News release

HP and Scholastic Launch 2003 Create-A-Calculator Contest

Contest Encourages Teachers and Students to Invent a Calculator and Win Scholarship Prizes

HP (NYSE:HPQ) and Scholastic Professional Magazines, a division of the global children's publishing and media company, today announced the launch of their first Create-A-Calculator contest, a nationwide effort to get students and teachers in grades K-12 involved in creating the next version of an HP calculator.

HP, the company that invented the first handheld scientific calculator, is offering teachers and students in the United States the chance to win scholarship money and prizes worth more than $10,000.⁽¹⁾ Deadline for entries is May 15, 2003. Entry forms and more details are available in the March and April issues of Scholastic Instructor® and April/May issue of Scholastic Administr@tor&153; magazine as well as at the HP Calculator and Scholastic Web sites at http://teacher.scholastic.com/products/instructor/contests.htm or http://www.scholasticadministrator.com.

"HP invites all students to participate in the exciting reinvention of our calculator product family," said Fred Valdez, general manager, calculator division, HP Personal Systems Group. "In an effort to ensure we are developing the right products to meet real student needs, we welcome innovative young minds to take part in influencing the look, feel and feature-set of HP's future product offering."

HP and Scholastic partnered to develop a contest that would reach out to students of all levels and ages and challenge them to design the most original, wild and creative calculators they can dream up. Winning entries from three categories -- grades K-5, 6-8 and 9-12 -- will earn scholarships and HP calculators. Students also may have the chance to see their original ideas incorporated into future calculators built by HP.

"We couldn't think of a better partner to help us further our goals of expanding and improving education in the classroom," said Michele Robinson, group publisher, Scholastic Professional Magazines. "This contest allows every child to participate in the chance to feel good about their accomplishments and calls on them to use their best and most critical resource: their imagination."

Teachers and administrators attending the National Council of Teachers of Mathematics show from April 10-12 in San Antonio can visit HP booth 127 and Instructor magazine booth 1434 for more contest details about how to get their students and school involved.

In January, HP introduced two new calculators for students. The HP 9g graphing calculator and HP 9s scientific calculator are ideal entry-level tools for secondary and middle school students, respectively. Both offer convenience, ease of use and are available in stores now at suggested U.S. retail prices of $39.95 and $14.99, respectively.⁽²⁾

Throughout 2003, HP has plans to introduce six additional new calculators for students as well as for doctors and professionals in the banking, financial and engineering fields. More information about HP's entire range of calculators is available at http://www.hp.com/calculators.

Scholastic Professional Magazines including Instructor, New Teacher and Scholastic Administr@tor are the ideal professional development and information resources reaching more than 500,000 of today's educators, school principals and administrators each month.

About Scholastic

Scholastic Corporation (NMS:SCHL) is the world's largest publisher and distributor of children's books. Scholastic creates quality educational and entertaining materials and products for use in school and at home, including children's books, textbooks, magazines, technology-based products, teacher materials, television programming, videos and toys. The Company distributes its products and services through a variety of channels, including proprietary school-based book clubs, school-based book fairs, school-based and direct-to-home continuity programs; retail stores, schools, libraries, and television networks; and the Company's Internet Site, www.scholastic.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 acquisition of Compaq Computer Corporation on May 3, 2002. More information about HP is available at http://www.hp.com.

⁽¹⁾ This figure represents the combined total of all cash and the manufacturer's suggested retail price of all prizes offered by HP.

⁽²⁾ Actual prices may vary.

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 and performance 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 annual report on Form 10-K for the year ended October 31, 2002, as filed with the Securities and Exchange Commission on January 21, 2003, and subsequently filed reports. 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 to update these forward-looking statements.