News release

HP to Deliver Complete Core Banking Solutions with i-flex for Financial Services Organizations

PALO ALTO, Calif., Sept. 30, 2002

HP (NYSE:HPQ) today announced an agreement with i-flex solutions to jointly sell and market hardware and software solutions for financial institutions. The solutions are designed to enable these organizations to offer real-time, online core banking as well as to provide 24x7 telephone banking, ATM transactions, Internet banking and other services.

i-flex solutions is a provider of information technology software solutions to the financial services industry worldwide through a comprehensive range of products and customized service offerings. i-flex enables financial institutions to cut costs, respond rapidly to market needs, enhance customer service levels and mitigate risk, through its suite of proven products and services.

HP and i-flex will sell HP's integrated offerings -- including open infrastructure solutions, software and services -- with i-flex's suite of financial services software as an alternative to legacy mainframe systems. i-flex's solutions include the FLEXCUBE family of products and Reveleus business intelligence and analytics offering.

Together, HP and i-flex will provide core banking solutions that help financial institutions to reduce costs and increase revenues through comprehensive transaction processing and Internet banking. Both companies have created sales and marketing teams as well as co-marketing programs to better reach and support customers around the world.

The agreement expands upon an existing relationship between HP and i-flex that has resulted in joint implementations at financial services institutions throughout Europe, the Middle East, Latin America and Asia Pacific.

"With i-flex, HP is helping banks effectively transition from legacy systems to highly scalable and flexible computing solutions that allow them to be more competitive and meet the needs of their customers," said Owen Kemp, worldwide vice president and general manager, financial industries, HP Enterprise Systems Group. "Our infrastructure deployments illustrate our combined strength in helping financial services organizations rapidly respond to today's competitive market needs through new applications and services."

Together, the companies have recently begun their first deployment in the United States -- a core banking system for the North Carolina Department of State Treasurer (NCDST).

The NCDST will deploy industry-standard HP ProLiant servers running i-flex's FLEXCUBE and Reveleus software, replacing a legacy core banking system. The new system will help the NCDST expedite and manage the flow of money that is collected and disbursed across the 800-plus accounts of state agencies and institutions using a network of North Carolina banks. The implementation will enable the NCDST and its agencies to access account information over the Internet, allowing the NCDST to provide a higher level of customer service.

"HP has extensive reach in the global market, combined with strong implementation expertise. Our alliance with HP will provide financial institutions across the globe with world-class solutions that deliver maximum value and return on investment," said R. Ravisankar, chief executive officer, international operations and technology, i-flex solutions. "The NCDST win not only marks the expansion of our alliance into the U.S., but also our continued growth together as partners in meeting the demands for mission-critical services and new infrastructures in the financial services industry."

HP will be exhibiting at the Sibos 2002 conference in Geneva, Switzerland, Sept. 30 to Oct. 4 at stands B057 and A030. i-flex will be at stand J291, Hall 1. More information about Sibos 2002 can be found at http://www.swift.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. 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 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.