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COMPAQ FOCUSES ON NEXT-GENERATION IP NETWORKS

NEW YORK-Compaq Computer Corp., Houston, announced a new services initiative designed to
help large enterprises “rapidly transform their existing networks into adaptive, next-generation networks
necessary for … a global, Internet-driven business world.”

The first phase of the initiative encompasses next-
generation network infrastructure at the enterprise level, said Ted McKie, director of business development for Compaq
Services, Stow, Mass. The next phase, planned for launch during the second quarter, would provide similar services for
telecommunications carriers, financial services companies, Internet service providers and government
agencies.

Next-generation networks must enable and simplify implementation of “bandwidth-intensive
Internet applications, [like] video conferencing, unified messaging, collaboration, voice over [Internet Protocol],
distance learning, [electronic] commerce and e-tainment,” Compaq said.

Next-generation networks will
converge multiple networks, including voice, data and video, into one IP-based network connecting the corporate
enterprise, the public network and the home, said the company.

Compaq cited projections from the Yankee Group,
Boston, published last October, which said the overall market for network integration services will grow to $52.7
billion in 2001 from $29.6 billion in 1997.

Best known for building client/server environments and connecting
systems, Compaq said it is “working with new and existing industry-leading partners in the networking and
telecom segments to meet customers’ specific solution requirements.”

Compaq’s partners include Microsoft
Corp., Nortel Networks, Motorola Inc., Ericsson Inc. and Cisco Systems.

McKie said the next-generation services to
be provided cover these typical network infrastructure needs: assessment, planning, design, implementation,
outsourcing and remediation and maintenance.

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