HP Introduces New Consumer PC Line at Circuit City Stores; New Multimedia PCs Mark HP's First Retail-market Entry

Business Wire, April 3, 1995

PALO ALTO, Calif.--(BUSINESS WIRE)--April 3, 1995-- Hewlett-Packard Company today announced it will offer a new line of consumer PCs through Circuit City Stores Inc., one of the nation's largest retailers of brand-name consumer electronics and major appliances, and a leading PC retailer, with more than 300 locations nationwide.

HP's consumer PC line is scheduled to be available at Circuit City starting mid-April. The new line of HP multimedia PCs includes three models based on Intel 60, 75 and 90MHz Pentium(tm) processors and is entry-level priced from $1,699 (U.S.) to $2,299 (U.S.). This marks the first step in HP's move into the consumer PC market.

"Circuit City is excited to be the first retailer selling HP's first consumer PC line," said Kenneth W. Beaver, Circuit City's assistant vice president of merchandising. "We believe Circuit City is a natural partner for HP's first venture into the consumer PC market. Our sales counselors are trained to deliver exceptional service and provide the information consumers want when purchasing computer technology. The HP name is synonymous with quality, reliability and leadership technology -- characteristics consumers expect from Circuit City."

MULTIMEDIA-READY, LEADING SOFTWARE BUNDLED

HP's initial consumer PC models, designed expressly for the retail market, include full multimedia capabilities, a friendly interface for a range of user skill sets, 16-bit sound cards, stereo speakers. The P60 model comes equipped with double-speed CD-ROM and a 540MB hard drive. The P75 and P90 models come equipped with quadruple-speed CD-ROM, a 850MB hard drive and additional telephony features, including fax modems and built-in speakerphones. The PCs also come loaded with an extensive selection of productivity, personal-finance, education, entertainment, communication-program software and CD-ROMs. Titles include WordPerfect Works, Quicken SE, Compton's Interactive Encyclopedia and Compton's NCE & Reference Collection, Microsoft(R) Home CD Sampler and WordPerfect Wallobee Jack: Secret of the Sphinx.

HP QUALITY WARRANTY AND SUPPORT SERVICES

The new PCs have a one-year, limited on-site warranty for hardware. All HP consumer-PC buyers have access to a toll-free, 24-hours-a-day, 365-days-a-year, phone-support service as well as on-line support through HP's Support Forum on America Online, CompuServe, BBS and Internet services. This same toll-free phone-support service also is available for presales information beginning April 3.

NEW RETAIL-MARKET THRUST

The new consumer multimedia PCs are being developed and marketed by HP's Home Products Division (HPD). HPD was created to focus exclusively on the home consumer.

"In the past two years, HP has emerged as the fastest-growing PC vendor for the corporate market," said Harry W. (Webb) McKinney, general manager of HP's Home Products Division. "With an affordable, high-quality consumer PC line and strong retail programs, we have an opportunity to replicate that growth in the home market."

Currently, HP also distributes a host of market-leading products through U.S. retail outlets, including HP LaserJet and DeskJet printers, HP ScanJet scanners, HP OmniBook notebook PCs, HP palmtop PCs and HP calculators, and tape backup products.

Circuit City Stores, Inc. (NYSE: CC) has produced sales of over $5.58 billion for fiscal year ending Feb. 28, 1995. With headquarters in Richmond, Va., it operates 308 Superstores, four Circuit City stores, five consumer electronics-only stores and 35 mall-based Circuit City stores throughout the United States.

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 98,200 employees and had revenue of $25 billion in its 1994 fiscal year. -0-

NOTE TO EDITORS: Pentium is a U.S. trademark of Intel Corp. Microsoft is a U.S. registered trademark of Microsoft Corp. WordPerfect Works and WordPerfect Wallobee Jack are products of Novell, Inc. Quicken is a product of Intuit, Inc. Compton's Interactive Encyclopedia and Compton's NCE & Reference Collection are products of Compton's NewMedia, Inc.

CONTACT: Hewlett-Packard Co.

Larry Sennett, 408/553-2916

Alexander Communications for HP

Amy Clifford, 415/923-1660