News release

HP Widens Lead in Global PC Market

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HP extended its lead position in the worldwide PC market, according to results from the first calendar quarter of 2007 released today by IDC.⁽¹⁾

HP has continued to widen its market share lead over its closest competitor while posting record operating profit in its most recently reported first quarter results. Results from the analyst firm for the period also mark the seventh consecutive quarter that HP has grown faster worldwide than the global market.

“HP’s focus on delivering the best customer experience while optimizing its business model, targeting specific segments and delivering innovation that matters is driving global growth and market share gain,“ said Todd Bradley, executive vice president, Personal Systems Group, HP. “HP is addressing the needs of consumers, small and midsize businesses and enterprise customers with the industry’s broadest portfolio of products available through the purchase channels of their choice.”

HP’s personal systems products include handhelds, smartphones, notebooks, desktops, workstations, MediaSmart servers, plus the new categories of “walk-up” computing and entertainment devices and next-generation TVs. HP products are offered through the industry’s broadest global distribution channels of direct, online and retail with more than 250,000 worldwide reseller partners and retail outlets.

According to IDC’s report, HP extended its worldwide PC shipment unit share lead to 3.9 percentage points over its nearest competitor for a market share of 19.1 percent. HP worldwide PC shipments grew at a rate of 28.2 percent year-over-year, more than two and a half times faster than the growth rate for the overall worldwide PC market for the period. HP’s U.S. PC shipments grew 25.5 percent – more than seven times faster than the market in the first quarter – to increase share to 24.2 percent from 20 percent for the same period in 2006.

In related news, HP earlier today announced the completion of a design makeover of its full portfolio of consumer personal systems products with a new lineup of desktop and notebook PCs designed to complement any home that features the latest consumer electronics and home appliances. Additional information on the products and new designs is available at www.hp.com/go/desktopdesign.

This week, the company also introduced Vera Wang, “Empress of Style,” as the first woman to be featured in its award-winning “The Computer is Personal Again” advertising campaign. Fans can visit the campaign microsite at www.hp.com/vera for a behind the scenes look at Wang, her designs and the making of the HP spot.

In late March, HP introduced a dozen new products and services at a special event that showcased how small business customers are making technology work for their individual businesses. More information about the additions to HP’s small business portfolio is available at www.hp.com/go/artofsmallbusiness2007.

About HP

HP focuses on simplifying technology experiences for all of its customers – from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the world’s largest IT companies, with revenue totaling $94.1 billion for the four fiscal quarters ended Jan. 31, 2007. More information about HP (NYSE: HPQ) is available at http://www.hp.com.

⁽¹⁾ IDC, Worldwide Quarterly PC Tracker, April 18, 2007, Preliminary.

This news advisory 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 Jan. 31, 2007. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2007 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.