HP ANNOUNCES BROAD PRICE REDUCTIONS ON ITS NETWORK SERVERS

PALO ALTO, Calif., June 20, 1994 -- Hewlett-Packard Company today announced
price reductions of up to 11 percent on many of the network servers in its
award-winning NetServer LC, LF and LM families, as well as on hard-disk
drives and memory-board accessories. The prices are effective July 1.

* In the entry-level NetServer LC family, HP has reduced its 5/66 Model
1050 server by 9 percent, from $6,019 to $5,499. The system features a
66MHz Pentium CPU, 1GB hard disk and 16MB RAM.

* The P5/66LF Model 1 - a member of the midrange HP NetServer LF family,
which includes a 66MHz Pentium CPU, 16MB RAM and no hard disk - has been
reduced by 11 percent, from $5,699 to $5,049.

* In the high-end HP NetServer LM series, the 4d/66LM Model 2GB array
system has been reduced by 7 percent, from $10,310 to $9,589. It features
a 66MHz i486 CPU and two 1GB hot-swap SCSI-2 disk modules.

HP's Network Server Division also reduced the price on many of its
accessories. The 535MB SCSI-2 hard-disk drive has been reduced by 20
percent, from $999 to $799, while the 32MB memory card has been reduced by
30 percent, from $2,999 to $2,099.

"These price reductions reflect the falling costs of high-end CPUs, as well
as our own determination to price our products aggressively," said James
P. McDonnell, worldwide marketing manager for HP's Network Server
Division. "We more than doubled our market share last year with our
aggressively priced servers. This year, we're becoming even more
competitive in this fastest growing segment of the LAN industry."

According to International Data Corporation (IDC), HP, together with Compaq
and IBM, accounted for 80 percent of the PC server market, which nearly
doubled in 1992. Since HP's Network Server Division was founded in 1992,
HP's market share in the PC server market has risen from four to 10
percent of the worldwide market, according to IDC.

HP's Network Server Division has a complete line of network servers and
server management products. The HP NetServer LM Series are ideal in
application-server environments while the HP NetServer LF Family is
designed to provide fast, general-purpose file and application handling
with a flexible growth path. The most recent addition is the HP NetServer
LC entry-level server line, which is targeted for remote and small- to
medium-sized workgroups. HP NetServer Assistant is a customizable toolset
that helps network administrators keep servers up and running. A
server-management product, HP Remote Assistant consists of an intelligent
EISA card and software for a powerful, remote server-management solution.

At PC Expo, HP plans to announce support for IBM's OS/2 for Symmetrical
Multiprocessing (OS/2 for SMP). HP NetServers were one of the first
platforms IBM used to develop this operating system. This relationship
ensures that IBM's OS/2 for SMP complements HP's NetServer LM SMP systems,
which are designed for application-server environments, such as database
management systems (DBMS) and on-line transaction processing. HP supports
Intel's MP Spec 1.1 for multiprocessing and IBM's OS/2 for SMP also
complies with the MP Spec.

The entire HP NetServer family will be on display at PC Expo in Booth 2308,
from June 28-30, in New York City.

Hewlett-Packard Company is an international manufacturer of measurement and
computation products and systems recognized for excellence in quality and
support. The company's products and services are used in industry,
business, engineering, science, medicine, and education in approximately
110 countries. HP has 97,000 employees and had revenue of $20.3 billion in
its 1993 fiscal year.

For sales information, call 1-800-752-0900

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