Compaq Announces Free Upgrade to Pocket PC 2002 for iPAQ Pocket PCs Purchased Between September 6th and November 30th 2001

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Compaq Announces Free Upgrade to Pocket PC 2002 for iPAQ Pocket PCs Purchased Between September 6th and November 30th 2001 Compaq today announced a free* upgrade to Pocket PC 2002, the newest handheld PC software from Microsoft, for Compaq s award-winning iPAQ Pocket PC. The free* upgrade is available on any iPAQ Pocket PC – H3600 series or H3100 series – purchased between September 6th and November 30th, 2001. Through its built-in Flash ROM (Read-Only Memory) capability, the iPAQ Pocket PC can take advantage of the new Pocket PC 2002 software in a user-friendly upgrade process. Compaq has worked with Microsoft to give iPAQ Pocket PC customers the ability to install Pocket PC 2002 through a combination of ROM Upgrade and RAM-installable applications. “The ability to upgrade to Pocket PC 2002 will be a major feature for both new, and existing iPAQ Pocket PC customers, and will enable them to take advantage of the expanded functionality of Microsoft s new operating system,” said Neil Dagger, iPAQ and Connected Devices business manager, Compaq UK. “The iPAQ Pocket PC offers a unique combination of easy upgradeability and the latest software.” Pocket PC 2002 offers iPAQ Pocket PC users better features, the most compelling handheld software for enterprise environments, and enabling technology for the broadest wireless support in the industry. By simply installing the upgrade utility from the upgrade CD* onto the host computer, the software is quickly and easily loaded onto the iPAQ Pocket PC. The Compaq iPAQ Pocket PC 2002 Free Upgrade promotion requires customers to submit a proof of purchase. Customers who request the free upgrade will receive a CD by post. More information and details of the upgrade process will be made available on http://www.compaq.co.uk, from September 17th, 2001. Shipments of the upgrade CD s will begin as of mid-October. For any iPAQ Pocket PC purchased prior to September 6th or after November 30th, 2001, customers can upgrade their units to the new Pocket PC 2002 software at a cost of $29.952 (Subject to exchange rate)excluding shipping, handling and tax. The iPAQ Pocket PC is widely available worldwide through authorised retailers, channel partners and direct from Compaq at http://www.compaq.co.uk/store/. # # # *Free upgrade does not include shipping, handling or tax; customers must pay for each of these costs. Compaq Background 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.co.uk. 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.

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