Yes. Standard (full size) P99 magazines will fit and function in the P99 Compact. It is strongly suggested that you use magazines of the same caliber.
Carl Walther recently started to produce a magazine sleeve, which eases the use of P99 magazines in the P99c, by covering the exposed portion of the magazine body. The Carl Walther part number is 273 05 37. Walther America (aka, Smith & Wesson) will begin distributing this in early 2007. Below is a photo of it in use with a P99c:
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