News release

Trade-in Promotion Rewards HP iPAQ Pocket PC Customers for Environmental Responsibility

HP is offering customers a cash-back offer of $50 or more toward the purchase of a new HP iPAQ h1940 or h2210 series Pocket PC when they trade in an old personal digital assistant through July 10, 2004.⁽¹⁾

Customers can return products through the HP Trade-In program online at http://www.hp.com/go/tradein. The program enables customers to dispose of old equipment in an environmentally responsible manner at little or no cost.⁽¹⁾

Products returned through the trade-in program are evaluated for fair market value - the product's value in the used or secondary marketplace - by Market Velocity, HP's trade-in solution provider. Market Velocity specializes in the remarketing and disposal of used equipment.

A product's fair market value is determined by the market demand defined by Market Velocity partners, product availability, refurbishment costs and shipping/handling. If the value is less than $50, the customer will receive a refund of $50. If the value is more than $50, the customer will receive a refund equal to the fair market value. Products with no fair market value are recycled through the HP Planet Partners return and recycling program, and the customer will receive a refund of $50.

Mac-based Palm users who trade in old equipment through the program can receive an additional cash-back offer toward the purchase of PocketMac, the original Mac-to-Pocket PC sync solution. Mac-based Palm users can obtain this special offer through http://www.palmuptrade.com.

"The HP Trade-In program provides value to customers who share in our commitment to environmental sustainability," said Jackie Anderson, manager, HP Trade-In Program. "Our relationships with partners such as Market Velocity and PocketMac help our customers upgrade and dispose of their old equipment in a streamlined and affordable fashion."

"As an end-to-end, fully outsourced equipment trade-in and asset remarketing provider, Market Velocity accommodates HP's customers with a high degree of service and customization while realizing cost savings by leveraging one solution across multiple product divisions and customer segments," said Diane Morse, vice president of Client Management and Services, Market Velocity.

"We encourage Mac-based Palm users to take advantage of these incredible offers to trade in their old equipment for a new HP iPAQ Pocket PC and PocketMac's sync solution because the HP iPAQ Pocket PC's multimedia capabilities fit the Mac lifestyle," said Terence Goggin, chief technology officer, PocketMac.

This trade-in offer complements other recent HP environmental initiatives, including:

• the expansion of HP's "Envelope In A Box" return and recycling service for inkjet print cartridge in the United States;
• the doubling of HP's hardware recycling e-coupon during the month of April; and
• a global commitment to reducing carbon dioxide emissions through HP's participation in the Sustainable Silicon Valley Initiative with the California Environmental Protection Agency, Silicon Valley Manufacturing Group, Silicon Valley Environmental Partnership and other governmental, educational and community organizations.

More information about HP's recycling programs is available at http://www.hp.com/recycle.

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 last four fiscal quarters, HP revenue totaled $74.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

⁽¹⁾ Full program details and limitations can be found at http://www.hp.com/go/tradein.