Cherry Harris
Compaq Public Relations
  Melissa Quiroz
Hill & Knowlton
Kristen McEntire
  Andrew Schmitt
OutCast Communications


Houston and SAN FRANCISCO - September 28, 2000 - Compaq Computer Corp. (NYSE: CPQ) and Snapfish, a Kodak-backed free film developing and online photo sharing service, today announced that they will offer Snapfish's free photography services to every new Presario personal computer owner in the United States. This initiative is one component of a far-reaching strategic partnership between the companies, including Compaq's equity investment in Snapfish and a co-branded Web presence within Compaq's MyPresario Activity Centers.

With every Compaq Presario personal computer sold in the United States, Compaq will include free, postage-paid Compaq/Snapfish film mailers. The companies are launching this initiative ahead of the end-of-year holiday season - a busy time for both purchasing personal computers as gifts and for taking pictures of family holiday gatherings.

New Presario owners simply drop their 35 mm film into the free, postage-paid film mailer, shipped with their PC, for free film developing, printing and scanning. With this offer, Presario owners can conveniently and inexpensively enjoy the many benefits of online photography -- including sharing their memories with friends and family online, and ordering reprints and enlargements via Snapfish's password-protected online albums. For each roll of film sent in, Snapfish provides a free full set of prints on Kodak paper, free negatives, free developing and free online sharing. Customers pay only $1.69 per roll for shipping and handling of the prints for up to 24 rolls per year.

"Compaq's extensive customer base of Presario users matches the Snapfish target demographic perfectly," said Raj Kapoor, CEO and co-founder of Snapfish. "We're excited about the tremendous value our alliance offers families who seek the value from the Internet."

"We are committed to helping our customers get the most from the Internet and their Presario," said Ted Theocheung, Director of Internet and e-Tronics at Compaq. "Our relationship with Snapfish enables us to offer Presario customers complete photo services that they are familiar with, plus the ease of having their photos scanned to a secure online photo album. All invitees can order reprints online. The service puts the Internet to work for our customers by simplifying their eLifestyle."

Earlier this summer, the companies launched the MyPresario Photo Activity Center Web site (, which introduces the Snapfish photography services. The Photo Activity Center educates users on digital photography, even if they don't have digital cameras. There are complete photo services for digital and analog camera users, including printing, sharing and online storage.

Snapfish is positioned to dramatically redefine the consumer photography market by providing a complete photo service that offers film developing, printing, storing and sharing online, for up to 24 rolls per year, all for free. Customers pay only $1.69 per roll for shipping and handling of their prints. The award-winning Snapfish business model provides both film-based and digital camera users the ability to seamlessly and effortlessly share, store and order reprints with unsurpassed security.

Privately held and backed by Kodak, Mayfield Fund, @Ventures, the affiliated venture capital arm of CMGI, Inc., Trans Cosmos, Audax Ventures, BellSouth, Compaq, and additional private investors, Snapfish was founded by second-generation Internet leaders from Excite@Home and Cisco Systems.

Snapfish has a strategic partnership for film processing with District Photo, the nation's largest mail order photo finishing lab, with more than 50 years of experience in the market. Snapfish uses Kodak paper and materials for all of its processing.

With consumer photography representing a $14.90 billion market in the United States alone, Snapfish provides consumers with breakthrough benefits in online photography and reinvents an enormous consumer category in the process. The company is based in San Francisco, California. Additional information is available at the company's Web site at

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 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


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.

© Copyright 2000 Corporation