HP INTRODUCES FIRST LOW-COST PENTIUM PROCESSOR PC LINES

Sets New Price/Performance Standard with Pentium Processor PCs Starting
under $1,500

Palo Alto, California. March 3, 1995 -- Establishing a new standard for
price/performance in desktop PCs, Hewlett-Packard Company today introduced
the industry's first low-cost Pentium processor-based PC lines, the HP
Vectra VE and Vectra VL Series 3 PCs.

Starting at an estimated selling price of under $1,500, the unprecedented
price/performance levels lead the industry in establishing Pentium
processor PCs as the standard for corporate customers. The new HP Vectra
PCs combine affordability and reliability with maximum performance.

"Today signifies the arrival of Pentium processor desktop PCs as the
standard for corporate customers," said Jacques A. Clay, general manager,
HP's Personal Computer Division. "HP will drive this evolution to the
Pentium processor by providing superior price/performance and reliability
across its Pentium-based lines."

The HP Vectra PC family includes the following aggressively priced
desktops: the HP Vectra VE PCs, which include 75MHz and 90MHz Pentium
processor systems for mainstream business needs, and the HP Vectra VL PC
models, which include 75MHz, 90MHz and 100MHz Pentium processors for more
advanced office applications.

For comparison, an HP Vectra VE/75 PC with 8MB RAM and a 270MB hard drive
has an estimated selling price of $1,600 -- almost 20 percent lower than
any comparable Compaq Prolinea model based on the earlier-generation
486DX4/100 processor.

The HP Vectra VL PC models, configured with 840MB hard drives and either
75-, 90- or 100MHz Pentium processors, start at $1,900 and are priced up
to 26 percent less than similarly configured Compaq Deskpro XE models
based on 60MHz Pentium processors. The same HP Vectra VL PC models,
configured with 420MB hard drives, start at $1,800 and are priced up to 22
percent less than similarly configured IBM PC350 desktops.

All new HP Vectra VE and VL PCs come standard with DMI code preloaded for
superior network manageability. The new HP PCs also include the
award-winning Borland Dashboard software, the fastest way to work with
Windows.

HP also announced significant price reductions on existing HP Vectra PC
lines and added new models to the HP Vectra XU PC product line, which now
includes 75MHz Pentium processor systems as well as 90MHz and 100 MHz
models. HP Vectra XU PCs are designed for the highest-performance graphics
and business applications.

A recent survey indicates that Pentium processor systems will account for
up to 34 percent of overall projected Fortune 1,000 PC purchases in 1995
-- up from 11 percent in 1994. HP now offers the widest range of Pentium
processor systems for the corporate marketplace, with each of the new HP
Vectra PC lines offering a specific feature-set to best meet the price and
performance needs of the target customer.

"Pentium processor performance is critical for customers using today's
applications requiring enhanced graphics and multimedia capability," said
Carl Everett, senior vice president and general manager of the
Microprocessor Products Group. "HP proves that the time is now for the
Pentium processor and has established an aggressive price/performance
point for customers seeking value and investment protection."

HP Vectra VE PC

The HP Vectra VE PC is designed for an entry-level corporate or
small-business environment in need of greater processing power at an
entry-level price. Offered in several 75MHz and 90MHz Pentium processor
configurations, these PCs provide the performance and features required
for most general office applications.

The HP Vectra VE PCs ship with 4MB or 8MB RAM (upgradeable to 128MB),
optional 256KB second-level cache and 1MB video DRAM. In addition, the HP
Vectra VE PCs offer four standard ISA slots for add-on adapter cards and a
32-bit graphics controller and Enhanced-IDE controller linked to the
Peripheral Component Interface (PCI) bus.

These features, combined with the added power of the 75MHz and 90MHz
processors, boost overall system performance an average of 25 percent to
45 percent, respectively, over 60MHz Pentium PCs.

Additionally, a Zero Insertion Force socket on the motherboard of the HP
Vectra VE PC allows users to protect their investment by upgrading to the
Pentium OverDrive processor in the future. The systems are designed for
Windows 95.

The HP Vectra VE PC starts at an estimated selling price of $1,250.

HP Vectra VL Series 3 PCs

The HP Vectra VL PCs include a range of value-priced Pentium processor
systems for mainstream and advanced office applications, striking an
optimal balance among processor, graphics and disk performance at a
competitive price.

HP Vectra VL PCs come in 75MHz, 90MHz and 100MHz Pentium processors
configurations, with 8MB RAM standard (upgradeable to 192MB). All models
feature 256KB second-level cache; a complete set of subsystems linked to
the PCI bus; dual-channel, Enhanced-IDE controllers; and PCI expansion
slots for adding fast-performance boards.

The video subsystem of the HP Vectra VL PC features an integrated 64-bit
graphics controller and support for up to 2MB DRAM. This provides
exceptionally fast graphics performance for advanced office applications
and resolutions of up to 1,280 x 1,024 and up to 16.7 million colors.

The HP Vectra VL PCs are designed for Windows 95; they start at an
estimated selling price of $1,500.

HP Vectra XU PC

The HP Vectra XU PC started shipping in August, 1994, in several 90MHz
Pentium processor configurations with dual-processing support. After
receiving wide recognition for performance and advanced design, an
upgraded product line now features 75MHz, 90MHz and 100MHz models,
incorporating today's most advanced technologies.

All HP Vectra XU PCs feature an advanced cache-memory architecture and a
complete set of subsystems linked to the PCI bus. Users have a choice of
two levels of professional, 64-bit graphics subsystems. The HP Vectra XU
5/75 and 5/90 PCs have an integrated HP Ultra VGA2 PCI graphics subsystem
based on the Vision-864 controller from S3. The HP Vectra XU 5/90C and
5/100C PCs have a modular Matrox MGA Impression Plus 64-bit PCI graphics
controller, which provides one of the fastest graphics engines on the
market and enables features such as full-screen video playback and
real-time 3-D graphics.

An additional, the Level-5 CPU socket on the motherboard enables
dual-processing, making the HP Vectra XU PC an ideal system for advanced
business applications in such fields as computer-aided design, software
development and desktop publishing. The HP Vectra XU PC starts at an
estimated selling price of $2,200.

Standard Configurations

All of the new HP Vectra VE, VL and XU PCs ship with a variety of
ease-of-use, security and manageability utilities. All models include
Desktop Management Interface software preloaded in an easy-to-use,
Windows-based format, as well as HP User Tool and Borland's Dashboard.

Resellers currently are taking orders for HP Vectra VE, HP Vectra VL and HP
Vectra XU PCs. All HP PCs are covered by a three-year, limited warranty
with one-year, on-site coverage.

HP Vectra PCs have been widely recognized for outstanding performance,
reliability and innovative system design. In J.D. Power and Associates'
1994 Desktop Personal Computer Customer Satisfaction Study, HP Vectra PCs
had the highest overall customer-satisfaction ranking among business end
users, surpassing all other major brands. HP also was awarded the Computer
Reseller News Channel Partner Award and the Environmental Protection
Agency 1994 Outstanding Partner Award.

All prices are estimated selling prices in U.S. dollars.

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