HP Continues to Lead Pocket PC Market Share in 2002

Three Million iPAQs Sold to Date
PALO ALTO, Calif., Jan. 27, 2003

HP (NYSE:HPQ) continued its stronghold in worldwide PDA (personal digital assistant) market share for 2002 as the No. 1 Pocket PC vendor worldwide, with more than 52 percent of the Windows® Pocket PC market, according to preliminary results released Monday by Gartner Dataquest.(1)

The data shows that HP sustained positive quarter-to-quarter growth sequentially worldwide and remains the No. 2 PDA vendor around the globe. According to Gartner, HP shipments totaled more than 1.6 million for the year.

From the third quarter to the fourth quarter in 2002, HP grew faster than the overall market, with shipments increasing from 292,850 to 438,069, according to Gartner Dataquest.

In addition, HP reached the 3 million unit sales mark and continues to demonstrate successful execution of its post-merger plan. This milestone comes only nine months after surpassing the 2 million mark and only eight months after the completion of the merger with Compaq Computer Corporation.

"By continuing to drive industry-leading innovation with industry-leading value, HP remains a force in the PDA market," said Alex Gruzen, senior vice president and general manager, HP Mobile Computing Global Business Unit. "As we introduce new handhelds into the market, we will continue to deliver new and exciting options to our customers."

The company introduced two new handhelds in fall 2002, including one of the thinnest and lightest Pocket PCs ever -- the HP iPAQ Pocket PC h1910. In addition, the company introduced the HP iPAQ Pocket PC h5450 -- the industry's first handheld to integrate biometrics security, wireless LAN network access(2) (802.11b) and Bluetooth wireless capability.

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 merger transaction involving Compaq Computer Corporation on May 3, 2002. More information about HP is available at http://www.hp.com.

Sales data based on Gartner Dataquest, "Worldwide PDA Market Declined 9.1 Percent in 2002," T. Kort, January 2003.

(2) A standard WLAN infrastructure, other Bluetooth enabled devices, optional accessories and a service contract with a wireless airtime provider may be required for wireless communication and may incur an additional charge. Wireless Internet use requires a separately purchased service contract with an Internet service provider. Check with service provider for fees, availability and coverage in your area. Not all Web content available.

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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 annual report on Form 10-K for the year ended October 31, 2002, as filed with the Securities and Exchange Commission on January 21, 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 http://www.hp.com.