of information and services to investment banking and brokerage customers. They include:

• Solution Centers: Customer access to infrastructure, porting, optimizing and training in Compaq and Intel state of the art solutions centers.
• Proof Points: A proprietary database of performance benchmarking data, insightful end-user customer testimonials and reference sites.
• Choice of Solutions: An expanding range of carefully selected, pre-optimized and validated solutions from Compass program ISVs.
• Consultancy: Extensive consulting services from Compaq and Intel to cover planning, testing and implementation phases.

About Compaq
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.

Intel and Intel Architecture are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.

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

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.