News release

Launchworks and HP Work Together to Benefit Canadian Software Entrepreneurs

Calgary, AB, Canada - March 22, 2001

Launchworks inc. and Hewlett-Packard Company (NYSE: HWP) today announced an agreement to help build successful, globally competitive software technology companies in Canada.

As part of the agreement, HP has made an equity investment in Launchworks. Launchworks provides Canadian entrepreneurs with launch capital and access to an extensive network of financial, intellectual and resource capital necessary to succeed beyond early-stage development. HP has agreed to be a strategic technology provider to Launchworks and its investment companies. In addition, HP intends to leverage Launchworks' sophisticated investment qualification program and create a streamlined process for portfolio companies to access the HP Garage Program and other programs designed specifically to assist businesses in early-stage development.

"We were very impressed with HP's vision and its e-services strategy," said Launchworks' chief executive officer, Byron Osing. "We are thrilled to be working with a market leader with the capacity to strengthen our strategic network and benefit our partner companies."

"Our relationship with Launchworks affords us immediate entry into a dynamic and rapidly growing nationwide network of Canadian entrepreneurs," said Paul Tsaparis, president and chief executive officer, HP Canada . "By bringing to the table our experience, start-up programs and solutions, we believe we can significantly contribute to the overall growth of Launchworks and its investment companies to our mutual benefit."

About HP Canada

HP Canada has more than 1,500 employees at 19 locations across Canada. Its revenue in fiscal 2000 was $1.8 billion (Canadian).

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 solutions for an Internet infrastructure that's always on.

HP had total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Information about HP and its products can be found at http://www.hp.com.

Launchworks inc. (launchworks.com)

With offices in Toronto, Calgary and Vancouver, Launchworks is Canada's source of launch capital for rapidly growing software and technology firms. Provided primarily through the Launchworks Group, launch capital gives partners access to an extensive network of financial, intellectual, and resource capital necessary for the success of emerging companies.

Among the direct investors in our business model, BMO/Nesbitt Burns, Thomson Kernaghan, Yorkton Securities, and divine interVentures offer our investment partners valuable networking and partnership opportunities both domestically and internationally.