HP Names Carly Fiorina President and CEO

Business Wire, July 19, 1999

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PALO ALTO, Calif.--(BUSINESS WIRE)--July 19, 1999--

President of Lucent's $20 Billion Global Service

Provider Business is Dynamic Technology Leader with

Proven Track Record of Growing Large Businesses

Hackborn, HP Veteran and Industry Innovator, to Become

Non-Executive Chairman at Year-End Upon Retirement of Platt

Hewlett-Packard Company (NYSE: HWP) today announced that Carleton (Carly) S. Fiorina has been named president and chief executive officer, succeeding Lewis E. Platt, who previously announced his intention to retire. Fiorina also will join the HP board of directors.

Fiorina was president of Lucent Technologies' Global Service Provider Business, Lucent's largest and fastest-growing division, with more than $20 billion in annual revenue.

Platt, 58, will remain chairman until year-end, by which time HP's computing and imaging businesses are expected to be independent of its measurement businesses. Upon Platt's retirement, Dec. 31, 1999, Richard (Dick) A. Hackborn, 60, a former HP executive and a current member of the board of directors, has agreed to become non-executive chairman.

Recently named by Fortune as the most powerful woman in American business, Fiorina, 44, brings to HP nearly 20 years of broad technology and telecommunications experience at Lucent and AT&T, and a demonstrated track record of successfully growing large businesses. During the past two years as president of Lucent's Global Service Provider Business, the division dramatically increased its growth rate, rapidly expanded its international revenues and gained market share in every region across every product line. Previously, she spearheaded the planning and execution of Lucent's 1996 initial public offering and subsequent spin-off from AT&T, one of the largest and most successful IPOs ever.

"Carly Fiorina brings to HP an extraordinary and rare ability to conceptualize and champion clear business strategies while staying focused on achieving operational results," said Sam Ginn, a member of HP's board of directors, who led the search committee. "She has an exceptional track record of accelerating growth in large technology businesses and building organizations that distinguish themselves in tough, competitive environments. Carly has demonstrated the ability to provide strong leadership to multiple high-tech entities with dramatically different financial models. Her approach to business also resonates clearly with HP's values and heritage. The board unanimously agreed that she is quite simply the ideal candidate to leverage HP's core strengths in the rapidly changing information-systems industry and to lead this great company well into the new millennium."

"Leaving Lucent was a very difficult decision, but this is a once-in-a-lifetime opportunity for me," said Fiorina. "Hewlett-Packard is a company of great accomplishment and even greater potential. HP has a proud history, a powerful brand, superb technology, talented employees, strong partner and customer relationships, and an innovative new e-services strategy. I am delighted and deeply honored to have the opportunity to lead one of the most respected companies in the world -- and I will strive to strike the right balance between reinforcing HP's values and working to reinvent its businesses."

Commenting on Hackborn's agreement to become non-executive chairman of HP upon Platt's retirement, Fiorina said, "I am extremely pleased that Dick is willing to take on expanded responsibilities at this important juncture in HP's history. His long and deep experience in all aspects of HP's business -- and his strong relationships throughout the company and the computing industry -- will be invaluable to me and HP."

"Carly has operated very successfully across the boundary between network communications and computer systems -- the very center of where the computer industry is headed," said Platt. "I'm delighted to welcome her to HP and look forward to partnering with her during this interim period. I believe this will ensure a seamless transition and smooth execution of the planned spin-off while we further strengthen our computing and imaging businesses. Although several exceptional HP executives were strong CEO candidates, now is the right time for fresh leadership. With Carly and the strong team already in place, I am convinced that HP is in extremely capable hands as it prepares to move into the next phase of its development."

"HP has achieved remarkable success under Lew Platt's leadership," said Ginn. "The company has generated substantial value for shareholders since he became CEO. Revenues have nearly tripled since 1992; earnings have increased more than five times; and our share price has just hit a record $114, up more than eightfold during Lew's tenure. HP has earned broad respect as a business, as one of the most admired companies and as a workplace of choice -- notable successes by any standard. The company is well positioned for the future."