News release

HP Targets Small Business and Graphics Professionals with Expanded Imaging and Printing Portfolio

New partnerships, offerings provide flexible and affordable options for in-house marketing and graphic design

HP today announced new imaging and printing solutions and collaboration with industry leaders to offer small and mid-size businesses (SMBs) and graphics professionals new capabilities for general office printing, in-house marketing, and color management.

Highlighting the news is the HP Color LaserJet 2600n printer which, starting at $399,⁽¹⁾ sets a new standard for its class with a combination of exceptional affordability, fast print speeds and impressive print quality.

With speeds up to 60 percent faster than comparably priced color laser printers⁽²⁾ and proven HP LaserJet performance and reliability, customers no longer have to sacrifice price, speed or quality when purchasing a color laser printer for their home office or business.

According to Gartner analyst Peter Grant, the SMB marketplace is at an ideal point for the adoption of low-cost, high-quality printing solutions. "Color has been growing in popularity because of lower prices and faster print speeds for monochrome and color, which in turn will open up market opportunities as customers try color printing for their home or office for the first time," said Grant. "If they have the same reliable experience with color that they get with monochrome, they may just switch."

Research shows that many small businesses are eager to move from monochrome printing to in-house color printing to promote their services, products and image. A study released today conducted by International Communications Research for HP found that 60 percent of all SMBs are currently using color marketing materials to promote their business. A detailed look at HP research regarding SMBs and color printing is available in the online press kit at http://www.hp.com/go/2005hpimagingandprintingconference.

"The connection HP has with its small and medium business customers continues to drive innovation," said Cathy Lyons, senior vice president, Business Imaging and Printing, HP. "The new HP Color LaserJet 2600n is just one example of this collaboration, answering the call for an extremely affordable color printer that boasts brilliant print quality with a quiet, lightweight, network-ready and energy-efficient design."

In-house marketing and graphic design solutions and expertise for SMBs

HP provides SMBs access to the graphic design expertise needed to compete in a competitive marketplace as well as a wide variety of reliable imaging and printing solutions available through multiple sales channels - from retail locations to hpshopping.com.

HP's new relationship with LogoWorks, a company that specializes in affordable, web-based logo design services, enables SMB customers to get a customized, professional-quality logo created in just a few days. Logo packages start at $265 and are accessible through HP's website at http://www.hp.com/go/logoworks. In addition, LogoWorks is consulting with HP to offer a free course on logo creation and business identity available through http://www.hplearningcenter.com.

HP also has expanded its relationship with StockLayouts, a company that creates agency-quality graphic design templates in Microsoft® Word and Microsoft Publisher for in-office printing. Through this relationship, HP now offers customers a special edition CD of StockLayouts templates packed with professional-looking brochures, flyers, newsletters, business cards and more. The CD can be purchased online at http://www.hp.com/go/stocklayouts.

HP also announced a variety of imaging and printing solutions for the SMB customer, including:

Solutions for the small office, home office or small workgroup:

• HP LaserJet 1020: Ideal for small business or home office use, this printer offers exceptional value at a low price. It is HP's most affordable laser printer and is simple to set up, prints its first page fast - even from a cold start - and has a multi-purpose paper input tray that supports a wide variety of media types and sizes - starting at $179.⁽¹⁾



• HP LaserJet 1022: Small businesses that need to print high-quality documents quickly and affordably can benefit from this printer, which is capable of printing up to 19 pages per minute (ppm). Wired and wireless models offer flexible networking options for a variety of business needs - starting at $199.



• HP Business Inkjet 1000: This low-running-cost color printer delivers up to 4,800-optimized dots-per-inch (dpi)⁽³⁾ printing while also offering laser-quality text, printing at color speeds up to 18 ppm and monochrome speeds up to 23 ppm. An optional two-sided printing feature reduces paper usage - starting at $149.



• HP Deskjet 9800 series: Fast print speeds, flexible paper handling options and quality output with HP Vivera Inks make this wide-format printer (13 x 19-inches, 4,800-optimized dpi⁽⁴⁾) an ideal solution for home offices and small businesses needing affordable desktop color printing. The sleek and compact HP Deskjet 9800 series features breakthrough speeds up to 30 ppm monochrome and 20 ppm color output, borderless prints up to A3+ / 13 x 19-inches, optional six-ink color capabilities and an optional two-sided printing function⁽⁵⁾ - starting at $299.



• HP Color LaserJet 2600n: This printer represents a breakthrough in desktop color laser performance at an affordable price with speeds up to 8 ppm in color, integrated networking capabilities and one door access to four print cartridges with Smart Printing technology - starting at $399.

Specialized color printing and space-saving multi-function options for SMBs:

• HP Business Inkjet 2800: A workhorse printer offering high-impact, professional-quality output, this model prints up to 24 ppm in monochrome and 21 ppm in color in sizes up to 13 x 19-inches. Offering low running cost color printing, it is compatible with a variety of media and has optional networking and two-sided printing capabilities - starting at $499.



• HP Designjet 70: This new C+/A2+ printer brings oversize full color printing to SMBs, computer-aided design users, schools and retailers. Eliminating the need for print outsourcing, tile and taping, and common size limitations, the HP Designjet 70 is an affordable tool for professionals who want to enlarge their vision while retaining the ability to produce letter-size prints - starting at $795.



• HP Color LaserJet 2800 All-in-One series: Capable of satisfying a variety of business needs, such as integrating digital images into business documents, this full-featured series - HP's first line of color laser all-in-ones - consolidates and simplifies print, copy, scan, integrated networking and other features into one space-saving, easy-to-use design. Fax and photo memory card features provided on the HP Color LaserJet 2840 model broaden the range of functionality - starting at $799.

Imaging and media solutions for SMBs:

• HP mp3135 Digital Projector series: Producing professional images while offering the convenience of wireless connectivity, this digital projector series also features CompactFlash or USB flash memory storage capability; produces grain-free images and consistent, fade-free color; and enables fast processing of Microsoft PowerPoint files without a PC - starting at $2,499.



• HP vp6300 Digital Projector series: Offering excellent image quality at an affordable price, this digital projector series delivers images with authentic, vibrant and consistent colors. Its lamp can last 4,000 hours - twice as long as most projector lamps. Plus, an industry-leading manufacturer's warranty program (available only in North America) covers lamps for up to six times longer than the coverage period available on competitors' projectors - starting at $799.



• HP Scanjet 7650: Ideal for small businesses or small workgroups, this duplex-capable, up to 12 ppm (up to 6 ppm duplex) scanner is equipped with a 50-sheet automatic document feeder, one-touch button capabilities and a complement of software for simple document management and easy image scanning. Using its 2,400 x 2,400 dpi and 48-bit color capabilities, customers can scan text, images, slides or negatives (with included transparent media adapter) - starting at $699.



• HP Coated Laser Brochure Paper, glossy and HP Coated Laser Photo Paper, glossy: These two glossy papers are ideal for printing brochures, flyers, business photos and other marketing collateral. With a new, exclusive formula for high-end performance on both sides of the sheet, users can save time and money while maintaining control and flexibility. The paper's advanced coatings offer improved image quality and appearance, while reducing the user intervention that sometimes occurs with other heavy, glossy papers - starting at $19.99.

Expanded alliances offer more choices for graphics professionals

HP is expanding its alliances with key industry leaders to improve the imaging and printing experience for graphic arts professionals, including graphic designers and professional photographers.

To date, more than 200 HP printing products are supported on Apple's new Mac OS X v10.4 "Tiger" release for true, easy, plug-and-print connectivity. HP, Apple and Adobe are also engaged in an effort to facilitate color management configuration for printing on HP Designjet 30, 90 and 130 printers.

HP also announced plans to expand its relationship with Magnum Photos, the world's largest cooperative of professional photographers. Magnum Photos intends to use equipment from HP, the official digital technology supplier to the cooperative, to transform its workflow and move towards in-house digital printing. The expanded relationship reinforces HP's expertise and growing strength within the professional photography community as Magnum members will rely on HP digital print solutions for a variety of applications with their photographic images, including editing, book proofing, portfolio printing and producing exhibition-quality prints.

New customers realize benefits of HP's imaging and printing portfolio

Examples of customers using HP innovations to maximize productivity, profitability and visibility through in-house marketing and cost-effective document management, include:

• Bumrungrad Hospital: By implementing the HP Total Print Management solution with customized pay-per-use services, Bumrungrad Hospital, the largest private hospital in Southeast Asia, achieved a 10 percent cost savings, without the need for upfront capital expenditure. Bumrungrad also achieved a 10 percent increase in IT workforce productivity, enabling the hospital to better focus its resources on business and patient care.



• FILTER/TALENT: This Bellevue, Wash.-based digital media staffing/design agency uses HP color solutions to produce high-impact customized proposals in-house. With HP printers, the company is growing revenues and saving money.



• Hornblower Cruises and Events: Hornblower Cruises and Events develops and prints much of its own marketing materials, internal forms and company checks on HP printers. By switching to HP supplies, Hornblower maximizes printer longevity while minimizing maintenance and supplies costs.



• The Security Group: The HP LaserJet 4345 multi-function printer provided this Boise, Idaho, security systems provider with a flexible solution that could accommodate its growing and changing needs. With the HP 4345mfp, The Security Group has maximized productivity with an easy-to-use solution that enables print, copy, scan to email, analog fax and document finishing functions from one easy-to-use device.



• Game Face: This Tualatin, Ore.-based sports marketing firm now saves money and impresses clients through an in-house publishing operation using Microsoft Office Publisher and HP printing systems.



• Greenberg Traurig, LLP: This international law firm simplified administration of its networked printers by using HP printers in combination with HP Web Jetadmin remote management software, resulting in a highly reliable and easy-to-support print environment that is critical to attorneys' requirements for immediate and secure access to client-related information.



• International Paper Co.: The world's largest paper and forest products company, International Paper relies on the HP Output Server as a critical component in maintaining secure data management through controlled print distribution and in ensuring business process continuity with its robust output management capabilities.

More information on HP customers and the solutions mentioned in this release is available at http://www.hp.com/go/2005hpimagingandprintingconference.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended Jan. 31, 2005, HP revenue totaled $81.8 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

⁽¹⁾ All prices listed in this news release are estimated street prices. Actual prices may vary.

⁽²⁾ Based upon manufacturers specifications on speed.

⁽³⁾ Up to 4,800 x 1,200-optimized dpi color on premium photo papers and 1,200-input dpi.

⁽⁴⁾ Up to 4,800 x 1,200-optimized dpi color and 1,200-input dpi.

⁽⁵⁾ Six-ink printing available with the purchase of HP 99 (zone 1), HP 348 (zone 2), HP 138 (zone 3), and HP 858 (zone 4) photo inkjet print cartridges or HP 100 (all zones) gray photo inkjet print cartridge; not included, sold separately. The automatic two-sided printing unit is standard on the HP Deskjet 9800d only. It is an optional feature on the HP Deskjet 9800; not included; sold separately.

Microsoft is a U.S. registered trademark of Microsoft Corp.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could 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 fiscal quarter ended Jan. 31, 2005, and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2004. HP assumes no obligation and does not intend to update these forward-looking statements.