Houston, August 7, 2000 -- Compaq Computer Corporation (NYSE: CPQ) today announced that on August 4, 2000 it completed the public offering and sale of $575 million aggregate principal amount of notes, consisting of $275 million principal amount of 7.45% Notes due 2002, and $300 million principal amount of 7.65% Notes due 2005. The notes were issued pursuant to a prospectus supplement to Compaq's shelf registration statement covering $2 billion of debt securities, and the offering was lead managed by Merrill Lynch & Co.

Compaq Computer Corporation, a Fortune Global 100 company, is the largest supplier of computing systems in the world. Compaq designs, develops, manufactures and markets hardware, software, solutions and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, communication products, commercial desktop and portable products and consumer PCs.

Compaq products and services are sold in more than 200 countries directly to businesses, through a network of authorized Compaq marketing partners, and directly to businesses and consumers through Compaq's e-commerce Web site at http://www.compaq.com. Compaq markets its products and services primarily to customers from the business, home, government and education sectors. Customer support and information about Compaq and its products and services are available at http://www.compaq.com.