News release

HPIntroduces All-in-one Devices to Increase Efficiency and Productivity in Small Businesses and Home Offices

PALO ALTO, Calif., Feb. 19, 2002

Hewlett-Packard Company (NYSE:HWP) today introduced an easy-to-use line of all-in-one solutions that combine a printer, fax, scanner and copier into one compact, flatbed device.

TheHPOfficejet d series all-in-ones offer superior printing, simple sharing with networking options, and expanded digital imaging capabilities -- an ideal combination for results-driven small and home office professionals seeking to reign in costs.

New to this generation ofHPOfficejet all-in-ones is an intelligent printing system that combines separate printheads and ink cartridges to provide optimal print quality, performance and reliability. In addition, select models now feature digital camera memory card slots andHP's exclusive Photo Proof Sheet feature, allowing for simple photo printing with or without a computer.

This is the industry's first line of inkjet all-in-ones to offer a legal-sized (8.5 x 14-inches) scan and copy surface area with an automatic document feeder included. Ideal for busy office environments, this feature gives consumers the flexibility to scan and copy various paper sizes in multiple quantities. These are also the first all-in-ones able to copy automatically on both sides of letter-sized paper.

According to NPD Group, Inc., a leading marketing information provider,HPcontinues to lead the U.S. inkjet all-in-one market with 68 percent market share in the first half of 2001.⁽¹⁾

"As our strength in this market grows,HPremains committed to offering consumers unsurpassed quality and innovation with its all-in-one products," said Larry Lesley, vice president and general manager,HPPersonal Printing Organization. "At home or in the office,HP's all-in-one devices integrate multiple functions that enable people to work more efficiently and creatively."

Superior Printing and Productivity Enhancements

TheHPOfficejet d series all-in-ones feature an intelligent printing system that delivers fast print speeds of up to 19 pages per minute (ppm) in black and up to 16 ppm in color. Consumers can create dynamic presentation and marketing materials with brilliant color photo-quality printing at up to 2400-dots-per-inch (dpi) resolution on premium photo papers. The all-in-ones produce crisp black text printing at 1200 x 600-dpi.

The all-in-ones deliver a robust assortment of productivity tools to consumers looking for optimal value. In addition to a legal-sized flatbed scanner, the all-in-ones come equipped with a 33.6 kilobytes-per-second fax modem for high-quality fax transmission (not included with theHPOfficejet d125xi all-in-one) and simple copy features such as one touch copying. Additional features include:

• high-quality color scanning -- 1200 x 4800-dpi, 9600-dpi enhanced and 48-bit color;
• 50-page automatic document feeder for hands-free faxing, copying and scanning of multi-page documents;
• copy speeds of up to 18 copies per minute (cpm) in black and 16 cpm in color;
• two-sided letter-sized printing and copying (optional with theHPOfficejet d135/xi);
• up to 400 sheets of input paper with an optional 250-sheet plain paper tray (included with theHPOfficejet d125xi and d155xi);
• collation for copy and print jobs (included on theHPOfficejet d155xi).

For easy photo printing, theHPOfficejet d145 and d155xi all-in-ones offer digital camera memory card readers andHP's exclusive Photo Proof Sheet feature. The devices support CompactFlash, SmartMedia and Sony Memory Stick memory cards.

To print photos with theHPPhoto Proof Sheet feature, a user simply inserts a memory card containing photos into the appropriate slot on the all-in-one and prints theHPPhoto Proof Sheet. A sheet with thumbnail-sized photos is generated. The user then selects the photo, paper type, quantity 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.

Networking Options

TheHPOfficejet d series all-in-ones are network-capable, allowing them to be shared by users in multiple-PC environments and giving small office/home office consumers the ability to increase the use of their all-in-ones as their needs grow. Users can share the device using its USB port and an additional open connectivity slot. The open connectivity slot is compatible with theHPParallel Cable Adapter and theHPJetdirect 200M print server/Internet connector.

TheHPOfficejet d series all-in-ones include the following models:

• TheHPOfficejet d125xi all-in-one printer/scanner/copier -- includes productivity accessories such as a two-sided printing add-on, an additional 250-sheet plain paper tray and simple networking with theHPParallel Cable Adapter -- $499⁽²⁾ with expected availability in April 2002.

• TheHPOfficejet d135/xi all-in-one printer/fax/scanner/copier -- includes fast print speeds, a legal-sized scan bed and network options -- $499⁽²⁾ with expected availability in February 2002.

• TheHPOfficejet d145 all-in-one printer/fax/scanner/copier -- includes memory card readers and a two-sided printing add-on -- $599⁽²⁾ with expected availability in April 2002.

• TheHPOfficejet d155xi all-in-one printer/fax/scanner/copier -- includes memory card readers, a two-sided printing add-on, an additional 250-sheet plain paper tray and aHPJetdirect 200M print server/Internet connector for easy networking -- $799⁽²⁾ with expected availability in February 2002.

AboutHP

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.HPhad total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Information aboutHPand its products can be found on the World Wide Web at http://www.hp.com.

⁽¹⁾ NPD Group, Inc., MFD Retail/Commercial Reseller database -- U.S. inkjet AIO unit market share for H1 2001.

⁽²⁾ Estimated retail prices, 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 inHP'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 fromHP's expectations in these statements.HPassumes no obligation and does not intend to update these forward-looking statements.