News release

HP Unveils Solutions to Transform Copier Market, Optimize Imaging and Printing for Businesses

HP (NYSE:HPQ) today unveiled an extensive portfolio of products, services and capabilities to help companies improve productivity and reduce costs by as much as 30 percent in their imaging and printing environments. The centerpiece of the new products is a copier-based line of high-volume multi-function printers, the first of their kind for HP as it enters the $24 billion copier market.

The company also announced document workflow solutions for automating forms processing and managing documents, and it introduced several customers, including Best Buy, National Semiconductor and Subway, who are working with HP to transform their imaging and printing operations.

"As more content and business processes go digital, there is a tremendous opportunity for companies to harness the power of the network to improve productivity and reduce the operating costs across their imaging and printing environments," said Vyomesh Joshi, executive vice president, Imaging and Printing Group, HP. "HP's printing heritage and network management expertise puts us in a unique position to help companies take advantage of these new opportunities."

According to Gartner analyst Peter Grant, "Poorly managed printer, copier and fax fleets represent one of the biggest opportunities for cost cutting in the enterprise. By actively managing the environment, companies can not only save up to 30 percent on output related spending, they can increase employee productivity."

Transforming the antiquated copier market

HP unveiled new products, capabilities and services to transform the traditional copier market by reducing the total costs of operation. On average, companies spend more than $800 per employee operating their copying and printing environments - up to $4 million a year for a 5,000-person organization.

HP's new solutions extend its Total Print Management offering, an integrated portfolio of intelligent devices, network manageability software and customizable services that can cut operation costs and significantly impact the bottom line. The new copier-based HP LaserJet 9055 and 9065 multi-function products (MFPs) feature HP's leading network manageability and trusted brand for quality and reliability. These products, as well as the new HP LaserJet 9085 MFP, extend what is perhaps the industry's most comprehensive imaging and printing product portfolio.

In addition, HP introduced the following management software, assessment capabilities and pay-per-use options, which together provide companies an extensive, system-level solution:

• · HP Web Jetadmin 7.5 - the next generation of HP's leading imaging and printing fleet management software now with links to HP's new System Insight Manager. According to HP customer data, organizations using Web Jetadmin have reduced help desk and management costs by approximately 50 percent.
  
  
• · Assessment capabilities and services - from Web-based, self-service tools to a comprehensive consulting assessment, these services help customers increase the utilization of output devices, improving user productivity and reducing costs.
  
  
• · Scalable pay-per-use services and billing options give customers transparent and predictable choices in the purchase and management of their imaging and printing environments - from level pay to cost-per-page or pay-per-use services.

HP has assembled a comprehensive sales strategy that leverages the reach of direct and indirect channels. The new high-volume multi-function products will be available globally through HP Services with customizable managed services, consulting and integration, and support.

In addition, HP has signed an agreement with IKON Office Solutions, a leading player in the copier and document management market. The relationship will provide HP broad U.S. distribution and services expertise through IKON's 12,000 sales and service professionals. HP also announced seven regional partners to distribute the high-volume multi-function products.

"HP's move into high end, copier-centric MFPs is a natural step for HP as copiers and printers converge on the network," said Matthew J. Espe, chairman and chief executive officer, IKON Office Solutions. "HP's multi-function technology fits well with IKON's best-in-class document management solutions and services. Through our expanded relationship, HP and IKON customers will receive the benefit of HP network technology that they have come to know and trust, combined with the strength of IKON's document management expertise - all delivered through our national sales and service teams."

New document workflow solutions further automation and management

The new solutions in HP's portfolio are highlighted by innovative offerings to help companies improve their business processes and document workflow. These solutions include:

• HP Forms Automation System, based on the new HP Digital Pen and Paper technology, enables enterprises to significantly accelerate paper forms processing and drastically reduce costs. It provides the experience of pen and paper, but with instant digital availability.
  
  The offering is targeted at medium and large enterprises in healthcare, banking, insurance, manufacturing and the public sector, which represent an addressable $2 billion market processing 9 billion paper forms annually. HP printing technology, embedded into the HP Workflow Connect 200 server-based software, prints customized forms on demand using select HP LaserJet printers. Each form has a unique background pattern and is filled out using the HP Digital Pen 200. The captured information is automatically uploaded for instant processing.
  
  With less than one-third the cost of traditional paper forms processing, the HP Forms Automation System transforms business processes while keeping the convenience, familiarity and mobility of pen and paper.
  
  
• HP Digital Sending Software 3.0 Secure Workflow and HP Digital Sending Software 3.0 Workflow solutions expand the company's existing digital sending capabilities to include additional functionality. This enhanced software enables customers to capture content from network-enabled multi-function products. New features include secure access, secure workflow, enhanced document security and flexibility in document routing.
  
  
• HP offers a solution for delivering intelligent documents based on HP Output Server and the Adobe® Intelligent Document Platform. The combination of HP and Adobe technology assures the multi-channel delivery of documents that can be integrated with core enterprise systems and shared or reused in business processes inside and outside the firewall.

More information about this announcement is available at http://www.hp.com/go/hpbusinessimagingandprinting

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.

Adobe is a registered trademark of Adobe Systems Incorporated.

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.