Press Release:

HP to Offer Retailers Enhanced Point-of-sale Solutions with Agilysys

CHICAGO, May 24, 2005

HP today announced it has extended its longstanding relationship with Agilysys to distribute simplified, cost-effective retail solution bundles based on the successful HP rp5000 point-of-sale (POS) device.

The companies' feature-filled hardware and software bundles and services provide channel partner resellers with a flexible, proven POS offering that enables them to assist end-user customers in grocery and general retail industries in choosing reliable, user-friendly and easy-to-maintain solutions.

HP made the announcement with Agilysys at the Retail Systems 2005 Conference and Exposition. HP is present at the conference in booth 614.

"In a world increasingly dominated by a drive for lower prices and lower operating costs, retailers are putting increasing value on technologies that provide a high-performance and efficient POS solution and also improve the customer's in-store experience," said Greg Buzek, president, IHL Consulting Group. "The bundled solutions introduced today by HP and Agilysys offer retailers the lower price, increased flexibility and manageability of PC-based POS systems."

HP also introduced a more powerful HP rp5000 point of sale device with a 2.8-gigahertz Intel® Pentium® processor. Alternatively, customers can choose the device with a 2.4-gigahertz Intel Pentium processor. HP soon plans to offer a 2.5-gigahertz Celeron® processor on the HP rp5000.

Additionally, HP plans for the HP rp5000 to run Microsoft Windows® Embedded for Point of Service - a standard, retail-optimized software platform that enables retailers to simplify the setup, use and management of their POS systems.

Running on the HP rp5000 POS device, Windows Embedded for Point of Service will be the first industry-standard software platform to provide plug-and-play functionality, enabling retail peripherals to be easily installed and managed. This feature directly addresses feedback from retailers, who say the integration and management of retail device peripherals such as scanners, receipt printers, cash drawers and magnetic stripe readers continue to be costly and time-consuming.

"As an active industry partner committed to delivering solutions and services that align with our Smarter Retailing vision, HP's use of Windows Embedded for Point of Service is a great addition to their current point-of-sale offerings," said Brian Scott, vice president, Retail & Hospitality Industry Solutions Unit, Microsoft. "Windows Embedded for Point of Service on the HP RP5000 device provides retail-specific features that will give IT managers back some of the time they spend servicing and managing systems and will let them focus on what really matters - helping their customers."

The HP rp5000 is customized to withstand the rigors of a retail environment by offering enhanced peripheral support via powered serial and USB ports, enhanced power and cooling capabilities, and components that combine the functionality of popular proprietary systems with the benefits of PC-based POS systems.

"HP is expanding its leadership in driving lower cost, industry-standard computing by enabling many more retailers to leverage open standards technology for functional enhancements," said Robert Corbett, director, Retail Solutions, HP. "The bundled solutions from HP and Agilysys, along with an improved POS system announced today, demonstrate how HP is working to enable retail customers to become adaptive in order to capitalize on change, as well as improve their return on investment in IT."

HP's expanded relationship with Agilysys builds on a successful foundation as retailers worldwide have rapidly adopted the HP rp5000 open POS platform. More than 150,000 HP rp5000 devices have been committed to retail customers since the solution's introduction in June 2003.

"Providing a turnkey solution, coupled with our expertise in services and support that Agilysys offers specifically to retailers, ensures resellers can provide their customers with a simplified, cost-effective solution," said Pete Coleman, executive vice president, Agilysys.

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, 2005, HP revenue totaled $83.3 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

Intel, Pentium and Celeron are registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. Microsoft and Windows are U.S. registered trademarks of Microsoft Corporation.

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 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 fiscal quarter ended Jan. 31, 2005, and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2004. 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