Press Release:

HP Increases Accountability of Business Groups by Realigning Operations Functions

Supply chain, procurement, logistics, order-fulfillment, related functions to be fully integrated into businesses
PALO ALTO, Calif., June 20, 2006

HP today announced a further step to enhance accountability and streamline operations within the company by integrating the activities carried out by its Global Operations organization directly into its business groups.

The move will give the groups responsibility for supply chain, procurement, logistics, order-fulfillment and certain marketing functions, such as and customer relationship management.

The company's three main business groups - Imaging and Printing Group (IPG), Personal Systems Group (PSG) and Technology Solutions Group (TSG) - will now have greater accountability over the full range of their operational activities. At the same time, each function that moves into the businesses will retain a company reach so that it retains maximum efficiency.

For example, PSG will host central direct procurement and carry out procurement for goods used across the company. Similarly, IPG will host the worldwide logistics function and carry out companywide logistics procurement, freight cost management and customs operations.

This realignment is part of HP's efforts announced in July 2005 to simplify the company's structure, reduce costs and bring a renewed focus on serving customers. These ongoing efforts will result in the overall elimination of 15,300 positions by end of fiscal year 2006 and are intended to streamline the company by restructuring support functions and improve accountability and executive focus through a simpler reporting structure with fewer management layers.

"Under Gilles Bouchard's strong leadership, HP has transformed our operations on a global scale, increasing customer satisfaction and creating significant cost savings," said Mark Hurd, HP chief executive officer and president. "This realignment will enable us to build on this momentum while enhancing accountability and enabling greater focus and customization of operations based on the needs of our customer segments."

The realignment of HP's Global Operations structure is expected to be completed in November 2006.

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 April 30, 2006, HP revenue totaled $88.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

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 April 30, 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.

About HP

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at