HEWLETT-PACKARD AND INTEL COOPERATE ON MICROPROCESSOR-BASED 
     ENTERPRISE COMPUTING TECHNOLOGIES
     
     SANTA CLARA & PALO ALTO, Calif., June 8, 1994, -- Hewlett-Packard 
     Company and Intel Corporation today announced a joint 
     research-and-development project aimed at providing advanced 
     technologies for end-of-the-decade workstation, server and 
     enterprise-computing products.  The companies' efforts will encompass 
     64-bit microprocessor designs, advanced semiconductor processes and 
     software optimization.
        HP is the second-largest computer company in the United States and 
     is the leading supplier of open-computing solutions for small to large 
     companies.  Intel, the world's largest chip maker, is a leader in 
     providing high-volume microprocessors for cost-effective desktop 
     computing.
        The companies said that by pooling their respective strengths, they 
     expect to create powerful new solutions that will deliver 
     unprecedented performance to meet the needs of users well into the 
     next century.  The planned architecture will  maintain binary 
     compatibility* with both companies' software bases.
        The companies said they will work toward optimizing their 
     fundamental technologies to enhance their future product lines.  The 
     work will be conducted jointly to take full advantage of complementary 
     capabilities in the two companies.
        "This effort with Intel is aimed at providing a unified computing 
     infrastructure that accomplishes three fundamental goals: to preserve 
     current customer investments, ready corporate customers for the next 
     century and offer high-volume cost models," said Richard W. Sevcik, HP 
     group general manager, Systems and Server Group.  "Intel brings 
     unparalleled high-volume semiconductor process technology, 
     leading-edge design tools and an installed base estimated at 150 
     million personal computers."
        Albert Yu,  Intel senior vice president, general manager, 
     Microprocessor Products Group, said,  "This is the linkage of our 
     expertise as a merchant market supplier of  tens of millions of 
     microprocessors annually, with HP's strength as a provider of high- 
     performance, Precision Architecture*-based workstations, servers and 
     enterprise- computing systems.  As we plan for the future, we think 
     this is a very complementary mix."  
        Both companies have long histories of providing their customers 
     with ever- increasing performance and software-investment protection 
     through binary compatibility and are committing significant resources 
     to the cooperation.
        The companies expect to submit the proposed project for  review 
     under the Hart-Scott-Rodino Act.
        Intel, the world's largest chip maker, is also a leading 
     manufacturer of personal computer, networking and communications 
     products.
        Hewlett-Packard Co. is an international manufacturer of measurement 
     and computation products and systems recognized for excellence in 
     quality and support.  The company's products and services are used in 
     industry, business, engineering, science, medicine and education in 
     approximately 110 countries.  HP has 97,000 employees and had revenue 
     of $20.3 billion in its 1993 fiscal year.
     
     *Binary compatibility means customers' currently installed software 
     will run without modification and without performance penalty.
     * Precision Architecture - or PA-RISC - stands for HP's Precision 
     Architecture reduced-instruction-set computing.