News release

HP to Replace Limited Number of Power Distribution Units to Resolve Potential Safety Issue

PALO ALTO, Calif., Feb. 9, 2001

Hewlett-Packard Company (NYSE: HWP) today announced that an aggressive program is under way to replace a limited number of potentially unsafe power distribution units (PDUs) primarily found in HP rack systems. The potentially affected units were shipped to HP customers and distribution partners in Europe, the Middle East and Africa beginning in December 1999.

HP has informed customers that a safety hazard may result if the internal primary safety ground of the PDU is inadvertently interrupted. In rare circumstances, a risk of electric shock could occur through direct physical contact with an affected rack system. Although HP has received no reports of product malfunction or injury related to this issue, the company is taking steps to eliminate this risk by replacing any potentially affected PDUs.

The PDU is an accessory that provides internal AC power distribution. HP rack systems most commonly house business computer system components such as HP 9000 servers, HP e3000 servers, HP workstations, HP Netservers, HP Procurve networking products or HP storage devices, such as DLT tape libraries, disc arrays and disc systems. The problem does not affect HP home or consumer computing products or printing products, such as HP LaserJet printers or HP Kayak workstations, as these are not housed in rack systems.

HP has informed customers that only qualified and specially trained HP service representatives should attempt to inspect or service potentially affected PDUs. Due to the potential safety risk, HP has cautioned customers not to attempt to inspect or replace the PDU themselves and to avoid all physical contact with the PDU or rack system.

HP has directed customers to contact their local HP Call Center to schedule a service call. The service call and replacement PDU will be provided free of charge to customers, regardless of warranty status. Customers can obtain additional information, including local HP Call Center contact information, online at http://www.hp.com/racksolutions/pduprog/us/eng/pduprog.htm, and follow the link provided on the support page.

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 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 statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the PDU replacement program may not proceed as expected 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, 2000, 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.