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Compaq Unveils New ProLiant Server Solutions to Satisfy the Technology Needs
Of SMB Customers; 
Teams With Mitel Networks and PC Connection to Offer Competitively Priced
Linux-Based Network Solution 

DATELINE: HOUSTON, Sept. 5 

Compaq Computer Corporation (NYSE: CPQ) today further extended its solutions
for small-to-medium business (SMB) customers, with the announcement of a new
Multifunction Small Enterprise solution based on the industry-leading Compaq
ProLiant(TM) server platform. The new ProLiant server offering is an
affordable, turnkey network and security solution that integrates the robust
technology and capabilities of high-end ProLiant servers with Linux-based
software and services from Mitel Networks, to provide small and medium
businesses enterprise-class flexibility, scalability and support for a
variety of applications. 
The Multifunction Small Enterprise solution was developed to meet the needs
of cost-conscious small businesses that are looking for reliable, simplified
and secure solutions for running their day-to-day business operations. The
new solution is a fully configured hardware and software package that
includes applications such as email, file/print sharing, Internet access,
firewall, Web hosting and network-delivered services. 
"Compaq has listened to our SMB customers and has brought to market a truly
integrated solution developed specifically to provide the right performance,
features, and price point for their growing businesses," said Brad Anderson,
vice president Mainstream Servers, Compaq Industry Standard Server Group.
"Compaq does not compromise -- our SMB customers can expect to find the
latest, server-proven Intel Pentium processor in every ProLiant server. We
aggressively bring innovation and value to the small- and medium- sized
business customer based on market leading industry-standard ProLiant server
platforms." 
The fully configured Multifunction Small Enterprise solution delivers
simplicity without sacrificing scalability to meet networking and security
needs. It integrates the best-of-breed Compaq ProLiant ML300 series of
servers with the full featured, upgradeable and customizable Mitel Networks'
SME Server V5 with ServiceLink, based on Linux. 
"We're excited to be working with Compaq to help introduce Mitel's new SME
Server V5 with ServiceLink," said Kim Morrison, GM, Network Server Solutions
Group, Mitel Networks. "The combination of Compaq's industry-leading
ProLiant server platform with our award-winning software and services
delivers an unbeatable solution to small to medium-sized businesses and
remote branch offices." 
Compaq is leveraging its deep heritage with the channel distribution model
to deliver this SMB solution. As part of a key initiative targeted for small
businesses, PC Connection will initially distribute the solution for 120
days as a proven, tested, supported and ready-to-run solution. 
"While other vendors offer Celeron-based technology, or closed boxes that
limit expandability and flexibility, Compaq provides advanced, cutting-edge
Intel Pentium(R) III technology and the versatility to support growing
business needs," said Bob Gregerson, president of PC Connection Sales
Corporation. "We are pleased to be working with Compaq in launching this new
Multifunction Small Enterprise solution on ProLiant servers. SMB customers
can rely on PC Connection to provide the guidance and support to satisfy
their IT needs so that they can focus on their business." 
The solution will be available to order through PC Connection on September
4, 2001. Pricing for the new solution will start at $1199. For more details
please visit http://www.compaq.com/products/servers/linux . 

Company Background 
Founded in 1982, Compaq Computer Corporation ("Compaq") is a leading global
provider of enterprise 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, communication products, and desktop and
portable personal computers that are sold in more than 200 countries.
Information on Compaq and its products and services is available at
www.compaq.com . 
Compaq and the Compaq logo are trademarks of Compaq Information Technologies
Group, L.P. Product names mentioned herein may be trademarks and/or
registered trademarks of their respective companies. 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:
worsening global economic conditions, increased competitive environment and
pricing pressures, disruptions related to restructuring actions and delays
in the expansion of Compaq's solutions business model. 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.