News release

HP, Modern Business Technology Showcase "Virtual Receptionist" During NBCC Annual Conference

Innovative Remote Greeting Solution Meets Growing Demand for Workplace Efficiency, Productivity and Safety

MILWAUKEE, July 31, 2002

HP (NYSE:HPQ) and Madison, Wis.-based Modern Business Technology, Inc. (MBT) today announced they are showcasing the MBT Virtual Receptionist -- a remote greeting solution that uses state-of-the-art HP equipment -- to more than 1,000 conferees attending the 10th annual National Black Chamber of Commerce (NBCC) conference here Aug. 1-3.

The NBCC represents the business interests of more than 640,000 black-owned businesses across 190 affiliated chapters in the United States, Bahamas, Brazil, Colombia, Ghana and Jamaica. Locally, the national organization is anchored by the African American Chamber of Commerce of Greater Milwaukee. This marks the second year that HP , through pre-merger Compaq, has sponsored the NBCC's annual conference.

"We are pleased to have HP participate as a sponsor for our annual conference. They are leaders among companies that can harness diverse technology strengths and partners to leverage economies of scale," said Harry Alford, president and chief executive officer, NBCC. "We look to HP as our preferred technology supplier because they and their partners deliver aggressively priced solutions ideally suited to growing businesses."

"We are committed to delivering useful, innovative technology solutions to growing companies," said Robyn West, vice president of SMB marketing, HP Personal Systems Group. "This year, we are working side-by-side with solution provider Modern Business Technology to drive awareness of their new Virtual Receptionist technology and promote our partners who can assist businesses with their technology integration needs."

Since last year, Modern Business Technology, an HP authorized reseller, has generated more than $15 million in new sales of Compaq and HP hardware, software and solution services to small and large commercial accounts in Madison and Milwaukee. "The new HP helps us deliver total business solutions and satisfaction to our customers," said Natalie Knudson, owner and president, MBT -- one of Wisconsin's most successful woman-owned IT companies.

Virtual Reception Front-desk Assistant

The standard configuration for Virtual Receptionist includes three Compaq Evo D500s series desktop PCs with Intel® Pentium® IV 1.8 GHz processors, optional tower stands, two TFT5030 back-office monitors, one TFT5015 touch screen monitor for the front kiosk, three Logitech QuickCam Pro3000s, Altiris RapiDeploy cloning and configuration software, MBT's Virtual Receptionist software, speakers, hub, patch cables, kiosk and an ultrasonic sensor.

The main and back-up answering station can be set up practically anywhere in the building or directly on a local area network and is compatible with Microsoft® and Novell networks, although no networking solution is required.

"CUES has been using the Virtual Receptionist for just under one year and the response from both visitors and staff has been very positive," said Linda Stemper, senior vice president and chief operating officer, Credit Union Executives Society, a national association based in Madison. "It makes a great first impression from a technology perspective and it has already paid for itself with the money we saved when we eliminated our receptionist position."

The total package, including all software and 12 months of technical phone support, is available for estimated U.S. street pricing of about $14,000 through HP directly and will soon be available through HP authorized resellers.⁽¹⁾ According to Knudson, Virtual Receptionist is about one-third the annual cost of salary and benefits for a live receptionist, whose talents can often be more productive away from the front desk.

Customers who lease Virtual Receptionist or other products and services through HP Financial Services in amounts from $499 to $50,000 can receive a two percent cash rebate as part of a special HP Financial Services promotion that runs from Aug. 1 through Oct. 31, 2002.⁽²⁾ For more information about the NBCC, visit http://www.nationalbcc.org. More information about HP products and solutions available for growing businesses is available at http://www.hp.com/sbso/busproducts.html.

About Modern Business Technology

MBT is a leading systems integrator and software developer. In addition to total package business solutions, the company provides products, software, technical services and audits, and consulting. Incorporated in the state of Wisconsin, MBT is a woman-owned business and has been providing business and computing solutions since 1977. More information is available at http://www.modernbusinesstechnology.com.

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.

⁽¹⁾ Actual prices may vary and are subject to change without notice.

⁽²⁾ Lease products available through Hewlett-Packard Financial Services Company (HP FSC) to qualified commercial customers in the U.S. and are subject to credit approval and execution of standard HP FSC documentation. HP FSC reserves the right to change or cancel this program at any time without notice. 2 percent cash rebate lease offer -- HP FSC will send customer a check for 2 percent of the total lease transaction amount within 60 days after HP FSC has received the first lease payment from customer. 2 percent lease offer applies to all lease transactions up to $50,000. Some product restrictions may apply. Other fees and restrictions may apply. This offer is valid through Oct. 31, 2002.

Intel and Pentium are registered trademarks of Intel Corp.

Microsoft is a registered trademark of Microsoft Corp.

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.