News release

HP Closes Compaq Merger

PALO ALTO, Calif., May 3, 2002

Hewlett-Packard Company (NYSE:HWP) today announced that it completed its merger transaction with Compaq Computer Corporation (NYSE:CPQ) as planned. The trading of Compaq common stock will be suspended before the opening of the market on May 6, 2002, and HP will begin trading under the new NYSE symbol HPQ.

The launch for the new HP will take place on May 7, 2002.

This document contains forward-looking statements that involve risks, uncertainties and assumptions, including the suspension of trading in Compaq common stock. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements. The risks, uncertainties and assumptions referred to above include the possibility that technical or other errors cause Compaq stock to continue trading. HP assumes no obligation and does not intend to update these forward-looking statements.