HP INTRODUCES NEW CONSUMER PCS FOR THE HOME

HP Pavilion Multimedia PC Line Sports Sleek Industrial Design and Microsoft
Windows 95 at Competitive Prices

Palo Alto, California. August 14, 1995

Hewlett-Packard Company today announced a new family of personal computers
designed expressly for today's home-computing environments - the HP
Pavilion PC.

Among the first PC lines to be immediately available to consumers with
Microsoft's Windows 95 operating system preinstalled, the HP Pavilion PC
is a multimedia PC that includes such consumer-friendly features as
personalized user interfaces; and sleek, modern desktop and minitower
designs.

"We're delighted that HP has one of the first new lines of
single-operating-system consumer PCs built from the ground up to optimize
the ease-of-use benefits in Windows 95," said Brad Chase, general manager
in the Personal Systems Division at Microsoft. "Windows 95's ease of use
combined with the HP Pavilion PC design is sure to be a winner with
customers."

Entry priced at $1,499 (U.S.), the new HP PCs are available later this
month at leading U.S. retailers, including Best Buy, Circuit City,
CompUSA, Computer City, Incredible Universe, Micro Center, Office Depot,
OfficeMax and Staples.

Designed for home users, the look of HP's new consumer PCs was created by
Lunar Design, Inc., a design firm recognized in the industry. A balance of
form and function was accomplished with styling and space-saving
footprints, easy-to-find front panel volume/mute controls and power
switches, and removable speakers with retractable power cords.

The HP Pavilion PC family includes eight high-performance models based on
the Intel Pentium(tm) 75, 90 and 100MHz processors, as well as an AMD DX4
100MHz processor. The Intel Pentium 120 and 133MHz models will be
available in the Fall. HP Pavilion PC hard drives range from 635MB to
1.6GB and RAM ranges from 8MB to 16MB.

Designed with Home Computing Enthusiasts in Mind

Designed to simplify and demystify home computing for novice and
experienced users alike, the HP Pavilion PC provides color- and icon-coded
cables, an easy-to-follow "welcome mat" guide and on-line tutorials to
make setting up the PC simple and quick.

HP Pavilion PCs also offer consumers an easy way to organize files and
applications with the HP Personal Page shell. Each family member has a
choice of three user-interface styles, including a colorful comic-book
interface, so that each person has their own personalized interface when
using the HP Pavilion PC. A "kid-mode" security feature allows users to
"child-proof" the system and protect important files.

"Not only will users find all the latest features and software in the HP
Pavilion PC, but they'll own a system backed by the quality and
reliability consumers expect in HP products," said Harry W. (Webb)
McKinney, general manager of HP's Home Products Division.

True Plug-and-Play Multimedia

A gateway to the world of multimedia and on-line services, the HP Pavilion
PC family is among the first new lines of PCs to take advantage of the
Microsoft Windows 95 operating systems powerful functionality and
plug-and-play multimedia capabilities. The new PC series offers a full
range of high-quality sound and telephony features, including Altec
Lansing stereo speakers, built-in microphone and sound system, voicemail
and full-duplex speakerphone capabilities, as well as 14.4Kbps and
28.8Kbps fax/data modems. Direct access to all the major on-line services
(America Online, CompuServe, PRODIGY, Microsoft Network) offers Pavilion
PC users choice in selecting the best on-line service for their needs.

Complete Software, CD-ROM Title Bundle

HP Pavilion PCs come with an extensive software bundle, including leading
reference, education, entertainment, communication, productivity and
personal finance titles such as Microsoft Works for Windows 95, Microsoft
Encarta 95, Microsoft Bookshelf 95, EasyPhoto, Memphis Math and Quicken
SE.

Warranty and Support Services

The HP Pavilion PCs have a one-year limited on-site warranty for hardware.
All HP Pavilion PC buyers can access to a toll-free hotline
(1-800-PCHOME1) for assistance 24 hours-a-day, 365 days a year. The HP
Pavilion PC also provides on-line assistance through HP's Support Forum
via America Online, CompuServe, HP's BBS (208-344-1691) and the Internet.

HP Consumer and Retail Focus

HP Pavilion multimedia PCs are being distributed exclusively through the
retail channel. The PCs are developed and marketed by HP's Home Products
Division. HP distributes a host of market-leading products through U.S.
retail outlets, including HP LaserJet and DeskJet printers, HP ScanJet
scanners, HP OmniBook notebook PCs, HP 200LX palmtop PCs and HP
calculators, and tape backup products.
 
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