Compaq Delivers Expanded Linux Server and Desktop Solutions for Demanding Applications

Will Showcase Solutions Ranging from Handhelds to the Data Center at LinuxWorld 2000

SAN JOSE, CA, August 14, 2000 - Furthering its commitment to develop innovative solutions for the Linux marketplace, Compaq Computer Corporation today announced new Linux products and partner-based offerings that will enable its Linux customers to achieve new levels of enterprise availability, scalability and management. Building on its broad Linux support ranging from handhelds, portables and desktops to ProLiant andAlphasystems servers, Compaq will now offer pre-loaded Linux on select ProLiant servers, Linux-certified desktops, expanded Intelligent Manageability tools, and broader Linux version portability and development support.

Today's announcement offers service providers, enterprises and software developers the end-to-end computing platforms and services needed to support increased traffic demands and more complex applications on Linux, such as e-commerce and data analysis. Compaq will showcase its new Linux offerings at LinuxWorld 2000, booth # 1232, Aug. 15 - 17 in San Jose, Calif.

"Compaq is delivering the most robust Linux solutions, meeting our customers' need for greater flexibility and expanded choice in developing their e-business platforms," said Gary Campbell, Vice President and Chief Technology Officer of Enterprise Servers, Compaq Computer Corporation. "By providing comprehensive Linux solutions and support across all Compaq product lines and driving industry collaboration and support for open source development, Compaq offers our customers the foundation needed to build, manage and grow a successful Internet infrastructure."

Linux Solutions for the Enterprise

Linux solution development on Compaq's ProLiant line of industry-standard servers has evolved from single-system file servers and low-traffic Web servers to the deployment of large server arrays to support the Internet-driven requirements of killer applications such as e-commerce and data analysis. Compaq ProLiant architecture for Linux is delivering the foundation of e-business to customers with high availability, scalable clustering solutions, multi-system enterprise management tools and ultra-powerful density optimized servers. Developing ProLiant solutions to address these critical customer needs, Compaq is able to offer the most comprehensive Linux portfolio in the industry. Beginning in late September, Compaq will pre-load Red Hat Linux 7.0 on select ProLiant ML330 and ProLiant DL360 models.

In addition, Compaq will include support for Linux in its Intelligent Manageability strategy. Intelligent Manageability is Compaq's strategy to ease the management of IT infrastructure and is delivered through software, hardware and services. Compaq's Intelligent Manageability support for Linux products will be demonstrated in the Compaq pavilion at LinuxWorld 2000.

Compaq now offers customers the availability of Informix IDS.2000 onAlphaLinux, providing the power and features of high-performance database engines to Linux applications. Customers building a baseline infrastructure for e-commerce applications on theAlphaServerplatform may now combine the industry-leading object-relational database functionality from Informix with the high throughput capabilities of theAlphaServerplatform running on Linux. Compaq's collaboration with Informix and SuSE resulted in the first 64-bit commercial database now available, delivering customers the ability to leverage the new large-memory capabilities of the latest version of Linux.

Compaq has also developed a Jumpstart! CD to speed and simplify the installation of Linux on its AlphaServer systems. The new CD quickly configures anAlphaServerto install and boot Linux automatically via an intuitive graphical user interface.

The Compaq Linux Client PC Offering

Compaq will begin working with Linux providers to offer new commercial PC clients certified to run Linux, completing the Linux offering throughout the enterprise. When this certification process is completed, Compaq expects to offer select Linux-certified systems across its entire commercial PC line, including Deskpro, Armada, Professional Workstation, Thin Client and iPAQ desktop models. In June, Compaq announced it had created the Open Handheld Program to stimulate Linux innovation and research on handheld devices.

Comprehensive Customer Services

Compaq provides fast, knowledgeable support for Red Hat Linux worldwide and on SuSE and TurboLinux distributions in selected geographies today, with support for additional distributions under development. Compaq also supports the Apache Web server software, and provides Internet Security Healthcheck. Compaq Services provides Linux hardware and software support for both the ProLiant andAlphaServerplatforms. Support offerings range from 9x5 coverage with two hours average response time, up to business-critical 24x7 coverage with a 30-minute response time. Also available are Internet security, availability assessment services, and a full range of Linux training programs.

Compaq Industry Relationships for Linux Platform Development

Compaq is also forming new industry relationships with leading Linux players to enable customers to capitalize on the strengths and application of a Compaq platform for Linux. For example, Compaq and Lutris technologies now deliver solutions that support the rapid deployment of Web-based applications for Linux for service providers and the enterprise. New programs such as Generation Linux, an integral part of the Compaq Solutions Alliance Program for developers and systems integrators, will provide developers streamlined access to Compaq systems and technologies support for future application development for Compaq customers running Linux. Please see the product fact sheet accompanying this press release for comprehensive information on Compaq Linux products.

Compaq Linux Strategy

From handhelds to ProLiant andAlpha-based servers, Compaq offers the platforms that more customers choose to deploy their Linux-based solutions. Compaq's strategy is to support customers, not only by certifying platforms with the major Linux distributions, but by providing global 24x7 support in Compaq call centers worldwide. Compaq continues to commit resources and management support to strengthen and extend its leadership in Linux platforms and services. In addition, Compaq continues to establish top-tier relationships with the leading Linux players, and collaborate with commercial ISVs as they extend their applications and tools to Linux. Compaq contributes regularly to open source projects and will continue to contribute intellectual property to help further the adoption of Linux in the enterprise. Comprehensive information on Compaq's Linux support is available at /linux.

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 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

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 financial discussion contains 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, component shortages, increased competitive environment and pricing pressures, delays in product rollout schedules, slow acceptance for new form factors, changes in product, customer and geographic sales mix, employee retention, the financial condition of resellers, delays in new systems implementation, operational inefficiencies related to sales cycles, equity investment volatility, emerging market political or economic instability and disruptions related to restructuring actions. 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.