REGUS WINS LARGEST-EVER OUTSOURCING DEAL WORTH £23.9 MILLION FROM
COMPAQ



With the growing trend in the global office outsourcing, Regus has
won its largest-ever single new business deal with the signing of a
contract worth £23.9 million with Compaq. The deal is for the
provision of long-term serviced accommodation for more than 450
people in the UK.

The deal covers the provision of serviced office space for Compaq
employees at Regus centres in Birmingham, Leatherhead and at London
Victoria. The new deal is in addition to outsourced accommodation
Regus already provides Compaq at Regus centres in the north of
England.

"Regus is the perfect flexibility tool for any forward-looking
business," comments
Rene Schuster, VP and chief executive officer of Compaq UK&I. "By
outsourcing our property requirements we gain improved flexibility,
while minimising our financial risk - both crucial elements in the
current financial climate. Regus also helped us identify our true
total occupancy cost over the life of the contract, which convinced
us of the cost-effectiveness of outsourced office space."

Mark Dixon, chief executive of Regus comments, "This deal puts Compaq
at the cutting edge of outsourced workspace management and is further
evidence that outsourced offices are becoming the accommodation of
choice for the world's leading companies. Compaq's key drivers in
outsourcing to Regus' were our ability to offer a total solution
right across the UK and the fact that we could provide them with a
substantial reduction in the total occupancy costs of running their
own offices.

"This trend in office outsourcing is set to increase worldwide, as
more and more companies examine their cost base and look for more
cost-effective solutions to their office accommodation requirements.
We now have a large portfolio of global clients, including Microsoft,
Fujitsu-Siemens and France Telecom, which recognise the common sense
solutions that we provide. They also appreciate the savings up to
78%** savings on total occupancy cost which we can offer them
compared with a traditional long term lease."

** Source CIPS Cost benefits of serviced offices report

- ends -

Note to editors

About Compaq:

Founded in 1982, Compaq Computer Corporation is a leading global
provider of enterprise technology and solutions. Compaq designs,
develops, manufactures and markets hardware, software, solutions and
services, including industry-leading enterprise storage and computing
solutions, fault-tolerant business-critical solutions, communication
products, and desktop and portable personal computers that are sold
in more than 200 countries. Information on Compaq and its products
and services is available at
www.compaq.com.

Compaq and the Compaq logo are trademarks of Compaq Information
Technologies Group, L.P. Product names mentioned herein may be
trademarks and/or registered trademarks of their respective
companies. This document contains forward-looking statements that
involve risks, uncertainties and assumptions. All statements other
than statements of historical fact are statements that could be
deemed forward-looking statements. Risks, uncertainties and
assumptions include the possibility that the Hewlett-Packard/Compaq
merger does not close or that the companies may be required to modify
aspects of the transaction to achieve regulatory approval or that
prior to the closing of the proposed merger, the businesses of the
companies suffer due to uncertainty; the market for the sale of
certain products and services may not develop as expected; that
development of these products and services may not proceed as
planned; that Compaq and Hewlett-Packard are unable to transition
customers, successfully execute their integration strategies, or
achieve planned synergies; other risks that are described from time
to time in Compaq and Hewlett-Packard's Securities and Exchange
Commission reports (including but not limited to Compaq's annual
report on Form 10-K for the year ended December 31, 2000, HP's annual
report on Form 10-K for the year ended October 31, 2000, and
subsequently filed reports). If any of these risks or uncertainties
materializes or any of these assumptions proves incorrect, Compaq's
results could differ materially from Compaq's expectations in these
statements. Compaq assumes no obligation and does not intend to
update these forward-looking statements.

About Regus
Represented in 50 countries, Regus is the global leader in supplying
fully serviced office workspaces. Offering more than 90,000
workspaces in more than 410 prestigious locations, it is also the
market leader in providing meeting rooms, conference and training
facilities and pubic access videoconferencing studios.

Contacts:

Regus plc
Stephen Jolly+ 44 (0) 7768 791 462

Financial Dynamics
Rob Gurner
+ 44 (0) 207 269 7221