News release

HP Adds to Award-winning iPAQ MP Series Microportable Projection Systems

MP1200 and MP3800 Offer Latest in Image Quality, Portability

PALO ALTO, Calif., June 24, 2002

HP (NYSE:HPQ) today announced two new members to the award-winning iPAQ MP series of microportable projection systems -- the MP1200 and MP3800. Both PC-compatible and simple-to-use units offer superior performance and value.

"In today's fast-paced business environment, there is a growing need for convenience and portability," said Steve Brown, general manager, HP Digital Projectors. "The iPAQ MP1200 and MP3800 provide these users the ultimate in both at affordable prices."

Compaq iPAQ MP3800

Leveraging the award-winning Compaq tower design, the iPAQ MP3800 offers mobile users vertical output in a powerful, executive-level mobile projector. Pumping out 1,300 lumens and weighing just 3.5 pounds, the iPAQ MP3800 is easily transportable, and with its simplified setup, users do not lose time unbundling the unit or running wires and cables.

The iPAQ MP3800 features AutoSynch, which automatically interprets and adjusts incoming computer graphics and video signals to ensure that the highest quality images are displayed -- just plug it in. User-friendly controls include an exclusive intuitive onscreen menu, allowing users to easily tweak presentations at the touch of a button and conduct on-the-spot adjustments throughout a presentation. Users can operate the bundled remote control from anywhere in the room and enable its easy hand-held access to a connected PC or projector menu selections.

Ideally suited for corporate applications, the iPAQ MP3800 includes integrated audio and video features. Compatible with most PCs, VCRs, DVDs and camcorders, it gives consumers many in-demand presentation capabilities at a fraction of the size and cost of a full-sized high-brightness projector.

The iPAQ MP3800 starts at estimated U.S. pricing of $3,499.⁽¹⁾

Compaq iPAQ MP1200

Engineered for professional image quality, the Compaq iPAQ MP1200 is one of the best value XGA (1020 x 768 pixels) microportable projectors in the industry.

Featuring 1,000 lumens, integrated video, zoom lens, easy-to-use control features and more, the iPAQ MP1200 offers the top-quality presentation tools normally found in full-sized projectors and is perfect for both home and business use. The adjustable focal-length zoom lens and manual adjustable focus zoom allow the best image to be displayed from a single position -- eliminating the need to continually re-position the unit.

The iPAQ MP1200 is incredibly easy to set up and use. The exclusive Compaq icon-based onscreen display menu allows users to edit presentations at the touch of a button and conduct on-the-spot adjustments throughout a presentation.

In addition to displaying corporate presentations, the iPAQ MP1200 is compatible with DVI and VGA sources and can display integrated video and HDTV feeds, so there is no need for everyone to huddle around a monitor. And when used with the optional home-theater adapter pack, the highly versatile and compatible iPAQ MP1200 can present full-motion video from a PC, VCR, DVD or camcorder.

Estimated U.S. pricing for the iPAQ MP1200 starts at $2,299.⁽¹⁾ Additional product information is available at http://www.compaq.com/products/projectors/mp1200/.

The new iPAQ MP3800 and MP1200 microportable projectors expand HP's award-winning digital projector line-up, which includes a wide range of projection devices for both mobile and conference room settings. Additional product information on the entire family of digital projectors, including the recently announced HP xb31, HP xe21 and iPAQ MP4800 digital projectors, is available at http://welcome.hp.com/country/us/eng/
prodserv/monitors_projectors.html.

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 completed its merger transaction involving Compaq Computer Corp. on May 3, 2002. The company would have had combined revenue on a pro forma basis with the Compaq transaction of approximately $81.1 billion in fiscal 2001 and has operations in more than 160 countries. More information about HP is available at http://www.hp.com.

Please see http://www.hp.com/hpinfo/newsroom/ for news about other notebook and handheld products announced today.

⁽¹⁾ 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 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.