Compaq Again Captures Number One Spot in Worldwide Server Sales in Q1

Improving business efficiencies set to drive new momentum in second half



Compaq delivers European share gains ahead of Dell and IBM



Apr 29, 2001, 01:00 ET from Compaq Computer Corporation

    HOUSTON, April 29 /PRNewswire/ -- Compaq Computer Corp. (NYSE:   CPQ) today
 announced it has again captured the number one position in worldwide sales of
 industry-standard servers in the first quarter of 2001, a market it pioneered
 more than a decade ago.  In Europe, Compaq gained 2.2 percent market share,
 well ahead of Dell, which added only 1.3 points, and Hewlett-Packard and IBM,
 who lost share in this region.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990318/COMPAQLOGO )
     According to Q1 figures from industry research firm Dataquest, Compaq is
 delivering more than a quarter of the world's requirement for
 industry-standard servers, shipping 60,000 units more than second-place Dell,
 and more than twice as many as IBM.  The highlight of these figures is Western
 Europe, where Compaq shipped close to 19,000 more servers than Dell and IBM
 combined.  Compaq now delivers greater than one-third of Western Europe's
 total requirement for industry-standard servers.
     In the United States, where economic conditions have impacted growth in
 overall investments in IT infrastructure, Compaq has been taking aggressive
 steps to improve business efficiency and drive increased growth and
 profitability by focusing on permanently reducing channel inventories,
 lowering structural costs, and streamlining supply chain operations.  As part
 of this process, Compaq has experienced a decline in reported U.S. market
 share in industry-standard servers while overall inventories are being
 depleted.  This decline is primarily in entry-level one- and two-processor
 tower models, popular with small and medium businesses, where pricing
 competition is intense.  Despite this, Compaq's internal estimates show that
 actual overall industry-standard server shipments to end customers in North
 America (known as sales-out figures) continued to exceed those of competitors.
     "While we continue to lead in the industry-standard server market
 worldwide, we are taking some necessary short-term pain for second-half gain
 in the U.S.," said Mary McDowell, senior vice president and general manager,
 Compaq Industry Standard Server Group.  "The business model improvements we
 expect to deliver over the near term, plus new aggressive moves in the areas
 of pricing and delivery, will make us an even more formidable competitor in
 the second half of the year and moving forward -- regardless of economic
 conditions.  We are now number one in customer satisfaction in this segment,
 we're winning global end-to-end deals with major enterprise customers, and
 we're receiving acclaim from industry analysts for our ability to deliver
 innovative customer solutions globally."
     In addition, Compaq announced that as of May 31 it will cease sales of the
 ProLiant ML770 32-Way server, which is based on the Unisys CMP architecture.
 Compaq will continue offering its popular ProLiant 8-Way servers for running
 Microsoft(R) Windows(R) 2000 Datacenter Server, which comprise 95 percent of
 its Windows 2000 Datacenter Server sales to date.  Compaq will continue
 development of its own unique, feature differentiated 32-Way server
 architecture to address the emerging need for large-scale enterprise
 applications on Windows 2000.
     Compaq is the acknowledged global leader in the 8-Way server space with
 60 percent market share, and in the critical ultra-dense server segment,
 including rack-mounted one- and two-processor servers, with 40 percent share.
 And, in early April, the Company launched a new sub $1,000 server to address
 the needs of small and medium businesses.
     "Furthermore, we are now raising the bar for our competition by taking
 ultra-dense server designs to hyper-dense server blades, with our forthcoming
 QuickBlade server architecture.  Sneak peeks at this unique new technology
 have produced enthusiastic response from every customer and analyst who has
 seen it," added McDowell.
 
     Innovative products, global solutions, excellent execution drive customer
 satisfaction
     The latest customer satisfaction figures from independent research firm
 TBR place the Compaq ProLiant at the top of customer satisfaction for servers
 -- ahead of products from Dell, Hewlett-Packard, and IBM.  Compaq was the only
 vendor in the study that did not show a decline in customer satisfaction.
 Most frequently referenced were Compaq's strengths in server scalability,
 management, ease of installation, and remote diagnostics -- all indications
 that customers appreciate the unique engineering, innovation and added value
 that only Compaq offers.  It was also noted that Compaq customers were the
 most consistent in their satisfaction ratings due to dependable delivery of
 products and services by the vendor.
 
     Key ProLiant customer wins announced in the quarter include:
 
     * A $150 million end-to-end global pact with one of the world's largest
       petroleum companies, which included 1500 ProLiant servers;
 
     * Yahoo!, who chose Compaq as its preferred Internet infrastructure
       provider to power the most heavily visited sites on the Yahoo! network.
 
     * Intuit, with whom Compaq announced a two-year agreement in which Compaq
       was named the preferred provider of Intuit's IT needs.
 
     * Activate, who launched a new 20,000 square-foot media streaming facility
       housing 200 ProLiant DL380 servers.
 
     With this momentum in increased customer satisfaction, business
 improvements underway, and the introduction of innovative new products, Compaq
 is extremely well positioned for continued success in providing global
 end-to-end customer solutions in the second half of the year and moving
 forward.
 
     About Compaq
     Compaq Computer Corporation, a Fortune Global 100 company, is a leading
 global provider of technology and solutions.  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 that are sold in more than
 200 countries.  Information on Compaq and its products and services is
 available at http://www.compaq.com .
 
     This press release may contain 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, among others: market conditions, particularly in the U.S.; increased
 competitive environment and pricing pressures; disruptions related to
 restructuring activity and delays in the implementation of changes in delivery
 models.  Further information on these and other 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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X81821968
 
 

SOURCE Compaq Computer Corporation
    HOUSTON, April 29 /PRNewswire/ -- Compaq Computer Corp. (NYSE:   CPQ) today
 announced it has again captured the number one position in worldwide sales of
 industry-standard servers in the first quarter of 2001, a market it pioneered
 more than a decade ago.  In Europe, Compaq gained 2.2 percent market share,
 well ahead of Dell, which added only 1.3 points, and Hewlett-Packard and IBM,
 who lost share in this region.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990318/COMPAQLOGO )
     According to Q1 figures from industry research firm Dataquest, Compaq is
 delivering more than a quarter of the world's requirement for
 industry-standard servers, shipping 60,000 units more than second-place Dell,
 and more than twice as many as IBM.  The highlight of these figures is Western
 Europe, where Compaq shipped close to 19,000 more servers than Dell and IBM
 combined.  Compaq now delivers greater than one-third of Western Europe's
 total requirement for industry-standard servers.
     In the United States, where economic conditions have impacted growth in
 overall investments in IT infrastructure, Compaq has been taking aggressive
 steps to improve business efficiency and drive increased growth and
 profitability by focusing on permanently reducing channel inventories,
 lowering structural costs, and streamlining supply chain operations.  As part
 of this process, Compaq has experienced a decline in reported U.S. market
 share in industry-standard servers while overall inventories are being
 depleted.  This decline is primarily in entry-level one- and two-processor
 tower models, popular with small and medium businesses, where pricing
 competition is intense.  Despite this, Compaq's internal estimates show that
 actual overall industry-standard server shipments to end customers in North
 America (known as sales-out figures) continued to exceed those of competitors.
     "While we continue to lead in the industry-standard server market
 worldwide, we are taking some necessary short-term pain for second-half gain
 in the U.S.," said Mary McDowell, senior vice president and general manager,
 Compaq Industry Standard Server Group.  "The business model improvements we
 expect to deliver over the near term, plus new aggressive moves in the areas
 of pricing and delivery, will make us an even more formidable competitor in
 the second half of the year and moving forward -- regardless of economic
 conditions.  We are now number one in customer satisfaction in this segment,
 we're winning global end-to-end deals with major enterprise customers, and
 we're receiving acclaim from industry analysts for our ability to deliver
 innovative customer solutions globally."
     In addition, Compaq announced that as of May 31 it will cease sales of the
 ProLiant ML770 32-Way server, which is based on the Unisys CMP architecture.
 Compaq will continue offering its popular ProLiant 8-Way servers for running
 Microsoft(R) Windows(R) 2000 Datacenter Server, which comprise 95 percent of
 its Windows 2000 Datacenter Server sales to date.  Compaq will continue
 development of its own unique, feature differentiated 32-Way server
 architecture to address the emerging need for large-scale enterprise
 applications on Windows 2000.
     Compaq is the acknowledged global leader in the 8-Way server space with
 60 percent market share, and in the critical ultra-dense server segment,
 including rack-mounted one- and two-processor servers, with 40 percent share.
 And, in early April, the Company launched a new sub $1,000 server to address
 the needs of small and medium businesses.
     "Furthermore, we are now raising the bar for our competition by taking
 ultra-dense server designs to hyper-dense server blades, with our forthcoming
 QuickBlade server architecture.  Sneak peeks at this unique new technology
 have produced enthusiastic response from every customer and analyst who has
 seen it," added McDowell.
 
     Innovative products, global solutions, excellent execution drive customer
 satisfaction
     The latest customer satisfaction figures from independent research firm
 TBR place the Compaq ProLiant at the top of customer satisfaction for servers
 -- ahead of products from Dell, Hewlett-Packard, and IBM.  Compaq was the only
 vendor in the study that did not show a decline in customer satisfaction.
 Most frequently referenced were Compaq's strengths in server scalability,
 management, ease of installation, and remote diagnostics -- all indications
 that customers appreciate the unique engineering, innovation and added value
 that only Compaq offers.  It was also noted that Compaq customers were the
 most consistent in their satisfaction ratings due to dependable delivery of
 products and services by the vendor.
 
     Key ProLiant customer wins announced in the quarter include:
 
     * A $150 million end-to-end global pact with one of the world's largest
       petroleum companies, which included 1500 ProLiant servers;
 
     * Yahoo!, who chose Compaq as its preferred Internet infrastructure
       provider to power the most heavily visited sites on the Yahoo! network.
 
     * Intuit, with whom Compaq announced a two-year agreement in which Compaq
       was named the preferred provider of Intuit's IT needs.
 
     * Activate, who launched a new 20,000 square-foot media streaming facility
       housing 200 ProLiant DL380 servers.
 
     With this momentum in increased customer satisfaction, business
 improvements underway, and the introduction of innovative new products, Compaq
 is extremely well positioned for continued success in providing global
 end-to-end customer solutions in the second half of the year and moving
 forward.
 
     About Compaq
     Compaq Computer Corporation, a Fortune Global 100 company, is a leading
 global provider of technology and solutions.  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 that are sold in more than
 200 countries.  Information on Compaq and its products and services is
 available at http://www.compaq.com .
 
     This press release may contain 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, among others: market conditions, particularly in the U.S.; increased
 competitive environment and pricing pressures; disruptions related to
 restructuring activity and delays in the implementation of changes in delivery
 models.  Further information on these and other 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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X81821968
 
 SOURCE  Compaq Computer Corporation