Logistix And Hewlett-Packard Announce Strategic Outsourcing Partnership; Logistix to Provide All Warehousing, Fulfillment, and Distribution Services to HP Software & Information Delivery Operation Division

Business Wire, Nov 27, 1995

FREMONT, Calif.--(BUSINESS WIRE)--Nov. 27, 1995--Logistix, the world's largest independent turnkey software manufacturer, today announced a strategic outsourcing partnership with Hewlett-Packard Co. for HP's Software & Information Delivery Operation (SIDO).

Under the terms of the agreement, Logistix will provide all warehousing, fulfillment and distribution services to SIDO.

Logistix was chosen by Hewlett-Packard after a year long evaluation process in which 14 other outsourcing service providers were evaluated. The project was implemented by HP as part of a strategic move to improve SIDO's competitive advantage by outsourcing appropriate operational activities. SIDO handles the production of software products and support materials for all Hewlett-Packard computing platforms.

"We are extremely pleased to have been chosen by Hewlett-Packard's SIDO group," said Murrali Rangarajan, president of Logistix.

"Our World Class Manufacturing processes and commitment to quality combined with the strategic relationship with HP SIDO promises to result in superior products being delivered to customers quickly and efficiently. We look forward to a sustained mutually beneficial relationship."

As its initial project with SIDO, Logistix recently handled the fulfillment and distribution of the largest software release in HP's history. Going forward, Logistix will be responsible for managing HP's inventory of software materials which equates to greater than 50,000 sku's. Since it began working with SIDO, Logistix has succeeded in tripling SIDO's daily shipment volumes and reduced overhead costs approximately 40 percent.

"Logistix was chosen as SIDO's software delivery service provider due to the company's plan to blend their quality focused culture and value-added engineering capability with HP's complex network of systems and processes," said Scott Nyulassy, production manager for SIDO at Hewlett-Packard.

"Logistix has been commissioned to simplify our materials handling and delivery processes -- thus reducing costs, guaranteeing superior quality, and making this a profitable endeavor for its stakeholders-- all of which must be achieved within the confines of a pre-existing delivery systems architecture."

Hewlett-Packard Co. is a leading global manufacturer of computing, communications and measurement products and services recognized for excellence in quality and support. HP has 99,900 employees and had revenue of $25 billion in its 1994 fiscal year.

Founded in 1974 and headquartered in Fremont, Logistix is a world leader in software manufacturing and outsourcing services for high- technology companies. The company's core competency is integrated supply chain management.

Services include consulting, project management, supply base management, hardware configuration, printing, disk duplication, CD-ROM replication, Microsoft Authorized Replication, localization, packaging, fulfillment and distribution, third-party licensing and royalty management, telemarketing, telesales, and complete call center services.

CONTACT: Logistix, Fremont

Grant Evans, 510/498-7142

gevans@logistix.com

or

Miller/Shandwick Technologies

Anne Gowan or Staci Sheppard, 415/962-9550

agowan@millerwest.com

ssheppard@millerwest.com