HP and Tesla Group Form $40 Million Alliance to Help Midsize Companies Participate in the Internet Economy

Business Wire, Jan 12, 2000

Business Editors/High-Tech Writers

PALO ALTO, Calif., and WEST CHESTER, Pa.--(BUSINESS WIRE)--Jan. 12, 2000

Tesla to Expand Internet Services with $8 Million in HP Financing

and Resell $32 Million of HP Technology During Next 24 Months

Hewlett-Packard Company and Tesla Group, an e-business services holding company, today announced a $40 million alliance to provide technology solutions designed specifically to help midsize companies participate in the Internet economy. The solutions, which will consist of hardware, software and mission-critical support services from HP, as well as systems integration and managed Internet services from Tesla, will help companies complete the e-business transformation process successfully, from strategy through the design, implementation, operation and optimization of robust, highly available e-business and e-services IT infrastructures.

With the alliance agreement, HP becomes a preferred technology and support-services provider for Tesla Group's E-Facilities, an Internet managed-services company, and Tesla Group's StorNet, a value-added systems integrator.

Through a convertible-debt and leasing arrangement, HP plans to provide $8 million in financing to enable E-Facilities, which offers monitoring and management services for systems, networks and databases throughout a network of next-generation Internet data centers, to expand its Internet service offerings. E-Facilities intends to incorporate HP technology into its architecture, leveraging HP server and storage products as well as HP OpenView software for monitoring and management.

In addition, StorNet becomes an authorized HP reseller, and plans to recommend HP hardware and software to customers. StorNet expects to resell in excess of $32 million of HP products to e-business and e-services customers in the next 24 months.

"Tesla Group is an organization that has proven its ability to help its customers evolve and succeed in the Internet economy," said Craig White, senior vice president and general manager of HP Technology Finance. "With its lifecycle approach and comprehensive portfolio of services, it is already helping customers such as Charles Schwab, Hotmail/Microsoft(R) and First USA succeed in the next chapter of the Internet."

"In our eyes and in the eyes of our customers, HP is now positioned to be the key industry player in the Internet space," said John Stuart, chief executive officer of the Tesla Group. "By partnering with a respected, innovative company like HP -- a company that has the technology as well as the vision -- we can offer our customers the best-possible solutions for e-business and e-services."

"Due to limited IT budgets and lack of quality resources, many midsize companies have not been able to launch and maintain IT environments for e-business and e-services successfully," said Dave Mason, senior vice president of NerveWire, Inc. "HP and Tesla see this market as a huge e-business and e-services growth area in 2000, and the agreement announced today is aimed at addressing midsize companies' needs. Tesla Group, with its network of companies is set up to provide local support for these customers, and, with its alliance with HP, it can now tap into HP's portfolio of mission-critical Internet infrastructure products and services."

About Tesla Group

Tesla Group is an e-business services holding company that is devoted to helping mid-sized and large companies participate in the new Internet economy. Tesla Group functions as a parent to the local service providers that make up its E-Business Partner Network. Providing capital, strategy and management support, Tesla sets standards of quality for its partner companies and handles their non-core business activities so they can focus on client projects. Tesla Group companies include StorNet, a national system integrator, and E-Facilities, an Internet managed services company. The Tesla Group is a privately held company based in West Chester, Pennsylvania. Information about Tesla Group, its companies and partners can be found on the World Wide Web at http://www.teslagroup.com.

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 plans to launch Agilent Technologies as an independent company by mid-calendar 2000. Agilent consists of HP's test and measurement, semiconductor products, chemical analysis and healthcare solutions businesses, and has leading positions in multiple market segments.

HP has 83,200 employees worldwide and had total revenue from continuing operations of $42.4 billion in its 1999 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.

Note to Editors: Microsoft is a U.S. registered trademark of Microsoft Corp.