News release

HP Demonstrates Outstanding Itanium 2-based System Performance on Reuters Application

Intel Itanium 2 Technology Outperforms Other Architectures on Demanding Financial Services Application

PALO ALTO, Calif., June 19, 2002

HP (NYSE: HPQ) today announced outstanding performance results achieved on an Intel® Itanium® 2-based HP server running key components of a Reuters financial trading application.

Reuters Structured Negotiation Capability software enables buyers and sellers in a worldwide financial market to connect and trade with each other. The test showed that the soon to be announced HP 4-way Itanium 2 server logged results that were four times faster than the 8-way Sun Fire 3800 server.

The result was achieved on an Itanium 2-based HP server configured with four 1 GHz processors, 16 GB of memory and two 18 GB hard drives using a beta version of 64-bit Microsoft® Windows® operating system.

The outcome of this Reuters application testing highlights the outstanding performance of the Itanium 2-based servers in a demanding commercial marketplace -- financial trading.

The HP server features the HP zx1 scalable processor chipset and is engineered for high bandwidth, low latency and scalable capacity applications -- for the most optimized Itanium 2-based server performance in the industry.

"The combination of Reuters' scalable negotiation application on HP's high-performance system will enable a world-class financial transaction platform," said Lisa Hambrick, director, Intel Enterprise Processor Marketing. "The performance of this platform demonstrates the scalability and industry-leading performance of Intel Itanium 2-based platforms."

Paul Otellini, Intel president and chief operating officer, demonstrated the new 4-way Itanium 2 system running the Reuters application today at the Securities Industry Association's Technology Management Conference in New York.

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP merged with Compaq Computer Corp. on May 3, 2002. The merged company had combined revenue of approximately $81.7 billion in fiscal 2001 and operations in more than 160 countries. More information about HP is available at http://www.hp.com.

Intel and Itanium are registered trademarks of Intel Corp. or its subsidiaries in the United States and other countries. Microsoft and

Windows are U.S. registered trademarks of Microsoft Corp. Reuters is a trademark of the Reuters group of companies.

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 HP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001, HP's quarterly report on Form 10-Q for the quarter ended January 31, 2002 (as filed with the SEC on March 12, 2002) 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.