News release

HP Expands Personal Printing Solutions with Rich Photo Quality for Home or Office

HP (NYSE:HPQ) today announced a new line of photo-quality printing solutions for home and office users. The products include thicker, glossier and heavier HP Premium Plus Photo paper, an expanded paper line and four new HP Deskjet printers.

"As the industry leader, HP is committed to providing customers with the broadest portfolio of digital imaging printing systems available at affordable prices," said Russ Radom, general manager of North America supplies, HP Imaging and Printing Group. "HP's technological innovation allows us to deliver digital photography systems that provide superior output quality and exceptional fade resistance to consumers."

According to IDC, first quarter sales data for calendar year 2003 showed HP continued as the U.S. inkjet printer market leader, holding 53 percent unit share.⁽¹⁾

Enhanced and New HP Premium Plus Photo Papers

HP expanded its premiere photo paper line, HP Premium Plus Photo Paper, with a new glossy borderless⁽²⁾ 4 x 6-inch photo paper and a new matte⁽³⁾ 4 x 6-inch photo paper with perforated tab. Additionally, the entire Premium Plus Photo Paper has been enhanced with a thicker, glossier and heavier finish for a studio-grade look and feel that rivals traditional silver halide prints in fade resistance and print quality.

Co-designed with HP printers and HP inks, this premium photo paper delivers vibrant and consistent color, accurate skin tones and rich, high-contrast black for stunning, studio-quality photos. In fact, the paper's overall print quality was judged by consumers to be better than traditionally processed digital photos.⁽⁴⁾

When used with HP inks, this paper also is capable of resisting fading for twice as long as most traditionally processed photos.⁽⁵⁾

The enhanced and expanded line now includes:

• 4 x 6-inch borderless without tab (glossy)
• 4 x 6-inch with perforated tab (glossy and matte)
• 8.5 x 11-inch (glossy and matte)

HP Deskjet Color Inkjet Printers

HP's new printers are ideal for a variety of customer needs, including users who seek professional performance in a single function photo-quality color inkjet printer, as well as price-conscious customers seeking products that are easy to use and offer great quality and reliability.

The new printers include:

• HP Deskjet 5650 color inkjet printer: fast speeds (laser-quality black at up to 21 pages per minute (ppm) and color at up to 15 ppm), optional six-ink printing, 4,800-optimized dpi,⁽⁶⁾ edge-to-edge borderless⁽²⁾ up to 8.5 x 11-inch photo printing, print quality selector button, an estimated U.S. street price of $149⁽⁷⁾;
  
  
• HP Deskjet 5150 color inkjet printer: optional six-ink printing, 4,800-optimized dpi⁽⁶⁾, edge-to-edge borderless⁽²⁾ up to 8.5 x 11-inch photo printing, an estimated U.S. street price of $99⁽⁷⁾;
  
  
• HP Deskjet 3650 color inkjet printer: optional six-ink printing, borderless 4 x 6-inch photo printing,⁽⁸⁾ an estimated U.S. street price of $79⁽⁷⁾;
  
  
• HP Deskjet 3520 color inkjet printer: up to 2,400 x 1,200-dpi color printing -- and crisp black from a single tri-color cartridge, compact size with fold-up paper tray, an estimated U.S. street price of $39.⁽⁷⁾

Availability and Paper Tray Accessory

The HP Deskjet 5650, 3650 and 3520 printers are expected to be available in July with the HP Deskjet 5150 printer following in August.

Also available in early August for use with the HP Deskjet 5650, Deskjet 5150 and select HP Photosmart color inkjet printers is the HP pt3447, a 250-sheet plain paper tray accessory. With an estimated U.S. retail price of $79,⁽⁷⁾ the HP pt3447 provides the ability to expand the paper-handling capacity to meet high-volume printing needs.

Prices for HP Premium Plus Photo Paper range from $9.99 to $39.99 depending on size, finish and quantity.⁽⁷⁾

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⁾ IDC, U.S. Quarterly Printer Tracker 1Q03, May 2003.

⁽²⁾ Borderless edge-to-edge printing without a tab.

⁽³⁾ For use with select HP printers.

⁽⁴⁾ According to a 2002 research study conducted by SpencerLab Digital Color Library.

⁽⁵⁾ Up to 73 years, based on Wilhelm Imaging Research, Inc., using the HP 57 tri-color inkjet print cartridge and HP 58 Photo Inkjet print cartridges on HP Premium Plus Photo papers.

⁽⁶⁾ Up to 4,800 x 1,200-optimized dpi color and 1,200-input dpi.

⁽⁷⁾ Actual prices may vary.

⁽⁸⁾ Using HP 4 x 6 photo papers with perforated tab.

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.