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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Piotr Koziol who wrote (96097)	3/14/2002 1:56:11 PM
From: Elwood P. Dowd	Respond to of 97611

Leading Industry Group Announces Support for Compaq-HP Merger; New Company Would Be Perfectly Positioned to Serve Growing SMB Market BETHESDA, Md., March 14 /PRNewswire/ -- The ASCII Group, Inc. (ASCII), the world's largest community of independent solution providers and value-added resellers (VARs), today announced its support for the $22 billion merger of Compaq Computer Corporation (NYSE: CPQ - news) and Hewlett-Packard Company. ``It is in the best interests of HP and Compaq shareholders to vote in favor of this merger,'' said Alan Weinberger, chairman and chief executive officer of The ASCII Group. ``It is simply a good business decision. Combined, the new HP will have a VAR force in the small and medium-sized business sector second to none. This market already is a very large and important one for both companies. These 'feet-on-the-street' partners provide hardware, software and services to the small business market, and give a definite edge to manufacturers whose customers are left out in the cold by direct sellers whose only goal is to make the sale.'' HP shareholders vote on the proposed merger on March 19 while Compaq shareholders vote on the proposed merger on March 20. ASCII, the world's largest and oldest group of solution providers and VARs, was founded in 1984, and has more than 2,000 members. System-wide end-user sales are $11 billion. In the U.S., there are more than 200,000 VARs and most IT products and services are sold by VARs, not on a direct basis. ASCII VARs sell products from Compaq, Apple, HP, IBM, Microsoft, Sun Microsystems and Cisco, among others. Weinberger said corporate computer services will grow from $425 billion in 2001 to an estimated $650 billion in 2005, which includes maintenance, installation, help-desk support, training as well as consultation on how to use the technology. The majority of these services will be made by VARs not the original equipment manufacturers (OEMs) and these services will be greater than product purchases. ``VARs control the brands that the majority of small and medium-sized business customers are purchasing,'' Weinberger said. ``Compaq has an outstanding relationship with the VAR community and a comprehensive VAR infrastructure. In the merged company, HP will benefit from this relationship.'' The ASCII Group, Inc. (ASCII) was established in 1984 and is headquartered just outside of Washington, D.C. in Bethesda, Maryland. ASCII is the largest community of independent computer solution providers and value added resellers (VARs) in the world with more than 2,000 members in North America and with system-wide end-user sales of approximately $11 billion. ASCII provides technology tools, products and services to assist independent information technology resellers in increasing profits, reducing costs, and growing their respective businesses. ASCII is a for-profit organization offering resellers the leverage of the group's collective position in the industry to positively influence hardware manufacturers, software developers, IT service suppliers, distributors, the media, the government and the customer community. Phone: (800) 394-2724. Fax: (301) 718-0435. URL: www.ascii.com . SOURCE: The ASCII Group, Inc.