Press Release:

HP Boosts Value for Retailers by Bringing Windows to the Point of Sale

Open standards-based HP POS device optimized to meet the demands of retailers with plug-and-play functionality, lower costs
NEW YORK, Jan. 17, 2005

HP today announced that it plans to offer Microsoft Windows® Embedded for Point of Service - a standard, retail-hardened software platform - on the renowned HP rp5000 point-of-sale (POS) device.

Announced at the National Retail Federation 94th Annual Convention and EXPO, the combined hardware and software solution is expected to be available in the first half of 2005 and will enable 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 addresses the feedback of 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.

"The combination of Windows Embedded for Point of Service, with its ease of use and lower lifecycle costs, and HP's rp5000, customized to withstand the rigors of the retail environment, will provide a solution for our mutual customers that increases flexibility and manageability at a lower cost," said Leigh Morrison, vice president, Retail Sales and Solutions, HP. "By delivering strong performance based on open standards, these platforms will increase retailers' ability to respond to and capitalize on change, resulting in improved returns on IT investment."

The HP rp5000 POS brings together the best traits of the PC with those of a high-quality, reliable POS system in an open, industry-standard platform that can offer a lower cost of ownership than any other proprietary retail POS system. Since the HP rp5000 was unveiled 18 months ago, more than 150,000 of them have been sold to major retailers, including Publix Super Markets, Inc. and The UPS Store.

"As a part of Microsoft's Smarter Retailing Initiative, Windows Embedded for Point of Service will empower retailers with a standard software platform optimized for retailers that includes full support for retail applications and device peripherals, as well as emerging technologies like radio frequency identification (RFID) and multimedia," said Brian Scott, general manager, Retail and Hospitality Industry Solutions Group, Microsoft. "When available, HP's rp5000 powered by Windows Embedded for Point of Service will enable retailers to transform their store environments to better manage their business, increase the productivity of sales associates and IT personnel, and ultimately improve the customer's shopping experience."

Windows Embedded for Point of Service will be a core offering of the Microsoft Smarter Retailing Initiative, which provides an innovative approach based on open standards to allow retailers to take full advantage of their legacy investments by connecting the retail enterprise to the store and the consumer. Microsoft Smarter Retailing was launched at the National Retail Federation Convention last year with HP as an active industry partner committed to delivering solutions and services that align with the Smarter Retailing vision.

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 Oct. 31, 2004, HP revenue totaled $79.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

Microsoft and Windows are U.S. registered trademarks of Microsoft Corp.

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