News release

HP and VerticalNet Agree to Co-Develop B2B Platform for Dynamic e-Services and Flexible Interoperability

PALO ALTO, Calif. and HORSHAM, Pa., Oct. 23, 2000

Hewlett-Packard Company (NYSE: HWP) and VerticalNet, Inc. (Nasdaq: VERT), today announced an agreement to integrate HP's e-speak programming structure for creating and running global distributed e-services and VerticalNet's digital marketplace solution called Open Services Marketplace (OSM). The integrated platform is expected to consist of a set of tools and a framework for designing, building and running a flexible and scalable business network, and is expected to provide buyers and suppliers in digital marketplaces with an open collaborative services environment.

The integrated platform is based on a new approach that combines customizable business processes, intelligent coordination of distributed e-services and semantic interoperability.

Designed to accelerate the development of next-generation business solutions for customers and partners, HP and VerticalNet's key technological contributions for the platform are intended to:

• Provide flexible interoperability for B2B marketplaces;

• Facilitate a marketplace's ability to rapidly integrate with new trading partners;

• Allow for the creation and automation of entirely new cross-enterprise business processes

"OSM's dynamic services approach is the next step in the evolution of B2B e-commerce," said Rajiv Gupta, general manager, HP E-speak Business Unit. "We expect the combination of this breakthrough technology from HP and VerticalNet's acknowledged strength in the exchange marketplace to raise the bar defining the next generation of B2B marketplaces."

HP and VerticalNet both bring significant expertise and technology assets that will be enhanced and extended in the collaborative platform to meet the needs of the complex e-business networks of the global 2000 mega-markets. The integrated platform would use HP's e-speak service engine, service registry and infrastructure to complement VerticalNet's Trade Server platform with advanced service in coordination and interoperability technologies developed in VerticalNet's Palo Alto, Calif. Research Center.

"HP has long been a pioneer in the arena of e-services and VerticalNet is pleased to be working with them on the next-generation platform for B2B marketplaces," said Zev Laderman, President of VerticalNet Solutions, a business unit of VerticalNet, Inc. "VerticalNet must deliver a large number of business services and applications to meet the complex requirements of public and private eMarkets. By taking a services composition approach to business solutions, the OSM platform will make business innovation more efficient."

Availability

HP and VerticalNet expect to deliver a beta release by the end of the year.

About VerticalNet, Inc.

VerticalNet, Inc. (http://www.verticalnet.com) provides end-to-end e-commerce solutions targeted at distinct business segments through three Strategic Business Units: VerticalNet Markets includes 57 industry-specific web sites designed as online vertical trading communities and provides hosted e-commerce and community capabilities for corporate divisions and mid-size businesses; VerticalNet Exchanges focuses on direct material open and spot markets; VerticalNet Solutions builds digital marketplaces for global 2000 customers, consortia and neutral Net market makers. VerticalNet International leverages the Company's three strategic business units to create global Internet B2B marketplaces, offering products and services internationally and partnering with companies that have strong local presence and domain expertise. About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and an Internet infrastructure that's always on.

HP has 86,000 employees worldwide and had total revenue from continuing operations of $42.4 billion in its 1999 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com/.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the annual report on Form 10-K for the year ended Oct. 31, 1999, and subsequently filed reports. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP does not intend to update these forward-looking statements.