================= EXECUTIVE SUMMARY ================= 1. HP and Novell announced a strategic relationship to deliver enterprisewide networking solutions. 2. The announcement greatly benefits customers. Both HP and Novell have a large existing installed base of customers, a sizable number of which use a mix of both vendor's products. This announcement commits both companies to grow the interoperability between the two vendor's suite of products for the benefit of current and future customers. Additionally, both companies bring emerging technologies to the table and as such will seek to use these technologies to grow the distributed computing marketing place. 3. Seven projects were announced, the most significant two projects announced were: a. Plans to develop a native version of NetWare to run on PA-RISC computer systems. The NetWare operating system running directly on PA-RISC computers will allow NetWare and network applications to run at higher performance levels than on x86-based servers. This is the first announcement by Novell to port their native NetWare from INTEL to a RISC architecture. This is important because it shows Novell's belief of the importance of HP's RISC chip and the leadership in RISC technology it represents. NetWare on PA-RISC will create new sales opportunities within current HP accounts, as well as open the door to non-HP accounts. b. Plans for HP to distribute Novell products through its worldwide sales channels, including both direct and reseller channels. Products available through worldwide distributor channels will include standard Novell software with value-added enhancements from HP that provide a foundation for improved systems integration, user interface, file-server performance and task automation. Distribution of Novell products will create additional sales opportunities, provide stronger marketing support, as well as provide one stop shopping for your customers. 4. The five additional joint projects being announced were: a. HP NewWave Collaboration - Elements of HP NewWave desktop manager and network licensing (NetLS) will be applied to NetWare to provide increased functionality to Novell networking solutions. b. NetWare on HP 9000 computers - A portable version of NetWare will be fully supported and marketed by HP for its HP 9000 computer systems. This decision will be transparent to the Innovus installed base. c. Network Printing - Continued work between HP and Novell to bring to market a broad range of printers and plotters that connect directly to the network and increase overall ease-of-use. .PA d. Worldwide Support - The companies will continue to expand their relationship with the goal of providing high quality service and support to mutual customers. e. Electronic messaging and directory services - The companies plan to pursue complementary and integrated solutions for both local-area and enterprisewide communication based on industry-standard Open Systems Interconnection message-handling system (MHS), X.400 and X.500 protocols. 5. Additional product details on these projects will begin to be announced the first half of 1992. NetWare on the HP 9000 will be marketed and sold directly by HP first quarter 1992; until on the HP CPL, orders should continue to be processed through HP in Europe and Innovus elsewhere. 6. This announcement does not signal a shift in HP's strategic direction for PC networking away from Microsoft. HP is continuing to make investments in providing LAN Manager based solutions. With this announcement, HP now supports the top PC LAN network operating systems in the marketplace across HP's computer and workstation platforms. 7. The companies have other planned projects that are scheduled to be announced beginning in 1992 that will provide even tighter integration of information across the desktop and the enterprise. An important area of collaboration is network management. Technology under investigation would initially enable coexistence on a network and could lead to interoperability between HP OpenView network-management software and Novell network-management products.