News release

HP Opens Software Solution Center in China's High Growth Market

PALO ALTO, Calif., Oct. 22, 2001

Hewlett-Packard Company (NYSE:HWP) today announced plans to open an HP Software Solution Center in Shanghai, China, that will focus on developing business software solutions for enterprise customers. The center is intended to meet customer demand for enterprise solutions that support an always-on Internet infrastructure in the high-growth Chinese market.

Within the next several years, the center is expected to employ over 1,000 professionals, who will focus on the research and development of HP software and on providing a range of customer solutions for China's domestic market. The center positions HP to meet the rapidly growing needs for IT infrastructure and integrated business solutions in the Chinese IT market, which IDC has forecast will reach $50 billion by 2005, including software and services⁽¹⁾.

Additionally, the center will work closely with local independent software vendors (ISVs) as well as global ISVs entering the Chinese market.

"We welcome HP's expansion in China, which clearly demonstrates the improving status of the Chinese IT industry," said Chen Chong, Minister of Information Industries. "I believe that HP's advanced technology and IT solutions will promote the overall development of the China IT market."

"Chinese corporations are anxious to expand their IT infrastructure capabilities," said Cheng-Yaw Sun, president, HP China. "The new HP Software Solution Center will develop solutions that use the best technologies to meet growing business needs, helping China to fulfill its goals as a leading world market."

The HP Software Solution Center in China is expected to open before the end of 2001. HP's solution centers have received a CMM Level 5 rating -- the highest-level assessment -- for quality software engineering from the Software Engineering Institute. Leveraging the CMM Level 5 processes and expertise, the center plans to offer industry-leading software engineering services and provide on-time and on-budget performance for local customers.

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⁾ IDC, Worldwide IT Spending Patterns: The Worldwide Black Book, 2001, June 2001.

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.