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Technology Stocks : Compaq

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To: Captain Jack who wrote (78322)2/15/2000 5:00:00 PM
From: Elwood P. Dowd   of 97611
 
Compaq and Unisys Partner to Deliver 32-Processor Server Platforms For Windows 2000 Datacenter Server

Agreement to Use the Innovative Unisys CMP Architecture Strengthens
Compaq's ProLiant eGeneration Strategy

HOUSTON and BLUE BELL, Pa., Feb. 15 /PRNewswire/ -- Driving industry- standard architecture into
the highest levels of the data center, Compaq Computer Corporation (NYSE: CPQ - news) and Unisys
Corporation (NYSE: UIS - news) today announced the signing of a letter of intent under which Compaq
will deliver Unisys Cellular MultiProcessing (CMP) based 32-processor platforms under the Compaq
ProLiant brand.

The final agreement with Compaq is expected to be completed within 60 days, and should have a
potential value to Unisys of approximately $400 million over a two-year period.

The relationship will join the powerful and scalable Unisys CMP processor architecture with Compaq's
industry-standard server expertise to meet ultra- demanding single server e-business and data center
requirements. The agreement is a component of Compaq's ProLiant eGeneration strategy to provide
customers with breakthrough enterprise economics on industry standards-based solutions, as well as
provide new and higher levels of service and support.

''Compaq continues to deliver everything customers need to establish a standards-based Internet
infrastructure for 24x7 computing,'' said Mary McDowell, vice president and general manager of
Compaq's Industry-Standard Server Division. ''Our relationship with Unisys will allow us to deliver a
unique solution to customers whose needs require extreme performance and mission-critical stability.
This solution is a strong element of Compaq's Windows 2000 Datacenter Program.''

The Compaq ProLiant servers resulting from the relationship with Unisys will provide a new level of
reliability, availability and scalability for industry standards-based platforms.

George Gazerwitz, president, Unisys Systems and Technology, said: ''Working together, both Unisys
and Compaq will use the Windows 2000 Datacenter Server operating system on the innovative Unisys
CMP architecture to provide the most powerful performance available in a single industry
standards-based server. CMP's excellent performance will give customers the ability to deploy
industry-standard solutions supporting mission-critical business environments.''

''The delivery of Compaq CMP-based servers on Windows 2000 Datacenter Server is the result of three
industry leaders working cooperatively to create an outstanding solution for customers,'' said Jim
Allchin, group general manager, Microsoft Corp. ''Together, Compaq, Unisys and Microsoft are
delivering industry standards-based technology that can meet even the most demanding customer
needs. We are pleased that Compaq and Unisys are working together to deliver such high-powered
Windows 2000-based solutions.''

About the Unisys CMP Architecture

CMP provides an array of computing capabilities well known to users of large-scale computers, but now
available using industry-standard technology. Designed for the power of Intel Pentium III Xeon (32-bit)
and Itanium (64-bit) processors, the architecture is optimized for the highly scalable Windows 2000
Datacenter Server operating system.

About Compaq

Compaq Computer Corporation, a Fortune Global 100 company, is the second largest computer
company in the world and the largest global supplier of computer systems. Compaq develops and
markets hardware, software, solutions and services, including industry-leading enterprise computing
solutions, fault-tolerant business-critical solutions, enterprise and network storage solutions,
commercial desktop and portable products and consumer PCs. The company is an industry leader in
environmentally friendly programs and business practices.

Compaq products are sold and supported in more than 100 countries through a network of authorized
Compaq marketing partners. Customer support and information about Compaq and its products are
available at compaq.com.

About Unisys

Unisys is an electronic business solutions company whose 36,000 employees help customers in 100
countries apply information technology to seize opportunities and overcome challenges of the Internet
economy. Unisys people integrate and deliver the solutions, services, platforms and network
infrastructure required by business and government to transform their organizations for success in this
new era.

The company offers a rich portfolio of Unisys e-@ction Solutions for electronic business based on its
expertise in vertical industry solutions, network services, outsourcing, systems integration and
multivendor support, coupled with enterprise-class server and related technologies. The primary vertical
markets Unisys serves worldwide include financial services, transportation, communications, publishing
and commercial sectors, as well as the public sector, including federal government customers. Unisys
is headquartered in Blue Bell, Pennsylvania, in the Greater Philadelphia area. For more information on
the company, access the Unisys home page on the World Wide Web at www.unisys.com. Investor
information can be found at www.unisys.com/investor.

Forward-Looking Statements

Any statements contained in this release that are not historical facts are forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are
subject to various risks and uncertainties that could cause actual results to differ materially from
expectations. The factors that could affect the company's future financial results are discussed more
fully in the company's latest Form 10-Q as filed with the Securities and Exchange Commission.

Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be
trademarks and / or registered trademarks of their respective companies. This release 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 the failure to close the contemplated transaction with Inacom; failure of systems associated with
order fulfillment; the failure to close certain contemplated sales; changes in product mix; inventory risks
due to shifts in market demand; continued competitive factors and pricing pressures; and market
responses to pricing actions and promotional programs. Further information on the factors that could
affect Compaq's financial results are included in its SEC filings, including the annual report on Form
10-K for the year ended December 31, 1998, and the latest quarterly report on Form 10-Q.

Unisys is a registered trademark of Unisys Corporation.

SOURCE: Compaq Computer Corporation and Unisys Corporation

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Compaq Computer Corp (NYSE:CPQ - news)
Unisys Corp (NYSE:UIS - news)

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