News release

HP Take-back Program Offers Canadian Businesses & Consumers Convenient and Environmentally Safe Way to Recycle Computers

Program Diverts 'e-waste' from Canadian Landfills and Prevents Export to Asia

MISSISSAUGA, ON, July 23, 2002

Hewlett-Packard (Canada) Ltd. today launched a take-back service that allows Canadian consumers and businesses to conveniently recycle unwanted computers and equipment from any manufacturer without adding to landfills or exporting scrap electronics to developing countries.

In Canada, 67,324 tonnes of IT equipment, including PCs, monitors, notebooks and peripherals, will be disposed in 2005, according to Canadian environmental consulting firm Enviros RIS.⁽¹⁾ The computer recycling service is HP's response to the growing concern about the disposal of 'e-waste' and is part of HP's Planet Partners Program, which includes a broad range of environmental and recycling initiatives.

"The Canadian take-back program follows the success of the recycling service that HP launched last year in the U.S. and builds on HP's history of environmental responsibility," said Paul Tsaparis, president and chief executive officer, HP Canada. "HP's commitment to reducing e-waste goes beyond the Planet Partners recycling program. We are constantly looking for ways to design our products to minimize the use of hazardous materials and to enable recycling and re-use."

Responding to the Needs of Customers

Accessed via the Web at http://www.hp.ca/recycle, HP's take-back service includes pickup, transportation, evaluation for reuse or donation and environmentally sound recycling for products ranging from PCs and printers to servers and scanners. Pricing ranges from Cdn$20 to Cdn$52 and is based on the quantity and type of product to be returned. This fee covers the cost of the service only and does not generate profit for HP.

All computer equipment received will first be evaluated for reuse. Functioning products will be donated to Computers for Schools, a federal government-led program that provides Canadian schools with computers free of charge.

The remaining equipment will be recycled through a process designed to maximize material recovery. All non-reusable products are shipped to a state-of-the art facility in Nashville, Tenn., where the recycling takes place. The plant is managed by HP and Noranda Inc. (TSE; NYSE:NRD). This facility, which opened in July 2001, can process approximately 680,389 kilograms (1.5 million lbs) of e-waste per month.

HP and Noranda have developed a unique process that evaluates in-coming equipment, re-deploys working equipment, extracts parts that can be re-used and recycles remaining products and components. The Cdn$3 million processing line includes sophisticated shredders to grind equipment into pieces about the size of a quarter. From there, a series of separators and magnets separate the component metals and plastics for recycling.

"As one of the world's largest recyclers of electronics, we are extremely pleased to be expanding our recycling partnership with an industry leader like HP," stated Steve Skurnac, vice president of recycling, Noranda. "Noranda's commitment to product stewardship and sustainability is clearly demonstrated through continuous investment into our fully integrated recycling business that offers unique growth potential and environmental benefits."

The new service complements other HP environmental programs. For example, the HP Planet Partners LaserJet supplies program, in operation since 1992, has helped customers recycle over 39 million HP LaserJet cartridges worldwide, which represents approximately 50,000 tons of material diverted from landfill.

Furthermore, HP is committed to designing products that are environmentally sound throughout their lifecycles. As part of its product stewardship commitment, HP works to improve the recycling capability of its products as early as the design phase.

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. HP Canada has a workforce of approximately 6,900 at 58 locations across Canada. More information about HP is available at http://www.hp.ca.

⁽¹⁾ Enviros RIS, "Information Technology (IT) and Telecommunications (Telecom) Waste in Canada" (Ottawa: prepared for Environment Canada, National Office of Pollution Prevention, October 2000).