Compaq and MSN Introduce New Addition to the Family of MSN Companion Devices

HOUSTON and REDMOND, Wash., Oct. 30, 2000 — Compaq Computer Corp. and MSN® today announced the availability of the CompaqiPAQ Home Internet Appliance IA-2 in RadioShack stores nationwide. As the second MSN Companion to be delivered by Compaq within the past 3 months, the IA-2 joins Compaq’s iPAQ line of Internet access devices, designed for novice Web users, with the same simple yet powerful features as the company’s first Internet appliance, IA-1. Available in time for the holidays, the iPAQ Home Internet Appliance IA-2 is originally priced at $499, but consumers may be eligible for a number of rebate offers including a $400 rebate from MSN with a three-year subscription to MSN Internet Access at a monthly rate of $21.95 and a $100 rebate from Compaq, resulting in a breakthrough value.

(Certain offer restrictions apply. See for offer details.)

Home Internet Appliance IA-2

The new IA-2 differs from the IA-1 by featuring a 15-inch color CRT (VIA 13.7) monitor with 800×600 pixels of resolution, two built-in speakers, an Internet keyboard and scroll mouse. Like its counterpart, the IA-2 with MSN Companion connects users to the Internet and a simplified interface presents them with a wealth of MSN content and best-of-breed services including the MSN Hotmail® Web-based e-mail service, MSN eShop, MSN Search and MSN Messenger Service. Both devices include a 56K modem and LEDs for power, e-mail and an Internet connection. Additional options, including a specially configured Epson 740 or 777 ink-jet color printer and JBL Platinum Series stereo speakers, are also available.

The iPAQ Home Internet Appliance IA-2 with MSN Companion is currently available at RadioShack stores throughout the United States, and will soon be available through Compaq’s Web site at and through the toll-free hotline at (800) 888-0263.

About Compaq

Compaq Computer Corporation, a Fortune Global 100 company, is the largest supplier of computing systems in the world. For more corporate information, see .

About Microsoft

Founded in 1975, Microsoft (Nasdaq
) 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, MSN and Hotmail are either 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 trademarks of their respective owners.

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