Press Release:

HP Initiates Social and Environmental Responsibility Program for Supplier Factories in China

PALO ALTO, Calif., June 01, 2006

HP today unveiled a year-long training program aimed at providing the management staff of its suppliers in China with the knowledge to improve social and environmental responsibility practices in their factories.

The Focused Improvement Supplier Initiative (FISI) provides clear and measurable benefits for supplier factories, including increased productivity and quality and reduced worker turnover, injuries and illnesses.

Over the year, suppliers will work to minimize factory risks, share best practices, access social and environmental responsibility content experts in China, improve the skill sets of key factory managers, and demonstrate progress toward conformance to the Electronic Industry Code of Conduct. The code of conduct outlines standards to ensure that working conditions in the electronics industry supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are environmentally responsible.

Business for Social Responsibility’s China Training Institute and Foxconn will work with HP on the initiative.

According to an AMR Research report(1), HP has developed an edge in socially and environmentally responsible supply chain practices in the electronics industry. The company’s effort is generating meaningful operating benefits today and looks likely to position HP for a unique competitive advantage in the future.

“HP operates one of the IT industry’s largest supply chains, and we are eager to implement FISI to provide leading global suppliers with the training they need to make successful social and environmental responsibility improvements,” said Bonnie Nixon-Gardiner, global program manager, Supply Chain Social & Environmental Responsibility, HP.

All FISI participants are required to commit factory management staff, including human resources and environmental, health and safety managers, to attend monthly social and environmental responsibility training in the Shenzhen and Shanghai regions during the next year. FISI participants also are required to provide monthly reports on the progress of corrective actions, key factory metrics, trends and improvements, and to contribute case studies on corrective action efforts made at their facilities as a result of the training.

More information about HP’s supply chain social and environmental responsibility programs is available in the 2006 HP Global Citizenship Report at

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

(1) “The Value of Green – A Case Study of HP’s Social and Environmental Responsibility in the Supply Chain,” Kevin O’Marah and Eric Karofsy, AMR Research, May 2006.

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 anticipated operational and financial results; statements of expectation or belief; and any statement 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, 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