New Company Created by HP Realignment Selects Historic Palo Alto Site for Headquarters

The new company ("NewCo") created by the HP realignment today announced that its corporate headquarters will be located at 395 Page Mill Rd. in Palo Alto, CA -- the site where Hewlett-Packard Company constructed its first building in 1943. More than 400 employees will move into the facility when construction of a new building on the historic site is completed in spring of 2000.

"We are bringing a new company into a new building on the original HP site," said Ned Barnholt, chief executive officer of the new company. "There's a spirit of innovation and a history of company growth associated with this site that reflect the vitality of our new company." The new company will focus on high-growth opportunities including communications and life sciences.

Three hundred ninety-five Page Mill Rd. is the site where Dave Packard and Bill Hewlett launched their company. In 1943, the first HP-owned building, "The Redwood Building," was built to house a growing instrument company that needed more space to keep pace with increased government orders for products during World War II. By 1944, the number of employees increased from 45 to 137 and revenue topped $1.5 million.

From 1943 to 1957, the site was home to all of HP's research and development, manufacturing, production and administration activities. During those years, the number of employees grew to 1,467 and revenues increased to $28 million. In 1957, HP issued its first public stock offering.

"This is a site where the dreams of so many people became real," said Barnholt. "Three hundred ninety-five Page Mill Rd. was the birthplace of innovative HP products and the management style and values that have made HP great. Our new company will draw on its rich heritage and enhance the best of HP with renewed focus, agility and responsiveness."

HP is considering an initial public offering (IPO) for approximately 15% of the new company's outstanding shares by year-end. This offering would be the largest technology IPO in Silicon Valley history.

HP plans to launch a new company ("NewCo") to be formed from the businesses formerly known as its Measurement Organization. This new company will consist of HP's industry-leading test-and-measurement, components, chemical-analysis and medical businesses. These businesses represented $7.6 billion of HP's total revenue in fiscal 1998.