News release

HP Researchers Describe Future World of Connected, Service-centric Computing

PALO ALTO, Calif., June 12, 2001

Researchers from Hewlett-Packard Company (NYSE:HWP) today described a future "service-centric" world of computing in which billions of people, places and things could all be connected through the World Wide Web and computing services could be purchased wirelessly -- anytime, anywhere -- from massive data centers linked around the globe.

At a news conference at HP Labs, the company's central research facility, scientists and engineers focused on four key projects which could affect the future of computing.

"The work being done by HP Labs is aimed at creating 'disruptive technologies' that will enable a world of service-centric computing and establish entirely new markets for HP and the industry," said Dick Lampman, director, HP Labs, and vice president of research, HP.

Researchers updated the progress of Cooltown, an HP Labs project that envisions Web presences for people, places and things. That could lead to Web sites for physical locations identified only by their geographic latitude and longitude. For example, fishermen on a lake could create "virtual graffiti" in cyberspace to show fellow anglers carrying wireless Web-access devices where the fish are biting best. Web sites also could be linked to everyday objects and products. For instance, a consumer could use a cell phone or personal digital assistant (PDA) to scan a bar code on a music CD case and immediately be linked to a ticket-buying service for the artist's upcoming concerts.

HP scientists also described mobile streaming media technologies they are developing to enable real-time video delivery to any device -- including cell phones and PDAs. They also described their research collaboration with NTT DoCoMo, the Japanese phone company, intended to provide rich streaming media to mobile users over fourth-generation wireless networks.

In another project, HP researchers demonstrated software that automates the creation of custom, embedded computer chips. By significantly reducing the time and cost of creating such chips, this innovation has the potential to vastly increase the number and types of "smart" products that could be built.

"Embedded computing is the next generation of the computer systems industry," said Bob Rau, HP Fellow and Compiler Architecture Research program manager, HP Labs. "The market for embedded solutions could top several billion dollars in the next few years. So significant is this development that embedded computing technology recently became part of an HP product-development unit."

Meeting the challenges of a world full of connected people, places and things would require 50,000-node data centers, 10 times the size of today's facilities, researchers said. These centers could provide services to users -- companies and organizations, as well as individuals -- who would pay based on the amount of computing they use, just as they would for electricity.

"The data centers of tomorrow may have to provide trillions of services to billions of mobile customers and be federated around the world," said Rich Friedrich, principal architect and manager, HP Internet Systems Technology. "This scenario poses enormous challenges and calls for entirely new models of computing."

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 all. 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, 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.