GVO, SRI International and SRI Consulting Collaborate to Offer Businesses a Single Source for Breakthrough Product Development.

MENLO PARK, Calif.--(BUSINESS WIRE)--June 8, 1998--

Business Editors

Partnership to Facilitate Identification and Development of New Products for Customers

Three leaders in strategic outsourcing and consulting -- GVO, SRI International and SRI Consulting -- have announced an agreement to offer business customers the advantage of one-stop shopping for concept, design and development of new products.

The combination of these "best of breed" companies will give customers a unique resource for the market, technology and business skills needed for breakthrough product innovations.

Through this unique collaboration, businesses will receive expertise in the full cycle of product innovation and business strategy resulting in competitive advantage and secure top line growth. "Product definition and development process have a great influence on the ultimate success of a new product," said Robert Hall, managing principal of GVO. "We believe that our strategic collaborative approach brings a unique advantage to businesses by offering a complete, precise solution -- from strategy to implementation -- to accelerate the development of innovative products while reducing the risks typically associated with product development."

"Companies have to accurately weigh the costs and risks involved in developing new products," said Dale Ploeger, director of product development at SRI International. "Through this agreement, SRI and GVO offer clients the resources to identify market opportunities, develop product concepts and identify enabling technologies. Our combined skill sets can effectively develop products that will help our customers gain a competitive advantage or enter into new markets."

Single Source Concept

Companies in the consumer, medical, electronics, industrial, appliance and tool markets will benefit from the single source offering made possible by the combined expertise of GVO, SRI International and SRI Consulting: -0-

--   Market Analysis -- GVO, one of Silicon Valley's most respected
     innovation consulting firms, uncovers unmet market needs and
     customer requirements and translates them into breakthrough
     product concepts and technology requests.

--   Technology Innovation -- SRI International, a technology
     innovator for more than 50 years in areas such as medical
     devices, pharmaceuticals, automation, sensors, computer
     technology and software, advanced materials and energy sources,
     identifies advanced technologies that can be leveraged within
     products or throughout the production process.

--   Business Marketing and Consulting -- SRI Consulting provides
     strategic business modeling that links new product development
     initiatives to growth and shareholder objectives, including
     identification of new market opportunities, change management and
     organizational strategies that align a company's teams, processes
     and operations to drive and support rapid growth.

-0-

This integrated approach, called Concurrent Innovation, reduces the complexity and risks of new product development, improves time-to-market and ensures that businesses are positioned for their new role as a product and industry innovator.

Proven Results

Developing breakthrough products demands an in-depth understanding of how each part of the business development cycle works. Each of the three collaborators shares a long-standing reputation as a leader in their respective fields that can benefit businesses in product design, development and marketing. The companies have provided product guidance to companies including Kimberly Clark, Dura Pharmaceuticals, Alza, Toshiba and VISA USA.

About the Experts

GVO provides product innovation consulting to help clients achieve marketplace leadership, change the rules of competition, and apply new understandings of customers throughout the development process.

SRI International is one of the largest research, technology development and consulting firms in the world providing corporations, governments and organizations worldwide with technology research and resources.

SRI Consulting, a wholly owned subsidiary of SRI International, combines strategic business consulting with technology expertise to help companies compete more effectively in changing global markets.

    CONTACT: SRI International
              Alice Galloway, 650/859-2711
              or
              The Weber Group
              Phil Gomes, 650/463-8611