Press Release:

HP and Wal-Mart Delivering Home Technology Value of the Year to Customers

PALO ALTO, Calif., Dec. 12, 2002

HP (NYSE:HPQ) today announced it is delivering with Wal-Mart to holiday shoppers an HP technology package that includes a full-featured desktop PC, a high-resolution 17-inch color monitor and a sophisticated color printer -- all for the low price of $698.(1)

Available through Dec. 25, 2002, the package offers consumers a bundle of products that provide powerful performance, connectivity and software for advanced digital entertainment experiences for everything from editing digital photos to playing PC games. The package includes an HP Pavilion 533w desktop PC, HP Pavilion v70s 17-inch color monitor and an HP Deskjet 3320v color printer.

The full-featured HP Pavilion 533w desktop PC is ideal for families looking for an affordable PC that's easy to set up and use for work or play. It also makes for a great second PC for the home.

The PC features a 2.0 GHz Intel® Celeron® processor, generous 60 GB hard drive, HP CD-RW/DVD-ROM combo drive and 256 MB DDR SDRAM memory. In addition, the HP Pavilion 533w offers users integrated Intel Extreme Graphics, with up to 64 MB of shared video memory,(2) Polk Audio stereo speakers, an HP Pavilion keyboard, mouse and six-foot USB cable.

The 17-inch HP Pavilion v70s color monitor features a 15.9-inch viewable screen. The monitor's multimedia display complements and enhances the HP Pavilion PC with high-resolution performance and added features.

The simple-to-use HP Deskjet 3320v color inkjet printer provides users with vibrant, photo-quality color and black text with up to 1,200 x 600 color dots per inch on photo papers. The printer is USB compatible with PC and Macintosh computers. All printing software is conveniently pre-installed on the HP Pavilion PC, allowing immediate use by consumers.

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its merger transaction involving Compaq Computer Corporation on May 3, 2002. More information about HP is available at

(1) Actual prices may vary.

(2) This is for use of shared video memory and will not be available for other uses.

Intel and Celeron are U.S. registered trademarks of Intel Corp.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development and performance of these products and services may not proceed as planned; 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 quarter ended July 31, 2002 and reports filed subsequent to HP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP assumes no obligation 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