Hewlett-Packard Co. selects Cheyenne Software as provider of desktop solutions for HP/CMS Tape Drives; Through Strategic OEM/Licensing Agreement, Cheyenne Continues to Move Aggressively into the Desktop PC and Retail Marketplace

Business Wire, July 10, 1996

ROSLYN HEIGHTS, N.Y.--(BUSINESS WIRE)--July 10, 1996--Cheyenne Software, Inc. (AMEX: CYE) today announced that it has entered into a strategic relationship with Hewlett-Packard Company (NYSE: HWP) under which it will license HP's Colorado Memory Systems Division's Colorado Backup for DOS, Windows, and Windows 95 software applications. Cheyenne will combine Colorado Backup's easy-to-use graphical interface with the robust functionality of its own recently announced Cheyenne Backup to offer a best-of-breed desktop backup application for the consumer, SOHO (Small Office/Home Office) and corporate markets.

Additionally, HP's Colorado Memory Systems Division (HP/CMS) will bundle the new Cheyenne Backup with all HP QIC/Travan tape devices on a worldwide basis beginning in early 1997. This two-part agreement makes Cheyenne the exclusive provider of desktop backup software for HP/CMS tape devices, as well as for other storage devices in which HP/CMS chooses to include backup software.

Cheyenne will pay Hewlett-Packard a fee for the licensing of Colorado Backup. This payment will be recorded by Cheyenne as a one-time expense for purchased R&D in FQ496; the expense is estimated to be approximately 4 cents per share, net of income taxes. In turn, Cheyenne will receive a royalty from Hewlett-Packard for every tape device it ships with the new Cheyenne Backup.

Cheyenne will be holding an investor conference call on Monday, July 22nd, 1996 at 4:15 pm (EDT) to discuss this transaction and to update the investment community on other Cheyenne initiatives.

"This agreement, which reinforces our recently announced initiative in the desktop and retail marketplace, significantly enhances Cheyenne's position as a major provider of desktop backup solutions," said Richard M. Onyon, director of business development for desktop products at Cheyenne Software. "We are excited about the opportunity to leverage HP's strong presence in the retail channel and combine it with our storage management expertise to further expand both companies' reach in the mass market."

"Cheyenne's technological strength and market leadership in the network backup arena make it an ideal business partner," said Gary Kaiser, marketing manager of HP's Colorado Memory Systems. "Our relationship with Cheyenne will enable our mutual customers to obtain a high level of backup on the desktop in a convenient, easy-to-use solution."

Announced last month, Cheyenne Backup combines the power and ease-of-use of Windows 95 with Cheyenne's award-winning backup technology to provide a high- performance data backup and disaster recovery solution for mobile and desktop PC users. It is the only desktop backup product to include a disaster recovery scheme, enabling users to reboot and fully restore a PC that has lost data with only a single floppy disk. Additionally, it is the only backup solution to offer built-in anti-virus technology that scans files while a backup is in progress, automatically preventing infected files from reaching the backup media.

Colorado Backup is a full-featured backup application for DOS, Windows and Windows 95 operating systems, and uses HP/Colorado brand tape drives such as the Jumbo, Trakker, T4000s, T1000, PowerTape, and HP's SureStore DAT drives. Currently bundled within the Windows 95 operating system, Colorado Backup provides a highly intuitive user interface for performing desktop backup tasks.

By combining Colorado Backup's ease-of-use with the high-end functionality and device support of Cheyenne Backup, Cheyenne provides users with a technologically superior product that is not only easy to use but compatible with the widest array of backup media.

About Hewlett Packard Co.

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 108,300 employees and reported revenue of $31.5 billion in its 1995 fiscal year.

HP entered the information storage business 25 years ago when it began manufacturing and selling hard-disk drives. Today, HP's Information Storage Group has grown to more than $1.5 billion in revenue (FY 1994) with a complete line of information-storage products for computers and computer networks. HP information-storage options include disk drives and disk arrays, magneto- optical drives and jukeboxes, digital-audio-tape drives and libraries, digital-linear-tape libraries, Travan tape drives, quarter-inch- cartridge tape drives, and CD-Recordable drives. Products are sold through a variety of distribution channels under the Colorado and SureStore brand names as well as to OEM customers.

About Cheyenne Software, Inc.

Cheyenne Software, Inc. is an international developer of storage management, security and communication software solutions for the Novell NetWare, Windows NT, Windows 3.1, Windows 95, UNIX, Macintosh and OS/2 markets. Its products include Cheyenne(R) HSM, JETserve(TM), InocuLAN(R), FAXserve(TM) and its flagship product line, the ARCserve(R) family of network backup software, among other desktop and enterprise offerings. Cheyenne's products are distributed though reseller channels, retail, original equipment manufacturers and a direct force. Cheyenne can be contacted at (800) 243-9462 (US or Canada) or (516) 465-4000, or by visiting its WWW home page at: http://www.cheyenne.com.