Press Release:

HP and Nokia to Extend Global IT Services Agreement for up to Five Years

Pact to build on companies' global IT contract signed in 2001
PALO ALTO, Calif., Feb. 3, 2004

HP (NYSE:HPQ) today announced that it has signed a Memorandum of Understanding with Nokia to renew and expand the companies' existing global information technology services relationship for up to five years.

Under the terms of the agreement, originally signed in September 2001, HP manages the IT infrastructure and operations for Nokia globally. The intended renewal of the agreement will extend the HP and Nokia collaboration in the IT infrastructure area up to eight years altogether.

The focus of the existing agreement has been on transforming Nokia's fixed IT environment into a flexible, scalable infrastructure while improving service performance and minimizing recurring fixed costs. During the first two years of the relationship, the agreement has delivered significant savings, even exceeding the original target set by Nokia.

Under the terms of the extended agreement, Nokia's IT environment will evolve to a service-based model. The model enables the IT environment to meet varying business needs as well as to enable billing based on actual IT service consumption and different support requirements by Nokia's businesses. The service-based model is a reflection of the HP Adaptive Enterprise strategy, in which IT and business are synchronized and companies are able to achieve greater business agility - the ability to respond to and capitalize on changes in market conditions or customer demands.

"Our collaboration with Nokia demonstrates the power of the HP Adaptive Enterprise vision, which enables better business effectiveness, reduced operational costs and the use of allocated IT resources according to the needs of different businesses," said Francesco Serafini, senior vice president and general manager, Europe, Middle East and Africa, HP Services.

"We are very pleased with the progress and cost savings that have been achieved during our collaboration with HP in the IT infrastructure services area," said Gordon Jack, vice president, Business Infrastructure, Nokia. "Now, by adopting HP's vision for the Adaptive Enterprise, we are looking for greater flexibility in terms of service levels and billing through the new service-based model."

The expanded agreement is expected to be signed during 2004.

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 fiscal year ending on Oct. 31, 2003, HP revenue totaled $73.1 billion. More information about HP 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. Risks, uncertainties and assumptions include the possibility that the proposed contract may not be entered into on the terms or within the timeframe currently contemplated or at all; 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; any statements of belief; any statements of assumptions underlying any of the foregoing; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003, and reports filed after the form 10-K. 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