News release

HP Expands Calculator Business Worldwide with New Master Distributors

HP (NYSE:HPQ), the company that invented the first scientific handheld calculator, today announced the appointment of new calculator master distributors in North America, Europe, Latin America and Asia-Pacific. The distributors will work closely with HP to increase channel and overall market responsiveness for customers by jointly developing detailed, aggressive marketing programs.

"HP's innovation and rich history in this market has created an intensely brand-loyal customer base," said Fred Valdez, general manager, Calculator Division, HP Personal Systems Group. "We have launched a smart business model and have in place a dedicated and experienced worldwide team of managers fully committed to continue building loyalty and leadership in the calculator market."

HP offers a full line of calculators for financial, scientific and graphing calculations, including HP's famous 12C financial calculator featuring Reverse Polish Notation (RPN) technology.

HP plans to transition immediately to the new business model to provide better support to its channel partners and help the channel grow their calculator business. The HP management team, with expertise in all key business functions, will operate through strategic procurement and strong relationships with the master distributors worldwide.

New Age Electronics

New Age Electronics has been selected as the new master distributor for the North America region, which includes the United States, Canada and Mexico. New Age was selected for its excellent relationship-building capabilities and execution in a longstanding relationship with HP.

"HP is always looking for ways to innovate both from a product and business perspective," said Adam Carroll, president, New Age Electronics. "The brilliance of the master distributor model for the channel is that it focuses the powerhouse that is HP and allows the channel to capitalize on that strength to grow and develop their business. Our mantra is to have fastest time to market and to respond quickly and effectively to all channel and customer needs."

New Age services eight distinct retail channels that cover the United States and Latin America. Storefronts exceed 5,000 with a total active customer base of more than 6,500. Top customers include some of the largest retailers in the consumer technology industry, such as J&R Electronics, Amazon, Sam's Club, Costco, Staples, Office Depot and Target Stores.

MORAVIA Consulting

In Europe, MORAVIA Consulting, s.r.o., has been selected as master distributor for both Europe as well as Asia Pacific for its proven expertise with logistics, marketing, service and support and regional specialization. Over the years, MORAVIA has successfully helped increase HP calculators' presence throughout Europe.

"HP understands the importance and value of working with the channel," said Alois Hübl, co-founder and general manager, MORAVIA Consulting. "It has been an extremely positive experience working with HP and their channel partners to grow the calculator business in Europe and we look forward to increased success in the Asia-Pacific region."

MORAVIA Consulting specializes in distribution of HP mobile information technology and calculators as well as their technical and marketing support across Europe and Asia. In addition to distribution, MORAVIA engages in other activities, including operating a hotline for technical support of calculators in a variety of languages; working as a logistics center for warranty and after-warranty exchange of calculators; and providing localization of manuals and software for distributed products in more than 15 languages.

Abboud Trading

In the Latin America region, Abboud Trading has been selected as the master distributor. Abboud's knowledge of the intricacies of business development from country to country will help expand HP's calculator business providing added value to HP's channel partners.

"HP is the market leader in Latin America because they are recognized as the best," said Ghassan Abboud, president, Abboud Trading. "Combining the powerhouse of the leading calculator brand and the foremost distributor will provide HP calculator channel and retailers with the best two resources available in the region."

Abboud Trading is Latin America's largest wholesaler of electronics and computer products. Its operations create a strong link between North and South America. Abboud has successfully established and maintained direct distribution from HP to Latin America for almost two years and has a total of 15 years experience with HP products. Numerous years of experience with excellent knowledge and foresight into Latin American markets has allowed Abboud Trading to collect valuable market and trend information and sustain its solid presence in the Latin American region.

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.