Compaq, US postal service ink $2 bn deal

NEW YORK: Compaq Computer Corp. on Thursday said it signed a contract with

the US Postal Service to provide hardware and services that could be worth $1.5

billion to $2 billion.

Compaq said in a statement that the five-year contract could be worth about

$1 billion. With a five-year option, the value is estimated at $1.5 billion to

$2 billion, Compaq vice president of sales and services Peter Blackmore said in

an interview.

The agreement covers WindowsNT-based technology and includes server, desktop

and notebook computers, Blackmore said.

The contract follows a similar deal Compaq has had with the postal service

since 1994 that was worth about $1.2 billion and under which Compaq installed

more than 32,000 servers, 180,000 desktops and 50,000 notebooks, Blackmore said.

Houston-based Compaq in September said it plans to merge with competitor

Hewlett-Packard Co. Some competitors have said confusion surrounding the deal

has put the companies at a disadvantage.

Compaq's Blackmore said that wasn't the case here. "Clearly we were able

to fully satisfy them of the ongoing support regardless of the merger,"

Blackmore said. "The merged company will support them equally as well as

Compaq."

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