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Compaq in contract with Raytheon worth $250 m

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CIOL Bureau
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NEW YORK: Computer firm Compaq Computer Corp. on Thursday said it signed two

contracts, including a three-year accord worth at least $200 million with

Raytheon Co., under which it will provide computers and data storage equipment.

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The agreement, which Compaq said is worth up to $250 million, comes at a time

when the company is being scrutinized for its ability to keep or win customers

amid the uncertainty over its proposed $22 billion merger with competitor

Hewlett-Packard Co.

Compaq also said that it had extended an information technology pact with

telecom company Ericsson for $125 million a year over five years. Compaq had

beat out competitors for both contracts, said Peter Blackmore, Compaq executive

vice president of sales.

"They would not have selected us if they had any doubts either

way," Blackmore said. "I think it demonstrates our ability to do large

roll-outs of these projects."

Under the agreement with Raytheon, Compaq will provide desktop computers,

notebook computers, servers and workstations to 196 Raytheon locations

worldwide.

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