To: Night Writer who wrote (95766 ) 3/6/2002 6:50:44 PM From: Elwood P. Dowd Respond to of 97611 Institutional Shareholder Services Recommends Compaq Shareholders Vote Yes For Merger Recommendation Continues Momentum Behind Merger HOUSTON, March 6 /PRNewswire-FirstCall/ -- Compaq Computer Corporation (NYSE: CPQ - news) today announced that Institutional Shareholder Services (ISS) issued a formal recommendation that its clients holding shares in Compaq vote in favor of the company's proposed merger with Hewlett-Packard Company. The ISS recommendation follows a thorough analysis of the merger and its potential impact on institutional shareholder value. ISS analyzes proxy issues and provides vote recommendations for more than 8,500 U.S. shareholder meetings each year. On Tuesday, ISS issued a similar favorable recommendation to holders of shares in Hewlett-Packard Company. In today's recommendation, ISS confirmed that the transaction is in the best interest of the institutional shareholders who hold shares in Compaq. ``With the positive recommendations to both HP and CPQ shareholders, we have obtained a powerful independent endorsement of the strategy behind this merger,'' said Michael Capellas, Compaq chairman and chief executive officer. ``I am particularly pleased that the ISS looked beyond some of the rhetoric that has surrounded this proposed merger and focused on the benefits that this union will bring to customers and the value it will be bring to shareholders. We will continue to meet with shareholders over the next two weeks to present our vision for the new company.'' ``I am also particularly pleased that the ISS recognized that the employees of Compaq and HP were up to the task of making this merger and the subsequent integration work,'' Capellas added. ``While this will be a considerable undertaking, we have already made significant progress on the items that will jump-start the new company once we have achieved the required shareholder support.'' The merger remains subject to shareholder approval. A special meeting of Compaq shareholders will be held on March 20, 2002, to vote on the proposed merger.