News release

PwC Consulting and HP to Deliver Jointly Developed Collaborative Value Chain Solutions

New York, NY and Palo Alto, CA, December 3, 2001

PwC Consulting™, a business of PricewaterhouseCoopers, and Hewlett-Packard Company (NYSE:HWP) today announced a global alliance to deliver rapidly deployable collaborative value chain solutions to their joint clients in the manufacturing sector. The relationship combines PwC Consulting's recognized leadership in manufacturing solution delivery and HP's proven technologies with strong complementary service capabilities from both companies.

The first of these proposed solutions - known as the Rapid Supply Chain Collaboration Hub - combines HP's hardware products and services capabilities for an always-on Internet infrastructure with the consulting and systems integration abilities of PwC Consulting. The software component of the solution will stem from existing relationships that both organizations have with leading supply chain software providers, all based on what software works best for the client. For example, HP recently selected i2 as the software partner for HP's internal implementation of its private marketplace.

The Rapid Supply Chain Collaboration Hub can help improve efficiency between manufacturing companies, their suppliers and contract manufacturers by reducing inventory, improving flexibility and increasing supply chain transparency via Internet-enabled functionality. The Rapid Supply Chain Collaboration Hub will target clients in the aerospace, automotive, high-tech, and consumer packaged goods sectors, helping them achieve more efficient procurement of direct materials, visibility and management of supplier-managed inventory, and usage of external electronic markets.

"The battlefield for operational improvement is changing from inside the four walls of the enterprise to outside of those walls -- increasing collaboration between supply chain partners," said Peggy Vaughan, Americas leader, Supply Chain and Operational Solutions, PwC Consulting. "Global companies are looking to take demonstrative steps toward transforming their supply chains to a more collaborative model and are looking to invest in a clear competitive advantage when the economy turns. This alliance with HP will enable us to help our clients make this transformation faster and achieve the benefits of collaboration sooner."

Through use of the Rapid Supply Chain Collaboration Hub solution, clients may be able to achieve a wide range of cost and time-reduction benefits. In pilot deployments done by PwC Consulting and HP within HP itself, the Rapid Supply Chain Collaboration Hub led to improved inventory turns from 11 to 24, reduced procurement transaction costs by 17%, and reduced purchase order cycle-time reduction by 50%.

The collaborative value chain alliance between PwC Consulting and HP is a key element of HP's Partner Enablement Program for manufacturing customers. The program aims to drive the faster connection, management and collaboration of key partners in an e-business framework.

"Through its Partner Enablement Program, HP has the unique ability to leverage its manufacturing expertise to help customers transform their own supply chains," said Airton Gimenes, vice president of sales, HP Business Customer Organization. "Through the implementation and integration of the Rapid Supply Chain Collaboration Hub solution here at HP, we have transformed the HP product distribution and packaging process, saving our company approximately $35 million in 2000."

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 of $45.2 billion in its 2001 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

About PwC Consulting

PwC Consulting™ (www.pwcconsulting.com) is a leading global provider of services that transform the businesses of established and emerging enterprises around the world. With an extensive network of global alliances, deep industry-specific knowledge, and broad capabilities in strategy consulting, process improvement and technology integration, PwC Consulting practitioners place innovative ideas into bold, meaningful actions that can help realize a strategic vision, drive business success, and enhance enterprise value for our clients.

PwC Consulting™ refers to the management consulting services businesses of the member firms of the worldwide PricewaterhouseCoopers organization.

PricewaterhouseCoopers (www.pwcglobal.com) is the world's largest professional services organization. Drawing on the knowledge and skills of more than 150,000 people in 150 countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk and improve performance in an Internet-enabled world. PricewaterhouseCoopers refers to the member firms of the worldwide PricewaterhouseCoopers organization.