News release

HP to Ship Its First Combination DVD+RW/CD-RW Drive

Rewritable Drive Offers Consumers Affordable, Easy Creation of Custom DVDs and CDs

PALO ALTO, Calif., Aug. 20, 2001

Hewlett-Packard Company (NYSE:HWP) today announced plans to ship its first combination DVD+RW/CD-RW drive. The drive allows novice to expert users to easily create personalized rewritable DVDs and CDs from digital or analog video, data and photos at home or in the office.

Easy to install inside a PC, the HP DVD-writer dvd100i drive enables users to create DVDs from their own videos using the DVD+RW format. Users also can transfer analog or digital video directly from a camcorder or VCR to a DVD disc⁽¹⁾, create and play digital music CDs and store large amounts of data safely and securely on both CD and DVD media.

"Using the premier DVD+RW standard, this drive will change the way people create and share their precious video memories," said John Spofford, vice president and general manager, HP Personal Storage Solutions. "With this drive, consumers can safely store large amounts of information, explore new ways to create custom video and music discs and share those discs with almost anyone who owns a DVD video player or DVD-ROM drive. And unlike videotape, the quality will last up to 100 years."

The HP DVD-writer dvd100i drive is bundled with HP MyDVD Video by Sonic Solutions, a direct-to-DVD solution for DVD recording and editing that provides consumers with an easy, step-by-step method to transform home videos into interactive DVDs.⁽¹⁾ Also included is HP Recordnow by Veritas to quickly and simply make custom music and data CDs and DVDs; HP DLA⁽²⁾ to drag and drop files to CD or DVD directly from any application; Power DVD by Cyberlink to play DVD movies on PCs; and, HP Simple Backup⁽²⁾ to store critical data reliably.

The HP DVD-writer dvd100i drive offers the following technical specifications:

• IDE/ATAPI DVD+RW/CD-RW drive with buffer underrun protection technology;

• 2.4x DVD (re-write), 8x DVD (read) speeds; and

• 12x CD-R (write), 10x CD-RW (re-write) and 32x CD (read) speeds.

The HP DVD-writer dvd100i drive is expected to be available in the United States in September at Best Buy, Circuit City, Comp USA and other retail outlets at an estimated U.S. street price of $599⁽³⁾. HP also plans to include DVD+RW/CD-RW combination drives in selected business, configure-to-order and HP Pavilion home PCs later this year.

HP DVD+RW discs also are expected to be available in September at an estimated street price of $15.99⁽³⁾.

About the DVD+RW Format

HP, MCC/Verbatim, Philips Electronics (NYSE:PHG), Ricoh Company Ltd., Sony Corporation and Yamaha Corporation -- the developers, promoters and leaders in CD-R and CD-RW technology -- are developing the next generation of optical storage technology with the DVD+RW format. The universally compatible, rewritable DVD format enables true convergence between personal computing and consumer electronics products. DVD+RW discs written on a DVD+RW recorder can be read and played on the vast majority of existing and future DVD-video players and DVD-ROM drives. Dell Computer Corp. and Thomson Multimedia (NYSE:TMS), manufacturer of RCA entertainment products, recently joined the companies to actively support and promote DVD+RW. More than 25 additional companies have formally pledged support for DVD+R and DVD+RW technology.

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.

⁽¹⁾ Requires separately purchased video capture and compression hardware for download of video to PC.

⁽²⁾ HP DLA and HP Simple Backup are powered by Veritas.

⁽³⁾ Actual prices may vary.

HP does not endorse or encourage the use of the HP DVD/CD-writer products for purposes other than those permitted by national copyright law.

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 assumes no obligation and does not intend to update these forward-looking statements.