News release

HP Separates Handheld and Notebook Business Units

HP today announced its handheld business will be a separate unit within the company's Personal Systems Group (PSG), enabling the company to provide greater focus and oversight to the multi-billion dollar converged handheld marketplace. The handheld business was previously combined with notebooks as part of the Mobility Business Unit.

By separating handhelds, HP will improve its ability to capitalize on its strategy for growth in both the notebook computing and handheld markets, giving each unit greater financial and operational control of its respective business. The change also builds on HP's recent moves to streamline its organization, including splitting certain functions that had previously been combined.

Following the move, PSG's business organization comprises four main product business units: Notebook Computing, Desktops, Workstations and Handhelds.

Dave Rothschild has been appointed as vice president of the handheld unit. Rothschild, who has more than 25 years of high-tech experience and comes to HP most recently from Sun Microsystems, will be responsible for all aspects of HP's worldwide handheld business. He will report directly to Todd Bradley, executive vice president for PSG.

The Notebook Computing Business Unit will continue to be led by Ted Clark, senior vice president and general manager.

"The converged device market is growing at more than 60 percent a year," said Bradley. "This realignment positions the handheld team to more clearly focus on navigating this fast-paced market while PSG continues to accelerate its trend of profitable growth."

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 Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2005 and other reports filed after such report. HP assumes no obligation and does not intend to update these forward-looking statements.