News release

HP Increases Value of Service-driven Management with Pink Elephant

Enhanced PinkVerify Status Awarded to HP OpenView Service Desk Solution

PALO ALTO, Calif., Aug. 5, 2002

HP (NYSE:HPQ) today announced that its HP OpenView Service Desk software has been awarded Pink Elephant's Enhanced PinkVerify™ status, signifying the software's ability to enable the quality and cost-saving benefits derived from Information Technology Infrastructure Library (ITIL) and IT service management initiatives.

PinkVerify is the IT service management toolset "stamp of approval" given by Pink Elephant Inc., one of the world's leading IT service management consulting organizations and a leading educator in ITIL. Specifically, Enhanced PinkVerify status helps to validate that HP OpenView solutions are compatible with best practices for the following ITIL process areas: service level management, incident management, problem management, change management and configuration management.

The Pink Elephant verification is an important benchmark for customers who realize the critical role IT plays in overall business success. By adopting and implementing ITIL best practices, companies are better able to optimize the services that run over complex IT, voice and data infrastructures and better able to tackle IT projects quickly and effectively.

Achieving PinkVerify status illustrates HP OpenView's expertise and commitment to provide comprehensive solutions to customers in service management, fault, performance, network services, servers/systems, applications, Web services and storage management.

Furthermore, HP Services can help customers with the adoption, implementation and management of a robust of set ITIL standards in their IT organizations. HP Services consultants have deep expertise on ITIL standards and on the HP OpenView products. HP Services uses HP OpenView software, including HP Service Desk, as a key part of the toolset for its managed services business.

"HP OpenView software has long been recognized for its ability to deliver service-driven functionality that enables organizations to improve the end-user experience. It's a significant business tool to many organizations," said David Ratcliffe, president, Pink Elephant Inc. "By managing and optimizing the delicate balance between IT services and complex IT infrastructures through process functionality described in ITIL, HP OpenView is an ideal candidate for our PinkVerify ITIL-compatible validation."

"HP OpenView is committed to providing the most comprehensive portfolio of service-driven management solutions to better serve our customers' needs," said Jim Grant, general manager, HP OpenView Business Unit. "We are excited to work with Pink Elephant to further the development and acceptance of ITIL standards and increase the utility and value of service-driven management."

More information about Pink Elephant and PinkVerify is available at http://www.pinkelephant.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.

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.