News release

HP Settles UK Inkjet Cartridge Patent Infringement Lawsuit

PALO ALTO, Calif., Feb. 16, 2001

Hewlett-Packard Company (NYSE: HWP) today announced that it has settled with Teco Information Systems Europe Limited ("Teco Europe") outstanding patent litigation in the United Kingdom relating to thermal inkjet printer cartridges.

HP recently instituted patent infringement proceedings in Germany, France and the UK against International United Technology Co. Ltd. ("IUT") and/or certain companies acting as actual or potential distributors of IUT thermal inkjet cartridges being offered as a replacement for HP 51626A and HP 51629A cartridges.

HP filed the lawsuit in the UK against Teco Europe, a UK company which is a member of the Taiwan-based Teco group of companies. Teco Europe was acting as a European distributor of thermal inkjet cartridges manufactured by IUT. It is HP's understanding that Teco Europe did not seek independent legal advice before starting distribution of the IUT cartridges in the UK.

According to the settlement, Teco Europe has agreed to stop importing, supplying or otherwise offering these or similar IUT inkjet cartridges. The settlement covers the UK and all other countries in which HP holds equivalent patents. Teco Europe has also agreed to pay compensation to HP in respect of past sales and HP's legal costs.

Patent infringement proceedings against IUT itself are continuing in Germany and France. The proceedings are at an early stage in both 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 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.