News release

HP Comments on Recent PC Market Share Data

The following is a statement from HP (NYSE:HPQ) regarding worldwide PC market share numbers for the third quarter of calendar year 2003⁽¹⁾:

According to IDC figures, HP's large increase in unit shipments this quarter led the "bounce" in the PC market's overall growth of 15.7 percent worldwide and 16.1 percent in the United States year-over-year. HP's growth of 28 percent worldwide not only led all PC vendors but nearly doubled the overall industry's growth.

"The race between HP and Dell just got a lot closer," said Jim McDonnell, vice president of marketing, Personal Systems Group, HP. "HP considerably narrowed the gap with only 0.3 points separating HP from the top spot. What's more, HP's market share grew a solid 21 percent sequentially. That not only gives our PC business strong momentum going into the final calendar quarter and the traditionally positive holiday buying season, but it also continues to help drive overall PC market growth.

"When the numbers are broken down, it becomes clear just how close the two-horse race truly is. With more than 38.4 million units shipped during the third calendar quarter and with only 127,000 units shipped separating HP from Dell, that works out to roughly seven hours of production over 90 days."

Fast Facts

• HP's PC business grew worldwide 28 percent year-over-year.
• In the United States, HP grew 34 percent year-over-year.
• HP's sequential growth worldwide is 21 percent.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing for consumers, enterprises and small and medium businesses. For the last four quarters, HP revenue totaled $71.3 billion. More information about HP is available at http://www.hp.com.

⁽¹⁾ IDC's Worldwide Quarterly PC Tracker, published Oct. 15, 2003.

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 Quarterly Report on Form 10-Q for the period ended July 31, 2003 and HP's other Securities and Exchange Commission reports filed after HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2002. 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 and does not intend to update these forward-looking statements.