Press Release: March 10, 2003

HP Announces More Powerful Media Center PCs with Affordable, Advanced DVD Functionality

PALO ALTO, Calif., March 10, 2003

HP (NYSE:HPQ) today announced two new additions to its HP Media Center PC line, bringing increased speed, power and functionality to home entertainment enthusiasts.

The new HP Media Center PCs 864n and 854n enable users to record live TV -- similar to personal video recorders (PVRs) -- burn the content to the DVD writer, and then watch the DVD in many standard home DVD players.(1)(2) Additionally, both Media Center PCs feature a six-in-one media card reader,(3) improved graphics, faster processors and larger hard drives than previous models.

"Working in the music industry, I needed a computer that was reliable and effortless to use, that included great graphics, exceptional sound, was expandable, and had more than enough memory to store large digital audio and video files," said Bruce Morel, a music artist manager. "The HP Media Center PC enables me to download new audio, video and graphic material quickly and easily and is great for gaming online, as well as recording and playing back TV shows. HP has created a machine that provides connection, convenience and control over my digital world. I can't wait to see what the future holds for this line of home entertainment PCs."

All HP Media Center PCs include Microsoft® Windows® XP Media Center Edition, which allows users to enjoy the ultimate in digital entertainment features, including recording and pausing live television, a free electronic program guide and the ability to download, alter or burn their own digital music, digital photos, digital video and DVDs. The system can be operated in a standard PC format with a keyboard and mouse or with an easy-to-use remote control.

"Introduced just in time for the 2002 holiday buying season, retail sales for this new category of product far exceeded our expectations," said Sam Szteinbaum, vice president and general manager, HP North America Consumer Computing. "We expect these new enhancements to make the HP Media Center PC even more desirable and further revolutionize the way people think about home entertainment."

HP Media Center PC 864n and 854n Product Details

The new models now come standard with a DVD+RW/CD-RW drive (DVD writer and CD writer combo drive), providing increased storage options and advanced viewing capabilities. Users also can now record television and burn to DVD for viewing with most standard home DVD players with new Sonic MyDVD® software.(1)(2)

In addition to the features mentioned above, the powerful HP Media Center PC 864n includes an Intel® Pentium® 4 2.66/533-MHz processor, more than 100 hours of recorded TV storage(4) with a 160-GB hard drive and 512-MB DDR SDRAM. The 864n also provides plenty of memory to store digital music, images and video files and features superior sound quality with Klipsch ProMedia 2.1 THX-certified 200-watt speakers and the Creative Labs Audigy 5.1 multi-channel sound card.(5)

Representing a tremendous value for users looking to purchase an advanced home entertainment PC, the HP Media Center PC 854n features an Intel Pentium 4 2.53-GHz/533-MHz processor, 512-MB DDR memory and 80 hours of recorded TV storage capacity(4) on a 120-GB hard drive.(5)HP Media Center PC 854n users also can now choose to upgrade the PC audio system by adding speakers separately.

Both models also offer more than double the graphics memory than previously available with a high-resolution 128-MB NVIDIA GeForce4 MX 440 graphics card, providing users with an advanced, high-quality graphics experience whether watching DVDs, editing video or playing favorite 3D PC games.

The six-in-one media card readers on the front panel of the devices enable users to quickly and easily transfer digital data from all common flash media formats(3) -- letting them, for example, download images or files directly from the media card of a digital camera or handheld.

All the PCs in the HP Media Center line include a remote control, 48x CD-ROM drive, floppy drive, PVR TV tuner card, HP Media Center keyboard providing easy access to entertainment features and volume control knob, an infrared (IR) receiver, TV-out, one front-access and four rear-access USB 2.0 ports, one front-access and one rear-access IEEE 1394 port, an IR blaster to control a set-top cable or satellite box, a 10/100 Base-T network interface and an optical mouse.

HP Media Center PCs also include a variety of valuable software programs such as the intuitive HP Pictures and Video Toolkit, which makes it easy to download, save, edit and share digital photos and home movies. The toolkit features software applications such as ArcSoft Showbiz video editor, PhotoImpression, Greeting Card Creator and FunHouse software, Sonic MyDVD, as well as the HP Memories Disc Creator for complete home photography and video editing capabilities.

HP's easy-to-access service and support is available 24x7 via phone or online in English or Spanish. More information is available at

Pricing and Availability

The HP Media Center PC 854n retail model will be offered on-shelf in retail outlets including Circuit City, CompUSA, Best Buy, Fry's Electronics and Micro Center starting March 16 for an estimated U.S. street price of $1,399.(6)

The 864n will be available at Circuit City, CompUSA, Best Buy, Fry's Electronics, Micro Center and Office Depot, and at select retailers in Canada starting March 23 for an estimated U.S. street price of $1,699.(6)

Both models also will be available direct from HP online at and through HP retail kiosks in the United States.

More information about the HP Media Center PC 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

(1) DVDs created using the DVD+RW rewritable and DVD+R write-once disks can be viewed on many standard DVD players and DVD-ROM drives. A list of tested DVD video players and DVD-ROM drives that support DVD+R/+RW is available. (Intellikey Labs compatibility study, September 2002).

(2)HP respects the rights of copyright holders. This product intended for lawful use only. Some broadcasts may be copy-protected.

(3) The built-in six-in-one media card reader reads and writes Compact Flash I/II, IBM Microdrive, SmartMedia, Memory Stick, Secure Digital and MultiMedia cards.

(4) Actual recording capacity based on drive space partitioned for recorded TV and quality setting of recorded material. (Thirty minutes of MPEG2 is approximately 500 MB or one hour, which is equivalent to 1 GB of storage capacity).

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

(6) Actual prices may vary.

Microsoft and Windows are U.S. registered trademarks of Microsoft Corp. 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 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