News release

Amazon.com Selects HP to Print Books on Demand

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HP today announced that Amazon.com has selected HP Indigo presses to provide digital color printing for Amazon’s expanding books-on-demand business.

Leveraging the power of digital technology to print books in real time, HP will become Amazon’s preferred provider for color print-on-demand services.

Multiple HP Indigo digital presses have been installed at Amazon fulfillment centers and are now producing full-color books on demand as well as color covers for black and white books.

“The ability to produce books on demand is another result of the transformation from analog to digital printing, and with our line of HP Indigo presses, we are at the forefront of this trend,” said Vyomesh Joshi, executive vice president, Imaging and Printing Group, HP. “Now, through this collaboration, consumers will benefit from the integration of HP’s digital print technology and Amazon’s unmatched ability to offer the broadest selection of books possible.”

The books-on-demand market is expected to grow from approximately 20 billion book pages in 2006 to approximately 38 billion book pages by 2009.⁽¹⁾ This is due chiefly to the increasing demand for small-volume, rare and self-published books.

“Amazon is completely focused on the customer experience,” said Greg Greeley, vice president of books at Amazon.com. “This collaboration with HP will enable us to significantly increase the number of available titles our customers can purchase while offering publishers the highest quality color printing options.”

In addition to installing HP Indigo presses, Amazon’s facilities will be among the first in the United States to install the new HP Indigo Production Manager digital front-end controller, which combines HP IT and graphic arts technologies for rapid file processing in complex digital publishing scenarios.

HP provides the industry’s only high-end digital presses that use liquid ink for high-quality images that rival the offset print technology traditionally used in the book publishing world. Other print-on-demand applications produced on HP Indigo presses include everything from personalized marketing collateral to high-quality photo books.

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, 2006, HP revenue totaled $91.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

⁽¹⁾ INTERQUEST, Ltd., “The Digital Book Printing Opportunity,” 2006, page 42.

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 but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the achievement of expected results and other risks that are described from time to time in HP’s Securities and Exchange Commission reports, including but not limited to the risks described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2006, and other reports filed after HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2005. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2006 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.