The two innovative companies will work together to blend technology and lifestyle, thereby enhancing the Starbucks Experience and supporting global growth.

Starbucks chose to partner with Compaq to leverage the power of two great brands as we enhance our customers’ in-store experience through leading-edge technology, said Howard Schultz, Starbucks chairman and chief global strategist.

Compaq will join Starbucks and Microsoft in creating a high-speed connected environment in Starbucks locations across North America. Compaq, a worldwide leader in mobile computing devices, has been named the in-store Internet access device provider for the wireless broadband network. In the future, Starbucks customers will be able to enjoy their favorite coffee beverages while accessing broadband content and services through innovative Compaq wireless devices such as the hot-selling, award-winning iPAQ Pocket PC or their own wirelessly enabled devices.

This agreement allows us to take advantage of Compaq’s incredible breadth and depth of technology and service offerings to continue to improve many aspects of our business, said Darren Huston, senior vice president of New Ventures at Starbucks. Working closely with Compaq and Microsoft on enterprise and consumer-facing innovations will ultimately help us improve store operations and enhance the experience of our customers.

Under this agreement, Compaq will be the primary and preferred strategic provider for information technology infrastructure for Starbucks, such as enterprise class servers and storage solutions, desktops and laptops and iPAQ products, and will assess both present and future technology needs to support Starbucks global growth.