HP Continues To Drive The Interconnected Workgroup Market With New Internet
Offerings

HP and Microsoft Alliance Yields Reseller-ready Products, Service and
Support

PALO ALTO, CALIFORNIA. FEBRUARY 12, 1996 -- Hewlett-Packard Company today
announced the key elements in its interconnected-workgroup offering, which
includes reseller-ready, easy-to-sell, bundled Microsoft internet products
on HP NetServers and partnerships with resellers to maximize customer
satisfaction, service and support.

"Integrating Microsoft Windows NT and the Internet Information Server with
HP's Intel platforms is a major triumph for HP's customers and resellers,"
said Duane E. Zitzner, general manager of HP's Personal Information
Products Group. "These solutions will offer real value to our customers
and will be instrumental in creating significant pull for the reseller. HP
believes the Internet Information Server is the missing-link application
the industry has been searching for in the '90s."

"Internet servers must be easy to manage, constantly available and must
offer performance to match the rigorous demands of the Intranet and
Internet," said Jim Allchin, senior vice president of Microsoft's Business
Systems Division. "The combination of Microsoft's IIS and HP's affordable
high-quality servers, as well as their long-standing tradition of
delivering high-quality services and support, provides a great customer
solution."

HP is extending its solution for Microsoft's Internet products to include a
new series of HP NetServers that are optimized for businesses that want
turnkey Intranet and Internet network systems that are easy to install and
use. The first members of the new family of internet servers are based on
HP's award-winning line of NetServers, Microsoft's Windows NT, HP's
10/100VG networking equipment, and an integrated HP/Microsoft/Channel
service and support program for Microsoft Internet Information Server and
other products in the Microsoft BackOffice family of integrated server
software.

"We feel resellers play a pivotal role in offering customers a systems-
ready Internet solution for the interconnected workgroup," said Ann M.
Livermore, HP vice president and general manager of Worldwide Customer
Support Operation. "Our product and service offerings are designed to let
resellers combine offerings from HP with their own to meet individual
customers' needs. HP is working with resellers to offer worldwide
consulting and support services for Microsoft's Internet solutions."

"HP has proven itself to be a champion in the area of availability and
support," said Bob Fuerstenau, commercial sales manager at ComputerLand.

HP and Microsoft Strategic Alliance

A strategic alliance between HP and Microsoft was created in May 1995 to
form a new level of ensured interoperability for end users and
easy-to-sell solutions and services for the reseller. For the HP NetServer
family for the Internet, HP will be reselling Microsoft software as part
of the HP NetServer, including Windows NT Server, Microsoft Internet
Information Server and Microsoft Exchange. The software will be
preinstalled on the HP NetServers and also will be available in a special
HP NetServer Navigator and Microsoft Internet JumpStart package for other
HP NetServer users. These products are expected to be available at the
beginning of the second quarter of this year.

As a part of its Internet solution, HP will offer a new suite of
reseller-friendly services that will be sold in partnership with
resellers. These service offerings will make installing and operating both
Intranet and Internet solutions in interconnected workgroups easy and
reliable.

In 1995, HP and Microsoft launched a very successful solutions program
targeted at helping small and medium-sized businesses realize the
bottom-line benefits of interconnected workgroups. Through the program, HP
and Microsoft teamed together to provide customers with a chance to "test
drive" an HP NetServer running Windows NT Server and Microsoft BackOffice
products.

"The Internet is now a business fundamental, and we feel that
Hewlett-Packard, Microsoft and the channel are in the best position in the
industry to deliver solutions that have payback for these businesses,"
said Tom Thibault of Thibault and Associates.

Award-winning NetServer Platform

The HP NetServer series has won the CRN Channel Champion Award three years
in a row, and the first two members of the HP NetServer line for the
Internet are the HP NetServer LC 5/133 and the HP NetServer LH 5/133. 
These servers are based on the NetServer LC and LH servers, which are
designed specifically for the growing interconnected-workgroup market.

The LC NetServer Series are ideal for small to medium-sized workgroups or
remote offices for file, print and workgroup applications. The LH
NetServer Series is designed from the ground up to meet the increasing
demands of today's complex network environments.

Connecting to the Internet and Intranet

An HP 10/100VG Interconnected WorkGroup is the foundation of a
high-performance network infrastructure that can support the increased
bandwidth demands of Internet applications, especially for a company's
intranet. For example, it would allow the use of video and voice
information clips on a company's employee Web page. The 10/100VG PCI LAN
Adapter now includes busmastering capability to accelerate data-transfer
speeds and decrease CPU utilization, which allows the server to process
LAN information more efficiently and thus improve performance.

HP makes it easy to manage interconnected workgroups with the industry's
premier network-management platform, OpenView. HP OpenView for Windows
7.2B is the latest version of the industry-leading network-management
platform and is designed to maximize uptime, optimize network performance
and regulate an entire network.

Integrated Service Included with HP NetServer Family

HP offers worldwide support for HP's NetServer platforms. As a global
Microsoft Authorized Support Service Center, HP can provide support for
Windows NT and HP NetServers in more than 110 countries. These services
will be available through resellers.

HP NetServers are backed by HP's standard three-year, on-site, next-day
limited warranty. On-site service is available from HP service engineers
or certified resellers and integrators. Upgrades to a four-hour response
time during business hours or to a seven-day, 24-hour responses time are
available from HP and HP-authorized resellers. Telephone support for
setup, installation and troubleshooting assistance is available in the
United States, Canada and Europe. HP also offers a range of optional
support services through the channel for multivendor network
environments.

Microsoft (NASDAQ MSFT) is the worldwide leader in software for personal
computers. The company offers a wide range of products and services for
business and personal use, each designed with the mission of making it
easier and more enjoyable for people to take advantage of the full power
of personal computing every day.

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.
 
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