News release

HP Offers Fairmont Guests "Picture Perfect" Vacations with Digital Cameras and Printers to Snap and Share Summer Memories

Innovative digital photography program from HP available at 10 of Fairmont's summer hot spots in the United States

HP broke new ground in on-site travel services with Fairmont Hotels & Resorts today by announcing a pilot program designed to allow vacationers to experience firsthand the power of digital photography.

Throughout the summer, hotel guests at 10 select Fairmont properties across the United States will be able to use the newest HP Photosmart digital cameras and printers during their stay. Anyone from honeymooners who have never used a digital camera to a busy family that has forgotten their own camera will be able to test the HP products and learn how simple it is to use digital photography to capture and share vacation memories.

"Together with Fairmont, HP is providing a unique digital photography experience in a natural setting - vacations - where consumers can appreciate the ability to easily capture and instantly share memories of their trip," said Kathy Stromberg, vice president, Consumer Segment Marketing - Americas, HP. "This program is the latest example of HP's larger experiential marketing approach, including in-store kiosks, mobile digital photography tours and online education, to show consumers how to get the most out of their digital photography experience."

HP and Fairmont are making the experience simple from the start. Guests check out an HP Photosmart R707 digital camera from the hotel concierge or front desk, snap vacation memories and instantly print photos to share with friends and family using an HP Photosmart 245 photo printer.

"From San Francisco's Nob Hill to Lake Louise in Alberta, Fairmont hotels are set in some of the world's most postcard-perfect locations," said Thatcher Brown, executive director of brand marketing, Fairmont. "And these days traveling is all about having that unique, personally meaningful experience. HP digital cameras are a fun, simple way for our guests to turn those special moments into lasting memories."

The pilot program is available until Sept. 20, 2004, at the following Fairmont properties: The Fairmont Copley Plaza Boston, Mass.; The Fairmont New Orleans, La.; The Fairmont Orchid, Big Island, Hawaii; The Fairmont San Jose, Calif.; The Fairmont San Francisco, Calif.; The Fairmont Scottsdale Princess, Ariz.; The Fairmont Sonoma Mission Inn and Spa, Calif.; The Fairmont Turnberry Isle Resort and Club, Miami, Fla.; The Fairmont Washington, D.C.; The Plaza, New York, N.Y.

HP digital photography solutions

To help ensure that printed photos result in picture-perfect color output, the HP Photosmart R707 digital camera incorporates HP Real Life technologies, a series of technical advancements including in-camera red-eye removal and in-camera panorama preview that make it much easier to take a great picture.

The compact HP Photosmart 245 photo printer allows vacationers and other users to produce high-quality, borderless, 4 x 6-inch prints using HP Premium Plus Photo paper. Users can print directly from nearly every digital camera via the printer's memory card slots or from an HP digital camera via a USB cable. For added convenience, the HP Photosmart 245 photo printer allows users to preview and edit photos prior to printing with its 1.8-inch color LCD screen.

About Fairmont Hotels & Resorts

Fairmont Hotels & Resorts is a collection of world-class resorts and city center hotels that enjoy unrivalled prominence in the communities where they are located. Operating 43 properties throughout six countries, Fairmont is committed to providing guests with exceptional service in distinctive surroundings. Featuring such storied hotels as The Fairmont San Francisco, The Fairmont Banff Springs, Fairmont Le Chateau Frontenac and The Plaza, Fairmont properties are often deemed attractions in and of themselves. For more information on Fairmont or reservations please call +1 800 441 1414 or visit http://www.fairmont.com.

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 and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of services and their feature sets; the challenge of managing asset levels, including inventory; the difficulty of keeping expense growth at modest levels while increasing revenues; 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.