News release

HP and Magic Johnson Foundation Team Up to Address Digital Divide in Oakland, Calif.

Magic Johnson/HP Inventor Center featuring HP technology opens in Oakland

HP and the Magic Johnson Foundation today brought their national community technology initiative aimed at bridging the digital divide to Oakland with the opening of the 16th Magic Johnson/HP Inventor Center at the East Oakland Youth Development Center.

The Oakland Inventor Center joins 15 others in 11 cities around the country offering training, skills development and online access for youth and adult residents in underserved communities. Since the launch of the program, Magic Johnson/HP Inventor Centers have opened in Atlanta, Bladensburg, Md., Chicago, Houston, Lansing, Mich., Los Angeles, Miami, New York City, Philadelphia, Seattle and Washington, D.C. HP's investment in the centers totals $1.4 million over three years.

"In today's world, a lack of knowledge and understanding of technology puts an individual at a distinct disadvantage," said Earvin "Magic" Johnson, founder of the Magic Johnson Foundation. "Many of us use technology daily in our homes, our schools and our businesses. Yet for residents in underserved communities, access to technology is not a given. This partnership with HP enables residents of the community to have access and training opportunities that are not otherwise available."

The East Oakland Youth Development Center offers skills training and mentoring to young residents, motivating and preparing them for dynamic leadership positions in the competitive job market. The new Magic Johnson/HP Inventor Center adds to the educational, cultural, artistic expression and recreational programs available at the East Oakland Youth Development Center. Programs include Project J.O.Y. (Job Opportunities for Youth), which focuses on job placement services and career development; After School Art, which teaches visual and performing arts; and Physical Development, a health and fitness initiative.

The Magic Johnson/HP Inventor Center will provide young people of East Oakland with access to technology and training opportunities using a powerful lineup of HP commercial and consumer products ranging from PCs to the latest in digital imaging technology.

"The partnership between HP, the Magic Johnson Foundation and the East Oakland Youth Development Center demonstrates the commitment to providing residents with equal access to technology so they can continue to develop necessary skills for a technology-driven economy," said California Lieutenant Governor Cruz Bustamante. "Our young citizens are now able to utilize powerful technology resources at the new Magic Johnson/HP Inventor Center that will help them pursue educational opportunities and research careers, and plan for successful futures."

The technology deployed in the Inventor Center, valued at more than $80,000, includes HP servers, notebook and desktop PCs, flat panel monitors, digital cameras and photo printers, and all-in-one fax, scanner and printer units.

"HP strongly believes in empowering communities with technology to enable educational opportunities and economic growth," said Diana Bell, worldwide vice president, Total Customer Experience and Quality, HP. "HP's partnership with the Magic Johnson Foundation ensures greater access to technology in underserved communities so residents can be successful in the digital economy."

Other sponsors supporting the Magic Johnson/HP Inventor Center include DHL, Eastwind Consulting Group and Freddie Mac.

About East Oakland Youth Development Center

The East Oakland Youth Development Center is committed to forging new relationships with community, business and government to enhance the opportunities available for the youth of Oakland today, in order to train them to become Oakland's leaders tomorrow.

About the Magic Johnson Foundation

The Magic Johnson Foundation is a nonprofit organization that focuses on improving and addressing the health, educational and social needs of those residing in the inner city. In addition, the Foundation has made a strong commitment to raise awareness about several health and social concerns that threaten underserved communities. Founded in 1991 by basketball legend Earvin "Magic" Johnson, the Foundation has raised more than $20 million for charity.

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.