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Compaq Secures Key Place in Consumer Electronics Market With Expanded Audio Products Line

Compaq Turns Up the Volume With Robust Family of iPAQ Audio Solutions
http://biz.yahoo.com/prnews/010612/datu007.html

HOUSTON, June 12 /PRNewswire/ -- Compaq Computer Corporation (NYSE: CPQ - news), a global enterprise technology and solutions company, today re-invents the consumer electronics market with the unveiling of the iPAQ family of digital audio solutions, including the first-of-its-kind iPAQ(TM) Music Center, the iPAQ Personal CD Player PCD-1 and the second generation of its popular iPAQ Personal Audio Player, the PA-2.

Designed to satisfy the audio needs of the most demanding music enthusiast, the iPAQ family of digital audio solutions provides customization, organization and storage capabilities never before available in consumer electronics products.

``With the iPAQ family of audio solutions, Compaq is establishing its presence as a major player in the digital entertainment market,'' said Sean Burke, vice president and general manager for iPAQ Products and Connected Devices in Compaq's Access Business Group. ``We began this venture last year with the iPAQ Personal Audio Player PA-1, and with the expansion of the line to include the iPAQ Music Center and Personal CD Player, we're bringing PC technology to the consumer electronics world, providing the highest quality digital audio anytime and anywhere.''

iPAQ Music Center

Compaq announced today the availability of the most advanced music management tool to hit the market, the iPAQ Music Center. The Music Center stores a music collection of over 5,000 songs (or 400 CDs) in MP3 format on an internal hard drive, providing unmatched organization and customization capabilities for large music collections. Powered by OpenGlobe(TM) Entertainment Services, iPAQ Music Center delivers entertainment content, music recommendations and Internet radio. By simply pressing the OpenGlobe button on the remote, users will have access to the free and ever-evolving services that can be enjoyed from the convenience of their couch.

The Music Center easily integrates into a stereo or home theater system and uses a television to visually manage a music collection, allowing for easy searching and sorting and personalization of music. Music Center users can create endless numbers of custom playlists of favorite songs for any mood or occasion, and when networked, can be managed from virtually any PC, anywhere.

This intelligent device not only hooks up to a stereo system to digitally record an entire CD collection, but when connected to a phone line, also identifies CDs through an Internet connection as they are recorded. Song titles, artists, album covers and genre information are automatically downloaded at no extra cost, eliminating the need to manually input CD music information. An Internet connection also allows users to listen and purchase music from around the world over the World Wide Web.

The iPAQ Music Center, the first audio device of its kind available through retail at a breakthrough price, will be available in retail outlets and online on July 15 for $799.99. For more information visit www.compaq.com/ipaqaudio.

iPAQ Personal CD Player PCD-1

For the mobile audio aficionado who wants an entire music collection available at home or away, Compaq is introducing the iPAQ Personal CD Player PCD-1. The PCD-1 is the fullest featured, highest quality portable MP3 CD player, allowing users to listen to recordable CDs (CD-Rs) and re-writeable CDs (CD-RWs) that hold up to 300 songs in MP3 or WMA formats- or 20 hours of music - on a single disc. In addition, the PCD-1 plays traditional compact discs and includes an FM tuner, providing the widest variety of listening choices. The PCD-1 also features rechargeable batteries, for added convenience.

The PCD-1 is a solution that gives consumers total control over their music with playlist management that allows grouping and categorizing of songs or albums for fast and easy selection. The PCD-1 also includes customizable equalizer settings for high-quality digital sound performance and a display screen that lists track and artist information for each song. In addition, the PCD-1 can connect to a home stereo for hours of music at home.

And with the built-in infrared remote control, the listening experience can be enjoyed and leisurely managed from across the room.

Packaged with MusicMatch Jukebox 6.0 and Windows Media(TM) 7.0 Player software and easily upgradeable to support future formats, the iPAQ Personal CD Player PCD-1 will be available early August for $199.99. For more information on the PCD-1, visit www.compaq.com/ipaqaudio.

iPAQ Personal Audio Player PA-2

Built for the active, mobile user, the new three-ounce iPAQ Personal Audio Player PA-2 is both compact and solid, making it ideal for use while working out, jogging or traveling. Expanding on the capabilities of the award-winning PA-1, the 64 MB PA-2 allows for memory expansion with the addition of a standard MMC card, doubling the storage capacity to 128 MB of MP3, WMA or AAC digital audio files -- or up to four hours of music. In addition, the PA-2's provides extended battery life for up to 14 hours of continuous skip-free, CD- quality play anytime, anywhere.

The iPAQ Personal Audio Player PA-2 will available in retail outlets in late July for $249.99, less a $50 rebate. For more about the PA-2, visit www.compaq.com/ipaqaudio.

In addition to retail outlets, these new iPAQ audio products will also be available for purchase through Compaq's ``Built for You'' kiosks at participating retailers, on Compaq's Web site at http://www.compaq.com and by calling 1-800-888-0220. The iPAQ Music Center will be available on July 15, 2001; the iPAQ Personal Audio Player PA-2 in late July; and, the iPAQ Personal CD Player PCD-1 in late August. Compaq's ``Built for You'' program allows customers to configure their PCs to meet their specific needs and gives them access to the latest products as soon as they become available.

Company 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 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.

SOURCE: Compaq Computer Corporation