News release

HP Broadens the Spectrum of Color Printing for Businesses

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HP today unveiled a broad portfolio of color printing systems and services that sets a new standard in color image quality for businesses.

The offerings are designed to provide customers with unprecedented choice and value for brilliant, easy-to-manage color output and to accelerate HP's global leadership in color imaging and printing, a market forecasted to reach $80.6 billion by 2009.⁽¹⁾

Highlights of the company's latest innovations include:

• New HP ColorSphere toner, which offers industry-leading color output with bolder graphics and more realistic imagery for photo-quality printing;
• The HP Color LaserJet 4730mfp – a multifunction printer that delivers breakthrough performance at half the price of closest competitive offerings;
• New HP Color LaserJet and Officejet Pro printers that, along with HP Deskjet printers, offer customers the widest range of options in the industry for value and performance;
• ColorLok™ technology, engineered by HP and International Paper to make ordinary paper extraordinary;
• HP Smart Printing Services, a web-based approach for small and mid-size businesses to acquire printers, supplies and support in a single, easy-to-manage contract.

"HP is extending its leadership in imaging and printing by delivering superior output and value on the most reliable systems on the market," said Vyomesh Joshi, executive vice president, Imaging and Printing Group, HP. "The HP innovations announced today span the entire color printing system – from vibrant new ColorSphere toner, to extraordinary paper, to the groundbreaking HP Color LaserJet 4730mfp, to pioneering new services – and beyond. All will delight businesses hungry for more choice in high-quality, easy-to-manage color printing."

Industry-leading color output with new HP color toner and enhanced paper

Designed specifically for HP Color LaserJet systems, new HP ColorSphere toner delivers a 22 percent wider range of brilliant colors and up to 40 percent higher gloss levels⁽²⁾ than previous HP toners. Ideal for printing graphics and photo-quality imagery, this advanced toner technology also enables customers to print significantly faster without sacrificing quality.

HP Office and Multipurpose papers now feature ColorLok technology, which was co-developed by HP and International Paper, and is offered with the papers at no increase in price. The technology produces bolder blacks and uniform, vivid colors that dry three times faster⁽³⁾ than traditional papers, enabling more immediate handling and reducing the risk of smearing. More details regarding ColorLok technology from HP and International Paper are available in a news release at www.hp.com/hpinfo/newsroom/press/2005/051017xa.html.

Innovative HP Color LaserJet systems offer businesses unparalleled quality and choice

With more information increasingly printed than copied and businesses broadly adopting a distributed print model, office copiers are becoming relics.

Less than a year ago, HP entered the 45 - 69 pages-per-minute (ppm) monochrome multifunction printer (MFP) market with the HP LaserJet 4345 workgroup MFP. Since this introduction, HP's unit share worldwide in the market segment has increased more than sevenfold in seven months – from 2 percent in the third quarter of 2004 to 15 percent as of the second quarter of 2005 ending in June.⁽⁴⁾

Further challenging the old guard copier market, this time in color, HP has introduced the HP Color LaserJet 4730mfp. This highly efficient unit combines print, copy, scan-to-email, scan-to-folder, analog fax and document finishing in one easy-to-use device. It is designed to work seamlessly in digital workflows at a price half that of traditional color copiers.

The HP Color LaserJet 4730mfp is also the first in the market to feature built-in color access controls integrated with HP Web Jetadmin fleet management and reporting tools to ensure color is only used when needed.⁽⁵⁾ The product is able to print and copy, in monochrome and color, at up to 30 ppm, and is priced starting at $4,999.⁽⁶⁾

For small and mid-size businesses (SMBs) and office workgroups that need a balance of professional print quality, fast speeds and ease of use, the HP Color LaserJet 4700 series prints at up to 31 pages per minute in color and monochrome and features full speed duplexing, effortless color calibration and media flexibility to handle a wide variety of input and output via the output stapler stacker. Priced starting at $1,999.⁽⁶⁾

The HP Color LaserJet 3800 is simple to set up and easy to use with improved paper handling and networking capabilities. It boasts excellent photo quality for business materials, a quick first page out and prints monochrome and color documents at up to 22 ppm. Priced starting at $799.⁽⁶⁾

The compact HP Color LaserJet 3600 series produces realistic images and photos and excellent text in both color and monochrome at up to17 ppm. Priced starting at $699.⁽⁶⁾

For companies needing occasional color printing, the HP Color LaserJet 3000 series features continuous printing in monochrome even when color cartridges run out and HP color access controls for utilizing the benefits of color only when it's needed. Printing at up to 30 ppm monochrome and 15 ppm in color, the series provides "print anything" capabilities to workgroups, allowing businesses to consolidate their monochrome laser and inkjet printer use into one reliable device for increased productivity. Priced starting at $1,199.⁽⁶⁾

An easy-to-install internal printer card, the HP 1284B Parallel EIO card, is also available for the HP CLJ 3000. Businesses that want to protect their existing technology investments can use the card to connect compatible HP printing peripherals to older IT equipment that requires IEEE 1284B parallel ports. Priced at $79.⁽⁶⁾

New HP color access controls, an innovative set of features within the HP Color LaserJet 3000, 3800, 4700 series, and the HP Color LaserJet 4730mfp, enable businesses to manage color costs, so color is applied only when needed. Color access can be controlled and managed by user, by application, by time of day and day of week.

"As color is now the expected standard in printed materials, businesses are demanding reliable, cost-effective solutions to improve their color output quality and optimize their business and marketing communications," said Larry Jamieson, director, industry advisory service, Lyra Research. "Business users are looking for a range of price points, speeds and innovative new features to meet their demand."

HP ink-based printing systems deliver unrivaled price and performance for business

The HP Officejet Pro K550 color printer is the world's fastest desktop color business printer. Based on HP's Scalable Printing Technology (introduced in July), it enables SMBs to produce laser-quality black text and professional color documents at up to twice the speed⁽⁷⁾ and 30 percent lower color cost-per-page than color laser printers.⁽⁸⁾ Built to deliver highly reliable performance for demanding office printing, the HP Officejet Pro K550 is priced starting at $199.⁽⁶⁾

The versatile HP Officejet Pro K850 color printer series delivers 13 x 19-inch wide-format printing of high-impact color imaging at speeds of up to 24 ppm in black and white and 21 ppm in color. Designed to have a very low cost per page, the printer enables SMBs to look big without needing a big budget. Priced starting at $399.⁽⁶⁾

Innovative HP services for easy-to-manage color printing and enhanced communications

HP also introduced a new suite of services that take the stress and effort out of acquisition, printer system and supplies management, and support, so customers' businesses can come first. In addition, the company unveiled educational tools and resources to help customers master the art of in-house marketing.

For SMBs looking to simplify acquisition of their printing systems:

· HP Smart Printing Services: This innovative web-based approach helps SMBs obtain the right product, supplies, service and commitment length to fit their business. Customers can meet virtually all their printing needs through one simple contract and one flat, affordable monthly payment. Expected to be available Nov. 1, 2005 at www.hp.com/go/smartprinting.

For easy-to-use printing systems and supplies management and support:

· HP Easy Printer Care Software provides SMBs with simple tools to monitor their printers and supplies to keep them running at their best. The software tracks supplies levels for up to 15 networked HP printers and consolidates supplies re-ordering through HP SureSupply.

· HP Instant Support Professional Edition is a web-based diagnostic tool that helps customers quickly identify, diagnose and resolve questions for any printing device without picking up the phone. While online at www.hp.com/go/ispe, users can also have an active chat with HP support personnel to ask questions and get assistance.

· HP Instant Support Driver Check helps customers determine whether they are using the most current print drivers. By simply going online to www.hp.com/go/drivercheck, users can find and download the right print driver for their printing systems quickly and without charge.

Tools to help customers get more from their color printing systems and grow their businesses:

· The HP In-House Marketing Portal – www.hp.com/go/inhouse – now offers CorelDRAW brochure, newsletter and postcard templates, as well as "how to" tips and a downloadable, full featured, 30-day trial of CorelDRAW Graphics Suite 12 at no charge. This new Corel content adds to HP's extensive list of marketing templates to help SMBs create and print marketing materials in-house.

· New HP Marketing Assistant Software guides SMBs step by step through the process of producing professional-quality brochures, flyers, presentations and postcards in-house, helping them to save on design fees and print shop charges. The software is available online at www.hp.com/go/marketingassistant in North America for $99 and www.hpshopping.ca/marketingassistant in Canada (French) for Cdn$119, as well as part of the HP Marketing Toolkit, which also includes HP specialty brochure paper and a paper discount coupon. The software is also included as a trial offer with the HP Officejet Pro K850, HP Deskjet 9800, HP Color LaserJet 2600N, HP Color LaserJet 2840 All-in-One, and the HP Color LaserJet 3600N and DN bundles.

More information on the offerings above is available in an online press kit at www.hp.com/go/BusinessIPGLaunch.

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 July 31, 2005, HP revenue totaled $85.2 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at www.hp.com.

⁽¹⁾ According to Lyra Research's North America and Worldwide Office Color Revenue (Hardware & Supplies).
⁽²⁾ HP ColorSphere toner achieves a 22 percent wider color gamut on a HP Color LaserJet 4700 with HP Color Laser Brochure Paper compared to the same output on a HP Color LaserJet 4650 using previous generation HP color laser toner. Percentage improvement based on internal testing using a native printer gamut. HP ColorSphere toner achieves up to 40 percent higher gloss on a HP Color LaserJet 4700 using high-gloss mode on HP Color Laser Photo & Imaging Paper, compared to the same output on a HP Color LaserJet 4650 printer using previous generation HP color laser toner. Percentage improvements based on internal testing using Industry Standard 75 degree Gloss Meter.
⁽³⁾ Based on comparison to previous (non-Colorlok) version on current HP desktop printers, including Deskjet 6122.
⁽⁴⁾ According to IDC's WW Q2 05 Quarterly HCP Tracker.
⁽⁵⁾ Color access control capabilities vary from device to device. HP Web Jetadmin software is required and available separately for certain printers and features.
⁽⁶⁾ U.S. estimated street prices. Actual prices may vary.
⁽⁷⁾ Compared to color laser printers under $500. Laser-quality speed is an HP measurement method representing the print speed of typical office documents in default mode; compared to published color speeds by laser manufacturers as of May 2005.
⁽⁸⁾ Cost per page (cpp) laser supplies comparisons based on published manufacturer specifications of the highest capacity cartridges available for color laser printers under $500 and mono lasers under $250 as reported by Current Analysis, Inc. as of May 2005. HP Officejet Pro K550 series cpp based on HP 88 Large Ink Cartridges (not included, sold separately) estimated street price and published yield. Results may vary.