<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>a2078894zex-99_1.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<Page>

                                                                   EXHIBIT 99.1

                           COMPAQ COMPUTER CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEET

<Table>
<Caption>
                                                             MARCH 31,    DECEMBER 31,
(In millions, except par value)                                2002          2001
                                                            ----------    ------------
                                                            (UNAUDITED)
<S>                                                         <C>           <C>
ASSETS

Current assets:
   Cash and cash equivalents                                $    3,702    $    3,874
   Trade accounts receivable, net                                4,147         4,623
   Leases and other accounts receivable                          1,957         1,881
   Inventories                                                   1,419         1,402
   Other assets                                                  1,440         1,498
                                                            ----------    ----------
     Total current assets                                       12,665        13,278

Property, plant and equipment, net                               3,171         3,199
Other assets, net                                                6,935         7,212
                                                            ----------    ----------
       Total assets                                         $   22,771    $   23,689
                                                            ==========    ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Borrowings                                               $    1,666    $    1,692
   Accounts payable                                              3,350         3,881
   Deferred income                                               1,191         1,181
   Other liabilities                                             3,984         4,379
                                                            ----------    ----------
     Total current liabilities                                  10,191        11,133
                                                            ----------    ----------

Long-term debt                                                     600           600
                                                            ----------    ----------
Postretirement and other postemployment benefits                   844           839
                                                            ----------    ----------
Commitments and contingencies
Stockholders' equity:
   Preferred stock, $.01 par value
     Shares authorized:  10 million; shares issued:  none           --            --
   Common stock and capital in excess of $.01 par value
     Shares authorized:  3 billion
     Shares issued:  March 31, 2002 - 1,774 million
       December 31, 2001 - 1,766 million                         8,375         8,307
   Retained earnings                                             4,394         4,393
   Accumulated other comprehensive loss                           (182)         (132)
   Treasury stock (shares:  March 31, 2002 - 62 million
       December 31, 2001 - 62 million)                          (1,451)       (1,451)
                                                            ----------    ----------
     Total stockholders' equity                                 11,136        11,117
                                                            ----------    ----------
       Total liabilities and stockholders' equity           $   22,771    $   23,689
                                                            ==========    ==========
</Table>


 See accompanying notes to interim condensed consolidated financial statements.


<Page>


                           COMPAQ COMPUTER CORPORATION
                   CONDENSED CONSOLIDATED STATEMENT OF INCOME
                                   (UNAUDITED)

<Table>
<Caption>
                                                             THREE MONTHS ENDED MARCH 31,
                                                             ----------------------------
(In millions, except per share amounts)                         2002            2001
--------------------------------------                       ------------    ------------
<S>                                                          <C>             <C>
Revenue:
   Products                                                  $      6,109    $      7,480
   Services                                                         1,619           1,701
                                                             ------------    ------------
     Total revenue                                                  7,728           9,181

Cost of sales:
   Products                                                         4,969           5,893
   Services                                                         1,169           1,212
                                                             ------------    ------------
     Total cost of sales                                            6,138           7,105
                                                             ------------    ------------
Selling, general and administrative                                 1,157           1,438
Research and development                                              286             364
Restructuring and related charges                                      --             249
Merger-related costs                                                   35              --
Other (income) expense, net                                            49            (106)
                                                             ------------    ------------
                                                                    1,527           1,945
                                                             ------------    ------------

Income before income taxes                                             63             131
Provision for income taxes                                             19              40
                                                             ------------    ------------
Income before cumulative effect of accounting change                   44              91
Cumulative effect of accounting change, net of tax                     --            (222)
                                                             ------------    ------------

Net income (loss)                                            $         44    $       (131)
                                                             ============    ============

Earnings (loss) per common share:
Basic:
   Before cumulative effect of accounting change             $       0.03    $       0.05
   Cumulative effect of accounting change, net of tax                  --           (0.13)
                                                             ------------    ------------
                                                             $       0.03    $      (0.08)
                                                             ============    ============
Diluted:
   Before cumulative effect of accounting change             $       0.03    $       0.05
   Cumulative effect of accounting change, net of tax                  --           (0.13)
                                                             ------------    ------------
                                                             $       0.03    $      (0.08)
                                                             ============    ============

Shares used in computing earnings (loss) per common share:
   Basic                                                            1,705           1,685
                                                             ============    ============
   Diluted                                                          1,718           1,685
                                                             ============    ============
</Table>


 See accompanying notes to interim condensed consolidated financial statements.

<Page>


                           COMPAQ COMPUTER CORPORATION
                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)

<Table>
<Caption>
                                                                  THREE MONTHS ENDED MARCH 31,
                                                                  ----------------------------
(In millions)                                                        2002            2001
-------------                                                     ------------    ------------
<S>                                                               <C>             <C>
Cash flows from operating activities:
   Net income (loss)                                              $         44    $       (131)
   Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
       Cumulative effect of accounting change, net of tax                   --             222
       Depreciation and amortization                                       320             388
       Restructuring and related charges                                    --             249
       Gain on sale of investments                                         (11)           (132)
       Deferred income taxes and other                                     118             107
       Changes in assets and liabilities                                  (493)           (204)
                                                                  ------------    ------------
           Net cash provided by (used in) operating activities             (22)            499
                                                                  ------------    ------------

Cash flows from investing activities:
   Capital expenditures, net                                              (153)           (370)
   Other, net                                                                8             112
                                                                  ------------    ------------
           Net cash used in investing activities                          (145)           (258)
                                                                  ------------    ------------

Cash flows from financing activities:
   Decrease in short-term borrowings                                       (26)            (61)
   Common stock transactions, net                                           68             (55)
   Dividends to stockholders                                               (43)            (42)
                                                                  ------------    ------------
           Net cash used in financing activities                            (1)           (158)
                                                                  ------------    ------------

Effect of exchange rate changes on cash and cash equivalents                (4)            (10)
                                                                  ------------    ------------
           Net increase (decrease) in cash and cash equivalents           (172)             73
Cash and cash equivalents at beginning of period                         3,874           2,569
                                                                  ------------    ------------

Cash and cash equivalents at end of period                        $      3,702    $      2,642
                                                                  ============    ============
</Table>


 See accompanying notes to interim condensed consolidated financial statements.

<Page>

                         COMPAQ COMPUTER CORPORATION
          NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

         The accompanying interim condensed consolidated financial statements of
Compaq Computer Corporation ("Compaq") as of March 31, 2002 and December 31,
2001 and for the three month periods ended March 31, 2002 and 2001,
respectively, have been prepared on substantially the same basis as Compaq's
annual consolidated financial statements and should be read in conjunction with
Compaq's Annual Report on Form 10-K for the year ended December 31, 2001. The
interim condensed consolidated financial statements reflect all adjustments,
consisting of only normal recurring adjustments, necessary for a fair
presentation of the results for those periods and the financial condition at
those dates. The consolidated results for interim periods are not necessarily
indicative of results to be expected for the full year.

NOTE 2 - ACCOUNTING CHANGES

         In June 2001, the Financial Accounting Standards Board issued FAS 142,
Goodwill and Other Intangible Assets ("FAS 142"). Under FAS 142, goodwill and
intangible assets with indefinite lives are no longer amortized but are reviewed
at least annually for impairment. With respect to goodwill amortization, Compaq
adopted FAS 142 effective January 1, 2002. The result of the application of the
non-amortization provisions of FAS 142 for goodwill is not material for the
three months ended March 31, 2002. At March 31, 2002, Compaq had goodwill of
$248 million. Pursuant to FAS 142, Compaq will complete its test for goodwill
impairment during the second quarter 2002 and, if impairment is indicated,
record such impairment as a cumulative effect of accounting change effective
January 1, 2002. Compaq is currently evaluating the effect that the impairment
review may have on its consolidated results of operation and financial position.

         Effective January 1, 2001, Compaq adopted Emerging Issues Task Force
Issue 01-9, Accounting for Consideration Given by a Vendor to a Customer or a
Reseller of the Vendor's Products, ("EITF 01-9"), which was issued in November
2001. Compaq's adoption of EITF 01-9 resulted in a change in method of
accounting for certain sales incentive offerings. Compaq recognized a cumulative
effect of an accounting change of $341 million ($222 million, net of tax). Also
in accordance with EITF 01-9, Compaq reclassified certain customer financing
costs from interest expense to net revenue.

NOTE 3 - PENDING MERGER WITH HEWLETT-PACKARD COMPANY

         On September 3, 2001, Compaq and Hewlett-Packard Company ("HP")
announced that a definitive merger agreement was unanimously approved by both
Boards of Directors, subject to, among other conditions, regulatory approval and
affirmative stockholders' vote by both companies. Under the terms of the
agreement dated as of September 4, 2001, Compaq stockholders will receive 0.6325
of a newly issued HP share for each outstanding share of Compaq common stock.
The transaction will be accounted for as a purchase. During the first quarter
2002, the proposed merger received the required European and U.S. government
regulatory approvals. On March 20, 2002, Compaq shareholders approved the
merger. On March 28, 2002, Walter Hewlett, a director and shareholder of HP
individually and as Co-Trustee of the William R. Hewlett Revocable Trust ("the
Trust"), Edwin E. van Bronkhorst, as Co-Trustee of the Trust, and the Trust
itself brought an action in the Court of Chancery of Delaware against HP in
connection with the planned merger. A bench trial on the action commenced in the
Court of Chancery on April 23, 2002 and is expected to conclude in three days. A
ruling by the presiding judge is expected in the near future following the
conclusion of the trial. On April 17, 2002, HP announced that the preliminary
vote count from the March 19, 2002 special meeting of HP shareowners affirms
that the proposed merger was approved. While the results of the HP shareholder
vote are not yet official and the outcome of the litigation against HP is
presently unknown, Compaq believes the planned merger will ultimately be
consummated; however, the outcome is presently uncertain.


<Page>


NOTE 4 - CERTAIN BALANCE SHEET COMPONENTS

         Raw materials, work-in-progress and finished goods were $265 million,
$210 million and $944 million, respectively, at March 31, 2002 and $298 million,
$172 million and $932 million, respectively, at December 31, 2001.

         Accumulated depreciation was $3.9 billion at both March 31, 2002 and
December 31, 2001.

         At March 31, 2002 and December 31, 2001, Compaq held $265 million and
$370 million of equity investments, respectively, included in other non-current
assets. As of March 31, 2002, the cost basis and fair value of Compaq's
available-for-sale securities were approximately $45 million and $53 million,
respectively.

         Intangibles included in non-current other assets are shown below:

<Table>
<Caption>
(in millions)                           MARCH 31,     DECEMBER 31,
                                          2002           2001
                                       ----------    -------------
<S>                                    <C>           <C>
Gross intangibles:
     Installed customer base           $    1,224    $       1,221
     Proven research and development          545              545
     Capitalized software                     378              338
     Other intangibles                        220              230
                                       ----------    -------------
                                            2,367            2,334

Accumulated amortization:
     Installed customer base                 (308)            (287)
     Proven research and development         (413)            (386)
     Capitalized software                    (127)            (102)
     Other intangibles                       (157)            (150)
                                       ----------    -------------
                                           (1,005)            (925)

Goodwill, net                                 248              242
                                       ----------    -------------

Total intangibles, net                 $    1,610    $       1,651
                                       ==========    =============
</Table>

         Substantially all of the installed customer base intangible asset
relates to the 1998 acquisition of Digital Equipment Corporation, and the asset
was recorded at fair value. Estimated aggregate amortization expense based on
current intangibles for the next five years is as follows: $300 million in 2002,
$230 million in 2003, $150 million in 2004, $90 million in 2005 and $90 million
in 2006.

         In February 2002, Compaq reduced its multi-year revolving credit
facility that expires in October 2002 from $2.0 billion to $1.75 billion. Compaq
also has a 364-day $1.75 billion revolving credit facility that expires in
September 2002. The facilities bear interest at LIBOR plus 0.325 percent and
LIBOR plus 0.625 percent, respectively. There were no borrowings outstanding
under these facilities at March 31, 2002.

         At March 31, 2002, borrowings included $1.3 billion in commercial paper
and $275 million in debt securities maturing August 1, 2002. At December 31,
2001, borrowings included $1.2 billion in commercial paper and $275 million in
debt securities maturing August 1, 2002.

<Page>

         On February 25, 2002, the Board of Directors of Compaq approved a cash
dividend of $0.025 per share of common stock, or approximately $43 million, to
stockholders of record as of March 6, 2002, payable on April 2, 2002. On
January 26, 2001, the Board of Directors of Compaq approved a cash dividend of
$0.025 per share of common stock, or approximately $42 million, to stockholders
of record as of March 31, 2001, payable on April 20, 2001.

NOTE 5 - COMPREHENSIVE INCOME (LOSS)

         The components of comprehensive income (loss), net of tax, are listed
below:

<Table>
<Caption>
                                                                    THREE MONTHS ENDED MARCH 31,
                                                                    ----------------------------
(In millions)                                                          2002            2001
-------------                                                       ------------    ------------
<S>                                                                 <C>             <C>
Net income (loss)                                                   $         44    $       (131)
Other comprehensive income (loss):
   Foreign currency translations                                             (22)              6
   Changes in gains and losses on derivative instruments, net of
     reclassifications                                                        (9)             14
   Changes in unrealized gains and losses on investments, net of
     reclassifications                                                       (19)           (135)
                                                                    ------------    ------------
Comprehensive loss                                                  $         (6)   $       (246)
                                                                    ============    ============
</Table>

NOTE 6 - OTHER INCOME AND EXPENSE

         Other (income) and expense consisted of the following:

<Table>
<Caption>
                               THREE MONTHS ENDED MARCH 31,
                               ----------------------------
(In millions)                      2002            2001
-------------                  ------------    ------------
<S>                            <C>             <C>
Interest and dividend income   $        (32)   $       (110)
Investment income, net                   (5)            (75)
Interest expense                         29              26
Other expense, net                       57              53
                               ------------    ------------
                               $         49    $       (106)
                               ============    ============
</Table>

NOTE 7 - EARNINGS PER COMMON SHARE

         Basic earnings per common share are computed using the weighted average
number of common shares outstanding during the period. Diluted earnings per
common share are computed using the combination of dilutive common share
equivalents and the weighted average number of common shares outstanding during
the period. Stock options to purchase 231 million and 175 million shares of
common stock for the three month periods ended March 31, 2002 and 2001,
respectively, were outstanding but not included in the computation of diluted
earnings per common share because the option exercise price was greater than the
average market price of the common shares.

<Page>

NOTE 8 - SEGMENT DATA

         Summary financial data by business segment follows:

<Table>
<Caption>
                                 THREE MONTHS ENDED MARCH 31,
                                 ----------------------------
(In millions)                        2002            2001
----------------                 ------------    ------------
<S>                              <C>             <C>
Enterprise Computing
   Revenue                       $      2,351    $      2,920
   Operating income                        18             144
Access
   Revenue                              3,545           4,346
   Operating loss                         (36)           (110)
Compaq Global Services
   Revenue                              1,882           1,935
   Operating income                       229             254
Segment Eliminations and Other
   Revenue                                (50)            (20)
   Operating income (loss)                (15)             20
Consolidated Segment Totals
   Revenue                       $      7,728    $      9,181
   Operating income              $        196    $        308
</Table>

         A reconciliation of Compaq's consolidated segment operating income to
consolidated income before income taxes follows:

<Table>
<Caption>
                                        THREE MONTHS ENDED MARCH 31,
                                        ----------------------------
(In millions)                               2002            2001
-------------                           ------------    ------------
<S>                                     <C>             <C>
Consolidated segment operating income   $        196    $        308
Unallocated corporate expenses                   (49)            (34)
Restructuring and related charges                 --            (249)
Merger-related costs                             (35)             --
Other income (expense), net                      (49)            106
                                        ------------    ------------
Income before income taxes              $         63    $        131
                                        ============    ============
</Table>

NOTE 9 - RESTRUCTURING AND RELATED CHARGES

         In the first and second quarters of 2001, Compaq's management approved
restructuring plans to realign its organization and reduce operating costs.
Compaq formed the Access segment and implemented significant changes in its
business model and supply chain operations. In addition, Compaq consolidated
certain functions within its global business units and reduced administrative
functions.

         Restructuring and related charges of $249 million and $493 million were
expensed during the first and second quarters of 2001, respectively. The first
quarter charge was comprised of $173 million related to employee separations,
$64 million of related asset impairment charges and $12 million for other exit
costs. The second quarter charge was comprised of $303 million related to
employee separations, $138 million of related asset impairment charges, $40
million for facility closure costs and $12 million for other exit costs. During
the fourth quarter of 2001, Compaq reversed excess reserves of $68 million for
employee separation costs accrued in conjunction with the first and second
quarter plans and expensed an additional charge of approximately the same amount
for additional reductions of 1,400 employee positions as approved by management
to further achieve its objectives of realigning its organization and reducing
operating costs. Employee separation benefits under each plan were similar and
included severance, medical and other benefits. Employee separations under the
2001 plans were substantially completed as of March 31, 2002.

<Page>


         Components of accrued restructuring costs and amounts charged against
the 2001 plans as of March 31, 2002 were as follows:

<Table>
<Caption>
                                          ADJUSTMENTS
                            BEGINNING         AND          DECEMBER 31,                     MARCH 31,
 (In millions)               ACCRUAL      EXPENDITURES        2001        EXPENDITURES        2002
                          -------------   -------------   -------------   -------------   -------------
<S>                       <C>             <C>             <C>             <C>             <C>
 Employee separations     $         476   $         245   $         231   $         120   $         111
 Facility closure costs              40              15              25               6              19
 Other exit costs                    24              16               8               6               2
                          -------------   -------------   -------------   -------------   -------------
                          $         540   $         276   $         264   $         132   $         132
                          =============   =============   =============   =============   =============
</Table>

         The accrual at March 31, 2002 consists primarily of future cash
payments to employees separated prior to March 31, 2002.

NOTE 10 - LITIGATION

         Compaq is subject to legal proceedings and claims that arise in the
ordinary course of business. Compaq does not believe that the outcome of any of
those matters will have a material adverse effect on Compaq's consolidated
financial position, operating results or cash flows.

         Compaq and certain of its current and former officers and directors
were named in two consolidated class action lawsuits pending in the United
States District Court for the Southern District of Texas, Houston Division
("USDC - Houston"). One lawsuit was filed in 1998 and the other in 1999.

         The 1998 litigation consolidates five class action lawsuits brought by
persons who purchased Compaq common stock from July 10, 1997 through March 6,
1998. It asserts claims under Section 19(b) of the Securities Exchange Act of
1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder and Section 29(a) of
the Exchange Act. Allegations in the 1998 lawsuit include the claim that the
defendants withheld information and made misleading statements about channel
inventory and factoring of receivables in order to inflate the market price of
Compaq's common stock and further alleges that certain individual defendants
sold Compaq common stock at the inflated prices. In the 1998 litigation, USDC -
Houston entered an order granting class certification. Compaq appealed class
certification to United States Court of Appeals for the Fifth Circuit ("Fifth
Circuit Appellate Court"). Only July 25, 2001, Fifth Circuit Appellate Court
vacated USDC - Houston's order certifying a class and appointing class
representatives and remanded the case to USDC - Houston for further proceedings
in accordance with its opinion. A petition for rehearing before the Fifth
Circuit appellate Court was denied on January 15, 2002. On February 8, 2002,
USDC - Houston ordered plaintiffs to file supplemental motions on class
certification by April 19, 2002. Plaintiff filed a supplemental motion renewing
their motion for class certification on February 28, 2002. Compaq filed an
opposition on March 19, 2002. The matter is pending before the USDC - Houston.
Compaq is vigorously defending the 1998 lawsuit.

         The 1999 litigation also consolidated a number of class action
lawsuits. The litigation was brought on behalf of purchasers of Compaq common
stock between January 27, 1999 and April 9, 1999. It asserted claims for alleged
violations of Section 19(b) of the Exchange Act and Rule 10b-5 promulgated
thereunder, Section 20(a) of the Exchange Act; and Sections 11 and 15 of the
Securities Act of 1933 ("Securities Act"). Allegations in the 1999 litigation
included the claim that certain defendants and Compaq issued a series of
materially false and misleading statements concerning Compaq's prospectus in
1999 in order to inflate the market price of Compaq's common stock and further
alleges that certain individual defendants sold Compaq common stock at the
inflated prices. On April 1, 2002, the USDC - Houston dismissed the second
amended complaint in the 1999 litigation with prejudice.

<Page>

         Compaq is a defendant in two consumer class action lawsuits, (LaPray v.
Compaq and Sprung v. Compaq) that are part of a series of similar lawsuits filed
against other major computer manufacturers, involving claims that the computer
industry sold computers with allegedly defective floppy disk controllers. LaPray
is pending in the District Court of Jefferson County, Texas, 60th Judicial
District in Beaumont ("State District Court - Beaumont") while Sprung is pending
in the United States District Court for the District of Colorado ("USDC -
Colorado"). A class certification hearing was held in LaPray on June 8, 2001.
State District Court - Beaumont entered an order granting class certification on
July 23, 2001. Compaq has appealed the class certification order. The Sprung
case has been stayed while USDC - Colorado considers Compaq's motion to dismiss.
Compaq continues to provide information to the Federal government and state
attorneys general in California and Illinois in response to inquiries regarding
floppy disk controllers in computers sold to government entities.


</TEXT>
</DOCUMENT>
