HP Cuts Prices On High-Performance PCs By Up To 14 Percent

HP Vectra XU and VT PCs Cost up to 20 Percent Less than Competitors' PCs

PALO ALTO, CALIFORNIA. APRIL 1, 1996

Strengthening its price-performance leadership in PCs, Hewlett- Packard
Company today announced price cuts of up to 14 percent on its
high-performance Pentium Pro HP Vectra XU 6/150 and HP Vectra VT 6/150
PCs. These systems cost up to 20 percent less than similar computers from
Digital and Compaq. The price cuts, effective immediately, are the result
of manufacturing cost reductions that HP is passing on to its customers.

"HP's award-winning Pentium Pro PCs have always led the industry in
performance," said Jacques Clay, general manager of HP's Grenoble Personal
Computer Division. "Now they lead in price-performance as well."

Using an HP-designed motherboard and dual-processing 150MHz Pentium Pro
processors, the HP Vectra XU 6/150 PC provides customers with
uncompromising performance at industry-leading price points. It includes a
Matrox Millennium graphics adapter, ultra SCSI bus, selectable 10/100VG
PCI LAN adapter, 128-bit memory path and ECC (error correcting code)
memory.

The HP Vectra VT 6/150 PCs include the same HP-designed motherboards as the
HP Vectra XU PCs and include many common features, such as
industry-standard DIMM-based memory, integrated audio and the high-end
Millennium Matrox graphics card. The HP Vectra VT PC differs from the HP
Vectra XU 6/150 in that it is offered in a uniprocessor version, providing
the expert user with a powerful, Pentium-Pro-based system at lower prices
than ever before.

HP Vectra "V" and "X" line PCs are covered by a three-year, limited
warranty with one-year, on-site coverage. The HP Vectra XU and HP Vectra
VT PCs are bundled with Windows NT Workstation.

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                   U.S. Prices and Configuration

 Processor   Package     Hard     RAM      Estimated     Percent
                         Drive            Street Price  Reduction

 VT 6/150    minitower   N/A      16MB     $3,110          14
             minitower   1GB      16MB      3,470          13
             minitower   2x 1GB   16MB      3,750          12

 XU 6/150    minitower   N/A      16MB      3,708          11
             minitower   1GB      16MB      4,004          10
             minitower   2GB      16MB      4,533           9
---------------------------------------------------------------------

HP offers a broad family of industry-standard PCs in its HP Vectra PC line.
The product range includes the HP Vectra 500 Series PC designed for the
needs of small businesses; the standard-level Vectra VE, mainstream Vectra
VL and power-user Vectra VT PCs for professionals using business
applications; and the powerful network-ready Vectra XM and top-of-the-line
Vectra XU PCs for the most demanding of expert professional users.

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 105,200 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 or go directly to HP Vectra PC information,
http://www.hp.com/go/vectra.
 
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