HP Unveils Its Long-Term Vision For Commercial Hardcopy Business

Digital Workplace Strategy Marks Company's Plans to Promote New
Information-distribution Model

PALO ALTO, CALIFORNIA. MAY 13, 1996

Hewlett-Packard Company today announced its long-term strategy for its
multibillion dollar commercial hardcopy business. The plan, termed Digital
Workplace, is designed to streamline office processes by integrating
printing and scanning into a new, efficient model of information
distribution.

"As HP examined office printing needs, it was clear that we needed to look
beyond printers to address the changing office landscape," said Carolyn
Ticknor, HP vice president and general manager of the LaserJet Solutions
Group. "The Digital Workplace strategy allows us to use our expertise in
printing, scanning and networking to provide solutions for a new model of
office communication. Our goal is to enable the simple, seamless flow of
information between paper and digital forms, from person to person, from
device to device."

HP's Digital Workplace strategy capitalizes on and helps drive three
significant market trends:

* a shift from a print-and-distribute model to a distribute-and-print model
of information sharing, in which digital information is shared
electronically via networks and printed on an as-needed basis;

* an accelerated use of the Internet for information exchange; and

* a shift from copying to MOPying (Multiple Original Printing), or
producing multiple original document sets using a laser printer instead of
producing multiple duplicates using a copier.

The Digital Workplace strategy transcends all of HP's commercial hardcopy
divisions. Future HP hardcopy products -- including network laser printers
and network scanners -- will be designed to support this strategy. HP will
develop these products to accommodate a changing workplace and to help
accelerate these new models of information sharing.

Distribute-and-Print: A New Model for Information Distribution

Large organizations historically have used a "print-and-distribute" model
of sharing information, in which documents are typed, copied, then hand
delivered or mailed to individual recipients. Today, the proliferation of
networks is enabling users to migrate quickly to a "distribute-and-print"
model, in which information is sent via network e-mail or the Internet,
and recipients then print as needed. The distribute-and-print model is
fast, inexpensive and affords users greater control over their
information, allowing them to print, store, manipulate or redirect
documents as they see fit.

HP says it will accelerate this trend by building upon its network scanning
technology. Network scanners are expected to play an increasingly
important role as "digital converters," allowing users to transform paper
documents into electronic information. Once documents are in digital form,
users can edit, fax, distribute, copy and store information as they
choose.

There has not been the dramatic reduction of paper use in the office that
many predicted. In fact, the so-called paperless office is being
challenged more than ever before. According to Industry Analyst, Inc.,
paper use is growing at 15 percent annually. "As experts in hardcopy
output, we realize that paper is -- and may always be -- a popular medium
for communication -- many see it as the ultimate graphical user
interface," said Ticknor. "The distinct advantages of paper ensure that it
will continue to be a necessary part of the workplace."

Unlocking the Vast Potential of the Internet

The Internet is a core element of the distribute-and-print model. It
enables users to send and retrieve information electronically worldwide.
However, the Internet has several printing limitations, including an
inability to select and print only portions of a Web page, slow print
output, inaccurate formatting, and poor output quality for graphical
images. HP's goal is to make Internet printing easy and intuitive,
alleviating its current printing limitations.

HP's efforts to enrich printing capabilities from the Internet has been
furthered by its agreements with Microsoft Corporation and Netscape
Communications to enhance and standardize Internet printing. HP is also
working closely with the World Wide Web Consortium to promote Internet
printing standards. HP will work closely with these and other industry
leaders to develop performance improvements. These improvements will pave
the way for products that allow users to print information from the
Internet in the same context-rich format in which it was originally
designed.

Mopying Expected to Drive Growth in Hardcopy Market

"Mopying" is a term coined by printer-industry analysts to describe the
process of creating multiple original prints, or "mopies," on a laser
printer. Dataquest, a research firm, found that 43 percent of
laser-printer users already use their laser printers to produce mopies.

The benefits of mopying include the following:

 faster and less expensive than copies;
 better print quality than copies; and
 more convenient, eliminating trips to the copier.

Laser printers have become faster, less expensive and fully integrated into
network environments. In addition, many now are equipped with advanced
paper handling, and they offer low-cost color output. As a result, laser
printers are challenging the traditional use of the office copier.
Business offices historically have relied on the stand-alone office copier
as its "information distribution hub." It usually is placed in a central
location, requiring that users walk from their desks to the copier. No
longer do users need to create, print and copy documents. Instead, they
simply print multiple originals directly from their laser printers.
Eliminating the additional step of going to the copier helps businesses
save time and money.

This trend also has reduced the need for service bureaus, which were
previously relied upon for color copies. Now, with affordable color laser
printers, users can use the mopying model to produce multiple original
color laser prints.

The department copier will continue to have a role in the office. However,
some studies indicate that the paper processed by midrange copiers already
has started to decline. In fact, Dataquest believes that copier revenues
will decline 20 percent by 1998.

Digital Workplace: Future Direction

HP has been anticipating these shifts in information-distribution models
for several years by actively developing products to enable these new
communication methods. This multiphase Digital Workplace strategy already
has begun with HP's introduction of such products as the HP LaserJet 5Si
printer and the HP ScanJet 4Si scanner, which are specifically designed to
offer more efficient methods of document reproduction and distribution.

HP's Digital Workplace strategy includes educating worldwide markets on the
new information distribution model.

* HP will further the distribute-and-print model of information exchange by
broadening the capabilities of the network scanner and educating the
market on its use as a device to share and manage information.

* HP will continue to work closely with Microsoft, Netscape and the World
Wide Web Consortium to define and implement technologies that facilitate
the connection and management of Internet peripherals.

* HP recently launched a worldwide marketing initiative aimed at educating
customers and the channel on the benefits of mopying and on new printer
products designed to make mopying easier.

Company Information

HP is the world's leading supplier of hardcopy products that set the
standard for technology, performance and reliability. HP's market leading
products include LaserJet and DeskJet printers, DesignJet large-format
printers and plotters, ScanJet scanners, OfficeJet printer-fax-copier
devices, CopyJet color printer-copiers and HP FAX facsimile machines.

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.
 
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