News release

HP Celebrates First Anniversary of Digital Publishing Solutions with Expanded Product, Service Offerings

New Solutions Help Customers Increase Marketing Effectiveness, Streamline Workflows

HP (NYSE:HPQ) today marked the first anniversary of its Digital Publishing Solutions division by introducing several new products and services that help customers increase the efficiency and effectiveness of their marketing efforts.

HP is offering, for the first time, HP Indigo Printing Paper for its digital presses, as well as a new Web service for specially mixed HP Electroink colors, two new versions of the HP Production Flow system to streamline workflows and a new HP Designjet large-format printer.

"One year ago, when HP acquired Indigo, we spoke of a strategy in which HP would help enterprise companies and their marketing agencies realize the benefits of one-to-one targeted communications. Today we are delivering on that promise," said Bill McGlynn, vice president, HP Digital Publishing Solutions. "Only HP provides the start-to-finish publishing solutions and services, including digital offset color presses and large-format printing and proofing products, that companies need for a competitive edge."

HP Indigo Printing Paper

Increasing the variety of substrates available to customers while ensuring the highest quality printing, HP is introducing HP Indigo Printing Paper, the first HP paper engineered specifically for HP Indigo presses. Available in three uncoated grades -- 70 lb. text, 80 lb. premium text and 80 lb. premium cover, the high-quality papers offer reliable, consistent print performance with excellent ink transfer and adhesion at a very low cost.

HP Indigo Printing Paper is available in 12 x 18-inch sheets through an exclusive agreement with paper distributor Xpedx in North America. Products can be ordered beginning May 15 and delivered within 24 hours to most major markets within North America.

Since a wide media selection significantly increases the opportunities and applications for customers, HP continues to support and expand its media certification program with industry-leading substrate and media providers. The Rochester Institute of Technology in North America and the Digital Academy in Europe serve as testing centers for evaluation and qualification of media for HP Indigo presses.

HP Special Ink Mixing Services

HP Electroink specially mixed colors for HP Indigo presses can now be ordered on the Web. This ink mixing service is ideal for jobs that require specific colors or must comply with corporate colors and branding guidelines.

In addition to reducing turnaround time from six weeks to five days, Web-based ordering provides customers with the convenience of anytime, anywhere access. Plus, set-up fees for the more than 1,000 PANTONE® colors have been eliminated, making ordering more cost-effective than ever before.

The HP Electroink specially mixed colors represent an unparalleled 97 percent of the PANTONE range. HP is the only digital offset color press manufacturer offering a range of special colors extending beyond the standard set of CMYK (cyan, magenta, yellow and black). This service is available now in several European countries, with expected availability in North America this summer and in the rest of world by the end of the year.

HP Production Flow and DPS Partners

HP is now offering two new versions of HP Production Flow, its integrated software and hardware system designed to streamline digital printing workflows. An open architecture digital front-end for HP Indigo presses, both the HP Production Flow dual raster image processor (RIP) version and quad RIP version are designed to automate and manage the printing workflow process more effectively. This is especially important for large, complex jobs with heavy page volume.

All configurations of HP Production Flow can be easily upgraded with additional RIPs, providing the flexibility customers need while protecting their investments.

HP has long recognized that the key to the adoption of digital printing is the availability of digital workflow systems that can feed presses easily and efficiently. During the On Demand tradeshow, HP will feature at its booth several key members of the HP Digital Publishing Solutions Provider program, which brings together leading software and Web-based solutions providers to drive a spectrum of print applications. With HP DPS partners and HP Production Flow, customers can now efficiently and seamlessly manage workflows in a comprehensive manner.

New HP Designjet Printer

For graphic designers who want the flexibility of printing standard and large-format projects in-house with the look and feel of professional comps, HP is offering the new HP Designjet 120 printing system. The affordable, six-color printer bridges the gap between standard and oversize printing with its combination of a standard media tray and a 24-inch paper path. The HP Designjet 120 also features an automatic closed-loop color calibration system to ensure consistent color from print to print and printer to printer with 2,400 dots-per-inch resolution.

More information about these new products and services is available at http://www.hp.com/go/indigo or http://www.designjet.hp.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.

The PANTONE trademark is the property of Pantone Inc.

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.