JetFax Announces Bundling Agreement with Hewlett-Packard; HP is Now Bundling PaperMaster Live v3.1 with its HP SureStore CD-Writer Plus 7200 CD-ReWritable Drive

Business Wire, Feb 23, 1998

MENLO PARK, Calif.--(BUSINESS WIRE)--Feb. 23, 1998--JetFax (NASDAQ:JTFX) today announced that Hewlett-Packard is now bundling a copy of PaperMaster Live v3.1 software with its HP SureStore CD-Writer Plus 7200 CD-ReWritable drive.

A versatile office power tool, PaperMaster Live enables users to create, organize, secure and share electronic file cabinets on CD.

"We are very pleased to be working with an acknowledged industry leader like Hewlett-Packard," says Rudy Prince, CEO of JetFax. "PaperMaster Live is an ideal complement to the HP SureStore product, because it provides users with an effective tool for organizing and managing the large volume of data that this powerful drive is capable of storing."

PaperMaster Live was originally developed and published by Documagix, Inc., a wholly owned subsidiary of JetFax, Inc. that was acquired in a largely stock-based acquisition during December of 1997. JetFax is planning to continue selling and licensing PaperMaster Live through both the retail channel and bundle/licensing agreements.

PaperMaster Live is a full 32-bit Win 95 and NT 4.0 application for organizing all types of scanned, faxed or e-mailed documents and pictures. It is currently the only program that allows users to download and store Web documents together with scanned documents, while maintaining all hot links and keeping all of the information alive.

At a later time, stored Web information can easily be imported into newly created documents for custom presentations and reports. With PaperMaster Live, users can also save important Web information for later review and distribution without the need to print it and lose all hot links, pictures and sound.

"We chose to bundle PaperMaster Live because it is a proven, award-winning solution that will provide HP SureStore users with an effective way to manage all forms of electronic information," said Miles Thorland, HP product manager for ReWritable CD products.

The HP SureStore CD-Writer 7200 drive provides users up to 650MB of removable data-storage capacity, the equivalent of more than 400 standard high-density floppy disks, while retaining compatibility with Industry-standard CD formats. The drive reads data at a 6x transfer speed, and writes at a 2x transfer speed, on both CD-RW and CD-Recordable (CD-R) media.

The internal version has an IDE interface and installs without an adapter card; it simply plugs into a PC's standard hard-drive cable. The external version plugs into a PC's standard parallel port, and features a pass-through connector that allows the drive and printer to both be attached to the PC.

For additional information, contact JetFax by phone at 1-800-7JETFAX or (650) 324-0600, via fax at (650) 326-6003, or visit the company's Internet Web-site at: http://www.jetfax.com.

About JetFax, Inc.

JetFax Inc. is a leading developer and provider of integrated embedded system technology, branded products, and desktop software solutions for the multifunction product market, which combine print, fax, copy, and scan capabilities in a single unit.

The Company focuses on two distinct segments of the MFP market; the small office/home office segment through technology licensing agreements with OEMs and software distribution under the PaperMaster and JetSuite trade names; and the corporate segment through the sale of JetFax and OEM branded products and consumables.

The company's corporate headquarters is in Menlo Park, with development and branch offices in Santa Barbara, Calif.; Portland, Oregon; Dublin, Ireland; Amsterdam and Munich, Germany.

About Hewlett-Packard

HP's Information Storage Group, which focuses on the rapidly growing extended storage market, manufactures and sells information-storage products based on CD, tape and magneto-optical technologies.

HP storage solutions include CD-ReWritable drives, digital audio-tape(DAT) drives and digital-linear-tape (DLT) libraries, minicartridge (QIC) tape drives and software and magneto-optical drives and jukeboxes. These products are sold through a variety of distribution channels under the HP SureStore and HP Colorado brand names, as well as to OEM customers.

HP is the official information technology hardware and maintenance supplier of the 1998 World Cup. Hewlett-Packard Company is the leading global provider of computing, Internet and intranet solutions, services, communications products and measurement solutions, all of which are recognized for excellence in quality and support.

HP has 121,900 employees and had revenue of $42.9 billion in its 1997 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com. -0-

Safe Harbor -- Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The Company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include the following: difficulties in successfully combining the businesses of the Company and DocuMagix; the fact that the Company's markets are characterized by rapidly changing technology, evolving industry standards and frequent introductions of new products and enhancements, and the Company's ability to respond to such changes; difficulties which the Company may experience in completing the development of turnkey designs for OEM customers, its color technology or other products; the fact that the multifunction and color markets targeted by the Company are at an early stage of development; the highly competitive nature of the markets for the Company's products; the Company's ability to attract and retain skilled personnel; the Company's reliance on third party suppliers for components used in the Company's products; the quarterly variability in the Company's bookings and design wins; and the Company's reliance on a relatively small number of OEM customers for a large percentage of its revenue. These and other factors which could cause actual results to differ materially from those in the forward-looking statements are also discussed in the Company's filings with the Securities and Exchange Commission, including its recent filings on Form S-8, Form 10-Q and Form S-1.