Press Release: February 14, 2003

HP Announces Affordable New Pavilion Desktop PCs with Advanced Digital Entertainment Features

PALO ALTO, Calif., Feb. 14, 2003

HP (NYSE:HPQ) today extended its HP Pavilion desktop PC line to include the HP Pavilion 754n and 764n, providing customers the first HP PC with DVD+R/+RW for less than $1,000 and the first six-in-one media card(1) reader in the Pavilion line.

"The HP Pavilion line continues to offer customers the latest digital media advancements -- meeting their demands for a powerful home computing system at a great value," said Sam Szteinbaum, vice president and general manager, HP North America Consumer Computing. "By bringing to the Pavilion line our six-in-one card reader, which we introduced on the HP Media Center PC, we are making it easier for consumers to transfer information to and from their favorite digital devices."

The six-in-one media card reader, positioned on the front of the PC, enables consumers to easily transfer data from all common flash media formats. For example, the reader will enable consumers to plug the memory card from their digital camera directly into the Pavilion 764n PC to download the images, without the need for an external card reader or special printer. Those photos can then be edited with the HP Pictures and Video Toolkit and printed or burned onto a DVD for enjoyment on a television with a standard DVD player.

With standard DVD+R/+RW, CD-RW drives and increased processing and storage capacities as compared to previous Pavilion models, the two new PCs are ideal for consumers looking for powerful, cost-efficient systems for photo and music sharing and storage, and high-resolution graphic and video editing. DVDs created using the DVD+RW rewritable and DVD+R write-once disks can be viewed on many DVD players and DVD-ROM drives -- the most compatible format on the market.(2)

Additionally, the 764n features the NVIDIA GeForce MX 440 graphics card, offering consumers exceptional graphics performance with 128 MB DDR graphics memory.(3)

HP Pavilion 754n and 764n Desktop PCs

The Pavilion 754n features an Intel® Pentium® 4 processor 2.53 GHz; 80 GB Ultra DMA hard disk drive, integrated Intel Extreme graphics with up to 64 MB shared video memory, and available AGP slot for graphics card upgrades. With an estimated U.S. street price of $999, the PC is expected to be available in retail stores and on beginning Feb. 16.(4)

With an estimated U.S. street price of $1,199, the HP Pavilion 764n features an Intel Pentium 4 processor 2.66 GHz, 120 GB Ultra DMA hard disk drive, six-in-one card reader and 128 MB NVIDIA GeForce4 MX 440 graphics card.(4) It is expected to be available in retail stores and on beginning March 2.

Both of the new Pavilion models feature DVD+R/+RW; 512 MB DDR SDRAM; 48x max CD-ROM drive; Polk Audio stereo speakers; front- and rear-access USB 2.0 ports; 10/100 Base-T LAN interface; Internet keyboard with seven convenient hot keys to connect to favorite Internet destinations; PS/2 optical mouse; and front- and rear-access 1394 IEEE Firewire ports, providing a single plug-and-socket connection on which up to 63 devices (such as a printer or a digital camcorder) can be attached with data transfer speeds up to 400 Mbps.(3)

All HP Pavilion desktop PCs also come bundled with a variety of valuable software programs such as the intuitive HP Pictures and Video Toolkit for creating and sharing digital photos, video and music. The toolkit is integrated into the operating system, so it's task-based, and it features ArcSoft Showbiz PhotoImpression, Greeting Card Creator and FunHouse, HP Memories Disc Creator and HP Photo Printing software for complete home photography and video editing.

Numerous drivers are preloaded in the software to enable consumers to quickly plug in their favorite HP peripherals, including some printers and digital cameras.

Both Pavilion models will include an icon to NetSmartz Workshop, an interactive educational resource from the National Center for Missing & Exploited Children and the Boys and Girls Clubs of America. The workshop provides parents and educators with 3-D activities to teach children how to be safer when using the Internet.(5)

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

(1) The built-in six-in-one media card reader reads and writes Compact Flash I/II, IBM Microdrive, SmartMedia, Memory Stick, SecureDigital and MultiMedia Cards.

(2) A list of specific DVD video players and DVD-ROM drives that support DVD+R/+RW is available

(3) Processing speeds, storage capacity and memory capacity as represented by component supplier.

(4) Actual prices vary.

(5) An Internet connection is required to connect to the NetSmartz Web site.

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