News release

HP Announces Largest U.S. Healthcare Print Management Services Contract in Its History

University Hospitals Health Systems expected to save up to $8.4 million in total imaging and printing costs over three years

HP today announced the largest U.S. healthcare Total Print Management imaging and printing services contract in the company's history. Combining services and devices, the deal is expected to save University Hospitals Health Systems (UHHS) up to an estimated $2.8 million per year in annual printing and imaging costs.

The $15 million contract signed with UHHS builds on HP's momentum from a printing and imaging services win with Ford Motor Company announced in March. Under the latest agreement, HP will streamline UHHS' existing print infrastructure across more than 150 facilities throughout Northern Ohio.

HP won the contract by demonstrating a print management strategy that goes beyond providing hardware to offer a broad range of sophisticated managed services that address the unique information technology (IT) challenges facing the healthcare industry.

"HP's close collaboration with UHHS people, combined with the amount of potential savings we could achieve and the solution's operational design, was instrumental in HP's win," said Marc Richards, divisional information officer, Information Technology and Solutions, UHHS. "Additionally, HP's promise of delivering future document and content management solutions, and its associated infrastructure improvements, were significant factors in our decision."

UHHS facilities include 10 hospitals, clinics, primary care physician offices and 25,000 full-time employees. The legacy UHHS printing and imaging environment included more than 78 different device models from 12 different manufacturers.

HP used its expertise in designing and deploying network infrastructures to enhance UHHS' existing infrastructure and increase its manageability, thus stimulating cost-savings and boosting efficiency. UHHS administrators are now able to remotely monitor, control and optimize their printing and imaging system through the network and automatically reorder supplies only when necessary.

To further save time and money on recurring printer repairs and reordering supplies, UHHS will implement a new fleet of 1,250 high-performance HP devices, including copier-based multi-function printers, printer-based multi-function devices, monochrome and color workgroup HP LaserJet printers, and multiple print server appliances.

"Enterprise organizations are realizing the value of establishing a streamlined, manageable printing and imaging environment," said George Mulhern, senior vice president, Imaging and Printing Group, HP. "In this age of cost-consciousness and compliance, HP's Total Print Management will prove to be a long-term solution for companies looking to spend less time on network printing management and more time on the business at hand."

HP works with enterprise customers such as Ford Motor Company and UHHS to provide a Total Print Management solution - an integrated family of software, hardware and imaging devices, services and supplies. With HP Managed Office Services, customers can mitigate risk and reduce complexity by outsourcing services, including developing an enterprise-wide imaging and printing strategy and managing day-to-day output operations.

This comprehensive offering provides an easy way for customers to standardize and manage costs above and beyond hardware. Leveraging its networking and printing expertise and worldwide services capabilities, HP can help companies save up to 25 percent on their total imaging and printing investments.

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.

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.