News release

Fifteen High-achieving Schools Receive $2 Million in HP Equipment and Services

HP Grants Recognize Success and Support Effective Technology Use at Schools Serving Low-income Students

HP (NYSE:HPQ) today announced 15 new recipients of the HP High-Achieving Schools Grant. The grant is designed to provide technology, training and support to public middle or high schools serving low-income students that exhibit academic excellence. This year's selection focused on science achievement.

Recipients will receive equipment, services, training and cash from HP valued at $135,000. The grant includes an HP Wireless Mobile Classroom that consists of 30 wireless, Internet-connected computers housed in a motorized cart that can be moved around the school to enable use of technology by different students and teachers.

The grant also includes HP National K-12 Help Desk support, a $5,000 cash award to support project implementation, and professional development opportunities to help grantees successfully integrate technology into teaching and learning at the schools.

"Our students' grades have improved, state-mandated testing scores are higher and enthusiasm for learning has increased," said Tyler Huffaker, a teacher at Centauri Middle School in LaJara, Colo. Centauri is a past recipient of an HP education grant. "We're now able to provide children who did not have access to technology with state-of-the-art technology every day at school."

A team from each of the 15 schools will participate in training provided by the International Society for Technology in Education (ISTE) just prior to the 2003 National Educational Computing Conference (NECC). The grant award also allows participants to attend NECC.

Together with ISTE, HP will host activities designed to deepen recipients' understanding of how to improve learning by integrating technology in the classroom. The training and conference is held June 26 through July 2 at the Washington State Convention and Trade Center in Seattle.

Through HP-funded research conducted by ISTE on the use of technology at the schools, educators across the country also will have the opportunity to learn from the HP High-Achieving Schools program.

"HP believes high-achieving schools should be recognized and rewarded for their excellent work and that other educators can learn from their success," said Cathy Lipe, manager of education programs, HP Philanthropy and Education. "Our goal is help ensure the future success of these deserving schools by providing the best technology, combined with the most effective training, so teachers and students feel the positive impact in the classroom."

After a comprehensive review process, HP selected the following schools to receive a High-Achieving Schools Grant award:

• Albany Park Multicultural Academy - Chicago, Ill.
• Banquete Junior High. - Banquete, Texas
• Elise Middle School - Robbins, N.C.
• Hambrick Middle School -- Houston, Texas
• Harmony Area School District - Westover, Pa.
• Hubbard High School - Chicago, Ill.
• Johnson County Middle School - Paintsville, Ky.
• Kirtland Central High School - Kirtland, N.M.
• Lemon Grove Middle School - Lemon Grove, Calif.
• MATCH School - Boston, Mass.
• Monte Alto Middle School - Edcouch, Texas
• North Star Academy Charter School of Newark -- Newark, N.J.
• Patrick Henry High School - Minneapolis, Minn.
• Weeden Middle School - Florence, Ala.
• Youth Co-Op Charter School - Hialeah Gardens, Fla.

HP's Commitment to Education

HP's philanthropic community investments combine the power of information technology with creative and effective partnerships to create economic and social value for underserved communities around the world. HP engages in public/private partnerships to invest in underserved communities to help bridge the digital divide.

HP invests in education to make a positive impact on student achievement. HP's goal is to make contributions that lead to long-term improvements through systemic changes in schools. HP's education initiatives focus on transforming the teaching and learning experience for students through technology integration; increasing the number of students on a path toward high-tech careers, with an emphasis on groups that are underrepresented in the technology sector; and enhancing student success in math, science and engineering through nationwide and district-wide school reform and teacher professional development.

More information about the HP grants program is available online at http://www.hp.com/go/grants.

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.

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.