Compaq and Avid Enter Workstation Alliance

Compaq recently announced a strategic alliance with Avid Technologyto deliver Avid's industry-leading video editing solutions on Compaqworkstations. As part of the agreement, Compaq's Evo Workstation W8000is the new global standard for the Avid Media Composer, Symphony, andAvid Xpress systems. Avid's broadcast news workstation solution is alsoexpected to be qualified later this quarter. Compaq was awarded theworkstation standard displacing IBM, which previously held the standardfor three years.

The alliance is expected to result in the global sale of more than4,000 Compaq Evo Workstations per year -- with an estimated value ofmore than $17 million annually during this ongoing relationship. Otheraspects of this alliance include joint exploration of next-generationsolutions, joint product development, solution testing, andcertification.