New HP OmniBook XE2 Notebook PC to Offer Enhanced Computing Power in a Reliable, Value-priced Package.

PALO ALTO, Calif.--(BUSINESS WIRE)--Aug. 9, 1999--

New Notebook PC to Feature Intel Pentium II 366MHz Processor,

Chinese-character-recognition Capabilities

Hewlett-Packard Company today announced that a new version of the HP OmniBook XE2 notebook PC will feature an Intel Pentium(R) II 366MHz processor, offering customers powerful mobile computing at a great value. In addition, the HP OmniBook XE2 notebook PC will be the first notebook PC available in China to feature built-in Chinese-character-recognition capabilities.

The HP OmniBook XE2 notebook PC line has proven to be popular with both small- and medium-sized business customers, as well as enterprise customers who require the convenience of an all-in-one design, superior reliability, performance and competitive pricing.

"HP's strategy with the OmniBook XE2 notebook PC line has been to incorporate the technology its customers need, while maintaining the price points they demand," said Paul Morgan-Witts, product-marketing manager for HP's Mobile Computing Division. "We have achieved success with this product line because we deliver the three critical features customers look for in a notebook PC -- price, performance and reliability."

Intelligent Design

According to HP research, the all-in-one design of the HP OmniBook XE2 notebook PC is extremely reliable, as evidenced by single-digit annual failure rate (AFR) figures that fall well below the industry average.

The HP OmniBook XE2 notebook PC features a built-in hard drive, floppy-disk drive and CD-ROM drive, eliminating the need to transport and swap additional components. A built-in 56Kbps modem provides instant connectivity, and the notebook's dual-display capabilities make it ideal for presentations. External control buttons enable users to play music CDs without powering up the computer, and the contoured surface makes it easy to remove the computer from its carrying case.

Estimated U.S. street prices for HP OmniBook notebook PCs start as low as $1,399(1). The newest feature-packed HP OmniBook XE2 notebook PC is expected to sell for an estimated U.S. street price of $2,399(1) and will offer the following: -0-

     --   Intel Pentium II 366MHZ processor;

     --   6.2GB hard drive;

     --   64MB SDRAM, expandable to 256MB;

     --   128-bit graphics controller with 2MB embedded DRAM;

     --   13.3-inch XGA TFT display;

     --   built-in 24X CD-ROM drive and floppy-disk drive;

     --   built-in 56Kbps V.90 standard compatible modem;

     --   Microsoft(R) Windows(R) 95, Windows 98 or Windows NT(R) 4.0,
          with McAfee VirusScan and System Diagnostics by HP DiagTools
          2.0 pre-installed;

     --   weight of 6.38 pounds with lithium-ion battery; and

     --   optional port-replicator and memory-module accessories.

-0-

Global Innovation

Expanding its global reach, HP will include a Chinese-character-recognition feature on the new HP OmniBook XE2 notebook PCs shipping in China. HP will be the first notebook-PC vendor to incorporate QuickStroke technology from Synaptics to provide a fast, easy and accurate way for users to input Chinese characters.

As the user writes with his or her finger on the touchpad of the HP OmniBook XE2 notebook PC, QuickStroke software analyzes each stroke and updates a list of possible characters, greatly reducing the number of strokes needed to input a Chinese character and improving accuracy. Using this new technology, HP OmniBook XE2 notebook PC customers in China will be able to input characters faster than writing them on paper.

More information about HP OmniBook notebook PCs is available on the Web at www.hp.com/omnibook. In addition, U.S. customers can purchase the new HP OmniBook XE2 notebook PC online via the HP Business Store, located at www.bstore.hp.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 had computer-related revenue of $39.5 billion in its 1998 fiscal year.

HP plans to launch a new company consisting of its industry-leading test-and-measurement, semiconductor products, chemical-analysis and medical businesses. These businesses represented $7.6 billion of HP's total revenue in fiscal 1998. With leading positions in multiple market segments, this technology-based company will focus on opportunities such as communications and life sciences.

HP has 123,000 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.

(1) Actual prices may vary.

Pentium is a U.S. registered trademark of Intel Corporation.

Microsoft is a U.S. registered trademark of Microsoft Corp.

Windows is a U.S. registered trademark of Microsoft Corp.

Windows NT is a U.S. registered trademark of Microsoft Corp.