News release

Compaq Presario Holiday Lineup Provides Consumers Progressive Technology at Affordable Prices

PALO ALTO, Calif., Sept. 24, 2002

HP (NYSE:HPQ) has unwrapped an early holiday gift for consumers: a new line of feature-rich Compaq Presario PCs priced just right for gift-giving this season.

The new Compaq Presario PC lineup found in retail stores for the holidays is ideal for customers who want to do more with their PCs in less time, with less effort and with prices as low as $399.⁽¹⁾

"This holiday season, HP is taking advantage of its No. 1 position in the home PC space to offer consumers even more selection at some of the most attractive prices on the market," said Sam Szteinbaum, North America vice president of consumer products, HP Personal Systems Group. "The Compaq Presario PC lineup, an industry-leading brand, continues to feature the newest technologies available for the season."

The holiday line features three new desktop models: the Compaq Presario 6300 US, 6320US and 6330US desktop PCs.

At an estimated U.S. street price of $399,⁽¹⁾ including a $50 mail-in rebate, the Compaq Presario 6300US offers consumers reliable productivity with an Intel® Celeron® 1.4 GHz processor, 128 MB SDRAM, a 40 GB hard drive and CD-ROM drive. Like all Compaq Presario desktop PCs, it comes broadband ready with a 10/100BaseT Fast Ethernet interface.

The Compaq Presario 6320US offers consumers an ideal balance of performance and value, featuring an AMD Athlon XP 2000+ processor, 256 MB of DDR (double data rate) memory, a 60 GB hard drive, CD-RW and DVD-ROM drives for an estimated U.S. street price of $629.⁽¹⁾

HP provides customers powerful multimedia capabilities and outstanding computing power at an affordable price with the Compaq Presario 6330US. At an estimated U.S. street price of $749,⁽¹⁾ the PC includes an Intel Pentium® 4 2.0 GHz processor, 256 MB of DDR memory, a 60 GB hard drive, CD-RW and DVD-ROM drives.

In addition to a 90-day free trial of the complete Norton Anti-Virus software solution for added security,⁽²⁾ all Compaq Presario PCs feature Microsoft® Windows® XP Home with Microsoft Works.

The new Compaq Presario holiday retail lineup is expected to be available beginning Oct. 6 through traditional retail outlets and Compaq "Built for You" kiosks located in more than 10,000 popular retail stores. More information about Compaq Presario desktop PCs is available at hpshopping.com or by calling +1 888 999 4747 starting Oct. 1.

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. More information about HP is available at http://www.hp.com.

⁽¹⁾ Includes $50 mail-in rebate. Actual prices may vary.

⁽²⁾ Paid subscription required after 90-day trial period expires.

Intel, Celeron and Pentium are U.S. registered trademarks of Intel Corp.

Microsoft and Windows are U.S. registered trademarks 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 quarterly report on Form 10-Q for the quarter ended April 30, 2002 and reports filed subsequent to HP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001. 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.