News release

HP, Telefónica Móviles, Ericsson España and Generalitat of Catalonia (Spain) Create Joint Venture to Develop Mobile e-Services and Products

PALO ALTO, Calif., July 26, 2001

Hewlett-Packard Company (NYSE:HWP), Telefónica Móviles, Ericsson España (through its subsidiary Ericsson Innova) and the Generalitat of Catalonia (Spain) have signed an agreement to form a joint venture company devoted to developing and marketing mobile applications and e-services.

The new company, called Tempos 21, intends to speed the availability of these mobile e-services and applications, helping create a world where seamless, friendly, efficient experiences are delivered to improve the way people work, learn and live their lives on the go.

Tempos 21 will focus on developing mobile phone-related products and mobile e-services and will serve as a catalyst to boost the market for applications on mobile networks (including GSM, GPRS and UMTS) -- fostering business opportunities for companies and innovative services for customers. It also will serve as a seed and technology incubator for other initiatives.

The agreement was signed today by the Honourable Counsellor Antoni Subirá i Claus, president of the Executive Council of the Catalonia Office of Foreign Investment (CIDEM) at the Industry, Trade and Tourism Department of the Generalitat of Catalonia; Ignacio Aller, executive director for Spain, the Mediterranean Basin and Global Development and executive director of Technology at Telefónica Móviles; Ingemar Naeve, chief executive officer of Ericsson España; and Juan Soto, president and chief executive officer of HP Spain.

Tempos 21 will be designed to take advantage of the synergies derived from the complementary profiles of its founding partners in aspects such as technological innovation, market knowledge, breadth of product and services and the facilitation of collaboration agreements. It will combine the worlds of mobile communication and information technologies with a wider, more complex range of services adapted to the professional, social and personal needs of mobile users.

The project is led by Telefónica Móviles and began a few months ago when draft agreements were signed with Ericsson and HP. The partners have since developed a corporate plan, business model and rules relating to the operation of the joint venture.

Tempos 21 plans to devote itself to developing, integrating and marketing predominantly in-house applications. This activity will focus on vertical applications aimed at increasing productivity and efficiency in economic sectors such as transportation, tourism, the automotive industry, telematics, leisure and entertainment. Horizontal applications are also to be developed on a collaborative basis, along with applications for the consumer market.

The applications will be marketed through the use of licences, although the joint venture also is expected to develop tailor-made projects, providing technological consultancy services and managing the integration of mobile solutions developed with customers' systems.

Tempos 21 also is expected to offer mobile-application services (W-ASP services) for small- and medium-sized enterprises and private-label services, primarily for mobile operators, aggregators and portals. It will be responsible for the application and provision of consultancy services, the development of integrated solutions in mobile telephony and the provision of laboratory services, tests and application certification.

Tempos 21 will be located in the Parque Tecnológico del Mediterráneo in Castelldefels in the Barcelona region (Spain).

The president of the company will be Miguel Menchén, director general of Services and Platforms at Telefónica Móviles and the vice president will be designated by Ericsson España. An independent professional will be elected chief executive officer.

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 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 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; 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 and does not intend to update these forward-looking statements.