News release

HP Demonstrates Powerful, Comprehensive Digital Solution for Label Market

HP today introduced a powerful, versatile digital solution that meets the needs of the most demanding label buyers by combining HP's digital color printing technology with streamlined workflow and finishing options from the world's leading manufacturers.

Key to the solution is the new HP Indigo press ws4050, which prints full-color variable labels on demand and features an expanded media capacity that allows the labeling market to harness the full potential of digital technology for their customers.

Designed for greater cost-efficiency, productivity and ease-of-use, the HP Indigo press ws4050 improves on its predecessor, the market-leading HP Indigo press ws4000, by enabling label suppliers to produce a wider range of label applications - from adhesive to shrink-sleeve - further establishing HP as a leader in the industrial printing market.

"In the two years since we introduced the HP Indigo press ws4000, over 20 percent of owners have purchased a second press, sending a strong message about their level of satisfaction," said Bill McGlynn, vice president, Digital Publishing, Imaging and Printing Group, HP. "We've also seen a 250 percent jump in the volume of labels produced by HP customers - and given the remarkable productivity of the HP Indigo press ws4050, those numbers are expected to go much higher in an even shorter amount of time."

The HP Indigo press ws4050 digitally prints on a wider than ever range of media types and sizes, including conductive and shrink-sleeve film. Other advantages include a new ink-set for finer imaging, a reinsertion capability that enables duplex imaging for two-sided prime labels, and solutions that support essential FDA-compliant validation for pharmaceutical labels.

"The HP Indigo press ws4050 takes us to a whole new level," said Maui Chai, president of Flexible Technologies LLC, which produces prime labels for the pharmaceutical, nutriceutical, cosmetic and food and beverage industries and has been a beta site for the new press since late July. "I didn't think anything could compete with the quality or fast turnaround of the HP Indigo press ws4000, but now it's even better. The color is fantastic, and the new substrate flexibility allows us to expand into the packaging arena and add new customers."

Streamlining workflow with the world's leading manufacturers

Demonstrated at Labelexpo with the HP Indigo press ws4050 are fully compatible digital workflow options from HP partners that allow converting and finishing processes to be performed on a single integrated line. Among them is AB Graphic International's innovative inline laser die-cut configuration, presented for the first time in North America, and offline converting configurations that feature advanced new solutions from Nilpeter and Rotoflex International.

Also highlighted are efficient new workflow systems from Artwork Systems and Esko-Graphics, as well as a digital watermark solution from MediaSec, which will be used during the show to preflight custom label jobs on pressure-sensitive paper, films and foils provided by 3M, Avery Dennison, ExxonMobil, Fedrigoni, FLEXcon, LINTEC, Raflatac, Walki-wisa, Wausau Coated and other HP media partners.

By partnering with industry leaders, HP enables its customers to select the converting and finishing technologies that suit their specific needs and that can be integrated inline or offline for switching between digital and conventional jobs.

HP's ongoing demonstrations at Labelexpo also encompass high-value security labels that use invisible ink and watermarks and are printed on the HP Indigo press ws2000, a six-color digital label press offered at an entry-level price.

Financing for the purchase of any HP Indigo digital press can be arranged through HP Financial Services, which offers flexible 36-, 48- or 60-month contract terms. In addition, an upgrade kit is available that provides HP Indigo press ws4000 owners with most key capabilities of the HP Indigo press ws4050.

More information on the ws4050 and other HP Indigo digital presses and related solutions is available at http://www.hp.com/go/indigo.

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.