Compaq and Microsoft Announce Windows Media As Default Digital Media Technology for iPAQ Personal Audio Players

Compaq and Microsoft Announce Windows Media As Default Digital Media Technology for iPAQ Personal Audio Players

Compaq Also Launches New Customized Windows Media Player 7 Preinstalled on All Presario PCs

HOUSTON and REDMOND, Wash., Sept. 20, 2000 — Compaq Computer Corp. and Microsoft Corp. today announced that Compaq has selected Microsoft® Windows Media™
Player 7 and Windows Media Format as the default digital media technology for its new iPAQ personal audio players, including the recently introduced PA-1. Compaq customers also will be able to enjoy a new customized Windows Media Player 7 on the Presario line of PCs, providing them with a seamless and easy-to-use end-to-end experience for digital music. For Compaq iPAQ customers, this built-in support for the Windows Media Format doubles the amount of music they can enjoy with their standard 64MB MMC card from one hour to more than two hours of digital-quality music, as compared to MP3. Today’s announcement also underscores the broad acceptance of and support for Windows Media among the leading portable device manufacturers.

“Consumers are demanding more and better capabilities from their computers and electronic devices,”
said Sean Burke, vice president for Presario products at Compaq.
“With the inclusion of Microsoft Windows Media Player 7 and Windows Media Format, these Compaq products will give users what they want – greatly enhanced audio and video quality; faster and easier downloads, playlists and personalization for music and video; and fun features that help them get the most out of their machines.”

“Consumers want an integrated and easy-to-use way to experience digital media,”
said Will Poole, vice president of the Digital Media Division at Microsoft.
“Windows Media Player 7 combined with Compaq’s Presario PCs and iPAQ audio devices creates a seamless way for consumers to get their music any time, any place.”

As part of this announcement, Compaq and Microsoft are launching today a customized Windows Media Player 7 especially for Compaq Presario customers. The new player offers a special Compaq-branded skin with links to Compaq partner Web sites, along with a co-branded Compaq and WindowsMedia.com content guide to help users find the best digital audio and video on the Web. It is also preinstalled on all Compaq Presario PCs that have been available on the Web and at in-store kiosks since Aug. 15 through Compaq’s
“Built For You”
program.

New Windows Media Player 7 Update for iPAQ PA-1

In addition, a new software driver will be available next week for Compaq iPAQ PA-1 customers, offering seamless integration with Windows Media Player 7’s easy-to-use portable music device feature. The update will allow users to transfer their personal music collections from Presarios, or other PCs that support USB, to the state-of-the-art iPAQ PA-1 with a single click. The Windows Media Player 7 software update for the iPAQ PA-1 will be available Sept. 29 at http://www.windowsmedia.com/mediaguide/cooldevices/cooldevices.asp .

Windows Media Player 7 is the only software that delivers a complete, all-in-one experience, including digital audio and video playback, a jukebox, an Internet radio tuner, an integrated media guide, audio CD creation, and one-click transfer of digital music to portable devices. Windows Media Player 7 ends user confusion and the need to use several products to perform the most common digital media activities.

Availability

The Presario 5000T, 5BW220 and 5BW250 desktop PCs and 1800, 1700T, 1400T and 1200T notebook PCs – all of which feature the new Microsoft Windows® Millennium Edition software – are available now with Windows Media Player 7. Beginning in November, the iPAQ PA-1 personal audio player will ship with the Windows Media Player 7 in the box. It supports the Windows Media Format today as the default music format. In addition to these products, the iPAQ Pocket PC 3650 has featured the Windows Media Player since its launch in May 2000.

General or purchasing information about the Compaq products that feature Microsoft Windows Media Player 7 and Windows Media Format, is available at the Compaq Consumer Web site at http://www.compaq.com/athome/ .

About Windows Media

Windows Media is the leading digital media platform, providing unmatched audio and video quality to consumers, content providers, solution providers, software developers and corporations. Windows Media offers the industry’s only integrated rights-management solution and the most scalable and reliable streaming technology tested by independent labs. Windows Media Technologies includes Windows Media Player for consumers, Windows Media Services for servers, Windows Media Tools for content creation, and the Windows Media Software Development Kit (SDK) for software developers. Windows Media Player, available in 24 languages, is the fastest-growing media player. More information about Windows Media can be found at http://www.microsoft.com/windowsmedia/ .

About Compaq

Compaq Computer Corp., a Fortune Global 100 company based in Houston, 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, and communications 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/ .

About Microsoft

Founded in 1975, Microsoft (Nasdaq
“MSFT”
) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software – any time, any place and on any device.

Microsoft, Windows Media and Windows are registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Compaq is registered with the U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. 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: delays in the implementation of changes in delivery models, increased competitive environment and pricing pressures, delays in product rollout schedules, component shortages, slow acceptance for new form factors, employee retention, disruptions related to restructuring actions, the financial condition of resellers, delays in new systems implementation, operational inefficiencies related to sales cycles, equity investment volatility, and emerging market political or economic instability. Further information on the 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.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft home page at http://microsoft.com/presspass/ on Microsoft’s corporate information pages.

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