News release

HP Board Declares Regular Dividend, Announces Increase in Share Repurchase Programs

PALO ALTO, Calif., Nov. 20, 2000

The board of directors of Hewlett-Packard Company (NYSE: HWP) today declared a regular cash dividend of 8 cents per share on the company's common stock. The dividend, the first in HP's fiscal year 2001, is payable on Jan. 10, 2001, to shareholders of record as of Dec. 20, 2000. As of Oct. 31, 2000, the end of the company's fiscal year, HP had approximately 2 billion shares of common stock outstanding.

The board also authorized increases of $1 billion each for the systematic repurchase of shares to offset dilution from the issuance of shares under company employee benefit programs, and for opportunistic share repurchases.

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 88,500 employees worldwide and had total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

Forward-Looking Statements

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include the ability of HP to retain and motivate key employees; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; the difficulty of keeping expense growth at modest levels while increasing revenues; 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. HP does not intend to update these forward-looking statements.