Press Release:

HP Expands Strategic Technology Alliance with DreamWorks

PALO ALTO, Calif., Oct. 13, 2004

Advancing the digital technology capabilities of the entertainment industry, HP today announced a three-year extension of its multi-million dollar agreement with DreamWorks SKG.

The agreement with DreamWorks designates HP as its sole preferred technology provider for its core technology purchases, including the computing infrastructure for DreamWorks' digital studios. In addition, the companies plan to collaborate on technology innovations in areas such as digital editing, digital cinema and digital asset management.

"There is a digital revolution happening across the entertainment industry - but there are still legitimate reasons for much of the industry to be caught halfway between digital and analog worlds," said Shane Robison, chief strategy and technology officer, HP. "HP believes that by partnering, engaging in joint research and co-innovating with leaders in this industry we can help drive this revolution forward."

The DreamWorks SKG agreement also calls for HP to receive certain rights for co-branding and joint consumer marketing initiatives tied to the premier of DreamWorks' 2005 release of "Madagascar" and other animated films.

"Our partnership with HP is enabling us to leverage technology in new and interesting ways to enhance our business and empower the creative vision of our filmmakers," said Ed Leonard, chief technology officer, DreamWorks SKG. "Technology is pivotal to our continued success and our partnership with HP is helping to ensure that we continue to shape the future of the convergence of technology and content."

HP and DreamWorks first partnered in 2001 on the original "Shrek." In April 2004, the companies announced their collaboration on two digital filmmaking technologies, the Utility Rendering Service and Virtual Studio Collaboration (VSC), which were critical to the development of the blockbuster sequel "Shrek 2." HP and DreamWorks are collaborating on the next generation of the VSC solution, which HP plans to make widely available in the near future.

HP to bring studio-quality animation technology capabilities to USC film students

HP also announced it has donated its latest high-performing workstations to the University of Southern California's School of Cinema-Television, which is widely acknowledged as the leading film school in the world.

The contribution is part of HP's effort to bring studio-level editing, visual effects and animation capabilities to the educational arena. The 50 HP xw8200 Workstations will be used in the Robert Zemeckis Center for Digital Arts, a USC facility which represents the country's most advanced digital content training center, focusing on every aspect of filmmaking - from performance to production and delivery.

"Like HP, the USC School of Cinema-Television is firmly committed to employing cutting-edge research and development techniques to advance content creation for the entertainment industry," said Elizabeth Daley, dean, USC School of Cinema-Television. "The possibilities for this exciting new venture are endless."

In addition to the donated workstations, engineers from HP Labs, the company's central research facility, will collaborate with USC researchers in areas such as Internet 2 high-speed networking and innovative technologies that may enable collaboration from across the desk, campus or around the globe. Nvidia will supply high-performance graphic cards and Avid Technology, Inc. will provide Xpress Pro digital video editing software. HP will work with these partners to integrate the hardware and software and add applications to the HP workstations.

"Tomorrow's digital filmmakers require experience with professional-level tools during their education," said Richard Weinberg, research professor, USC School of Cinema-Television. "The workstations provided by HP, coupled with the educational environment at USC, will enable our students and faculty to fully realize their creative visions and bring their stories quickly to the screen."

The USC School of Cinema-Television offers comprehensive programs in directing, producing, writing, critical studies, animation and digital arts, production, and interactive media, all backed by a broad liberal arts education and taught by leading practitioners in each field.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the four fiscal quarters ended July 31, 2004, HP revenue totaled $78.4 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to 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 the expected development, performance or rankings of products or services; statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the development, performance and market acceptance of products and services and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to HP's Quarterly Report on Form 10-Q for the period ended July 31, 2004 and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003. 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