Weekly news source for the Heartstream and CPD merger

April 20, 1998 Volume 1, Number 1

TRANSITION NEWSLETTER

(1) Transition Newsletter, a weekly publication

(2) Transition Team update

(3) Communication made easier

(4) First HP paychecks delivered to Heartstream employees on the 21st

(5) What do you want to know?

(1) TRANSITION NEWSLETTER, A WEEKLY PUBLICATION

Welcome to the first issue of the Transition Newsletter for employees impacted by the Heartstream acquisition. Developed specifically for the Heartstream Operation and Cardiology Products Division, this weekly newsletter may also be of interest to other HP employees. For this reason, it is being electronically delivered directly to all Heartstream Operation and Cardiology Products Division employees and made available on the Hewlett-Packard internal website. Supervisors of employees who do not have email access are asked to print copies of the newsletter for them.

The purposes of the Transition Newsletter are several. First and foremost, the newsletter is intended to be a source of accurate, timely information regarding the integration of Heartstream into the Hewlett-Packard organization. We don’t plan to wait until we have the whole story to tell you what we know now. Heartstream and CPD have united strategies, and we’ll use this space to keep you up-to-date on progress made toward integration of those strategies. We’ll tell the bad news (if any) as well as the good and give you the facts as we know them.

To be impactful and successful, useful feedback from you is not only helpful, it is essential. Are we meeting your expectations? Are you getting news that is useful, timely, and interesting? Are we providing you with information that you can use now?

In order to meet your expectations, each newsletter will end with a section entitled “What Do You Want to Know?” Tell us how we’re doing. Ask questions. Share story ideas.

(2) TRANSITION TEAM UPDATE

The Transition Team is led by Bill Kelly, an HP manager temporarily located in Seattle and reporting to Heartstream Operations Manager Keith Serzen and CPD General Manager Steve Rusckowski. The team meets face-to-face periodically in Seattle or Andover, with team teleconferences held every two weeks. The team is composed of CPD and Heartstream functional leads for each of the departments impacted by the merger: Human Resources, Finance, Marketing/Sales, R&D, Manufacturing/Facilities, Quality/Regulatory, IT, and Legal.

While team composition may change, the team is expected to stay in place for approximately six months. The first team meeting was held in Seattle on March 25, 1998.

The team has developed functional plans and is working on cross-functional interdependencies now. Let’s consider Information Technologies (IT) as an example. Nearly every business function relies on IT in some way. Mike Adams, Vic Jones, Charlie Schiappa and their teams have been working on a complete infrastructure migration that involves assessing the IT opportunities and leveraging the best of Heartstream and HP. Everything from order generation and fulfillment to efficient internal communications depends on IT. Changes in processes usually require a change in the information technology supporting the process. If you are involved in planning a change in process, involve IT early so its team of professionals can be proactive in supporting your work.

Almost every function and process of the separate Heartstream and HP organizations are impacted by the merger and every function and inter-dependency must be considered, issues identified and resolved.

Through it all, one thing remains paramount: Heartstream operations take precedence over integration issues.

(3) COMMUNICATION MADE EASIER

Heartstream and Hewlett-Packard phone systems are now linked together and employees worldwide can reach each other through telnet by dialing only seven digits. Heartstream employees will soon appear in HP’s worldwide electronic phone directory, making it easier for communications.

The voicemail systems are now linked, as well, and messages can be networked to both HP Andover and McMinnville employees and Heartstream employees. Within the next few weeks, the voicemail link will be to all HP employees.

Heartstream Seattle employees now have access behind the Hewlett-Packard computer firewall and are included in HP’s intranet — an internal website. In turn, HP employees can get behind the Heartstream firewall. This accessibility promotes easier and more secure communications for all functions. Work is in progress to get Heartstream field personnel access to HP’s internal websites as soon as possible. We’ll keep you posted.

(4) FIRST HP PAYCHECKS DELIVERED TO HEARTSTREAM EMPLOYEES ON THE 21ST

On April 21, Heartstream employees receive their first Hewlett-Packard paychecks. They will be delivered to Seattle people in the office and mailed to field people at their homes. All Heartstream employees will receive “live” paychecks this time. If you elected direct deposit of your paycheck, it will be in effect by the next pay period.

For Heartstream employees who didn’t take the cash out for their flexible time off (vacation and sick leave), you can carry it over to HP. Although FTO won’t be reflected on this paycheck, it will be shown on the next one. Bonuses, such as health care, will not be reflected on this paycheck either.

Great care has been taken to achieve 100 percent accuracy, but you are the final judge. Please check the correctness of the following:

General

· Spelling of your name

· Address

Tax Information

· Social security number

· Number of exemptions claimed

· Additional tax money withheld

Pre-tax Deductions Did you choose:

· Pre-tax medical and dental?

· Pre-tax dependent health care?

· Pre-tax health care (for non-reimbursed expenses)?

· TAXCAP (HP’s 401 plan)?

If you see any discrepancies or have any questions, call the United States Employee Service Center (USESC) at telnet 1-773-6800. From home, call toll free to 1-888-ESC4YOU.

You have been assigned an HP employee number, which is reflected on your paystub. Please make note of it for future reference.

(5) WHAT DO YOU WANT TO KNOW?

Are you curious about marketing strategies? Want to know when you’ll have access to specialized training? Wonder about the background and interests of some of the people you’re working with now?

Were you able to resolve something — a sale, engineering problem, manufacturing challenge — that wouldn’t have been as easily attained without the merger?

Contact Newsletter Editor Sandy Prater at one of the numbers shown below and let her know what you want to know — or what you know that would benefit other employees impacted by the transition.

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FOR INTERNAL USE ONLY

The Transition Team publishes the Transition Newsletter every week for Heartstream and CPD employees. Send your comments, suggestions or news items to:

Sandy Prater, Editor

sprater@halcyon.com

425-883-4725

fax: 425-867-5539

Note: Sandy Prater is a contractor based in Redmond, Washington.

Distribution:

Maura Renaud, CPD

978-659-4753

Lynne Davison, Heartstream

206-664-5176

MANAGERS AND SUPERVISORS: PLEASE PROVIDE HARD COPIES TO EMPLOYEES WHO DO NOT HAVE ACCESS TO ELECTRONIC MAIL.

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