News release

HP Completes Acquisition of Peregrine Systems, Boosting HP OpenView Software Portfolio

HP today announced the completion of its acquisition of Peregrine Systems, Inc., a leading IT asset and service management software company.

Effective immediately, Peregrine will become part of the HP OpenView business unit, which is led by Todd DeLaughter, vice president and general manager.

The acquisition, initially announced in September 2005, will add key asset and service management components to the HP OpenView portfolio, a distributed management software suite for business operations and IT. With these components, HP can offer chief information officers more insight into and control over their technology environments in an efficient and cost-effective manner.

The close of the deal builds on HP's recent acquisitions of companies like AppIQ and Trustgenix, which strengthened the OpenView portfolio in storage and security management.

More information about the HP OpenView portfolio is available at http://www.hp.com/go/managementsoftware.

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 Oct. 31, 2005, HP revenue totaled $86.7 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 fiscal quarter ended July 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.