HP Establishes Subsidiary Company to Focus on Mechanical Design and Product-Data-Managment SolutionsPALO ALTO, Calif., Sept. 26, 1996 -- Hewlett-Packard Company today announced that it will convert its Mechanical Design Division from an HP division to a subsidiary software company dedicated to providing high-quality software solutions for mechanical design and product-data management. The company is scheduled to start operations in November 1996 under the name CoCreate. Tilman F. Schad, former general manager for HP's Enterprise Middleware Business Unit, a part of the Computer Systems Organization, has been named president. In his previous position, Schad was instrumental in making HP OpenView and HP OpenMail the market-leading products in their classes. CoCreate will continue to supply customers -- including HP -- with mechanical computer-aided design and product-data-management solutions developed and marketed globally under its own brand and identity. "We have always looked for new ways to benefit our customers, empower our employees and strengthen our company," said Lewis E. Platt, HP chairman, president and chief executive officer. "With this new subsidiary, we are doing all three. As we looked at the trends in mechanical design and product development, it became clear to the Mechanical Design Division and HP management that a focused company, able to adapt quickly to market demands, could be more effective in satisfying customer needs." "Customers' rapidly changing needs now will be met by a dedicated software provider structured to focus on customer business requirements while aligned with the strength, global reach and high-quality support of the world's third-largest computer supplier," said Schad. "CoCreate will be associated with HP, but free to pursue business as customer needs and the market require. "We begin operation with an installed customer base of more than 80,000 seats and global distribution through more than 300 value-added resellers," said Schad. "With its structure finely tuned to the needs of a software provider, CoCreate will adapt quickly to the demands of the application-software market. Research and development processes will deliver software products only, with advantages such as the ability to provide multiplatform support quickly. Profits will be directed into what matters most for a leading-edge software company -- research and development for new products." CoCreate will be a subsidiary company of Hewlett-Packard Holding GmbH. CoCreate will have its European headquarters in Sindelfingen, Germany, and its North American headquarters in Fort Collins, Colo. Sales will continue in more than 20 countries worldwide through a direct sales force in the major countries and existing relationships with resellers. CoCreate develops 2-D and 3-D mechanical computer-aided-design and product-data-management software. The software solutions, called Precision Engineering (PE) systems, are known for high-quality, ease-of-use, customization capability and support of industry standards. They are available in 10 languages and are installed on more than 80,000 systems in design, engineering and manufacturing organizations worldwide. HP is the second-largest computer supplier in the United States with computer-related revenue of $25.3 billion in its 1995 fiscal year.
Hewlett-Packard Company is a leading global manufacturer of
computing, communications and measurement products and services
recognized for excellence in quality and support. HP has 110,800
employees and had a revenue of $31.5 billion in its 1995 fiscal year.
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