Extending its aggressive push into the Internet market, Compaq has announced the acquisition of Internet content provider, Zip2, for an undisclosed sum. The privately owned company will become an operating division of AltaVista, the Internet search service bought by Compaq following its $8.4 billion (E&.6 million) acquisition of Digital Computer last year.

At an international press briefing in London, Compaq president and chief executive officer, Mr Eckhard Pfeiffer, told journalists Compaq's goal was to push AltaVista into the top three leading Internet destination sites within about three years.

Zip2 represents a strong strategic acquisition as a widely recognised website developer and host for media companies.

Speaking to the The Irish Times, Mr Andreas Barth, Compaq senior vice-president for Europe, said: "We need to pursue new waves in the market. There are lots of technology companies out there with good technologies, so we need to be flexible and nimble and keep adding pearls to the chain."