HEWLETT-PACKARD CONSOLIDATES COMPUTER ACTIVITIES UNDER BELLUZZO

Technology, Industry Convergence Prompts Change; HP Board Elects Belluzzo
Executive Vice President

Palo Alto, California. August 29, 1995 -- Hewlett-Packard Company today
announced it has consolidated all of the company's computer and
computer-support activities into a single organization and placed them
under the direction of 20-year HP veteran Richard E. Belluzzo. The company
said the consolidation reflects the rapid convergence of markets and
technologies in the global computer industry and will help HP businesses
share their strengths.

Belluzzo, 41, who currently heads HP's Computer Products Organization
(primarily printers and PCs), will now have additional responsibilities
for the Computer Systems Organization (primarily workstations, larger
computer systems and consulting) and the Worldwide Customer Support
Operations. Together, the entities will make up the Computer
Organization.

In recognition of his new responsibilities, the HP Board of Directors has
promoted Belluzzo from senior vice president to executive vice president.
He will continue to report to Lewis E. Platt, HP chairman, president and
chief executive officer.

"Our current organization structure has served us extremely well for five
years, helping to propel HP to the position of second-largest computer
company in the United States and the third-largest in the world," Platt
said. "Our focus on customers and the way we've executed our business
plans have given us a lot of momentum. Now is the time to evolve the
organization to a model that reflects the industry's convergence and
capitalizes on the strengths and synergies among our businesses. By
embracing change now, from a position of strength, we can position
ourselves to sustain the momentum in the new environment.

"We're very fortunate to have a manager of Rick Belluzzo's caliber to lead
this new organization," Platt said. "He has done an outstanding job of
directing our high-volume printer and PC businesses by giving customers
the kind of products they want at the right price, while paying close
attention to cost structures and distribution channels. His experience
makes him ideally suited to capitalize on new, high-growth market
opportunities we see ahead."

Reporting to Belluzzo in the new structure will be Willem P. Roelandts, HP
senior vice president and general manager, Computer Systems Organization;
James L. Arthur, HP senior vice president and general manager, Worldwide
Customer Support Operations; and the existing group general managers in
the Computer Products Organization.

In the computer business, HP is the leader in UNIX* system-based computers,
RISC* system revenues, customer satisfaction (UNIX system-based computers,
PCs, technical support, and network and systems management) as well as in
laser and inkjet printers, scanners and plotters. HP also is a leader in
electronic components, medical and analytical products and systems, and
test and measurement systems used to design, produce and maintain
electronic equipment.

Forces prompting the consolidation

Platt said many aspects of the computer business are converging -
technologies, business models and distribution channels among them - and
together they prompted the consolidation. For example:

Operating-system and microprocessor technology . HP is conducting joint
research-and-development work with Intel Corp. on a next-generation 64-bit
microprocessor architecture that will allow customers full use of the huge
range of software applications written for both the UNIX operating system
as well as all those written for the DOS/Windows operating system. HP
remains committed to providing UNIX and Microsoft NT solutions, and the
consolidation will make it easier for HP to offer a variety of solutions
seamlessly.

Network capabilities. CPO's PC and printer customers increasingly want
network capabilities for their products, a CSO strength as a world leader
in network and systems management.

Channels of distribution. The trend toward sales through resellers is
accelerating for HP's workstations and servers. Today, virtually all CPO
products are sold through dealers and resellers.

Customer support. When making purchase decisions, customers weigh heavily
the quality of pre-sale consulting and after-sales support. HP isa leader
in customer satisfaction on the desktop as well as in multiuser systems
and in technical support for desktop computers, network servers and
printers.

Cost structures. CPO's outstanding cost structures and understanding of
high-volume manufacturing can be leveraged on behalf of other parts of
HP.

Belluzzo joined HP in 1975 as an accountant in its Santa Rosa, Calif.,
plant. He held a variety of accounting and controllership positions in
several divisions, then moved into marketing-management positions
beginning in 1984. He was named an operations manager for the Boise
Printer Operation when it was formed in 1987, and then its general manager
in 1988. He was promoted to general manager of the Inkjet Products Group
in 1991. Early in 1993, he was named general manager of the newly formed
Hardcopy Products Group and elected an HP vice president. Later that year,
he became general manager of the Computer Products Organization. He was
elected a senior vice president earlier this year.

He was born Nov. 26, 1953, in San Francisco and holds a bachelor's degree
in accounting from Golden Gate University, San Francisco.
 
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