1. Delivering IT Value… Our Commitment to Government Delivering IT Value… Our Commitment to Government Ashok Shah VP and Managing Principal – WW eGovernment Practice

2. Today's agenda… a vision and value HP - a strong strategic vision that delivers customer value that only increases with the proposed merger leadership in key markets Compaq in IT and Government

3. The New Hewlett Packard Building Tomorrows Leader today The New Hewlett Packard Building Tomorrows Leader today

4. Customer value add Product and service capabilities Value creation for shareholders Integration critical success factors The new Hewlett-Packard…

5. Key merger objectives… accelerate our strategy Expand our enterprise capabilities and broaden our go-to-market opportunities Expand our enterprise capabilities and broaden our go-to-market opportunities Achieve critical mass in Global Services Achieve critical mass in Global Services Improve the economics of our Industry Standard Business Improve the economics of our Industry Standard Business

6. Value creation for shareowners Value drivers Scale Scale $2.5B in expected annual cost synergies $2.5B in expected annual cost synergies Substantially impact to pro forma EPS in first full fiscal year Substantially impact to pro forma EPS in first full fiscal year Strengthens direct and channel models Strengthens direct and channel models Management depth Management depth Growth drivers Stronger solutions capability Stronger solutions capability #1 positions #1 positions Partner of choice Partner of choice Brand Brand Services, storage and software Services, storage and software Imaging and printing Imaging and printing

7. Create customer value beyond the box Increased customer coverage by doubling of enterprise sales force and solutions architects with a stronger product portfolio Increased customer coverage by doubling of enterprise sales force and solutions architects with a stronger product portfolio Expanded fulfillment choice through availability of direct /indirect distribution for servers, PCs, cameras and printers Expanded fulfillment choice through availability of direct /indirect distribution for servers, PCs, cameras and printers Broadened expertise portfolio from desktop to data center by doubling our outsourcing and consulting resources with a strong multi-technology base Broadened expertise portfolio from desktop to data center by doubling our outsourcing and consulting resources with a strong multi-technology base Enhanced customer capability through creation of new categories in printing and imaging Enhanced customer capability through creation of new categories in printing and imaging

8. Create customer value in our server offering Increased functionality of HP-UX by porting Compaqs clustering capabilities, which current and potential customers have requested Increased functionality of HP-UX by porting Compaqs clustering capabilities, which current and potential customers have requested Additional NT server value through enhancements of products by combining IP portfolios and development efforts Additional NT server value through enhancements of products by combining IP portfolios and development efforts Create customer value with a compelling storage and software solution HPs high-end storage offering and management software combined with Compaqs leadership in storage area networking and mid-range storage HPs high-end storage offering and management software combined with Compaqs leadership in storage area networking and mid-range storage Added software value by combining HPs OpenView with Compaq servers Added software value by combining HPs OpenView with Compaq servers Create value by driving new cost/value model for the enterprise Industry standard economics (Itanium with UNIX, Windows 2000 and Linux) Industry standard economics (Itanium with UNIX, Windows 2000 and Linux) Open, market-unifying standards Open, market-unifying standards Open application integration software Open application integration software Rapid deployment of Web services Rapid deployment of Web services Accelerate next generation access devices Accelerate next generation access devices Extend integrated solutions value with services, software Extend integrated solutions value with services, software

9. Create future value through R&D ($4.1B) Itanium server design High performance server design Super computing applications Fault tolerant HW and SW Enterprise-class UNIX Partitioning and workload mgmt Data center solutions IA-32 servers High density server blades ADAPTIVE INFRASTRUCTURE HYPERDENSITY HIMALAYA CLUSTERING / RAS SUPERDOMEHP-UX UDC COMPACT PCI HPCompaq

10. Create value by creating choices for you vs. IBM Clear market leadership in open systems Clear market leadership in open systems Cost of ownership Cost of ownership Strength of partnerships Strength of partnerships Time to market Time to market Understanding of data center Understanding of data center Ability to innovate Ability to innovate End-to-end solutions End-to-end solutions Business models Business models Global services and support Global services and support Open platforms Open platforms Complete portfolio Complete portfolio vs. Dell vs. Sun or EMC

11. Integration guiding principles Start with the customer point of view, when challenged by decisions, return to the customer requirement Start with the customer point of view, when challenged by decisions, return to the customer requirement Minimize disruption to the customer Minimize disruption to the customer Use adopt and go strategy, meaning if one of the two companies has a superior strategy, product, etc., go with it Use adopt and go strategy, meaning if one of the two companies has a superior strategy, product, etc., go with it

12. Commitment to customers Customers come first Customers come first Investment protection with support for growth Investment protection with support for growth Account teams measured on your satisfaction Account teams measured on your satisfaction Honor all existing contracts Honor all existing contracts Provide architectural thought leadership Provide architectural thought leadership Differentiate with true enterprise solutions Differentiate with true enterprise solutions –True innovation –On best of breed platforms –Fully supported with service

13. Compaq Today in IT and State and Local Government Compaq Today in IT and State and Local Government

14. Our vision Thepremier IT solutions provider Our mission Deliver superior customer value through… Innovative Products Integrated into Solutions Delivered Globally

15. Customer value that delivers… Faster return on investments through increased revenue and reduced costs Faster return on investments through increased revenue and reduced costs Reduced complexity and improved predictability Reduced complexity and improved predictability The velocity to respond to challenge and change The velocity to respond to challenge and change A true global competitive advantage A true global competitive advantage...open industry standard infrastructure...end-to-end integrated solutions and management...rapid deployment...services capabilities today in 207 countries

16. World-class technology OpenSAN Commercial applications Access Content delivery Data mining & simulation Enterprise data store

17. Compaq market leadership #1 in industry standard servers worldwide #1 in industry standard servers worldwide –#1 in Web servers –#1 in Linux servers #1 in high performance technical computing #1 in high performance technical computing #1 in high availability systems #1 in high availability systems #1 in overall storage #1 in overall storage –#1 in SANs deployed worldwide #2 in PCs #2 in PCs

18. Industry standard servers From the data center to the network edge ProLiant …industry-standard high availability Adaptive infrastructure Adaptive infrastructure Advanced Memory Protection Architecture Advanced Memory Protection Architecture Rack and density leadership Rack and density leadership Windows Data Center Solutions Windows Data Center Solutions TaskSmart …accelerating e-commerce solutions N-series N-series File serving File serving Network attached storage Network attached storage C-series C-series Web content management and acceleration Web content management and acceleration Breakthrough economics Breakthrough economics Simplicity Simplicity Oracle parallel server Oracle parallel server Distributed Internet Server Array Web sites Distributed Internet Server Array Web sites NetWare NetWare Linux Linux ProLiant market leadership # 1 Worldwide Total market at 26.2% Density-Optimized at 35.2% 1,2 Processor at 25.5% 4/6 Processor at 32.1% 8 Processor at 46.9%

19. Business Critical Solutions Leaders in availability and performance NonStop Himalaya NonStop Himalaya –Leader in highest availability – Availability Level 4 –Deep and loyal customer base –Extending beyond core finance and telecom markets to retail and transaction processing AlphaServer AlphaServer –Leadership clustering technology #1 in high performance technical computing –Oracle 9i development partner Sources: Harvard Research Group, IDC Finance 95% of worlds securities transactions 66% of ATM/POS transactions 75% of worlds electronic funds transfers Telecommunications 200 million credit card and collect calls per day 80% of billing and customer care in Europe 90% of all US 911 emergency calls Over 70 million cellular subscribers rely on Compaq home location register (HLR) capability

20. Supercomputing leadership… The race to map the human genome is over and the winner is Compaq. – Forbes The race to map the human genome is over and the winner is Compaq. – Forbes Pittsburgh Supercomputing Center… 6+ TFLOPS French Atomic Commission… 5 TFLOPS Los Alamos National Lab… 2 TFLOPS 30 TFLOPS Japan Atomic Energy Commission Sandia National Labs C-Plant

21. Source: IDC November, 2001 #1 position in 2001 global disk storage systems market… CompaqEMCCategory 12 WW disk storage system TB shipped (all server-based internal and external) 12 WW disk storage system revenue (all server-based internal and external) 13 WW open systems disk storage system TB shipped (open systems-based internal and external) 12 WW open systems disk storage system revenue (open systems-based internal and external) 12 WW external disk storage system TB shipped 21 WW external disk storage system revenue in revenue, terabytes sold and units shipped

22. Broadest range of innovative access products

23. Access business Market position Global leader in access devices Global leader in access devices #1 in worldwide Pocket PC share #1 in worldwide Pocket PC share #2 in PC market share worldwide #2 in PC market share worldwide –#1 share in Europe –#1 share in Latin America Most innovative access device vendor Most innovative access device vendor –146 industry awards in 2001 Largest PC installed base (>55 million) Largest PC installed base (>55 million) Most comprehensive product offering Most comprehensive product offering

24. World-class services Compaq Global Services Customer Support Compaq Financial Services Managed Services Systems Integration Architecture Architecture Solutions integration Solutions integration Availability Availability Performance Performance Business critical support Business critical support Operations management Operations management Financial services Financial services

25. World-class solutions Industry-specific

26. Partnerships and alliances Leveraging the best in the industry Core Technology Enterprise Applications System Integrators Internet Content Delivery

27. eGovernment needs are changing Governments must operate in a new information-rich Internet environment Governments must operate in a new information-rich Internet environment Business is increasingly a key partner in the provision of public services Business is increasingly a key partner in the provision of public services Electronic services must reliably and safely touch every citizen… on demand and in time Electronic services must reliably and safely touch every citizen… on demand and in time September 11 th brought into focus the need for security, disaster preparedness and infrastructure protection September 11 th brought into focus the need for security, disaster preparedness and infrastructure protection

28. Meeting our commitment to eGovernment Computer Aided Dispatch (911) Computer Aided Dispatch (911) Parole Investigative System (LEADS) Parole Investigative System (LEADS) Drivers license and motor vehicle licensing systems Drivers license and motor vehicle licensing systems Electronic voting Electronic voting Environmental Application Compliance System (eFACTS) Environmental Application Compliance System (eFACTS) Technology to ensure safety and security of the citizenry

29. By helping facilities comply versus zapping them for noncompliance, were taking the mystery out of the DEP and winning back the support of the public. James M. Seif Secretary, Pennsylvania Department of Environmental Protection Partnership and delivery AlphaServer Systems Oracle Partnership and delivery AlphaServer Systems Oracle Partnership… protecting land, air, and water

30. Compaq provides the most stable, reliable platform for Windows 2000 and Microsoft SQL Server. We have a rock-solid, cost-effective solution for the court system. Kevin King MIS Director The Supreme Court of Oklahoma Reliability … making a strong case An intelligent solution for efficient case management ProLiant StorageWorks Microsoft An intelligent solution for efficient case management ProLiant StorageWorks Microsoft

31. With our Compaq and Oracle data warehousing solution, more than 300 users across the state query against terabytes of claims data and receive answers within seconds or minutes, instead of weeks. Jose Maldonado Deputy Attorney General New York State Attorney Generals Medical Fraud Unit SCALABILITY… eliminating fraud, waste, and abuse Setting the example for others to follow Tru64 UNIX AlphaServer Oracle StorageWorks Compaq Services Setting the example for others to follow Tru64 UNIX AlphaServer Oracle StorageWorks Compaq Services

32. Anytime anyone has any problem, in their home, on the street, or in their car theyre calling 911. And thats why we invested millions of taxpayers money to make the finest system in the country. Richard M. Daley Mayor City of Chicago Service and performance… at Chicago 911 Providing nearly instantaneous communication all day, every day… answering up to 15,000 calls a day, 6.5 million calls a year

33. Our commitment to Government Dedicated Organization Dedicated Organization Deep understanding of customer complexity Deep understanding of customer complexity Engineering excellence and innovation Engineering excellence and innovation Best products across key growth markets Best products across key growth markets Leader in open systems and architecture Leader in open systems and architecture Enhanced global services delivery Enhanced global services delivery Strengthened and expanded partnerships Strengthened and expanded partnerships Global customer coverage and support Global customer coverage and support #1 IT provider for State and Local #1 IT provider for State and Local IDC

34. Forward Looking Statement This document contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the Hewlett-Packard/Compaq merger does not close or that the companies may be required to modify aspects of the transaction to achieve regulatory approval or that prior to the closing of the proposed merger, the businesses of the companies suffer due to uncertainty; the market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; that Compaq and Hewlett-Packard are unable to transition customers, successfully execute their integration strategies, or achieve planned synergies; other risks that are described from time to time in Compaq and Hewlett-Packards Securities and Exchange Commission reports (including but not limited to Compaqs annual report on Form 10-K for the year ended December 31, 2000, HPs annual report on Form 10-K for the year ended October 31, 2000, and subsequently filed reports). If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Compaqs results could differ materially from Compaqs expectations in these statements. Compaq assumes no obligation and does not intend to update these forward-looking statements.