HP Leads High-Speed Market

Analyst Attributes HP's Success to Early Jump on Market

PALO ALTO, CALIFORNIA. SEPTEMBER 20, 1995 -- Hewlett-Packard Company today
announced that, according to industry analysts, HP and 100VG-AnyLAN showed
continued growth in the Fast Ethernet market during the second calendar
quarter of 1995.

This growth builds on strong first calendar quarter numbers that proved
100VG is one of the most successful launches of a new Ethernet
technology.

HP leads the high-speed hub market with its 100VG family of products.
In-Stat's (Scottsdale, Ariz.) second-quarter numbers show HP's market
share for high-speed hub ports shipped at 43 percent with 40,800 ports
shipped -- up 60 percent from their first quarter estimate. Again,
according to In-Stat, HP has 45 percent of the high-speed NIC market share
with 61,200 cards shipped in the second quarter -- up 145 percent from
first quarter -- placing it in the top two of high-speed NIC companies. HP
has shipped more than 100,000 100VG adapter cards since it introduced the
products last year.

"HP has positioned themselves well in the Fast Ethernet market," said Diane
Myers, analyst with In-Stat. "As one of the few companies to ship products
in 1994 and early 1995, HP was able to get a jump on the market with its
100VG family of products. While the majority of companies are just
beginning to roll out products, HP has been out there building an
installed base. We are expecting 100VG to end 1995 with a 40 percent share
of all Fast Ethernet ports and NICs shipped."

In-Stat's market forecast shows 1995 total sales for Fast Ethernet at $271
million with $97 million in hub sales and another $175 million from NICs.
Of these numbers, 100VG is expected to have roughly 35 percent of dollar
sales with 35 percent to 40 percent of the hub dollars and 30 percent 35
percent of the NIC dollars. The total market forecast is $3 billion by
1999.

"Momentum has been building throughout 1995 with more 100VG vendors
shipping products and customer ranks swelling -- we're really rolling
now," said Gary McAnally, general manager of HP's Roseville (Calif.)
Networks Division. "The bottom line is that there is no longer an issue as
to 100VG-AnyLAN's viability as a technology. It is an accepted standard
with a leadership position in the high-speed market."

A leading supplier of 10Base-T stackable hubs, 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 and remote access products, 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.

HP's fiscal year begins Nov. 1. The data contained in this announcement
does not relate to HP's second fiscal quarter. In-Stat's calendar year
begins Jan. 1. In-Stat measures data in standard calendar quarters.

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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