News release

HP Wins Colombia PC and Services Contract Worth More Than $100 Million

HP to Provide Hardware and Services to EPM, Colombia's Largest Public Services Company

HP (NYSE:HPQ) will provide 200,000 desktop PCs and support services for a new communications service created by Empresas Públicas de Medellín (EPM) -- Colombia's largest public utility service company -- under a contract made possible by the new HP's breadth of products and services.

The deal -- valued at more than $100 million (approximately $323 billion Colombian pesos) -- enables EPM to offer schools, families and small- and medium-sized businesses (SMBs) affordable, packaged solutions as part of its Internet Proliferation Program. The solutions include a Compaq PC and monitor, Internet access, installation, technical support, computer training and telephone service for a low monthly fee financed over 36 months.

"HP is intensely focused on putting the customer first, whether in Colombia or Columbus, Ohio," said Mike Larson, senior vice president and general manager, HP Personal Systems Group. "Combining a genuine concern for the customer with industry-leading technology and services is giving HP an edge in markets throughout the Americas."

Given the size of the PC market in Colombia, the contract represents a significant increase in HP's market share in the country.

Rollout of the Internet Proliferation Program is scheduled to begin in mid-November in Medellín, Bogotá, Pereira, Manizales and Antioquia and will then continue throughout Colombia. The first step in the program will outfit Medellín public schools with computer labs containing approximately 30 to 40 PCs and monitors per room.

Tailored Solutions

HP and EPM plan to meet the needs of schools, families and SMB customers with solutions that deliver an optimal mix of performance and value. The packaged solutions feature a combination of EPM financing and services and HP technical support, service and hardware, including Compaq D300 series desktop PCs.

One package -- designed for EPM customer families, public schools and universities -- includes a 15-inch monitor and Compaq D300 series desktop PC, home delivery and installation, telephone and Internet service, training and support.

A second package -- designed for SMB customers -- includes the same Internet and telephone package, technical service and support but also offers an enhanced Compaq D300 series desktop PC with greater storage capacity and other business-related features.

"The agreement with EPM is just the latest example of how HP is providing superior value to customers as we leverage the most impressive line of products and services in our history," said Larson.

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.