HP, MICROSOFT EXPAND ALLIANCE TO CORPORATE DESKTOP WITH WINDOWS 95 SYSTEMS

New HP Mobile, Desktop PCs and Printers Optimized for Windows 95

Palo Alto, California. August 14, 1995

Hewlett-Packard Company today announced it expanded its corporate server
alliance with Microsoft to include HP desktop, mobile and printer
products, and Windows 95 for the corporate desktop.

As a result, customers are assured of purchasing high-quality HP products
optimized to work with Windows 95 out of the box.

The HP and Microsoft alliance - which includes technology exchange, product
development, marketing and support - mirrors the HP and Microsoft
agreement covering HP's X86-based Windows NT server products and services
announced in May.

Separately, HP also said it is exclusively preinstalling Windows 95 on two
new PC lines - the HP Pavilion PC series for home users and the HP Vectra
500 PC series aimed at small business, small office users. The HP Pavilion
PC family, announced today in the United States, is expected to be
available in U.S. retail outlets starting Aug. 24. The Vectra 500 desktop
PC series is expected to be available in Europe later next month through
select European dealers and retailers.

"We have leveraged our strategic relationship with Microsoft to ensure that
our customers receive HP desktop and mobile products that are fully
compatible with and optimized for Windows 95," said Richard (Rick) E.
Belluzzo, HP senior vice president and general manager of the Computer
Products Organization.

"HP is one of the technology leaders in the computer industry, and they
have been a major contributor to the advances customers will benefit from
in Windows 95," said Bill Gates, chairman and chief executive officer of
Microsoft Corp. "Our long-standing relationship and mutual commitment to
technological innovation provide the foundation upon which we are building
the industry-leading desktop and server products our corporate customers
demand."

Starting next month select HP Vectra PCs and HP OmniBook notebook PC models
will be available in dual-loaded configurations with Windows 95 and
Windows for Workgroups 3.11/MS-DOS 6.22. HP customers will be able to
choose their preferred operating system during the initial boot of these
systems.

"While the HP Vectra/Windows 95 combination delivers real benefits in terms
of ease-of-use and manageability, we want to be sure our corporate
customers have optimal flexibility in their OS migration process," said
Jacques A. Clay, general manager of HP's Personal Computer Division.
"We're assuring HP customers a smooth and convenient transition to Windows
95 by dual loading corporate desktop models."

The HP and Microsoft alliance has numerous additional benefits for Windows
95 users, including those listed below.

* Easy installation and configuration of PCs and peripherals- New HP Vectra
PC and HP OmniBook notebook PC models offer Windows 95 Plug and Play
support, enabling automatic recognition and configuration of Plug and
Playperipherals.

* Improved mobile computing- New HP OmniBook notebook PCs are optimized for
the Windows 95 mobile computingcapabilities, enabling users to "hot-dock"
theirOmniBook PCs into their enhanced port replicator andrecognize new
peripherals without rebooting the system.

* Seamless printing- All new HP LaserJet and HP DeskJet printers are Plug
and Play compatible, with incorporatedinto the Windows 95 operating system
that allow users toprint documents without installing additional
driversoftware. HP's JetAdmin software also has beenintegrated into
Windows 95, enabling remote printerselection and monitoring over the
network.

* Wireless communication- HP and Microsoft jointly developed the infrared
communications capabilitiesbuilt into Windows 95, providing users with a
low-cost,wireless data-exchange option.

* All HP OmniBooknotebook PCs and the LaserJet 5 printers have
infraredcommunication ports that let users transfer documents quickly
without a cable connection.

* Windows 95 support- As one of three worldwide Microsoft Authorized
Support Centers, HP engineers aretrained extensively on Windows 95
migration andsupport, and will be assisting large corporatecustomers
worldwide with the transition to Windows 95.

* Network environments - The Network Phone-in support service for small- to
medium-size businesses nowincludes immediate assistance on installation
andconfiguration of Windows 95 at no additional cost. HP engineers will
answer questions on Windows 95 upgradesin network environments, including
hardware, softwareand network components. The service is availablethrough
HP SupportPack and with hourly rates through atoll-free number.

* Educational opportunities - HP and Microsoft are teaming up to educate
corporate customers and resellerson Windows 95. Two corporate seminar
programs - Windows 95 and the IS Network Professional and Connectto the
Future - already have been conducted this year.Joint reseller training
events also are in progress.
 
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