News release

HP Introduces Compact All-in-one Device that Turns Home into "Mini-photo Lab"

All-in-one Also Allows Consumers to Print, Fax, Scan or Copy with Ease

PALO ALTO, Calif., Sept. 19, 2001

Hewlett-Packard Company (NYSE:HWP) today introduced the industry's first all-in-one home digital imaging solution that allows consumers to choose and print digital photos directly without the need for a computer. The compact HP PSC 950 all-in-one allows consumers to print photos, create special projects and handle everyday printing, faxing, scanning or copying needs.

With the exclusive HP Photo Proof Sheet feature, a user simply inserts a memory card containing photos into the appropriate slot on the HP PSC 950 all-in-one, presses the "proof sheet" button and a sheet with thumbnail-sized photos is automatically generated. The user then selects the photo, paper type and size desired on the sheet and scans it into the all-in-one, which recognizes the user's choices and prints the photos as specified.

Consumers can use CompactFlash, SmartMedia or Sony Memory Stick memory cards for printing and also for downloading digital photos directly to the computer without ever having to connect their digital cameras.

"The HP PSC 950 all-in-one is essentially like having a mini-photo lab in the home," said George Brasher, product manager, HP Consumer Business Organization. "This product furthers the transformation from traditional to digital photography, offering consumers greater choice, control and convenience."

The HP PSC 950 all-in-one features the same award-winning technology available in HP inkjet printers commonly used by small-office and home-office professionals. The device produces 2400 x 1200-dots per inch (dpi) color images on photo paper to deliver photo reprints that look virtually identical to the original. It prints up to 12 pages per minute (ppm) in black and up to 10 ppm in color. For additional convenience, the HP PSC 950 all-in-one comes equipped with a 4 x 6-inch photo tray.

Convenient Scanning, Copying and Faxing

In just a few simple steps, home users can add brilliant color photos and drawings to their documents to create letters, cards, school reports or other creative projects. The HP PSC 950 all-in-one features exceptionally high-quality scanning with 600 x 1200-dpi optical resolution, 9600-dpi enhanced resolution and 36-bit color. It also includes optical character recognition (OCR) software, which allows users to edit hardcopy text documents by scanning and converting them into electronic files.

The HP PSC 950 all-in-one delivers photo-quality copying at speeds of up to 12 copies per minute (cpm) in black and nine cpm in color. The copying feature allows users to create special projects without a computer. For example, users can create multiple wallet-size photos from one original, make reductions and enlargements, print posters and copy two originals onto one page. The flatbed design allows users to scan or copy virtually anything, such as books and other 3D objects.

The device also features a flatbed fax -- designed for sending short faxes of approximately one to three pages. It can receive faxes of any length.

U.S. Pricing and Availability

The HP PSC 950 all-in-one is expected to ship to retailers in the U.S. in September with an estimated U.S. street price of $399⁽¹⁾. It comes with a one-year limited warranty backed by HP Customer Care service and support.

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⁾ Actual prices may vary.

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.