News release

HP Plans Next-generation Archival Storage Systems Based on Adoption of Sony Ultra Density Optical Technology

Industry Leaders Declare Continued Technology Development Commitment to Meet Exploding Storage Capacity Needs of Information-intensive Industries

PALO ALTO, Calif., Nov. 2, 2000

Hewlett-Packard Company (NYSE: HWP) today announced that it intends to integrate Sony's Ultra Density Optical (UDO) disk technology into HP's optical jukebox products for expected delivery to the high-performance corporate and enterprise document management and archiving markets in late 2002.

Currently in development at Sony, the UDO technology will continue to leverage the highly reliable, ISO-standard 5.25-inch cartridge used by the optical industry for the past 10 years. The initial 40 GB per cartridge capacity for the technology will be achieved through the use of a violet laser and advanced optics, and will be available in both rewritable and WORM (write once, read many) formats.

HP intends to work with Sony to actively promote this format. The product roadmap for HP's next-generation archival storage systems is anticipated to follow a similar capacity growth plan that has ensured the success of the 5.25-inch optical products over the last decade. HP plans to deliver UDO technology-based jukeboxes, with potential capacities approaching 10-terabytes (TB) in a single cabinet, within the next 30 months. Based on the projected integration schedule, HP anticipates that its next-generation archival storage systems will follow the launch of HP's 9.1 GB-based (14x) magneto-optical drives and jukeboxes expected to ship early next year.

"Customers are constantly looking for higher storage capacities and faster retrieval times," said Nora Denzel, vice president and general manager, HP Storage Organization. "From what Sony has shown us to date, we are confident that Ultra Density Optical will be a new technology for a new century. With this promising technology, HP is continuing its leadership in delivering archival storage solutions capable of meeting the exploding storage capacity needs of the most information-intensive industries."

According to a Dataquest/Gartner Group report on optical jukebox/library systems market share for 1999, HP was number one in the market, shipping 53 percent of all 5.25-inch optical jukeboxes worldwide and accounting for 60 percent of all revenue derived from these systems¹.

"HP understands the needs of its storage customers very well," stated Katsuaki Tsurushima, president of the Storage Solutions Company of Sony's Core Technology and Network Company. "We believe Sony's UDO technology will help them deliver the products required to satisfy those needs well into the future. Sony is confident that HP's adoption of this technology will be the first step to broad-based adoption and eventual standardization."

HP currently offers magneto-optical products ranging from 5.2 GB drives to 1.2 TB jukeboxes at estimated U.S. street prices of $2,995 to $105,200². Supporting Windows® and Windows NT®, HP-UX and other UNIX®-based operating systems, these products are available through HP's worldwide sales channels, including the HP sales force, OEMs, distributors and value-added resellers.

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.

¹ Dataquest/Gartner Group: Market Analysis - Optical Jukebox/Library Systems Market: 1999 Market Shares, May 8, 2000

² Actual prices may vary.

Windows and Windows NT are U.S. registered trademarks of Microsoft Corporation.

HP-UX Release 10.20 and later and HP-UX Release 11.00 and later (in both 32- and 64-bit configurations) on all HP 9000 computers are Open Group UNIX 95 branded products.

UNIX is a registered trademark of the Open Group.

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.