HP CEO DISCUSSES POST-MERGER MARKETING PLAN

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NEW YORK (AdAge.com) -- Today's announced merger of Hewlett-Packard Co. and Compaq Computer Corp. is expected to dramatically alter the tech industry landscape and roil the marketing waters.

If approved by federal regulators, HP's $25 billion bid to acquire Compaq will create the world's No. 2 computer company after IBM Corp.

In a conference call today with media, HP CEO Carly Fiorina said HP will be the "surviving brand" and that the merged company will use the "sub-brands of Compaq smartly." She did not elaborate on the structure of a collaborative marketing organizaton or interim marketing plans.

Ms. Fiorina told AdAge.com that while insiders view marketing as another area for cost-saving efficiency of a merged HP and Compaq, her company doesn't think it "will be spending less."

"We have to position the combination effectively," Ms. Fiorina said. "We will be spending at least as much as the two companies spent individually."

HP spent $160 million in the U.S. in measured media in 2000, according to Taylor Nelson Sofres' CMR. The company spent $55.5 million during the period Jan.-May this year. Compaq spent $149 million in 2000, $50 million for the first five months of this year.

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