News release

HP and BearingPoint Expand Global Alliance by Combining RFID Tools and Capabilities for Retailers

HP and BearingPoint, Inc. (NYSE:BE), one of the world's largest business consulting and system integration firms, today announced the launch of a collaborative radio frequency identification technology (RFID) solution set for the retail industry. The offering will help retailers manage their inventory with up-to-the-minute supply chain visibility, as well as monitor and collect customer-buying patterns to better anticipate consumer demand.

"Today, HP and BearingPoint are announcing an expansion of our long-standing relationship based on a shared commitment to help retailers increase operations by improving inventory control and providing greater visibility into supply chains," said Frank Lanza, worldwide director, RFID, HP Services. "As an RFID solution provider, HP is already familiar with the challenges, trials, compliance and full-scale RFID implementations in our own supply chain, and now, together with BearingPoint's expertise, we have a very solid offering for the retail industry."

Under terms of the agreement, the two companies will closely collaborate to implement RFID-enabled technology designed to lower inventory carrying costs and increase and improve stock conditions, striving ultimately to reduce supply chain costs for major retailers and providing better product availability for customers.

HP will provide the infrastructure technology, including industry-standard HP ProLiant servers, high-end UNIX® HP Superdome servers and HP StorageWorks technology depending on the particular business application and customer requirements. In addition, HP offerings will include Life Cycle Management, HP Managed Services and RFID Integration Services to design, architect and deploy the technology.

BearingPoint will provide assessment, consulting and systems integration support, business process and change management services, as well as specialized retail knowledge.

"The retail industry is redefining business processes spanning from consumer purchases through supply chain to increase cost efficiencies and to create a competitive advantage," said John Cummings, a managing director responsible for BearingPoint's Supply Chain practice. "The introduction of RFID technologies linked with supply chain and merchandizing provides retailers a means of accelerated differentiation. By understanding what the customer wants and decreasing the cycle time, harnessing RFID, there can be a faster return on investment."

Kara Romanow, analyst at AMR Research, said in the March 2004 alert, Retailer Wrap Up: AMR Research 2004 Retail & Consumer Goods Executive Conference, "RFID can save labor costs, better manage inventory, slash out-of-stocks, prevent product tampering and counterfeiting, cut invoice deductions, manage product recalls and halt theft. But the most potential is in using RFID as a major building block in a DDSN (Demand Driven Supply Network) strategy."

HP at EPCglobal US Conference 2004

HP is a featured speaker at the EPCglobal US Conference 2004, Baltimore, Sept. 28 -30, booth 116. HP will participate in two sessions, "Clearing the Hurdles: Lessons Learned Through Pilots," Tuesday, Sept. 28 at 3 - 4 p.m., and "Super Session - What Lies Beyond: The Future Supply Chain," Thursday, Sept. 30 at 2 - 3 p.m.

In addition to highlighting developments in RFID, HP will display new products, services and solutions at its booth.

About BearingPoint, Inc.

BearingPoint, Inc. (NYSE:BE) is one of the world's largest business consulting, systems integration and managed services firms serving Global 2000 companies, medium-sized businesses, government agencies and other organizations. We provide business and technology strategy, systems design, architecture, applications implementation, network infrastructure, systems integration and managed services. Our service offerings are designed to help our clients generate revenue, reduce costs and access the information necessary to operate their business on a timely basis. Based in McLean, Va., BearingPoint has been named by Fortune as one of America's Most Admired Companies in the computer and data services sector. For more information, visit the Company's website at http://www.BearingPoint.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 July 31, 2004, HP revenue totaled $78.4 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

UNIX is a registered trademark of The Open Group.

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 HP's Quarterly Report on Form 10-Q for the period ended July 31, 2004 and other 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.