Press Release:

HP Signs Five-year Managed Services Agreement with Nokia

Pact extends existing IT infrastructure services collaboration
PALO ALTO, Calif., Sept. 29, 2004

HP today announced that it has signed a five-year agreement with Nokia to continue providing global information technology (IT) outsourcing services for the company's 51,000 employees worldwide. The new agreement is valued at approximately $100 million per year and formalizes a memorandum of understanding announced in February.

Extending the companies' original collaboration that began in 2001, HP will continue to manage the IT infrastructure and operations for Nokia's messaging, groupware and network.

In addition, HP will enable the transformation of Nokia's IT infrastructure environment to a service-based model, helping Nokia reduce costs and meet its varying business requirements by providing services that are billed based on actual IT service consumption.

"This agreement is a reflection of Nokia's strategy of collaboration, and specifically helps us achieve greater efficiencies in our non-core IT activities," said Mikko Kosonen, chief information officer and senior vice president, Business Infrastructure, Nokia. "HP has already demonstrated its excellent outsourcing ability and a deep understanding of our needs. We are confident that HP can use this expertise in building a service-based IT environment for us as well."

"Today's announcement reaffirms our strong relationship with Nokia and will extend it to eight years from its beginning in 2001," said Francesco Serafini, senior vice president and general manager, Technology Solutions Group - Europe, Middle East and Africa, HP. "We feel that the service-based approach is the natural evolution of the existing outsourcing initiative between HP and Nokia. HP will move from a technology and operationally driven service model to a business-needs and service-level driven model. Through this standardization of services and the new approach for Nokia, HP will help Nokia achieve additional significant cost savings."

HP provides Nokia's IT-solution based on its Adaptive Enterprise strategy, designed to help companies measure, architect and manage change by creating a tighter linkage between business and IT.

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

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