News release

HP Offers Customers a Jumpstart on Financing an Adaptive Enterprise

HP Financial Services provides new leasing and financing options for a full range of HP hardware, software and services

HP today announced a new financing program enabling companies to obtain the HP solutions they need now while taking advantage of low lease rates or deferring all payments until January 2005 at no additional cost.

Available through HP Financial Services, the financing arm of HP, the "Jumpstart Success" offer applies to all HP products and professional services - including PCs, servers, storage devices and network and systems management software.

With this special offer, HP helps customers in North America get a jumpstart on their competitors. Rather than delaying purchases until next year's information technology (IT) budget, customers are able to acquire the HP products and services they need now to synchronize business processes and IT to capitalize on change. The program also allows customers to better manage their cash flow and maintain cash reserves.

"HP's Jumpstart Success program is a powerful enabler for those companies that seek to become more agile enterprises not only technologically but also financially," said Irv Rothman, president and chief executive officer, HP Financial Services. "Our innovative IT leasing and financing options provide companies a quick and cost-effective way to adapt and upgrade to the latest information technology needed to achieve a competitive edge."

In addition to offering a choice between a competitive lease rate with low monthly payments or a payment deferral plan, HP Financial Services offers customers flexible terms - 24 to 60 months - so companies can select the structure that best meets their business and budgetary needs.

Customers can take advantage of Jumpstart Success directly through HP or via its channel partners. This financing offer is available now through Oct. 31, 2004, and applies to transactions of $25,000 or more with qualified businesses and education institutions in the United States and Canada. Additionally, the offer is available to the U.S federal government⁽¹⁾ and to local governments in both the United States and Canada.

HP Financial Services delivers a total "acquire-to-retire" suite of offerings that simplifies the entire IT financial lifecycle management process - from flexible acquisition alternatives to asset management services that reduce the total cost of ownership to solutions that help maximize the remaining value of IT equipment. HP Financial Services, a wholly owned subsidiary of HP, delivers financial services worldwide.

More information on the Jumpstart Success program and other special offers from HP Financial Services is available at http://www.hp.com/hpfinancialservices.

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 July 31, 2004, HP revenue totaled $78.4 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

⁽¹⁾ $50,000 (USD) minimum for U.S. federal government transactions.

Lease products available through Hewlett-Packard Financial Services Company (HPFSC) to qualified commercial, state and local government, and education customers in the United States and Canada and federal government customers in the United States, and are subject to credit approval and execution of HPFSC lease documentation approved for this offer. Offer valid on lease transactions with a total transaction amount greater than $25,000 (excepting lease transactions with the U.S. federal government, which must exceed $50,000), provided lessee and HPFSC have executed lease documentation agreeable and acceptable to HPFSC with the applicable lease term to start on or before Oct. 31, 2004. Customers who choose the deferral option will defer payments until January 2005, followed by either 24, 36, 48, or 60 monthly payments on lease or financing transactions with a fair market value, $1 or 10% end-of-lease-term purchase option. Certain types of financing may not be available in all states. Deferral option and low lease rate apply to qualifying HP hardware, software and services only. Some product and discounting limitations may apply. Other restrictions may apply. This offer cannot be combined with other offers. HPFSC reserves the right to change or cancel this program at any time without notice.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever 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 and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected development, performance or rankings of products or services; statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the development, performance and market acceptance of products and services and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the risks described in HP's Quarterly Report on Form 10-Q for the period ended April 30, 2004 and reports filed after HP's 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.