Court Upholds Judgment for HP Against Repeat-O-Type: Both Parties Agree to No Further Legal Action.

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 2, 1999--

Hewlett-Packard Company and Repeat-O-Type Stencil Manufacturing Corp. today said that they have settled HP's trademark infringement lawsuit against Repeat-O-Type. The settlement comes after the U.S. District Court in San Francisco entered a substantial judgment in HP's favor and granted permanent injunctions against various Repeat-O-Type business practices.

In September 1997, HP succeeded against Repeat-O-Type and its president at the time, Fred Keen, in a jury trial before the court. The jury rendered verdicts in HP's favor on each and every claim against Repeat-O-Type. The jury found Repeat-O-Type and Mr. Keen personally liable for trademark infringement, trademark counterfeiting, false advertising under California and federal law, and unfair competition. The jury awarded punitive damages of $40,000 against Repeat-O-Type and punitive damages of $60,000 against Mr. Keen as an individual.

The U.S. District Court subsequently entered a judgment against Repeat-O-Type and Mr. Keen, and granted HP's request for a permanent injunction against Repeat-O-Type and Mr. Keen, barring them from any future acts of false advertising. HP had previously obtained a permanent injunction against Repeat-O-Type's trademark infringement. The total monetary award in the judgment was approximately $1.7 million, including $255,000 for trebled compensatory damages, $1.31 million for HP's attorneys' fees, $40,000 as punitive damages against Repeat-O-Type, and $60,000 as punitive damages against Mr. Keen.

In response to the jury verdict and the Court's judgment, Repeat-O-Type and Fred Keen filed petitions in bankruptcy court in New Jersey in November 1997. At the time of the settlement, HP, as a creditor, had successfully obtained a judgment against Mr. Keen that he could not discharge his liability for the $1.7 million judgment in bankruptcy.

"This judgment of the Court following a successful jury trial affirms HP's ability to successfully enforce its intellectual property rights," said Antonio M. Perez, president and chief executive officer of HP's Inkjet Imaging Solutions. "While I am pleased to see the end of legal action between the two companies, we intend to continue to vigorously protect our intellectual property rights. There is ample evidence of that currently before other courts."

"We are dropping our remaining appeal against the Court's judgment and acknowledge that the Court found Repeat-O-Type and me liable for trademark infringement, trademark counterfeiting, false advertising and unfair competition," said Fred Keen, Repeat-O-Type's former president, and currently its Director of Sales and Marketing. "While we never intended to infringe HP's rights, the Court's ruling is clear, and we believe it is best to close this chapter for good."

About Repeat-O-Type

Repeat-O-Type Manufacturing Corp. is a family owned corporation that has been engaged in the manufacture of office reprographic products since 1931. The company specializes in cost saving aftermarket supplies for use in inkjet printers and digital duplicating equipment.

Information about Repeat-O-Type and its products can be found on the World Wide Web at www.repeatotype.com.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services for business and home -- is focused on capitalizing on the opportunities of the Internet and the proliferation of electronic services.

HP plans to launch Agilent Technologies as an independent company by mid-calendar 2000. Agilent consists of HP's test and measurement, semiconductor products, chemical analysis and healthcare solutions businesses, and has leading positions in multiple market segments.

HP has 123,500 employees worldwide and had total revenue of $47.1 billion in its 1998 fiscal year. Information about HP, its products and the company's Year 2000 program can be found on the World Wide Web at http://www.hp.com.