New iPAQ Pocket PC Models and Options Add Memory, Storage, Software and CompactFlash Options (Advisory)

HOUSTON, March 9, 2001 - Compaq Computer Corporation (NYSE: CPQ) today announced new iPAQ™ Pocket PC models and accessories that give customers greater memory, added storage, wireless local area network (LAN) access and an infrared exchange utility.

The new iPAQ Pocket PC H3670 includes 64 megabytes of memory, allowing it to store twice as many files and applications as before. For memory-hungry "power users," the iPAQ Pocket PC H3670 offers the full functionality of earlier models with twice the amount of memory, becoming the premier Pocket PC in the industry. The U.S. suggested resale price for this new model is $649(1); availability is expected in early April.

The second new model, the iPAQ Pocket PC H3635, combines a CompactFlash Expansion Pack, an Expandable Carrying Case and two software packages—Peacemaker and ZIOGolf 2—with the standard iPAQ Pocket PC 32 MB color model. The U.S. suggested resale price for the bundle is $599; products will be available in retail locations in late March.

Both new models use the Intel StrongARM 206MHz microprocessor and include a bright, crisp, color screen featuring sidelit TFT (thin film transistor) technology.

The iPAQ Pocket PC H3635

The new retail version of the iPAQ Pocket PC, the H3635, comes standard with a CompactFlash Expansion Pack which allows customers to use CF cards(2) to increase the file storage space on their iPAQ Pocket PC. This also allows users to gain access to their company's network for e-mail and Web browsing using a CF Ethernet cable or CF modem.

A new Expandable Carrying Case is also included with this model, featuring neoprene sides that let a customer carry the iPAQ Pocket PC by itself or with any optional Expansion Packs. The ballistic nylon outer material and Velcro closure offer stylish durability, while an inside pocket provides a place for business cards, an extra PC Card, cash or receipts.

Extra software includes Peacemaker Professional, a cross-platform infrared exchange utility that beams information to and from a wide range of PDA devices. Peacemaker enables iPAQ Pocket PC users to update their address books, exchange tasks, swap memos, or schedule appointments with other PDA products. ZIOGolf 2 is a popular golf emulator featuring full-color, real-time 3D acceleration, graphics, sound, and a library of scenic golf courses.

New Dual PC Card Expansion Pack

The company also announced a new iPAQ Pocket PC Dual PC Card Expansion Pack that holds two Type II cards or one Type III PC card. The ability to use two such devices means customers can perform simultaneous operations, such as using a PC Card modem or barcode scanner and a storage card, or accessing a wireless local or wide area network while using an input/output device. The Expansion Pack also includes a CF adapter that allows for the use of CF cards or CF devices, with two times the battery capacity of the single-slot PC Card Expansion Pack. The Dual PC Card Expansion Pack will be available in mid-April at a U.S. suggested resale price of $199.

Additional information on the Compaq iPAQ Pocket PC and options can be found at http://www.compaq.com/products/handhelds/pocketpc.

About Compaq

Compaq Computer Corporation, a Fortune Global 100 company, is a leading global provider of technology and solutions. For more corporate information, see http://www.compaq.com.

Notes: 1 All prices listed herein are estimated U.S. selling prices. Actual prices will vary. 2 Type I or Type II CompactFlash cards that are compatible with the Pocket PC operating system.

Compaq and the Compaq logo Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. 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: component shortages, delays in the implementation of changes in delivery models, increased competitive environment and pricing pressures, delays in product rollout schedules, 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.

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