News release

Gores Technology Group Announces Agreement to Acquire VeriFone From HP

Los Angeles and Palo Alto, Calif., May 10, 2001

Gores Technology Group (GTG), a privately held international acquisition and management company, announced today that it has signed a definitive agreement to acquire VeriFone, a leading global provider of secure electronic-payment solutions for financial institutions, merchants and consumers, from Hewlett-Packard Company (NYSE: HWP) for an undisclosed amount of cash.

Gores Technology Group, which specializes in acquiring high-tech organizations and managing them for growth and profitability, has, to date, acquired approximately 35 companies providing high-tech services and products to millions of customers worldwide with annual revenues in the aggregate of over $2 billion.

"VeriFone is a great addition to the GTG portfolio of companies," said Alec Gores, Founder and Chairman of Gores Technology Group. "We look at this acquisition as a long-term strategic investment. The company has tremendous potential. It is the global leader in an industry that we believe is going to continue experiencing significant growth."

Doug Bergeron, Group President at Gores Technology Group, added, "We are confident that, working with VeriFone management, we can capitalize on its strengths and maximize its potential for growth." VeriFone has solid channel, partner and certification relationships and is already well-established in key vertical segments such as financial retail, petroleum/convenience store, multi-lane retail, and government-education-medical.

Pierre-Francois Catte, general manager of VeriFone, emphasized that the parties are working to ensure that the acquisition by GTG would not result in any disruptions of service, product shipments, or changes in the business relationships with VeriFone's partners and customers. He also emphasized that VeriFone plans to keep all of its existing employees in its current ongoing operations. "VeriFone could not have asked for a better company to pair-up with for the future," he said. "Gores Technology Group has an outstanding reputation for achieving positive results by empowering management and employees to effectively and efficiently improve performance and supporting growth through investment and acquisition. We consider this a return to VeriFone's roots as a nimble, entrepreneurial, stand-alone technology company with the freedom to innovate and grow."

Mr. Bergeron said that VeriFone's newest payment hardware and software meets the highest security and performance standards for customers using the Europay, Mastercard, and Visa (EMV) standard for smart card transactions. "VeriFone has established the groundwork for the long-awaited growth of smart cards in the United States," Mr. Bergeron said. "The company has staked its claim to future payment markets by taking a lead in emerging smart card and mobile commerce technologies. We believe its best years are yet to come."

John Brennan, HP vice president, Strategy and Corporate Development, indicated that the divestiture of VeriFone will allow HP to continue to sharpen its focus and refine its portfolio of businesses. "This move will enable HP to put greater focus on core competencies related to service-centric computing and providing solutions for an always-on Internet infrastructure," he said. "HP's investment in VeriFone's technology leadership positively positions VeriFone for the future."

The completion of the transaction is subject to regulatory approvals and other customary conditions.

About VeriFone

VeriFone (http://www.verifone.com) is a leading global provider of secure electronic-payment solutions for financial institutions, merchants and consumers. The division has shipped more than nine million electronic-payment systems, which are used in more than 100 countries.

For more information on VeriFone, please contact Lindsay Cunningham, lindsay_cunningham@hp.com, (408) 919-8821.

About Gores Technology Group

With headquarters in Los Angeles, Gores Technology Group is a privately held international acquisition and management firm that pursues an aggressive strategy of acquiring promising high-technology organizations and managing them for growth and profitability. GTG has made a name for itself by acquiring and successfully managing companies -- including many divisions acquired from large publicly traded companies -- through its commitment to customers, employees and continued development of intellectual property. GTG has acquired and managed approximately 35 interrelated but autonomous technology-oriented companies with locations throughout the world. Those companies provide a broad range of technology-based products and services to a substantial customer base representing millions of active users worldwide. Visit the company's Web site at www.gores.com.

For further information on Gores Technology Group, please contact Michael Sitrick, mike_sitrick@sitrick.com, or Terry Fahn, terry_fahn@sitrick.com, both of Sitrick and Company, (310) 788-2850.

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.

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 statements that could be deemed 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 and VeriFone 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; the risks associated with conditions to closing 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. HP assumes no obligation to update these forward-looking statements.