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Hughes, H-P in Computer Joint Venture : Technology: The deal will give Hewlett-Packard access to the military workstation market and Hughes access to the civilian market.

TIMES STAFF WRITER

Hughes Aircraft Co.'s Ground Systems Group is to announce today an agreement with Hewlett-Packard Co. to make advanced computer workstations and other computer equipment for government, military and aerospace applications.

The companies estimate that the combined revenues of the alliance will exceed $200 million in the first three years.

Under the agreement--the terms of which the companies confirmed late last week--Hughes will buy workstations from Hewlett-Packard, customize them for the different applications and sell them to customers.

Hughes officials said the alliance will allow it to penetrate commercial workstation markets and give Palo Alto-based Hewlett-Packard a presence in the $1 billion-a-year military workstation market worldwide.

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Ken Dahlberg, a group vice president and general manager at Hughes, said the alliance gives the company a chance to diversify into civilian products. Mainly a producer of weapons systems, Hughes’ Ground Systems Group’s biggest civilian effort now is production of air traffic-control systems.

Negotiations between the Hughes unit and Hewlett-Packard spanned two years.

The deal calls for Hewlett-Packard to transfer its Tempest anti-spying technology and operations to Hughes. The venture will jointly develop a high-resolution tactical display workstation and reinforce Hewlett-Packard commercial workstations so they can survive in rough military environments.

Bob Dowden, manager of the Hewlett-Packard unit, said strategic alliances are becoming common among defense firms that seek to straddle both the civilian and military markets.

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Hughes will create a special operating unit with up to 100 employees dedicated to the Hewlett-Packard alliance. Development of the tactical display workstation and conversion of Hewlett-Packard commercial workstations for military use will begin in the first quarter of 1991.

The new product lines, based on Hewlett-Packard’s HP 9000 Series 800 and Series 300 workstations, will be manufactured and designed by Hughes in Fullerton. Hewlett-Packard will provide sales and support.


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