News release

VeriFone Reaches Distribution Agreement with ScanSource, Inc.

Leading Distributor Boosts E-payment Offering for VARs by Adding VeriFone Products

PALO ALTO, Calif., Oct. 2, 2000

VeriFone, a division of Hewlett-Packard Company, today announced it has signed a distribution agreement permitting ScanSource, Inc., to distribute VeriFone's point-of- sale (POS) products. ScanSource is one of North America's largest value-added distributors of POS and bar-coding products. The company also distributes business telephone and computer telephony products through Catalyst Telecom.

ScanSource will offer VeriFone's extensive line of point-of-sale payment terminals, including credit, debit and smart card products designed for the multi-lane retailer through their value-added-reseller (VAR) channel. ScanSource will also distribute VeriFone POS printers and peripherals, software solutions and other products.

The agreement furthers ScanSource's commitment to growing specialty technology markets by strengthening and enlarging the VAR channel. ScanSource's commitment to VARs includes offering a broad product selection, competitive pricing, fast delivery, technical support, online ordering and configuration tools, system integration, sales training, customer financing and qualified leads.

"The addition of VeriFone's world-class products to our lineup makes it easier for ScanSource resellers to provide their customers with total POS solutions," said Scott Benbenek, ScanSource's vice president of Merchandising overseeing the VeriFone line. "We're committed to offering products to our reseller customers that will provide them with the best opportunities for success in a competitive marketplace, and we believe VeriFone's leading e-payment solutions will perfectly complement our POS offering."

"This agreement strengthens the distribution channel VeriFone uses to support our dealers and value added resellers, complementing our overall customer service offering," said Bud Waller, vice president of North American sales for VeriFone. "In addition, ScanSource stocks VeriFone products in-house, providing our dealers and VARs quick, 24-hour turnaround of their orders."

About VeriFone

VeriFone (http://www.verifone.hp.com), a division of Hewlett-Packard Company, is the leading global provider of secure electronic-payment solutions for financial institutions, merchants and consumers. The division has shipped more than seven million electronic-payment systems, which are used in more than 100 countries.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and an Internet infrastructure that's always on.

HP has 86,000 employees worldwide and had total revenue from continuing operations of $42.4 billion in its 1999 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

Note: Information in press releases is accurate at the time of release. However, product specifications and availability, promotions, prices, relationships, contact numbers and other specific information may change over time. Some information about product pricing and availability may be limited to specific geographic areas and may differ in other areas. Information as stated in the release may or may not be in effect after the date on the release.

In addition, the press releases may contain statements that are forward-looking. These statements are based on current expectations as of the date of a particular release. Actual results may differ materially from those projected because of a number of risks and uncertainties, including those detailed from time to time in HP's reports filed with the Securities and Exchange Commission. Click here to review these important factors that could cause results to differ materially from those in any such forward-looking statements.