Press Release:

New HP Digital Media Receiver Extends Digital Music and Photos to Consumers' TV and Stereo Systems

PALO ALTO, Calif., Jan. 9, 2003

For people looking for a way to better enjoy the digital music and photos stored on their PCs, HP (NYSE:HPQ) today announced a breakthrough solution: the HP Digital Media Receiver 5000 series.

Using a standard remote control, the receiver enables consumers to browse through their favorite music and photos and choose what they want to view or listen to without having to access their PC using a typical mouse and keyboard.

Sporting a compact, sleek design that fits in any home environment, the easily set up and easy-to-use HP Digital Media Receiver provides access to digital content from a PC on a user's wired Ethernet(1) or wireless 802.11b home network(1). With the receiver, consumers can play digital music and view photos typically stored and accessed on their PC onto their TV and stereo systems, creating a new and entertaining way to interact with and enjoy their digital content.

"At HP, we're constantly looking for innovative ways to help people more fully enjoy technology. We're excited about how our new HP Digital Media Receiver will allow consumers to make the most of their digital entertainment experience," said Duane Zitzner, executive vice president, HP Personal Systems Group. "With the steep rise in home networking and the huge amount of digital music and photos people have stored on their home PCs, this product is a natural extension of their PC and consumer electronics investments. This product, along with the HP Media Center PC introduced last October, shows how HP is bridging the gap between computing and home entertainment."

"This announcement is a great example of momentum around the Digital Home vision. There's a lot of excitement in new products such as HP's Digital Media Receiver that merge the PC universe with the consumer electronics' universe and bring new capabilities to consumers," said Louis Burns, vice president and general manager, Intel Desktop Platforms Group. "Intel is committed to accelerating the development of compelling Digital Home applications that take advantage of digital media and the power of the PC platform."

Digital music lovers can easily separate their favorite MP3 and WMA or music files by genre, artist, album or other unique ways for their listening pleasure. Also, M3U, PLS and RMP playlists from popular jukebox software are supported.

Digital photography enthusiasts can access JPEG, GIF, BMP and PNG pictures and share their favorite moments with others in picture shows displayed on their TV in the living space of their choice instead of on a PC monitor. The receiver also allows users to print the currently displayed picture on any PC-connected printer with the simple push of a button on the remote control. In addition, the product allows users to combine music and photos on the TV and stereo for a multimedia experience.(2)

The HP Digital Media Receiver discovers and aggregates all digital music and photos from one or multiple PCs on a home network and presents them in an easy-to-use TV menu. Additionally, multiple HP Digital Media Receivers can be connected to the home network so music and photos can be enjoyed throughout the home simultaneously accessing digital files -- including, if so desired, the exact same song or picture. In fact, the multiple devices can be controlled from each other to create a full-house listening experience.

To make it fast and easy to connect the HP Digital Media Receiver in the home, the device comes standard with composite video, S-Video and RCA audio out for connection to a TV and home stereo. For the connection to the home network, it comes with a standard Ethernet port; on select models, WiFi 802.11b connectivity is offered.

Minimum PC requirements include the Microsoft® Windows® Me, XP Home or Professional operating systems, 128 MB RAM, 50 MB disk space and a 10/100Base-T Network Card. Also, 64-bit and 128-bit WEP encryption is supported on select models. The device ships with a remote control, power adaptor, audio, video and Ethernet cables, a quick-start sheet, a user's guide and a CD-ROM disk with installation software. It also comes with a one-year limited warranty backed by award-winning HP customer care.

The HP Digital Media Receiver 5000 series is expected to be available in early spring 2003 in a variety of retail outlets across the United States and online at .

Both a wired and wireless version of the product will be offered. The wired Ethernet version, the HP Digital Media Receiver en5000, is expected to have the low estimated U.S. street price of $199, while the combined standard Ethernet and WiFi 802.11b version, the HP Digital Media Receiver ew5000, is expected to be available for only $299.(3)

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

(1) Purchased separately.

(2) Intended only for use with a user's original content and other lawful uses. HP does not endorse or encourage the use of its products for purposes other than those permitted by national copyright law.

(3) Actual prices may vary.

Microsoft and Windows are U.S. registered trademarks of Microsoft 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 July 31, 2002 and reports filed subsequent to HP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001. 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