HP PCs Set New Rockwell Standard; Multiyear Deal Supports Rockwell's New Strategic Sourcing Initiative

Business Wire, July 13, 1999

PALO ALTO, Calif.--(BUSINESS WIRE)--July 13, 1999--

Hewlett-Packard Company today announced that Rockwell, a world leader in electronic controls and communications, has chosen to standardize its Intel processor-based computing platforms on the HP brand.

HP Vectra corporate PCs, HP OmniBook notebook PCs, HP Kayak PC Workstations and HP NetServer PC systems will be deployed throughout Rockwell's worldwide business operations. Rockwell has committed to purchasing at least $100 million in HP products during the course of the multiyear deal.

According to Rockwell, the move to standardize on HP PC systems is a key element of the company's recently deployed Strategic Sourcing Initiative (SSI), a program focused on consolidating the company's supply base and leveraging total purchasing volumes on a global scale with selected world-class suppliers. The sourcing of computing needs from HP will enable the company to drive down its total cost of ownership through standardized platforms, common images, services and support.

"HP has provided Rockwell with the best solution for PC hardware and support," said Jim Hart, Rockwell vice president, strategic sourcing and chief procurement officer. "HP will be working with us to lower costs while providing the quality, service and innovation that we require."

HP has been partnering with Rockwell to help streamline acquisition and deployment of IT products and services across its worldwide businesses. This effort includes a customized Web site with links to HP and its strategic partners for access to procurement, product catalogs, technical white papers and support services. The Web site is representative of HP's increasingly customer-focused business model.

"We're a strong proponent of Rockwell's sourcing initiative and its inherent focus on a strategic customer/supplier relationship," said Duane Zitzner, president and chief executive officer for HP Computer Products. "Today we expect customers to evaluate the way we do business as closely as they scrutinize our products, and Rockwell's selection exemplifies how we are evolving our business model to meet these needs, today and in the future."

About Rockwell

Rockwell is a $7 billion electronic controls and communications company with global leadership market positions in industrial automation, avionics and communications, and electronic commerce. The company employs about 40,000 people at more than 450 locations serving customers in more than 80 countries.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services for business and home -- is focused on capitalizing on the opportunities of the Internet and the proliferation of electronic services.

HP had computer-related revenue of $39.5 billion in its 1998 fiscal year. HP plans to launch a new company consisting of its industry-leading test-and-measurement, semiconductor products, chemical-analysis and medical businesses. These businesses represented $7.6 billion of HP's total revenue in fiscal 1998. With leading positions in multiple market segments, this technology-based company will focus on opportunities such as communications and life sciences.

HP has 123,000 employees worldwide and had total revenue of $47.1 billion in its 1998 fiscal year. Information about HP, its products and the company's Year 2000 program can be found on the World Wide Web at http://www.hp.com.