News release

HP Improves Productivity of ElectroInk Manufacturing Process, Reduces Carbon Footprint

HP today announced that it has improved its manufacturing process for HP ElectroInks - the liquid inks used in HP Indigo presses - a change that has yielded significant benefits in productivity and energy efficiency.

Earlier this year, two HP ElectroInk manufacturing facilities implemented a new particle grinding process that reduces the energy consumption in the manufacture of the inks by up to 40 percent. The savings come from newly designed custom equipment used in what had been one of the most energy-intensive manufacturing steps for HP ElectroInk.

"HP is committed to reducing the carbon footprint of its facilities across the globe," said Alon Bar-Shany, vice president and general manger, Indigo division, HP. "Our new HP ElectroInk manufacturing process is an excellent example of how HP focuses on smart innovation - investing in research, product development and materials in ways to benefit our customers, our company and the environment."

The increase in HP ElectroInk manufacturing capacity supports the continuing, rapid page-growth with HP Indigo. According to analyst firm InfoTrends, HP Indigo led the high-volume digital color production market for the United States and Western Europe regarding unit placements in 2006.⁽¹⁾ The compound annual growth rate for page production on HP Indigo presses has exceeded 40 percent for more than three years,⁽²⁾ and ink production must scale to meet this trend.

The two HP ElectroInk plants are based in Rehovot and Kiryat Gat, Israel. HP also plans to adopt the new, energy-efficient manufacturing process in its ElectroInk plant in Singapore.

HP ElectroInk is one of the most efficient supplies available in the digital press market. As a liquid ink, it is applied in layers that are thinner than what is possible with dry toners. This thin layer not only gives HP Indigo presses a level of true offset-quality that is unmatched by other technologies, but the volume of ink used is less than the amount of dry toner that would be used to create the same image.

Through an initiative started with the World Wildlife Fund in 2006, HP has pledged to reduce carbon dioxide emissions from its operating facilities worldwide. Separately, HP has pledged to reduce its global energy use by 20 percent by 2010. The new HP ElectroInk manufacturing process supports both of these important goals.

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 $100.5 billion for the four fiscal quarters ended July 31, 2007. More information about HP (NYSE: HPQ) is available at http://www.hp.com.

⁽¹⁾ InfoTrends, Inc., "U.S. Production Copying & Printing Market Placements: 2006," March, 2007; "Western European Production Copying & Printing Market Placements: 2006," April, 2007.

⁽²⁾ HP internal data, 2003 through July 2007.

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 execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected results; and other risks that are described in HP's Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2007 and HP's other filings with the Securities and Exchange Commission, including but not limited to HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2006. HP assumes no obligation and does not intend to update these forward-looking statements.