News release

HP and Chiliad Form Strategic Alliance to Revolutionize Consumer Experience on the Internet

PALO ALTO, Calif. and AMHERST, Mass., Nov. 8, 2000

Hewlett-Packard Company (NYSE: HWP) and Chiliad Inc., an Internet commerce software technology company, today announced a strategic alliance that aims to revolutionize the consumer experience for Web and wireless services. With technology, financing and marketing support from HP, Chiliad is developing software technologies that dramatically enhance the functionality, usefulness and attractiveness of Web and wireless services, including strikingly innovative approaches to precise information discovery, contextual commerce and Internet advertising.

Chiliad intends to leverage its technologies to launch a new premium-service Web destination in 2001. Chiliad also will offer content and search hosting to e-merchant and content sites looking to increase conversion of shoppers to buyers through precision search and contextual commerce capabilities. These capabilities are set to revolutionize the way people research, discover, select and purchase the products and services they need.

To help fund the development and deployment of Chiliad's software technologies and Web site, HP is providing Chiliad with up to $24.5 million in financing, through a debt and equity arrangement. Chiliad is building out its always-on infrastructure using HP UNIX® servers, HP storage solutions, HP Consulting, and HP software solutions such as HP OpenView for network and systems management and HP Web QoS for quality service delivery. Chiliad also is exploring how to take advantage of HP's e-speak dynamic brokering software technology for real-time service discovery and interaction on the Internet. The two companies are exploring how Chiliad's technologies and services can be leveraged within HP's own products, portals and e-commerce sites.

"Chiliad is taking a revolutionary approach to delivering greater functionality and convenience to the Web user," said Dave Scantling, general manager, HP E-Services.Solutions Organization. "Chiliad's technology is clearly aimed at changing the rules of Internet commerce in favor of both consumers and merchants. Chiliad will make the Internet more convenient and useful to anyone who wants to search, shop, buy or sell on the Web, whether they are in the office, at home, or on the road."

"Many of today's major search sites and Web shopping sites fail to satisfy searchers or shoppers and we intend to solve that problem," said Paul McOwen, Chiliad chief executive officer. "We received very aggressive proposals and term sheets from the market leaders in server and storage technology. We chose HP as our first strategic alliance partner because HP offered the best turnkey Internet solution with the right combination of hardware, software, services and vision."

Chiliad software technologies address key market needs by focusing on what customers need and expect online:

• More productive, intelligent user interfaces.

• Discovery tools for higher levels of precision search and discovery.

• Discerning current awareness agents for timely notification.

• Objective access to contextually relevant information necessary to identify, select and validate the purchase of the right product or service.

• Mechanisms to provide strict privacy and continuing protection of personal information.

About Chiliad

Chiliad, a developer of highly focusing current awareness and contextual commerce software for Web and wireless services, is founded on the principle of enhancing accuracy, functionality and satisfaction for Web users. Chiliad was incorporated in 1999 with headquarters in Amherst, Massachusetts and offices in France and Brazil. Information about Chiliad can be found at http://www.chiliad.com.

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.

UNIX is a registered trademark of the Open Group.