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Memowatch Forgive us if we've been a bit slow on picking this up, but we don't recall reading it anywhere else. Compaq will trade under the Hewlett-Packard name when the merger is completed

In a memo to its UK trade partners Compaq has said that the merger is expected to be completed in the first half of next year and, "when completed, we will then do business under the HP name. Michael Capellas will serve as President of the combined company, which will be headquartered in Palo Alto and will retain a significant presence in Houston."

The memo is intended to give a warm comfortable glow to Compaq's business partners in the face of the HP takeover and reassure them "that partners will remain absolutely fundamental to the new organisation".

It is also seriously stunk up with corporate speak: "This merger is the most effective, efficient way to accomplish our strategy "; "leading IT solutions company based on a customer-focused, services-led business model"; blah de blah.

Read it and vomit. ®

September 17, 2001

Dear Compaq Partner

By now I'm sure you have seen the news that Compaq is merging with Hewlett-Packard to create what will be the new global technology leader. I am writing to you personally to assure you that partners will remain absolutely fundamental to the new organisation. We believe that this move will mean significant benefits to our mutual customers and to you, one of our valued business partners.

Our new company will offer businesses and consumers a unique value proposition: the most complete portfolio of information technology products and services based on open, market-unifying standards and architectures.

Why are we doing this? This merger is the most effective, efficient way to accomplish our strategy to be the leading IT solutions company based on a customer-focused, services-led business model. The bold step to combine Compaq and HP accelerates this strategy and creates an even stronger asset base.

It also makes us more responsive to customer needs in an IT marketplace that is changing in fundamental ways. Customers want a strategic partner that provides comprehensive solutions, and that can design, deploy and manage those solutions. With this merger, we're creating the company that will be best qualified as a partner with you to meet customer needs. With world-class, quality products. Strong services delivery. Robust solutions. Flexibility and adaptability. And that sets the pace in the industry for invention and innovation.

Together, Compaq and HP bring the products, services and partnerships to best serve each key market segment, including:

IT Infrastructure. By combining the server, storage and software capabilities of Compaq and HP, we can offer comprehensive solutions -servers (from industry standard servers to high-end, fault-tolerant systems) that are designed to specifically address the evolving nature of an always-on Internet infrastructure. Management software that allows customers to optimise, manage and monitor their entire network. Network storage systems and software that enable storage to be deployed as a utility across the enterprise. And the services and support to help customers design, build and keep their enterprise running.

Services. We will have deeper and broader capabilities in consulting, outsourcing and support - to help customers build and manage their infrastructure. With more than 65,000 professionals around the globe in the new company's Services organisation, we want to be customers' partner of choice in architecting their enterprise. By combining forces, we become a top-tier services provider - offering a true choice for customers in how they develop and implement IT projects. As a new kind of industry leader, we value partnerships and want to be the partner of choice for consultants and systems integrators as well.

Access Devices (PC's, handhelds and new kinds of Internet-access devices). We will offer a broader range of PCs, handhelds and other Internet-enabled devices - via the channel that best meets customer needs (directly from us, from our partners, or from retailers around the globe). With a track record of advanced engineering and innovation, we will continue to drive the next generation of Internet access across a broad range of products and categories. Products that "simply work better together." Devices that will enable customers to work they want to work in the office, at home or on the move.

Imaging and Printing. We will benefit from HP's traditional core strength in recording, sharing, storing and printing information, documents and ideas. This is the pre-eminent franchise in the industry, with leadership across commercial and consumer markets and a strong patent portfolio.

We expect to complete the merger in the first half of next year and, when completed, we will then do business under the HP name. Michael Capellas will serve as President of the combined company, which will be headquartered in Palo Alto and will retain a significant presence in Houston.

I understand that you and your team will have many questions about this significant announcement. You have my personal commitment that we will do our best to address these questions as they arise. We will be proactive in keeping you updated on the developments regarding the status of the merger.

I invite you to visit www.compaq.com and the connect.compaq.co.uk for further details of the announcement. And, of course, you should always feel free to contact your Compaq Account Manager as well.

We remain committed to meeting the high standards that you have come to expect of us. We value our partnership. We look forward to building even stronger relationships that support the long-term success of the channel and deliver the highest customer value.

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