News release

HP Acquires Synstar and Broadens Reach in European Technology Market

HP today announced it has acquired the business of UK-based Synstar plc ("Synstar"). Pursuant to the terms of the recommended cash offer announced on Aug. 9, 2004, HP Global Investments BV ("HP BV"), a wholly owned subsidiary of HP, has acquired approximately 92.1 percent of the issued share capital of Synstar and expects to acquire, compulsorily, all remaining Synstar shares by mid-November 2004. The terms of the acquisition value Synstar's existing share capital at approximately £163 million (US$293.3 million).

Synstar is a leading independent provider of information technology (IT) services to approximately 1,500 customers across Europe. Synstar has over 2,600 employees and representation in Ireland, Germany, Belgium, Luxembourg, The Netherlands, the UK and Spain. With more than 35 years of experience, Synstar's expertise and capabilities in the area of multi-vendor support and business continuity further strengthen HP's ability to help customers achieve a better return on their IT investments and improve their responsiveness to change.

Synstar also brings strong managed services capabilities to HP that are geared to deliver business continuity and availability, spanning lifecycle management of desktop environments to data center environments, while also implementing IT risk management strategies.

"Synstar has a fantastic track record and is a great fit with HP," said Francesco Serafini, senior vice president and general manager, Technology Solutions Group -EMEA, HP. "We believe that the addition of Synstar's support and business continuity services will enhance our services capabilities across EMEA, and puts us in an even stronger position to compete in the European multi-vendor market. We look forward to driving forward as one business."

"This acquisition represents the completion of our plan to transform Synstar into a world-class provider of managed and support services," said Steve Vaughan, chief executive, Synstar. "Our shareholders have benefited from the value that this has created, and our employees join a much respected major player in the IT market. Additionally, our customers can be sure they will continue to receive the same quality, value and flexibility upon which we have built our reputation and will have access to one of the world's largest and most comprehensive IT services organizations."

U.S. shareholders of Synstar are advised that HP BV today announced that all conditions to the recommended cash offer for Synstar shares have either been satisfied in full or, where permitted, waived, and that the offer has been declared unconditional in all respects. HP BV also announced its intention to acquire compulsorily all outstanding Synstar shares which have not yet validly accepted the offer, to seek cancellation of the listing of Synstar shares on the Official List of the UK Listing Authority and to seek cancellation of the trading of Synstar shares on the London Stock Exchange. The offer will remain open for acceptance until further notice.

U.S. shareholders of Synstar may obtain additional information on the offer and today's announcements by searching for "Synstar" at http://www.londonstockexchange.com/rns.

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 and assumptions. If the risks or uncertainties materialize or the assumptions prove incorrect, the results of HP and its consolidated subsidiaries could 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 but not limited to statements related to compulsory acquisition of Synstar shares which have not yet validly accepted the offer, the plans, strategies and objectives of management for future product or service offerings; and statements relating to the execution of any integration plans. The risks, uncertainties and assumptions referred to above include employee management issues; the challenges of integrating Synstar into HP; the challenge of maintaining customers following the acquisition; 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 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.

Additional Information and Where to Find It

More information about the offer to acquire Synstar may be found at http://www.londonstockexchange.com/rns. Merrill Lynch is making the offer on behalf of HP Global Investments BV, a wholly owned subsidiary of HP. The offer is not being made, directly or indirectly, in or into and will not be capable of acceptance in or from Australia, Canada or Japan. This press release shall not constitute an offer or invitation to purchase any securities.