PALO ALTO, Calif., March 28, 2007

HP today announced it has set a goal to reduce its global energy use by 20 percent below 2005 levels by 2010.

To accomplish this, HP will deliver energy-efficient products and services to customers and institute energy-efficient operating practices in its facilities worldwide.

The new goal is part of the company’s global environmental strategy that addresses three levels of the business: products, internal operations and supply chain management. Recent innovations that will help HP meet the goal include:

• The introduction of select HP desktop business PCs that offer 80 percent efficient power supplies and were the first to meet the U.S. Environmental Protection Agency’s new EnergyStar® 4.0 requirements. The new power supplies are 33 percent more efficient than their predecessors;
• Dynamic Smart Cooling, HP’s energy management system for data centers, which is designed to deliver 20 to 45 percent savings in cooling energy costs;
• Redesigned print cartridge packaging for North America that will reduce greenhouse gas emissions by an estimated 37 million pounds in 2007.

“Energy efficiency is an integral part of the environmental program HP has had in place for decades and is a key component in making HP a leader in sustainability,” said Pat Tiernan, vice president, Corporate, Social and Environmental Responsibility, HP. “Sustainability should span the entire business, from product reuse and recycling, a socially and environmentally responsible supply chain, to energy efficiency in products and internal operations – it’s the whole package.”

HP and the environment
Today’s announcement is the latest in a series of ongoing environmental advancements HP has implemented over the last six months in the areas of product development, internal operations and supply chain management. Others include:

• ABN AMRO, a global banking company, recently selected the HP Halo Collaboration Studio to conduct meetings in different locations around the world in a vivid, real-time, face-to-face environment. The Halo system will help ABN AMRO reduce the excessive cost and emissions associated with travel.
• Earlier this month, HP announced benchmark results confirming the HP BladeSystem c-Class featuring HP Thermal Logic technology uses up to 27 percent less power than the IBM BladeCenter-H in similar configurations.(1) The results of this study, conducted by Sine Nomine Associates, demonstrate that the HP BladeSystem c-Class and its zoned cooling properties not only lower power usage through efficient power distribution but also optimize airflow, which is a significant component in keeping data centers cool.
• HP offers nearly 50 products registered with the Electronic Product Environmental Assessment Tool (EPEAT, www.epeat.net) to help institutional customers in the public and private sectors evaluate, compare and select desktop computers, notebooks and monitors based on their environmental attributes.
• In 2006, HP purchased 11 million kilowatt-hours (kWh) of renewable energy for use in its operations. HP also joined the U.S. Environmental Protection Agency's Green Power Purchase program – a challenge to Fortune 500 companies to double their renewable energy purchases by the end of 2007. HP plans to increase renewable energy purchases by more than 350 percent by procuring 50 million kWh of renewable electricity during 2007.
• Also in 2006, HP established a global joint initiative with the World Wildlife Fund-US to reduce greenhouse gas emissions from HP’s operating facilities worldwide, educate and inspire others to adopt best practices, and use HP technology in conservation efforts around the world.
• For its supply chain – the largest of its kind in the world – HP introduced two supplier training programs, one targeting Central and Eastern Europe and another in China, to ensure adherence to the company’s stringent social and environmental responsibility standards. HP has engaged with more than 600 suppliers in its social and environmental responsibility program since 2003.

Additional information on HP’s energy-efficient solutions and tips for businesses and consumers is available at www.hp.com/go/energy. The HP 2006 Global Citizenship Report is available at www.hp.com/go/report.

About HP
HP focuses on simplifying technology experiences for all of its customers – from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the world’s largest IT companies, with revenue totaling $91.7 billion for the four fiscal quarters ended Oct. 31, 2006. More information about HP (NYSE: HPQ) is available at www.hp.com.

Note to editors: More news from HP, including links to RSS feeds, is available at www.hp.com/hpinfo/newsroom/.
(1) Sine Nomine Associates, “A Comparison of HP BladeSystem c-Class with HP Thermal Logic to Competitive Systems,” Feb. 2, 2007.

Energy Star is a U.S. registered mark of the United States Environmental Protection Agency.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the achievement of expected results and other risks that are described from time to time in HP’s Securities and Exchange Commission reports, including but not limited to the risks described in HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2006 and other reports filed after that Form 10-K. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.
2/2007