COMPAQ Computer (COMPAQ, I)

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Founded in 1982, Compaq Computer Corporation ("Compaq") is a leading global provider of enterprise technology and solutions. Compaq designs, develops, manufactures and markets hardware, software, solutions and services, including industry-leading enterprise storage and computing solutions, fault-tolerant business-critical solutions, communication products, and desktop and portable personal computers that are sold in more than 200 countries.

In Compaq, we built a solid foundation for profitable growth. The energy and enthusiasm of our employees were higher than ever. Customer acceptance of our technology and solutions continued to grow. And we accelerated our financial and market momentum. Compaq is working with telecommunications companies to accelerate the wireless revolution. We're breaking new ground in Internet access, from our desktop and notebook PCs to the next generation of Internet devices. Innovative products we have solidified Compaq's reputation as a leader in innovation that enables customer success. Our new iPAQ Pocket PC sets the standard for handheld devices with its innovative design, bright display and flexible expansion packs. We also added other new products to the iPAQ family in 2000, including an easy-to-use home Internet appliance, a small personal audio player with the highest quality sound I've ever heard from such a device, a wireless home network gateway and a handheld device that provides always-on, wireless access to corporate e-mail. These products are all part of our effort to define the next generation of Internet access. We also continued to innovate in Web-based services.

Pervasive information.
Innovation is vital to our success because information technology is being transformed at an ever-increasing pace - and we want to help drive that transformation. The world we see emerging is a world of pervasive information in which billions of Internet access devices will make growing demands on the Internet infrastructure. Computing, communications and data are converging in a way that allows people to access information and make transactions and decisions in real time. One of the big drivers will be wireless communications. Market analysts expect the number of wireless Internet access devices to grow to one billion or more in the next three years and that's probably conservative. On the access side, users will be able to choose from a wide variety of devices with different forms and functions, advanced user interfaces, like voice recognition, and embedded services. The lines between business and personal computing will disappear because users will want access to all of their information, wherever they are. We define the edge of the Web as the place where access and infrastructure meet. It is not so much a physical space as a virtual space that is closer to the user. This means content and services can be delivered more quickly and reliably and with greater personalization. At Compaq, we have a real opportunity to extend our leadership into the new world of pervasive information by defining computing and communications at the edge of the Web while building on our traditional strengths in infrastructure and access.

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