News release

HP Introduces Desktop PC Delivering Value and Performance for Small Business, Public Sector Customers

HP (NYSE:HPQ) today introduced the HP Business Desktop d325, bringing value and performance to small, medium-sized businesses and public sector customers.

The HP Business Desktop d325 has the power to handle a variety of challenging business and graphic-intense applications by featuring AMD Athlon XP processors, integrated NVIDIA GeForce4 MX graphics, as well as standard, built-in dual-monitor functionality.

"The HP Business Desktop d325 complements our high-performance, value-oriented, desktop offerings for small- and medium-sized businesses," said Jeff Groudan, vice president of marketing, business desktop division, HP Personal Systems Group. "This desktop offers users a reliable solution at a great value. Whether customers define value as increased productivity, procurement savings, quality, product innovations or great service and support, the d325 delivers."

Pricing for the HP Business Desktop d325 starts at an estimated US street price of $499,⁽¹⁾ with the most popular configuration priced at $669⁽¹⁾ for an AMD Athlon XP model 2200+ processor (1.8 gigahertz), 40-gigabyte hard drive, 256-megabyte DDR (double data rate) SynchDRAM, 48x CD-ROM drive, six USB 2.0 ports and Microsoft® Windows® XP Professional.

HP provides users the flexibility to select the right set of features for the right price-to-performance mix by offering pre-configured models of the HP Business Desktop d325 as well as the choice to customize their own solution with options such as AMD Athlon XP processors up to 3000+ (2.17 gigahertz), up to 160-gigabyte hard drives, up to 2-gigabyte DDR SDRAM and a 48X CD-RW/DVD-ROM combo drive.

The HP Business Desktop d325 is now available directly from HP or can be ordered through authorized resellers. More information about the d325 is available at www.hp.com/products/d325.

About HP

HP delivers vital technology for business and life. The company's solutions span IT infrastructure, personal computing and access devices, global services and imaging and printing for consumers, enterprises and small and medium business. For the last four quarters, HP revenue totaled $70.4 billion. More information about HP is available at http://www.hp.com.

⁽¹⁾ 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 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.