News release

HP Wins Multimillion Dollar Swedish Government Contract

Company to Provide Swedish Agency for Public Management with Desktops, Portable PCs and Accessories

HP (NYSE:HPQ) has signed a contract with the Swedish Agency for Public Management.

Under the deal, HP, together with eight other suppliers, has agreed to provide all of the Swedish public authorities and administrations with desktops, portable PCs and accessories. The agreement is valid until Jan. 31, 2005, and has a total value of 650 million euros (approximately $709 million).

HP will supply up to 40 percent of the hardware to be provided in the deal, a percentage worth approximately 260 million euros (approximately $284 million). This new contract further expands HP's public sector installed base, which comprises more than 200 government and public sector customers in the Europe, Middle East and Africa region.

"For over 40 years, HP has been working with governments to improve public services through the use of technology," Eric Cador, senior vice president, HP Personal Systems Group. "Our relationship with the Swedish Agency for Public Management further demonstrates how HP enables governments to optimize their IT infrastructure and services, maximize their return on IT investment and achieve the goals of the eEurope 2005 action plan."

Price and quality were two key deciding factors within the evaluation process, according to the agency. HP also fulfilled the rigorous corporate social and environmental responsibility requirements set by the Swedish Agency for Public Management, where accessibility for persons with disabilities is an important issue. Accessibility is integrated into HP's full range of products.

"HP was clearly a partner of choice for this project," said Rolf Bengtsson, responsible for all IT agreements at the Swedish Agency for Public Management. "Among those nine suppliers who signed the agreement, it outperformed the majority of its competitor suppliers on both products and pricing, as well as demonstrated corporate social and environmental responsibility."

The Swedish Agency for Public Management is responsible for coordinating the information and communication technology purchases for the public administration. In order to simplify IT purchases for public authorities, municipalities and county councils, the agency signs framework agreements with suppliers. These general agreements also contribute to a common and secure electronic infrastructure.

This agreement is HP's second contract from the Swedish Agency for Public Management. Last year, the agency awarded HP a two-year contract worth 166 million euros (approximately $181 million), covering all federal procurement of servers and storage.

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.

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 quarterly report on Form 10-Q for the quarter ended January 31, 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.