News release

HP Helps Protect the Environment by Saving More than 1 Million Computers from Destruction Each Year

IT Leasing Allows for Technology Reuse and Renewal

As companies struggle to figure out what to do with outdated equipment, HP Financial Services, the leasing and financial services subsidiary of HP (NYSE:HPQ), is doing its part to protect the environment from the millions of computers discarded every year.

More than 1 million pieces of used computer equipment will move through HP Financial Services' Technology Renewal Centers in the United States and Europe this year. Most of it comes from customers returning technology at the end of lease, and those customers benefit from knowing that if their used equipment cannot be refurbished it will be disposed of in accordance with environmental laws.

At the centers, every piece of leased equipment returned is inspected to see if it can be given a new life. If a piece of equipment still has value, it is refurbished and reconfigured to its original manufacturing specifications.

Toxic substances contained in computers often make properly disposing of them difficult, which is one reason many companies are turning to leasing. "Leasing is the most environmentally friendly way to acquire IT equipment," said Irv Rothman, president and chief executive officer, HP Financial Services. "At the end of a lease a customer simply returns the equipment to us, and we refurbish and revitalize that technology. If it can't be refurbished, it's dissembled for parts or disposed of in accordance with environmental laws."

Refurbishing used equipment is a growing trend that benefits businesses and the environment. "A lot of our customers come to us looking for older equipment that is compatible with their current systems. Some of the technology we have here is up to 18 years old, but it is still valuable to customers interested in standardizing their IT platform or who can't afford the latest innovations," said Jim O'Grady, director of the HP Financial Services Technology Renewal Center in Andover, Mass.

Besides easing environmental concerns, leasing brings customers many financial benefits as well. "Leasing allows our customers to really stretch their IT budgets and stay much more capital-efficient," said Rothman. "There are no large upfront payments, customers are able to preserve existing credit lines, and they can add new equipment and technology during the term of the lease much more easily and affordably."

"At the end of the lease we don't have to worry about throwing old computers into a dumpster or having them pile up in our office. Worrying what to do with old computers is not our business, so we let the experts take care of them," said Marc Ginsburg, president of online publisher, Xanga and HP Financial Services customer.

HP Financial Services ranks among the largest IT financial services organizations in the world and is the second largest IT captive, with more than 1,500 employees, $8 billion in assets and a direct presence in more than 50 countries.

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.