Press Release:

HP Saves Enterprise Customers Time and Money with Desktop PC Trade-up Promotion

PALO ALTO, Calif., April 17, 2003

HP (NYSE:HPQ) today announced a trade-up promotion that offers enterprise customers a convenient way to trade in their used Intel-based desktop PCs for a rebate to use towards upgrading to new Compaq Evo D510 series desktop PCs.

The desktop trade-up is a featured promotion of HP's Trade-In program, which is designed to give customers a cost-effective, simple and environmentally friendly way to replace old technology. The promotion allows customers to trade in a major brand manufacturer's Intel® Pentium® II, III, 4 or Celeron model desktops for a rebate of up to $220 to put towards the purchase of a Compaq Evo D510 series desktop.

HP will cover the shipping costs for removing desktops and handle all logistics including shipping of the trade-in units. The promotion is based in the United States and runs through June 30, 2003.

The trade-up promotion is designed to drive enterprise customers to replace PCs that are three years old or older before the warranty runs out and maintenance and support costs increase. Upgrading can help customers get more accountability out of their business and a better return on their IT purchases. By upgrading their technology to the Compaq Evo D510 series -- which is known for its stability and long lifecycle, customers may also reduce the security risks of running outdated software.

"HP is continually finding ways to create value for our customers and enable them to increase efficiency with more recent technology," said John Thompson, vice president and general manager, commercial products Americas, HP Personal Systems Group. "Here we have taken the responsibility of PC removal, often seen as a barrier to PC replacement, out of the customer's hands, making it easier and more affordable for them to get the new HP products they want."

HP's Trade-In program gives customers the opportunity to trade in any product of any brand and put the money earned towards any new HP product. In addition to the desktop trade-up promotion, HP's Imaging and Printing Group is currently offering to buy back old large-format printers, plotters or vinyl cutters for up to $4,500 to apply towards a new HP Designjet printer. This program runs through April 30, 2003.

The HP Trade-In program complements other end-of-life programs. For example, HP's Planet Partners recycling service provides an easy way to recycle any brand of computer equipment or HP printing supplies.

Planet Partners offers custom quotes for businesses and arranges for recycling as part of the business transaction. The Planet Partners hardware recycling service includes evaluation for reuse or donation and state-of-the-art, environmentally sound recycling at HP's recycling facilities in Roseville, Calif., and Nashville, Tenn.

In addition, as part of HP's commitment to the environment, HP designs products that are environmentally sound throughout their lifecycle. This Design for Environment program is an innovative approach to making products that are more energy efficient and use fewer materials.

More information on the HP desktop trade-up program is available at

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 acquisition of Compaq Computer Corporation on May 3, 2002. More information about HP is available at

Intel and Pentium 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 January 31, 2003, and subsequently filed reports. 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