News release

HP Simplifies Technology Upgrades for Small- and Medium-size Businesses with Trade-in Program

Program offers customers rebates and discounts to make upgrading technology more affordable

HP is making it easy and affordable for small and medium business (SMB) customers to upgrade their old technology by providing discounts on new equipment, as well as disposal and recycling services for the old equipment being traded in, with the HP Trade-In Program.

Millions of PCs purchased by businesses to protect themselves from the Y2K threat are reaching an age that leaves companies vulnerable to data theft and loss due to old technology that is no longer reliable or older operating systems, such as Microsoft Windows® 95 or NT, that no longer receive security updates.

The HP Trade-In Program provides customers with rebates and discounts on new equipment as well as disposal and recycling services for the old equipment being traded in.

"SMB customers are the largest user base of the HP Trade-In Program, comprising roughly 35 percent of our monthly activity," said Jackie Anderson, manager, HP Trade-In Program. "Not only can HP make it easy for SMB customers to choose the right technology through online resources and resell partners, but the HP Trade-In Program makes the purchase more affordable with rebates and financing options, while solving the issue of how to dispose of old technology in an environmentally responsible way."

Trade-In promotions

The HP Trade-In Program continually offers promotions and discounts on new systems to its participants. These promotions give customers the opportunity to upgrade to new HP technology with additional discounts over the current market value of the old technology being traded in. The current offers include discounts on HP iPAQ Pocket PCs, HP Designjet printers and HP Workstations.

• For customers seeking an easy-to-use tool that helps them stay connected to their business and achieve a greater work/life balance, HP is offering a rebate of $50 or more on the purchase of a new HP iPAQ Pocket PC h1940 or h2210 with the trade-in of an old Palm OS or other Pocket PC handheld device. (Offer valid through July 10, 2004.)



• For print service providers, GIS professionals, graphic designers or other small businesses that need professional, large-format printing, HP is offering up to $4,000 toward the purchase of a new HP Designjet 5500 or 1000 Plus series printer when customers trade in an old large-format printer, plotter or vinyl cutter. HP is also offering zero percent leasing for a 30-month lease on all Designjet printers. (Offer valid through July 31, 2004.)



• For power computing users, HP will rebate the fair market value of a trade-in unit and give customers $50 off any eligible HP Workstation. (Offer valid through Oct. 31, 2004.)

HP also is making it easy for SMB customers to buy new technology with a range of financing and lease options, such as zero percent financing on a lease of 24 months for purchases through July 31, 2004.

Additional information about the HP Trade-In Program, free quotes on the fair market value of old technology, and HP technology eligible for current promotions is available at http://www.hp.com/go/tradein.

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 four fiscal quarters ended April 30, 2004, HP revenue totaled $76.8 billion. More information about HP (NYSE, Nasdaq: HPQ) 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 the Quarterly Report on Form 10-Q for the fiscal quarter ended Jan. 31, 2004, and other Securities and Exchange Commission reports, filed after the Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003. HP assumes no obligation and does not intend to update these forward-looking statements.