Seaside Software and HP Announce Distribution Partnership

Companies Sign Joint Marketing Agreement to Sell Seasides HiPerExchange

REDWOOD CITY, Calif., January 27, 2003 -- Seaside Software, a developer of software that accelerates the performance of Microsoft Exchange, today announced that it has signed a joint marketing agreement with Hewlett-Packard Companys (NYSE: HPQ) regional Israeli branch. Under the terms of the deal, HP will resell HiPerExchange -- the only available solution that delivers sub-second response time for Microsoft Exchange users from any location, regardless of their connection -- to Fortune 2000 enterprises, government agencies, educational institutions and network service providers.

"HP has extensive presence and reach in both the local and global markets for delivering IT solutions and services to the world's leading enterprises," said Moshe Raines, president and founder of Seaside Software. "We are happy to add HiPerExchange to HP's rich portfolio, enabling HPs extensive client-base to enjoy superb access to Exchange data from anywhere, anytime."

Ideally suited for use by extended enterprises with many remote offices and mobile users, HiPerExchange builds a replica of the Exchange OWA server inside the client. For traveling and remote users, this means that all the data from the Exchange server is replicated and synchronized whenever users are online. Users can then access all their data locally online or offline, while gaining continual access to full groupware and the rich features of MS Exchange such as Email, Calendar, Address Book and Contacts -- features currently unavailable through common POP3 or IMAP4 access.

Joint Seaside and HP activities will target HP customers, such as leading telecommunications, financial, insurance, and pharmaceutical companies as well as government institutions and HMOs. The companies have agreed to initiate activities in the Israeli market, with the goal of expanding their joint activities worldwide.

About Seaside Software
Based in Redwood City, Calif., Seaside Software is led by a group of industry experts with extensive experience in messaging, Web architecture, WebDAV, Web security, HTTP and PC file systems. The company has received funding from Israel Seed Partners and private investors.

For more information, visit http://www.seasidesw.com

About HP
HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its merger transaction involving Compaq Computer Corp. on May 3, 2002.

More information about HP is available at http://www.hp.com.