News release

HP Announces Innovative New Products and Services for Small- and Medium-sized Businesses

Expanded SMB Portfolio Increases Customer Choice, Makes Owning Industry-leading Imaging and Printing Solutions Easier than Ever

HP (NYSE:HPQ) today introduced innovative services, programs and several new products, broadening the company's industry-leading portfolio of imaging and printing products for small- and medium-sized businesses (SMBs). Taken together, these new offerings can provide small businesses with big savings, making it more affordable than ever to own HP's imaging and printing solutions.

In addition to extending its award-winning line of LaserJet printers, HP introduced services and programs including an enhanced online support center for business customers; expanded toll-free technical support; and price reductions on some of its most popular imaging and printing products.

"These new SMB printers and services from HP show how much this company has been taking the pulse of users," said Bruce Thatcher, senior consultant, CAP Ventures. "With an estimated compound annual growth rate (CAGR) of about 25.6 percent, these small business printers are one of the key growth areas in the printer market, and HP is even stronger there with this introduction."

HP Printing and Imaging Expertise Center

HP's new Printing and Imaging Expertise Center helps small businesses improve operations by providing a centralized resource for businesses looking for fresh ideas of how to build and maintain their printing infrastructures. The center offers innovative features to help customers select the most appropriate imaging and printing products based on their business needs, as well as manage their existing products for greater efficiency and cost-savings.

Whether a customer needs purchasing guidance, information on using new technology, driver upgrades or other business-related advice, the Printing and Imaging Expertise Center provides that information in a communications vehicle that suits the customer -- via the Internet or through live Web chat with an HP representative. Visitors to the center are guided through a series of intuitive menus that gives them the support, advice and resolution they require in a matter of minutes, rather than hours or days.

Enhanced Service and Support

HP is continuing its tradition of providing customers with choices of how, when and where to receive support 24x7. Whether online at http://www.hp.com/support or via a toll-free phone number at +1 800 HPINVENT, HP offers its customers direct access to qualified support specialists. Not only is HP's phone support toll-free, the system is enabled by a bilingual speech-recognition system that functions in English and Spanish in the United States, and in English and French in Canada.

In addition, Web-based driver downloads and new diagnostic tools are available on HP's support site. These service and support capabilities demonstrate HP's continued investment in IT services and in its effort provide the best customer experience in the industry.

New LaserJet Printers -- Workgroup Performance at Small Business Prices

HP extended its desktop laser printer line-up today with the introduction of the HP LaserJet 1300 and 2300 series printers. With industry-leading performance at highly competitive prices, the new printers are ideal for budget-conscious businesses that require quick, reliable monochrome output. Compared to their predecessors, the HP LaserJet 1300 and 2300 series printers offer more features and greater flexibility to adapt printing capabilities according to users' needs.

Priced from an estimated $399,⁽¹⁾ the HP LaserJet 1300 series printers deliver fast, high-quality professional output at up to 20 pages per minute (ppm) and a first-page-out in less than eight seconds with HP's patented Instant-on Fuser. Available in two models -- one with networking built in and one intended for direct-connect use -- the HP LaserJet 1300 series is a scalable solution that functions well in shared and non-shared printing environments.

Priced from an estimated $549,⁽¹⁾ the HP LaserJet 2300 printer series is highly scalable with a total of six models offering users a wide range of feature and expandability options to suit virtually any office environment. With a print speed of 25 ppm (up to 20 ppm with the LaserJet 2300L) and a first-page-out in less than 10 seconds with the HP Instant-on Fuser, the HP LaserJet 2300 series offers strong performance, producing crisp, high-quality output with 1,200 dots-per-inch resolution for small work teams and individuals with advanced printing needs.

HP offers a complete printing system for the LaserJet 1300 and 2300 series printers with specifically designed smart print cartridges and specialty media for the best print quality and consistent performance. These new printing systems bring professional-quality standards to everyday users through advanced toner formulations and user-friendly cartridge designs. The printing systems are designed to print on a variety of HP papers for clear, sharp results every time.

Price Cuts on Existing Business Inkjets, LaserJets, Projectors

Beginning immediately, customers will enjoy cost reductions of up to one third on several of HP's best-selling printing and imaging devices.

• HP Business Inkjet 2230 printer reduced from $299 to $199
• HP LaserJet 1000 printer reduced from $249 to $199
• HP LaserJet 4200 series printers reduced by $100 on all models
• HP Digital Projector xb31 reduced from $3,499 to $2,299⁽¹⁾

HP is implementing these cost reductions to make its industry-leading products even more affordable for small businesses. For example, the HP Business Inkjet 2230, already recognized for its low cost per page, now offers an even lower total cost of printing with its drastically lowered acquisition cost.

Continuing Commitment to SMB Customers

Today's news from HP is part of a sustained campaign by the company to continuously refine its support for SMB customers.

HP currently provides SMB customers with easy-to-use automated online supplies reordering, offering unrivaled choice, flexibility and customization. HP Internet Enabled Supplies Ordering allows SMB customers to view toner and ink levels and alerts users to directly order their pre-selected supplies online from the reseller of their choice.

In the months to come, HP plans to make a series of announcements detailing new products and services catered to small- and medium-sized businesses. In early summer, HP plans to unveil a series of financing programs to improve the purchase process for qualified SMB customers. The new financing, bundling, leasing and trade-in programs will be customizable to suit various business needs, empowering HP's customers to implement imaging and printing solutions to meet their specific needs.

Availability

The HP Imaging and Printing Expertise Center can be accessed today at http://www.hp.com/go/expertisecenter. HP's toll-free support is available today at +1 800 HPINVENT. HP LaserJet 1300 and 2300 series printers will be available at hpshopping.com, http://www.hp.com/business or through HP resellers and sales representatives.

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⁾ Actual prices may vary.