News release

HP's Small and Medium Business Offerings Positioned for Strong Growth

HP (NYSE:HPQ) has been cited as one of the leading suppliers of technology for small- and medium-size businesses by information technology research firm Gartner, Inc. in its first vendor rating of the most powerful global technology providers to SMBs.⁽¹⁾

HP announced its invigorated SMB strategy, products and services at its "Smart Office" launch (www.hp.com/go/smbgetmore) in September 2003 and is well positioned to see more significant growth for its products and services in the SMB market.

"HP has great brand appeal among SMBs and that the brand is associated with providing quality and reliable products and services," said John Brennan, senior vice president of worldwide SMB, HP. "HP's Smart Office is seen as having a solid foundation for continued, significant growth for our products and services in the SMB market and an edge in the solutions area that its competitors have not yet addressed.

"Since we launched Smart Office with more than 100 products and solutions designed to meet the needs of SMB customers, we continue to see that great, innovative products are only part of the equation for small- and medium-size business owners – they want to have access to the expertise of HP through local solutions providers that they can rely on.

"Furthermore, HP and its partners remove the complexity of technology, enabling these businesses to appreciate the benefits of technology and increase their business performance."

HP plans to continue to leverage its market-leading position in imaging and document management solutions for SMBs. Additionally, it plans to continue its growth led by: its global presence and partner network; its complete portfolio of products, including printing/imaging, PCs, servers and storage; and ensuring that HP technology is easy to own through comprehensive support and a wide variety of financing options.

HP is the world's largest IT provider to small- and medium-size businesses, with more than $21 billion in annual revenues. In addition to its broad product and solution portfolio, HP provides the SMB marketplace with financing, vertical solutions and specialized services to allow business owners to get more for their technology needs.

To date, HP has more than 210,000 partners worldwide offering local reach and expertise. HP was named the Small Business Champion for 2003-2004 by the U.S. Small Business Administration and elected to the SBA Hall of Fame for its leadership and support of small business.

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 the fiscal year ending on Oct. 31, 2003, HP revenue totaled $73.1 billion. More information about HP is available at www.hp.com.

⁽¹⁾ Data based on Gartner Inc., "Vendor Rating: HP Reaffirms its SMB Focus," M. Kramer, December 2003.