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Deutsche Post World Net and HP Sign Letter of Intent to Transfer Global IT Functions

Bonn, Calif., Jan. 24, 2008

Deutsche Post World Net, the world’s leading logistics group, and HP today announced that they have signed a letter of intent to transfer responsibility for parts of Deutsche Post World Net’s global IT operations to HP Services.

Under the terms of the agreement, Deutsche Post World Net expects to save at least 1 billion euros over the next seven years by driving down overall IT costs and better leveraging IT resources needed to run its business and service customers. The companies expect to reach a definitive agreement by mid-2008.

If an agreement is reached, HP would take over the approximately 2,500 employees who currently provide the services for Deutsche Post World Net’s data center operations -- including information & data management, infrastructure & network management, and application management. Specifically this would cover IT operations in Prague, the Czech Republic, Scottsdale, Arizona, and Cyberjaya, Malaysia, as well as in a number of European countries.

All applications used by Deutsche Post World Net customers will continue to be designed, developed and governed internally, including IT security standards and their implementation. Deutsche Post World Net will also retain the Professional Services and Customer Integration Supply Management components of its IT Services unit, including project management, project consulting, application development and deployment services, as well as electronic data integration for its messaging and supply chain programs.

“We are constantly looking for new ways to reduce costs and improve the quality of the services that we provide to our customers,” said John Allan, Chief Financial Officer of Deutsche Post World Net. “This initiative would significantly contribute to achieving our business objectives, while preserving the high level of service that our customers expect.”

Managing and transforming IT infrastructures and data centers are core competences of HP, not only for its customers but also within the company. HP has distinctive knowledge and experience in transforming IT environments to support Deutsche Post World Net’s business.

“HP has a high level of understanding of Deutsche Post World Net’s IT environment, organization and culture, which has been developed over a 15-year relationship,” said Francesco Serafini, Senior Vice President and Managing Director – EMEA, HP.  “With our highly experienced services professionals and global capabilities, we propose to deliver a more simplified and flexible IT infrastructure that would deliver true business value and effectiveness, a better return on IT and reduced operational costs.”

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 $104.3 billion for the four fiscal quarters ended Oct. 31, 2007. More information about HP (NYSE: HPQ) is available at http://www.hp.com.

Deutsche Post World Net is the world’s leading logistics group.

Its integrated Deutsche Post, DHL and Postbank companies offer tailored, customer-focused solutions for the management and transport of goods, information and payments through a global network combined with local expertise. Deutsche Post World Net is also the leading provider of Dialog Marketing services, with a unique portfolio of efficient outsourcing and system solutions for the mail business. The Group generated revenue of more than 60 billion euros in 2006. With currently more than 500,000 employees in more than 220 countries and territories Deutsche Post World Net is one of the biggest employers worldwide.

Media Inquiries:

Deutsche Post World Net
Corporate Communications
Martin Dopychai
Silje Skogstad
Nicole Mommsen
Tel.: +49 (0)228 182-99 44
E-Mail: pressestelle@deutschepost.de

Natalie Wallace, HP
Tel.: +1 678 560 3265
Email: Natalie.wallace@hp.com

Jos Baltes, HP
Tel.: +31 (0) 6 5249 4733 
Email: Jos.baltes@hp.com

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 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 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, 2007. HP assumes no obligation and does not intend to update these forward-looking statements.

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