HP and WorldGate Communications Team To Integrate Broadband PC and TV Internet Access; TV On-Line from WorldGate Communications and HP's Broadband Internet Delivery System to Help Internet Become Universally Accessible.

ANAHEIM, Calif.--(BUSINESS WIRE)--Dec. 11, 1996--Hewlett-Packard Company and WorldGate Communications today announced a major alliance that will enable cable operators to integrate HP's Broadband Internet Delivery System (HP BIDS) and WorldGate's innovative TV On-Line (TVOL) Cable service. This joint effort is expected to provide consumer access to the Internet through television sets equipped with set-top converters and PCs equipped with broadband modems. The announcement was made here at the Western Cable TV Show, which is being held Dec. 11 through Dec. 13.

HP BIDS is a fully integrated, scaleable, end-to-end solution that currently enables cable operators to offer customers access to the Internet and on-line services via a PC and broadband cable modem. WorldGate's TVOL service allows cable operators to offer subscribers low-cost access to the Internet without requiring that they have a PC or any other in-home computer equipment.

The combination of HP BIDS and TVOL allows cable operators to conveniently offer subscribers both high-performance Internet access via a PC or low-cost access via TV through an analog or digital set-top converter. Cable operators now can leverage their broadband Internet server and converter investments to minimize the financial and technical barriers to entry into the Internet-access business.

"This is an important alliance for WorldGate because we believe HP can accelerate the nationwide deployment of TVOL by providing cable systems with an integrated and scaleable Internet-access platform," said Hal Krisbergh, chairman and chief executive officer of WorldGate.

"More than 65 percent of U.S. households still do not have a PC, making it virtually impossible for these people to gain access to the Internet," said Gail Hamilton, general manager of HP's Telecom Platform Division. "This alliance with WorldGate allows HP to extend our high-speed data solutions to the very large installed base of cable TV subscribers and enhances the overall business case for cable operators entering the Internet-access business."

TVOL is one of the first cable-based services to bring the Internet to households at an extremely low cost. With it comes all the existing benefits of the Internet, along with channel hyperlinking, which gives subscribers instant access to a Web site related to the TV channel being viewed.

In addition to Internet access, the TVOL and HP BIDS technologies provide World Wide Web access, e-mail, chat, news groups and a variety of information offerings. TVOL also provides a customized browser interface for even non-computer-knowledgeable consumers while emphasizing the entertainment focus of TV-centric applications. No installation is necessary; access speeds are 300 percent faster than telephone modems; and there is no equipment for the subscriber to purchase.

The HP Broadband Internet Delivery System is an end-to-end solution tailored for cable operators and telephone companies that want to provide broadband data services to their customers. The seamless integration of content, security and broadband Internet servers -- along with sophisticated subscriber management and network operations management -- allows fast time to market for operators hurrying to capitalize on the Internet boom. The high access speed available with cable is a key advantage for users accessing graphics, video and multimedia applications over the Internet. Such applications require much more bandwidth than that required for basic data and voice. The HP solution also offers superior scaleability -- a single HP system can serve thousands of users.

The BIDS servers, coupled with TVOL's Multi-user Client and Converter Communications Manager -- both of which are located at the cable head-end -- centralize the computer processing necessary to handle communications with the Internet. Software developed by WorldGate enables the set-top converter to function as a remote graphics terminal. The subscriber's interface to TVOL is the existing remote control device provided with the set-top converter.

WorldGate Communications, located in Trevose, PA, offers a cable TV service, TV On-Line, which enables consumers to have low-cost access to the Internet using existing cable converters and consumer TV sets.

Hewlett-Packard Company is a leading global manufacturer of computing, communications and measurement products and services recognized for excellence in quality and support. HP has 112,00 employees and had revenue of $38.4 billion in its 1996 fiscal year.

Information about HP and its products can be found on the World Wide Web at http://www.hp.com. Information about WorldGate and its TVOL service can be found at http://www.wgate.com.

CONTACT: Hewlett-Packard Co.

Jeffrey Scott, 408/447-0851

or

WorldGate

Ed Lee, 215/953-7511