News release

HP Selected by WestLB AG to be Global Information Technology Services Provider

HP Services chosen to manage WestLB's global IT infrastructure and development of Web and office applications over a period of five years

HP today announced that it has been selected by WestLB AG, a European commercial bank and one of Germany´s leading financial services providers, to be its worldwide information technology services provider.

With an expected implementation starting on Jan. 1, 2005, HP has been chosen to manage WestLB's global IT infrastructure and some of its application development. The planned five-year collaboration includes services, for an estimated value of approximately $500 million, and the transfer of about 450 employees worldwide based in Düsseldorf, Germany, London, New York and Tokyo.

HP expects to provide comprehensive services ranging from application services to infrastructure services to the global management of WestLB's desktop environment, including mail systems, workplace technology and telephony. HP will provide the management and operation of its networks, and the development and support of its website and Intranet. In addition, HP will provide customer support and project services.

"The transfer of our IT functions represents a further milestone in WestLB´s strategy of concentrating on its core functions going forward," said Klaus-Michael Geiger, a member of WestLB´s Managing Board. "HP offered us a convincing customized service package that will provide flexible and cost-efficient solutions. In addition, it is supported by a cogent strategy for the employees of WestLB Systems."

"We are pleased to establish a strategic relationship with WestLB AG and provide our global expertise in IT outsourcing to help them reduce costs and become more agile," said Uli Holdenried, senior vice president, Managed Services, HP. "Through partnering together, this relationship represents another significant step for HP as a leading global IT service provider."

HP plans to support WestLB's IT environment based on its Adaptive Enterprise strategy, which is designed to help companies synchronize business and IT to capitalize on change.

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 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.