News release

Industry Data Confirms HP's Worldwide Home PC Leadership in 2001

Data Also Shows HP No. 1 for Second Straight Year in U.S. Home PC Market

PALO ALTO, Calif., March 5, 2002

Hewlett-Packard Company (NYSE:HWP) today announced that it is No. 1 in the worldwide home PC market, including both desktop and notebook PCs.⁽¹⁾

HP's retail leadership throughout 2001 combined with strong sales in its fourth quarter enabled it to capture a 10.23 percent home desktop PC market share worldwide and an 18.7 percent home desktop PC market share in North America,⁽²⁾ for the year, surpassing Dell and Compaq in both areas.

"HP showed continued strength in the home PC market throughout 2001 and particularly in the fourth quarter, as a result of strong holiday sales," said Roger Kay, IDC analyst. "HP, marshalling its considerable abilities in product planning, logistics and new technology packaging, again delivered attractive deals in retail."

"More important than securing a strong No. 1 home PC market position, HP continued to improve profitability across all regions throughout the year," said Pradeep Jotwani, president, HP Consumer Business Organization. "Our performance was bolstered by a powerful product line, strategic marketing and leading operational efficiencies."

HP's digital imaging business also saw revenue and market share growth in 2001. This growth was aided by a strong retail position with HP Photosmart digital cameras, such as the recently announced HP Photosmart 812, which includes innovative HP Instant Share technology that allows users to automatically share and print photos upon docking the camera.

HP's leadership in home PCs also includes 30 percent U.S. unit shipment growth of its notebook PC business in 2001, six times the current market rate average.⁽¹⁾

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.

⁽¹⁾ According to IDC's Worldwide Quarterly PC Tracker on March 4, 2002.

⁽²⁾ Includes U.S. and Canada only.