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Technology Stocks : Compaq

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To: Captain Jack who wrote (78322)2/15/2000 5:03:00 PM
From: Elwood P. Dowd  Read Replies (1) of 97611
 
Compaq Introduces ProLiant 'eGeneration' Strategy for Empowering E-businesses; Strategy
Leverages the Power of Compaq's Windows 2000 Datacenter
Program

HOUSTON, Feb. 15 /PRNewswire/ -- Furthering its leadership in delivering Compaq NonStop(TM)
eBusiness solutions for industry standards-based environments, Compaq Computer Corporation (NYSE:
CPQ - news) today outlined a three- phase strategy to meet the demanding performance, reliability and
scalability needs customers face in today's 24x7 Internet economy. This strategy, named
''eGeneration,'' leverages Compaq's expertise in meeting the rapidly expanding needs of e-business
customers who must support massive numbers of users simultaneously accessing huge amounts of
data.

''The new e-business model is creating demand for Internet infrastructures that provide significant
increases in reliability, availability and scalability,'' said Michael Capellas, President and Chief Executive
Officer of Compaq Computer Corporation. ''Our three-phase ProLiant eGeneration strategy will provide
customers with breakthrough enterprise economics on industry standards-based solutions and provide
new, higher levels of service and support.''

Phase one of eGeneration began with the launch of Compaq's 8-processor ProLiant servers in August
1999. These servers have received tremendous market acceptance, with sales surpassing industry
predictions for the entire 8-way industry-standard server market.(1) The first phase also included the
incorporation of leading-edge technologies such as multi-terabyte storage, hot-plug capabilities and
lights-out remote management capabilities, which provide customers with the confidence they need for
enterprise-level deployments.

Compaq will accelerate phase two by complementing ProLiant 8-way platforms with the delivery of
32-way servers based on the Unisys Cellular Multi Processing (CMP) Architecture beginning in the
second half of this year. These ProLiant-branded servers will be thoroughly tested and supported for
optimal integration and interoperability with Compaq StorageWorks and SANWorks products and
services.

Phase Three focuses on a new class of solutions with introductions to begin next year. These will
include leading-edge ProLiant servers -- scaling to 32 processors and beyond with availability far
exceeding today's levels. Compaq will leverage the core competencies of the ProLiant ASIC and chip
set development teams combined with Compaq-developed high-speed switched fabric interconnects and
StorageWorks storage systems and services. The result will be a new breed of powerful, scalable and
reliable industry-standard solutions that will deliver breakthrough enterprise economics.

Spanning all three phases of the ProLiant eGeneration strategy is Compaq's Windows 2000 Datacenter
Program jointly developed with Microsoft. Through this program for the industry-standard marketplace,
services will be incorporated as a core component of Compaq's Datacenter product. Compaq's and
Microsoft's leading technologies will be combined with unprecedented levels of rigorous systems
testing, coordinated hardware and software updates and a single point of contact for support. As a
result, customers will receive increased enterprise-level stability and performance on industry-standard
ProLiant and StorageWorks solutions.

ProLiant servers, combined with Compaq Himalaya, AlphaServer and StorageWorks solutions and
supported by Compaq Customer and Professional Services, represent the broadest array of
NonStop(TM) eBusiness solutions available to companies of all sizes.

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.

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.

Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be
trademarks and/or registered trademarks of their respective companies.
(1) IDC. ''Commercial Systems & Server Bulletin,'' August 1999

SOURCE: Compaq Computer Corporation

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Compaq Computer Corp (NYSE:CPQ - news)
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