News release

HP Expands Digital Entertainment Offering by Launching Home PC Line with Built-in CD-RW Drives

PALO ALTO, Calif., April 24, 2001

Hewlett-Packard Company (NYSE:HWP) today announced a line of home PCs -- including an entry level-priced PC -- equipped with CD-ReWritable (CD-RW) drives to join the wide range of HP's easy-to-use digital entertainment products that include external CD-RW and DVD-ROM combo drives and HP Jornada pocket PCs with MP3 capabilities.

This line of HP Pavilion home PCs offers consumers a variety of multimedia features, including CD-RW drives which enable consumers to create CDs of their favorite music, store data for home offices easily and efficiently, send digital photo albums to families and friends, and more.

The home PCs also feature fast processors, DVD-ROM drives -- for watching movies -- and enhanced graphics capabilities. In addition, select HP Pavilion home PC models now include a smooth-functioning optical mouse equipped with navigation sensor technology from Agilent Technologies -- eliminating the need for a mouse pad.

"This announcement is another example of the wide array of digital entertainment solutions made available by HP to meet the ever-growing demand for reliable products and services for today's and tomorrow's technology user," said Sam Szteinbaum, business manager, HP North America Consumer Computing Organization.

The HP digital entertainment solutions announced today include:

• The HP Pavilion 6835 home PC, which is powered by an Intel® Celeron™ 800 MHz processor and includes 128 MB SDRAM, 30 GB hard-disk drive and HP CD-Writer Plus CD-RW drive. Estimated U.S. street price: $699⁽¹⁾;

• The HP Pavilion 7855 home PC, which is powered by an Intel Pentium® III 1.0 GHz processor and includes 128 MB SDRAM, 60 GB Ultra DMA hard-disk drive, HP CD-Writer Plus CD-RW drive, 12x DVD drive and 10/100 Base-T networking card. Estimated U.S. street price: $1,099⁽¹⁾; and

• The HP Pavilion 7875 home PC, which is powered by an AMD Athlon 1.3 GHz processor and includes 128 MB DDR memory, 80 GB Ultra DMA hard-disk drive, HP CD-Writer Plus CD-RW drive, 16x DVD drive, IEEE 1394 port, USB optical scroller mouse and Nvidia GeForce2 MX 32MB graphics card. Estimated U.S. street price: $1,599⁽¹⁾.

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 solutions for an Internet infrastructure that's always on.

HP 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.

⁽¹⁾ Actual prices may vary.

Intel and Pentium are U.S. registered trademarks and Celeron is a U.S. trademark of Intel Cor

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 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, 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.