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Mike LarsonSenior Vice President and General Manager, Access Business Group

Mike LarsonSenior Vice President and General Manager, Access Business Group

AccessAccess

Compaq todayCompaq todayCompaq todayCompaq today

Enterprise Enterprise ProductsProducts

Compaq Compaq Global Global

ServicesServices

Sales and ServicesSales and Services

SolutionsSolutions

Compaq strategyCompaq strategyCompaq strategyCompaq strategy

Build the Build the business business

critical Internetcritical Internet

Redefine the Redefine the Internet Internet

experienceexperience

Ensure customer success through innovative Ensure customer success through innovative products and solutions serving the global marketproducts and solutions serving the global market

BillionsBillionsofof

Access DevicesAccess Devices

Scalable Scalable

Available Available

SecureSecure

OnlineOnlineAll the TimeAll the Time

Pervasive information eraPervasive information eraPervasive information eraPervasive information era

Growth of wireless and broadband

ConvergenceConvergenceConvergenceConvergence

Access Business GroupAccess Business GroupAccess Business GroupAccess Business Group

Convergence becoming reality Provides for leaner cost structure Eliminate duplication of road maps Position for future market opportunities

– SMB fastest growing market segment

– Wireless mobility fastest growing product segment

Lead the evolution of access solutionsLead the evolution of access solutions

Customer benefitsCustomer benefitsCustomer benefitsCustomer benefits

Simplified product lines Broader availability of access solutionsEasier to do business with Lower cost productsDedicated account and support teams

ABG profileABG profileABG profileABG profile

Merged groups in March

Revenue approximately $20 billion Comprehensive portfolio of products & services

Global leader in access devices

#1 in worldwide PDA revenue

#2 in PC market share worldwide

#1 in consumer PCs worldwide

ABG’s segment and global balance ABG’s segment and global balance Q1 revenueQ1 revenueABG’s segment and global balance ABG’s segment and global balance Q1 revenueQ1 revenue

NorthNorth America America

45%45%

Region revenueRegion revenue

EMEAEMEA36%36%

AP 6%AP 6%LA 7%LA 7%

China 2%China 2%

Japan 4%Japan 4%

Segment revenueSegment revenue

CorporateCorporate63%63%

Home & OfficeHome & Office30%30%

iPAQiPAQ4%4%

ServicesServices3%3%

Access Business GroupAccess Business GroupAccess Business GroupAccess Business Group

Corporate Access

Home & Office Access

iPAQ™ Products Access Services

ABG vision ABG vision ABG vision ABG vision

Access: anytime, anywhere.

Information Communication EntertainmentInformation Communication Entertainment

Factors driving anytime, anywhere accessFactors driving anytime, anywhere accessFactors driving anytime, anywhere accessFactors driving anytime, anywhere access

Industry Industry ImplicationsImplications

Content

Services

Distribution

Devices

Partners

Industry Industry ImplicationsImplications

Content

Services

Distribution

Devices

Partners

Customer Customer

RequirementsRequirements

Personalized

Relevant

Secure

Simple

Convenient

Customer Customer

RequirementsRequirements

Personalized

Relevant

Secure

Simple

Convenient

Market Market

DriversDrivers

Wireless

Broadband

Internet

Mobile Telephony

Home PC

SMB

Market Market

DriversDrivers

Wireless

Broadband

Internet

Mobile Telephony

Home PC

SMB

Access sub-brand strategyAccess sub-brand strategyAccess sub-brand strategyAccess sub-brand strategy

Versatile Internet PCs featuring the up-to-the-

minute technologies at an outstanding value

Presario™

Innovative personal access devices and solutions

iPAQ™Evo™

Manageable PCs for demanding networked

environments delivering the best lifecycle value

The customer and usage continuumThe customer and usage continuumThe customer and usage continuumThe customer and usage continuum

Vertical/ Vertical/ IndustrialIndustrial

Business/Business/OfficeOffice

ProfessionalProfessional Family/Family/PersonalPersonal

EntertainmentEntertainment

Optimize for Optimize for environmentenvironment

Increase Increase productivity, productivity,

ease of accessease of access

Play music, Play music, gamesgames

B E N E F I T SB E N E F I T SOrganize Organize

life, careerlife, careerKeep in Keep in

touch, shop, touch, shop, learnlearn

C U S T O M E R S

ABG initiativesABG initiativesABG initiativesABG initiatives

Deliver innovative access solutions– Local development of products & services

– Drive beyond-the-box revenue streams Execute business model efficiencies

– Significant SKU reduction Foster lifetime customer relationships

– Implementing highly responsive customer support model

Compaq’s access sub-brand strategyCompaq’s access sub-brand strategyCompaq’s access sub-brand strategyCompaq’s access sub-brand strategy

Innovative personal access devices and solutions

iPAQ™Evo™

Manageable PCs for demanding networked

environments delivering the best lifecycle value

Versatile Internet PCs featuring the up-to-the-minute

technologies at an outstanding value

Presario™

Evo Evo Leading the evolution of business computingLeading the evolution of business computingEvo Evo Leading the evolution of business computingLeading the evolution of business computing

Evo’s rave reviewsEvo’s rave reviewsEvo’s rave reviewsEvo’s rave reviews

“Raises the bar on

innovation…”

““Visionary engineering Visionary engineering and design…”and design…”

"They've created an integrated solution

that is flexible."

Later this year…Later this year…Later this year…Later this year…

Evo™ desktops

Next year and beyond…Next year and beyond…Next year and beyond…Next year and beyond…

Tablet PC Dual Worlds

Compaq’s access sub-brand strategyCompaq’s access sub-brand strategyCompaq’s access sub-brand strategyCompaq’s access sub-brand strategy

Versatile Internet PCs featuring the up-to-the-minute

technologies at an outstanding value

Presario™

Innovative personal access devices and

solutions

iPAQ™ Evo™

Manageable PCs for demanding networked

environments delivering the best lifecycle value

iPAQiPAQ™™ One-stop shopping for the digitally connected worldOne-stop shopping for the digitally connected worldiPAQiPAQ™™ One-stop shopping for the digitally connected worldOne-stop shopping for the digitally connected world

Later this year…Later this year…Later this year…Later this year…

iPAQ™ Music Center iPAQ Personal Audio Player 2 iPAQ Portable CD player iPAQ Portable mini-CD player iPAQ Pocket PC iPAQ Internet Appliance

Compaq’s access sub-brand strategyCompaq’s access sub-brand strategyCompaq’s access sub-brand strategyCompaq’s access sub-brand strategy

Innovative personal access devices and solutions

iPAQ™

Versatile Internet PCs featuring the

up-to-the-minute technologies at an outstanding value

Presario™Evo™

Manageable PCs for demanding networked

environments delivering the best lifecycle value

PresarioPresario™™ Accessing the Internet made easy for home and officeAccessing the Internet made easy for home and officePresarioPresario™™ Accessing the Internet made easy for home and officeAccessing the Internet made easy for home and office

Later this year…Later this year…Later this year…Later this year…

Presario™ desktops– SmartCard keyboard

– Coloreal™

– Windows XP Presario 4000 series Presario notebooks

– Expanding wireless options

Imaging products familyImaging products familyImaging products familyImaging products family

Printers Three in one All in one Flat bed scanner

Later this year – Digital cameras

Quality and customer satisfactionQuality and customer satisfactionQuality and customer satisfactionQuality and customer satisfaction

Corporate access– #2 in desktop customer satisfaction

#2 in corporate desktop satisfaction #2 in corporate desktop satisfaction #2 in corporate desktop satisfaction #2 in corporate desktop satisfaction

74

76

78

80

82

84

86

88

90

1Q00 2Q00 3Q00 4Q00 1Q01

Compaq

Dell

Gateway

HP

IBM

Source: TBR, Q1’01

Corporate Desktop Weighted Satisfaction Scores1Q00 through 1Q01

Quality and customer satisfactionQuality and customer satisfactionQuality and customer satisfactionQuality and customer satisfaction

Home & Office access– Lowest return rates on H&O desktops

– Presario 1800T - #1 laptop - Consumer Reports

– Implementing state-of-the-art customer support model

– Presario™ and iPAQ™ communities established – 70,000 Q&As accessed weekly

Compaq holds best-in-class status –Compaq holds best-in-class status –Retail returnsRetail returnsCompaq holds best-in-class status –Compaq holds best-in-class status –Retail returnsRetail returns

7.40%

10.30%

8.11%

8.44%

8.20%7.50%

9.70%

10.50%

11.80%11.01%

10.85%11.79%

13.55%

11.73%

15.30%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Jan-00 Mar-00 May-00 Jul-00 Sep-00 Nov-00 Jan-01 Mar-01

Retailer "A"

Months

Per

cen

tag

e

Email customer satisfactionEmail customer satisfactionEmail customer satisfactionEmail customer satisfaction

22% 19% 23% 22% 22% 20% 21% 18% 18% 20% 19% 19% 18% 19% 18%13%

17% 16%

14% 16%14% 15% 14% 16% 12%

11% 14% 12% 12% 9% 10% 11%7%

9%9% 8%

16% 17% 15% 17%15% 16%

15%15%

14% 12% 13%12% 10% 10%

13%12%

9% 10%

16% 17% 16%19%

19% 17%18%

16%19%

16% 17%16% 17% 18%

16%17% 18% 16%

32% 31% 31%27% 30% 31%

34%40%

35%41% 39%

43% 44% 42%47% 49% 48% 49%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan14-20

Jan21-27

Jan28-Feb3

Feb4-10

Feb11-17

Feb18-24

Feb25-Mar3

Mar4-10

Mar11-17

Mar18-24

Mar25-31

Apr1-7 Apr8-14

Apr15-21

Apr22-28

Apr29-May5

May6-12

May13-19

Dissatisfied % Somewhat dissatisfied % Satisfied % Very Satisfied % Completely Satisfied %

Access: anytime, anywhereAccess: anytime, anywhereAccess: anytime, anywhereAccess: anytime, anywhere