HP Slashes Price Of PCI Adapters

Clears Path to High-speed Network Solution

PALO ALTO, CALIFORNIA. JANUARY 8, 1996 -- Hewlett-Packard Company today
slashed the price of its 10/100VG Selectable PCI LAN Adapter by as much as
29 percent in a move to deliver 100VG-AnyLAN solutions at 10Base-T
prices.

HP's 10/100VG PCI LAN Adapter is one of the industry's lowest-priced
high-speed PCI adapters at $148 per adapter in the 24-pack - lower than
both 3Com's and Intel's 24-pack price.

The price cut drops the cost close to $300 per user (10/100VG PCI adapter
and 100VG hub port), making it easier and more affordable for customers to
move from their current 10-megabit-per-second (Mbps) networks to
high-speed, 100Mbps networks.

"HP is delivering ATM-like performance to the desktop at prices that are
aggressively gaining on 10Base-T," said Gary McAnally, general manager of
HP's Roseville (Calif.) Networks Division. "We're offering network
managers more flexibility in replacing old 10Mbps networks while
protecting their investment with an IEEE-approved standard."

100VG is ideal for emerging workgroup applications, such as desktop video
conferencing, color network printing, collaborative computing and
multimedia; other large, data-intensive workgroup applications; and for
improving the performance of existing applications.

HP, AT&T and IBM cooperatively developed the 100VG-AnyLAN approved standard
(IEEE 802.12). The first 100VG product began shipping in August 1994.

U.S. Prices, Availability and Warranty

The price reductions are effective immediately and are offered through HP's
worldwide network of authorized computer dealers, resellers and
distributors. HP 10/100VG adapters are backed by a limited lifetime
warranty.

                                   Price per     Price per
                                   adapter       pack
---------------------------------------------------------------------
HP J2585A  HP 10/100VG selectable   $189          N/A
           PCI adapter - single

HP J3009A  HP 10/100VG selectable    169         $1,015
           PCI adapter 6-pack

HP J3010A  HP 10/100VG selectable    148          3,552
           PCI adapter 24-pack

HP's Network Systems Business Unit (NSBU) was formed by HP's Roseville
Networks Division, a leading supplier of 10Base-T stackable hubs, and HP's
Network Server Division, the industry's fastest growing supplier of
network servers, to capitalize on the strengths and synergies between the
divisions to develop and deliver networked-systems solutions to customers.
HP's Roseville Networks Division developed 10Base- T and network printing
and co-developed 100VG-AnyLAN. HP's full line of networking products
includes AdvanceStack routers, AdvanceStack 100VG hubs, AdvanceStack
10Base-T hubs, AdvanceStack 10/100VG switches, AdvanceStack 10Base-T
switches, OpenView network-management applications, JetDirect print
servers, 10Base-T and 10/100VG LAN Adapters.

Hewlett-Packard Company is a leading global manufacturer of computing,
communications and measurement products and services recognized for
excellence in quality and support. HP has 102,300 employees and had
revenue of $31.5 billion in its 1995 fiscal year.

Information about HP and its products can be found on the World Wide Web
at:  http://www.hp.com.

Information in this release applies specifically to products available in
the United States. Product availability and specifications may vary in
non-U.S. markets.
 
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