NEWS BRIEFS

North Hollywood, CALIF. — Compaq Computer Corp. and the Walt Disney Internet Group announced a three-year agreement naming Compaq as the preferred technology provider to the WALT DISNEY internet group and partner in delivering the Disney “magic” online.

The agreement, valued in aggregate at more than $100 million, represents a substantial commitment by Compaq to advertise on Walt Disney Internet Group web sites and a significant purchase of compaq hardware and technology services by Walt Disney Internet Group. The deal also includes distribution of Walt Disney Internet Group content on Compaq consumer products.

“This alliance represents a very significant revenue generating opportunity for our business,” said Walt Disney Internet Group Chairman Steve Bornstein. “Moreover, it allows us to consolidate our technology platform and focus our planned technology investment with Compaq, one of the world’s leading technology companies that offers leading edge technology infrastructure solutions.”

“Clearly we’re pleased to have this opportunity to provide the infrastructure technology and services for the Walt Disney Internet Group,” said Michael Capellas, Compaq chairman and chief executive officer. “Disney’s Websites require a powerful, business-critical infrastructure and Compaq is uniquely equipped to provide the technology that helps deliver the Disney magic online.”

Under the terms of the agreement, Compaq will “power” some of the most popular and respected sites on the Web including Disney.com, ESPN.com, ABC.com and ABCNEWS.com, which collectively receive nearly two billion page views per month. Compaq will provide equipment, technology and services to the Walt Disney Internet Group, including ProLiant servers, desktops and laptops. Over the next three years, the Walt Disney Internet Group plans to consolidate its Windows-based server architecture on Compaq ProLiant platforms and utilize an expanding range of Compaq commercial services.

Compaq and the Walt Disney Internet Group also have entered into a wide-ranging advertising and co-marketing agreement that calls for Compaq to promote its brand, products and services across Disney’s leading Web sites. Not only will Compaq’ name be prominently displayed on Walt Disney Internet Group sites, but the association will also be To aggressively marketed in Compaq’s “Inspiration Technology” campaign.

In addition, the alliance places the primary properties of the Walt Disney Internet Group – Disney.com, ESPN.com and ABC properties, including ABC.com and ABCNEWS.com – in prominent positions on Compaq Presario computers. These sites, as well as additional properties such as GO.com, a Web guide focused on entertainment and free time activities; Family.com, the number one family site; and the Mr. Showbiz and Wall of Sound entertainment sites, will benefit from distribution on a wide range of Compaq personal computers and the expanding family of iPAQ devices and appliances.

Compaq also will provide the personal computers and ProLiant servers that power Disney.com’s Internet Zone activities at Walt Disney World. Internet Zone is a popular attraction for kids at Walt Disney World’s Epcot. In this technology friendly setting, children can experience how consumer technology products can improve their world – and inspire their imagination and creativity – through online education, games and communication.

Compaq and The Walt Disney Company view the new agreement as a logical extension of their corporate alliance.

“This expansion of our relationship with Compaq represents the strategic outgrowth of the corporate alliance we announced earlier in the year,” said Bob Iger, president and chief operating officer of the Walt Disney Company. “We’ve had a great first year and look forward to continued successes together.”

“Our alliance is a prime example where Disney’s ‘imagination’ meets Compaq’s ‘Inspiration Technology,'” Capellas continued. “That’s why this relationship makes so much sense. Compaq delivers the broadest portfolio of products, services and solutions in the industry – from powerful enterprise servers to wireless access devices. And no one delivers better content and entertainment than Disney.

“As I look at the strengths of these two powerful brands and our histories of innovation and inspiration, it’s clear to me that the creative possibilities in this partnership are endless. And, we look forward to working with Disney to make them a reality,” Capellas concluded.

The two companies announced a corporate alliance in February 2000 in conjunction with Compaq’s sponsorship of the Mission: SPACE attraction at Walt Disney World, scheduled to open in early 2003. Compaq plans to expand on its sponsorship presence at Walt Disney World in a number of ways currently under development including a unique experience that will allow Epcot guests to take their Mission: SPACE adventure even further by offering a glimpse of what life in space may someday be like. This will include compelling interactive experiences and a leading edge Internet component, to be developed by Disney.com and Walt Disney Imagineering.

A Mission: SPACE Preview Center, will be introduced adjacent to Disney.com’s Internet Zone at Innoventions in Epcot in the spring of 2001. The Mission: SPACE Preview Center will provide Epcot guests with a glimpse of what the upcoming attraction will have to offer by taking guests on an online adventure.

Compaq Computer Corporation, a Fortune Global 100 company, 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. Customer support and information about Compaq and its products and services are available at http://www.compaq.com

Walt Disney Internet Group manages some of the Internet’s most popular Web sites, including ABC.com, ABCNEWS.com, ABCSports.com, Disney.com, Disney Auctions, Disneystore.com, DisneyVacations.com, ESPN.com, Family.com, GO.com, Movies.com, Mr. Showbiz, NASCAR Online, NBA.com and NFL.com. For more information, visit the Internet Group’s Web site at http://www.dig.com .

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