News release

HP Teams with AMD to Offer Choice to High-growth Small and Mid-size Business Notebook Market

Expanded HP Smart Office portfolio includes new mobility products and programs for SMBs

HP today announced it has teamed with AMD to address the fast-growing small and mid-size business (SMB) mobile market with the affordable HP Compaq nx6125 Notebook PC, which incorporates AMD Turion™ 64 mobile technology⁽¹⁾ - the company's latest 64-bit processor optimized for mobility - and advanced security features.

By offering a choice of processor technology, HP now provides business customers one of the widest ranges of mobile products at virtually every price point and performance level.

In addition to the HP Compaq nx6125 Notebook PC, HP introduced HP Smart Mobility Access Program, a product bundle and education program for its reseller partners, as well as the ultra-light and easy-to-use HP mp2200 digital projector series.

These new offerings build on the company-wide HP Smart Office initiative, which delivers smart technology, smart advice and smart services to SMBs that allow them to spend less time on IT and more time focused on business growth.

"Small and mid-size businesses are clearly the sweet spot within the mobile market and being untethered from the office provides a competitive advantage by enabling workers to access critical business information when and where they need it," said Kevin Gilroy, worldwide senior vice president and general manager, Small and Medium Business, HP. "By teaming with AMD, we're able to expand upon our HP Smart Office technology portfolio and continue to provide SMB customers with smart, reliable and more secure mobile technologies at very competitive prices."

According to a small business survey commissioned by HP and conducted by Harris Interactive® in March, 36 percent of small business owners⁽²⁾ surveyed plan to incorporate notebooks as part of their technology suite within the next year and 35 percent of small businesses surveyed think notebooks help them stay competitive with larger companies.⁽³⁾ In addition, IDC recently reported SMB notebook growth at 24 percent year over year for the first quarter of 2005.

"Working closely with HP, and through the introduction of AMD Turion 64 mobile technology, AMD is better able to serve the business notebook market than ever before," said Marty Seyer, corporate vice president and general manager, Microprocessor Solutions Sector, AMD. "Businesses demand investment protection and security. AMD is the only supplier that provides both enhanced security and 64-bit mobile technology, offering business customers worldwide a smarter IT investment."

HP Smart Office Technology

Building on its declaration of 2005 as the "Year for Mobility," HP introduced new Smart Office technology for the mobile professional: the HP Compaq nx6125 Notebook PC and the HP mp2200 digital projector series.

The introduction of the nx6125 marks the 11th new business notebook the company has introduced in the last 140 days. It offers customers a thin and light design that provides industry-leading security, ease of use and reliability while also offering outstanding business value. Key benefits include:

• Security: As part of the HP ProtectTools security portfolio, the notebook's built-in HP Biometric Fingerprint Sensor provides customers convenient, easy-to-use authentication that is more secure than passwords alone. HP ProtectTools also includes an optional integrated Smart Card Reader, while HP Credential Manager increases network security by providing a secured, single sign-on password solution so users do not have to remember multiple, complex passwords.



• Outstanding business value: Starting at a sub-$1,000 price SMBs can afford, the nx6125 features robust configurations, including integrated biometrics, wireless LAN connectivity⁽⁴⁾ and 15-inch display, as well as a three-year warranty.⁽⁵⁾ The notebook also features ATI's Radeon Xpress200M, a DirectX 9 chipset for AMD platforms that delivers an exceptional thin and light mobile experience.



• Ease of use and reliability: Comprehensive features and performance in a mobile, thin-and-light design; enhanced battery life, including AMD PowerNow!™ power management technology and an optional travel battery for extended battery life; improved comfort and a variety of reliability and durability features including scratch-resistant in-mold lamination and HP Panel Protection system.

Further mobilizing the SMB professional, HP is also introducing the ultra-light and simple-to-use HP mp2200 digital projector series. These grab-and-go projectors offer quick and easy setup and shutdown, best-in-class image quality⁽⁶⁾ and flexible connectivity to virtually any source. Key benefits include:

• Ultra-light, quick and easy to operate: Weighs only 2.4 pounds; easily sets up and shuts down in 15 seconds; compact, industrial design.



• Best-in-class image quality enables delivery of crisp, sharp, vibrant presentations: Up to 1,500 ANSI lumens, super sharp 2,200:1 contrast ratio, and DLP™ technology.



• Flexible connectivity to virtually any source: Multiple inputs offer connection to a user's notebook, handheld, DVD, camcorder, VCR or HDTV.

HP Smart Advice

Many SMBs find implementing mobile and wireless technologies a daunting project, oftentimes working without local guidance. To help simplify the mobile ownership experience for customers, HP has launched HP Smart Mobility Access Program, a product bundle and education program for its reseller partners who can provide local, specialized expertise.

HP Smart Mobility Access Program significantly reduces the complexity involved with selling, deploying and implementing mobile access to email, business shared files and company intranets. The product bundle includes Microsoft® Small Business Server, HP ProLiant server, a choice of mobile devices from HP iPAQ handhelds and smart devices to HP Compaq business notebooks, and several other options, including networked printers and a wireless network at the office.

HP Smart Services

HP is also simplifying the mobile ownership experience with the HP Financial Services Budget Stretcher lease program, which is applicable to the new notebooks and portable digital projectors. This program allows qualified customers to purchase up to $250,000 of new equipment or services on a lease term of 27, 39 or 51 months, giving SMBs access to technology they have been planning for - at a payment they can afford today.

More information about the products and solutions included in today's announcement is available in an online press kit at http://www.hp.com/go/mobilitysummit2005.

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 Apr. 30, 2005, HP revenue totaled $83.3 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

⁽¹⁾ The 64 bit microprocessor is a new technology designed to improve performance of those software products designed to utilize this technology; please contact your software provider to determine software compatibility. Not all customers or software applications will benefit from the use of a 64 bit processor. Compatible software including compatible operating system software, is required.

⁽²⁾ Small business owners in this release refer to those small business owners or senior level employees age 25-64 at companies with 1-99 employees who were surveyed.

⁽³⁾ Survey Methodology: Harris Interactive conducted the HP Small Business Survey between March 3-15, 2005 by telephone in the United States among 399 small business owners or senior-level employees age 25-64 at companies with 1-99 employees. Data are unweighted and therefore only representative of the sample interviewed. In theory, with probability samples of this size, one could say with 95 percent certainty that the results for the overall sample have a sampling error of plus or minus 5 percentage points.

⁽⁴⁾ Wireless access point required and is not included. Availability of public wireless access points limited. Wireless Internet use requires separately purchased Internet service contract.

⁽⁵⁾ Three-year warranty available in United States; warranty offer varies by region.

⁽⁶⁾ Based on combination of resolution and contrast performance for a sub 2.5-pound projector as of June 2005.

AMD Turion is a trademark of Advanced Micro Devices, Inc. Microsoft and Windows are U.S. registered trademarks of Microsoft Corporation. Linux is a U.S. registered trademark of Linus Torvalds. 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.