News release

HP shopping.com Announces Academic Purchase Program

College Students Receive Academic Pricing from HP's Online Consumer Store

PALO ALTO, Calif., July 29, 2002

In time for the back-to-school season, HP shopping.com, HP's (NYSE: HPQ) online consumer store, today announced the Academic Purchase Program (APP), which makes buying HP consumer products more affordable for college students through special academic discounts. College students attending a qualifying college or university and obtaining a valid student I.D. can register for the special APP pricing at http://www.hpshopping.com/education.

HP shopping.com developed the program to give students from a wide selection of colleges and universities access to the best technology tools for academic success. From the comfort of their dorm rooms or apartments, student shoppers can take advantage of HP shopping.com's award-winning Web site and customer service to help select the right products.

At http://www.hpshopping.com/education, students will find the complete line of HP consumer products including everything from customized HP Pavilion desktop PCs for Internet research to HP Deskjet printers for printing reports to HP Scanjet scanners and HP Photosmart digital cameras for sharing their college experience.

"For today's college student, technology purchases are no longer optional," said Susan Boyce, chief marketing officer, hpshopping.com. "The curriculum and workload of most universities demand high-tech equipment such as Pocket PCs, color printers and notebook computers. Considering the limited resources available in campus computer labs, the Academic Purchase Program was established to give students affordable options for the purchase of their own high-quality HP products."

Through the APP site, students also can take advantage of hpshopping.com's e-financing options, product warranties and optional next-day or Saturday delivery.

HP shopping.com (http://www.hpshopping.com), headquartered in Sunnyvale, Calif., was incorporated in May 1999 as a wholly owned subsidiary of HP.

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.

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.