News release

HP Unveils Across the Board 90-day Holiday Lease Payment Deferral Program

Program Helps Businesses of All Sizes Get the Solution They Need Now and Overcome End-of-year Budget Crunches

HP Financial Services, the leasing and financial services subsidiary of HP (NYSE:HPQ), today announced a comprehensive 90-day lease payment deferral program for all business customers and across all HP products and services.

The "90-day Holiday" deferral program is designed to help business customers acquire the HP solution they need today and defer lease payments for 90 days. Between now and Dec. 31, 2002, customers in North America can acquire the equipment and services they need with no payment for 90 days. There is no minimum or maximum transaction requirement for the "90-day Holiday" offer as it applies to any size purchase, including hardware, software and services.

"HP recognizes that businesses can be faced with tough financial choices at the end of the year," said Irv Rothman, president and chief executive officer, HP Financial Services. "Our 90-day lease payment deferral program is something that can really help them in Q4. Customers can acquire the hardware, software and services they need now, without worrying about payments until 2003."

Unlike other companies that only offer deferral programs on specific models, HP Financial Services covers all products and services. In addition, other programs require the customer to bear the risk of ownership of the equipment. The HP Financial Services lease program helps companies protect against technology obsolescence and not worry about disposal because at the end of the lease term they can return the equipment without obligation and upgrade to more advanced technology.

"When we decided to upgrade our existing HP IT infrastructure, we were convinced that a scalable HP StorageWorks MSA1000 was what we needed. Low upfront costs, consistent cash flow and the ability to stay current with technology attracted us to HP Financial Services' leasing program," said Harold Hajoway, director of Information Systems at GPD Associates, an Akron, Ohio-based architect and engineering firm with 200 employees. "Between the attractive pricing and the great deal on the lease, we were sold. HP StorageWorks solutions are a great fit for our enterprise-wide applications and planned consolidation effort, and we look forward to growing into it as our business needs dictate."

Qualified customers, after determining the lease term that best suits their needs, make no payments for 90 days from lease start date, then make monthly lease payments for 33 or 45 months. Other lease terms are available for the offer on transactions under $50,000. The offer is valid on any lease with fair market value, $1, or 10 percent end-of-lease term purchase option.

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 Corporation on May 3, 2002. More information about HP is available at http://www.hp.com.

Lease products available through Hewlett-Packard Financial Services Company (HPFSC) to qualified commercial customers in North America and subject to credit approval and execution of standard HPFSC documentation. Customers may defer lease payments for three months from lease start date, followed by 33 or 45 monthly payments on any lease with either fair market value, $1, or 10 percent end-of-lease term purchase option. For transactions over $50,000, customer must have taken delivery of the equipment and accepted it under lease by Dec. 31, 2002. Offer valid on all transactions less than $50,000 through Jan. 31, 2003. Product restrictions may apply. Other fees and restrictions may apply; HPFSC reserves the right to change or cancel this program at any time without notice.