News release

HP and Bank of India Win Distinguished IT Outsourcing Award

Outsourcing Center selects engagement as winner for "Best First Steps" category

HP and Bank of India today announced that the companies' IT outsourcing engagement has been selected as the winner for the Outsourcing Center's 2005 Outsourcing Excellence Awards "Best First Steps" category.

The Outsourcing Excellence Awards recognize IT and business process outsourcing vendors and their clients for excellent achievement. To select the winners, a panel of judges reviewed all components of relationship structures and outcomes achieved among all of the nominations.

The "Best First Steps" category honors the vendor and client that have taken exceptional initial steps toward achieving the client's outsourcing goals. The prestigious award, sponsored by Outsourcing Center and Everest Group, was presented at the 2005 Outsourcing Excellence Awards ceremony in conjunction with the Sourcing Interest Group (SIG) semi-annual conference, held last night at the Marriott's Camelback Inn in Scottsdale, Ariz.

Bank of India decided to outsource its IT environment to HP because it recognized that IT was necessary to increase productivity, standardization and drive competitive advantage, as well as to provide a unified interface for customers and produce faster time to market for new products and services.

Since IT was not a core competency, Bank of India decided to engage HP, which now provides IT outsourcing services, including the implementation and management of a core banking solution across Bank of India's 750 branches in India.

"Since our relationship with HP began more than a year ago, we've become more agile, able to focus more of our resources on our core competencies and as a result are providing a better banking experience for our customers," said D. Krishnamurthy, general manager, Information Technology, Bank of India. "We are delighted that these accomplishments are being acknowledged in the outsourcing industry."

As part of its contract with Bank of India, HP is implementing a data warehousing and document imaging solution, as well as building and managing a data center, disaster recovery site, help desk and call center. In addition, HP manages Bank of India's servers, desktops and peripherals across the branches that have implemented the core banking solution and provides asset refresh and obsolescence protection for its IT assets.

"Since signing an agreement in February 2004, HP and Bank of India have begun implementing one of the largest IT outsourcing engagements in India and the financial services industry to date," said Steve Smith, senior vice president, HP Services. "In just 15 months, we've developed a strong collaborative relationship and have leveraged our technology, industry experience and proven methodologies to develop a flexible, scalable and innovative IT infrastructure to help Bank of India deliver consistent service levels and overall improved customer experience. We're pleased the industry recognizes that HP and Bank of India are on a path of continued success."

Outsourcing Excellence Awards is an annual program developed by the Outsourcing Center (an Everest company), an online community specializing in thought leadership, best practices and innovation in outsourcing. More information is available at http://www.outsourcing-center.com.

About Bank of India

Bank of India is one the largest public sector banks in India with 43,000 employees, a network of over 2,500 domestic branches and 20 international branches providing an extensive range of financial solutions to over 23 million customers. More information on Bank of India can be found at http://www.bankofindia.com.

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 April 30, 2005, HP revenue totaled $83.3 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, 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.