News release

HP Introduces "Basic" Large-format Printing Material, Announces Selected Price Reductions

HP Basic Line Provides Excellent Print Quality on HP Designjet and Other Large-format Printers

PALO ALTO, Calif., Nov. 1, 2000

Hewlett-Packard Company (NYSE: HWP) today announced the HP Basic line of large-format printing material, as well as price reductions on selected printing materials. HP Basic rounds out HP's large-format printing material product line by providing low-cost, HP-tested printing material to meet the everyday needs of graphic design and technical professionals.

Along with the rest of HP's large-format printing material line, HP Basic is engineered as part of the HP Designjet printing system, which has been developed and tested to ensure uncompromising print quality, performance and reliability. HP Basic is compatible with many other brands of large-format printers. In addition, professional service providers can now use a single brand of printing material for multiple brands of printers.

"HP Basic printing materials are for the cost-conscious customer who is looking for flexibility and value," said John Gowan, business manager, HP large-format printing materials business unit. "The Basic line meets our customers' needs for less expensive, everyday media without sacrificing the reliability they expect from HP, and now users of other brands of printers can have the same reliability as well."

HP Reduces Prices on Selected Large-format Printing Materials
HP is reducing the price on selected large-format printing material effective today. The price reductions range from 10 percent to 30 percent on selected bond papers, technical papers and films, coated papers and durable printing material.

"We view this price reduction as an investment to expand the market for premium printing material beyond the traditional high-end user," said Jerry Staub, product manager, HP large-format printing material business unit. "We think the market is ready for this and we're willing to make this investment now to try to take advantage of this opportunity."

HP Basic Large-format Printing Materials

HP Basic is available in three media types:

• HP Basic Coated Paper: A bright white, everyday coated paper perfect for indoor signs, posters and drawings;

• HP Basic Photo Satin: A matte finish, semi-gloss photo paper that produces low-glare, warm images for indoor signage and for posters that require a photographic appearance; and

• HP Basic High-Gloss Photo Paper: A smooth finish, bright presentation and display photo paper that produces high-quality images for indoor signs and posters with highly saturated color images that require a photographic look with a high gloss surface.

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.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the annual report on Form 10-K for the year ended Oct. 31, 1999, and subsequently filed reports. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP does not intend to update these forward-looking statements.