Press Release:

HP Delivers Digital Entertainment Center to Retail Stores Nationwide

Hewlett-Packard Company (NYSE:HWP) today announced that its new Internet-ready(1) digital music component for the living room, the HP Digital Entertainment Center de100c, is available nationwide at Best Buy stores and select Circuit City stores -- just in time for the holiday season.

"The HP Digital Entertainment Center allows consumers to discover and purchase new music from the Web, watch streaming video, and create custom CDs in the comfort of their living rooms," said John Spofford, vice president and general manager, HP Consumer Entertainment Solutions. "We've created a way for music enthusiasts to sit back and enjoy digital music from their favorite easy chair."

The movement to make home appliances "smart" and Internet-enabled is a major business opportunity for hardware vendors, service providers and appliance makers. According to Cahners In-Stat, the market potential for these products is predicted to exceed 20 million units by 2005(2).

Available at an estimated U.S. street price of $999(3), the HP Digital Entertainment Center is designed to allow consumers to easily enhance their unit by adding new services and functions through Internet downloads(1). HP also plans to continue developing relationships with digital entertainment service providers to broaden the capabilities of the HP Digital Entertainment Center.

One of HP's premier digital entertainment service agreements is with Seattle-based RealNetworks, Inc. (Nasdaq:RNWK). The two companies designed an easy-to-use and familiar interface, incorporating RealPlayer and RealJukebox, for consumers to enjoy digital music, streaming video and entertainment content.

"We are excited to be working with HP to provide consumers a new way to experience their favorite Internet entertainment in the home," said Martin Plaehn, senior vice president, Media Systems, RealNetworks. "Our collaboration with HP further solidifies RealNetworks' promise to deliver a great Internet media experience from any platform to any device anywhere."

The HP Digital Entertainment Center can be connected to the Internet using either dial-up or broadband access with a customer's existing Internet service provider(1). Through the Internet services offered by the component, consumers can sample and acquire new music and tune into Internet radio stations worldwide -- searching by country, city, language, station name or call letters. By using the Internet guide, consumers also can explore a variety of entertainment content, including videos, movie trailers, artist interviews and featured music.

Additionally, the HP Digital Entertainment Center offers:

  • Access to a database of tracks, titles, artists, video clips and cover art images (content provided by Muze, Inc. the leading source of entertainment product information for music, books, videos and games);
  • Easy creation of personal playlists and custom CDs and easy transfer of music to select portable MP3 players and compact flash cards;
  • Easy menu selection through a simple remote control and TV display;
  • Storage and automatic cataloging of up to 750 music CDs, or up to 9,000 tracks.
About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to all. HP had total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Information about HP and its products can be found on the World Wide Web at

(1) This product is intended only for use with your original music and other lawful applications. Use your existing dial-up or broadband ISP to access music and entertainment services. ISP connect charges may apply. Dial-up support excludes AOL, CompuServe and free ISPs that require a Web browser to display banner ads. Consumer router products that support industry-standard TCP/IP protocol and Ethernet or Home Phoneline (HomePNA 2.0) networking are required for broadband connection; PC required to configure router.

(2) Cahners In-Stat, Smart Consumer Appliances: Internet Access Devices of the Future, May 2001.

(3) Actual prices may vary.

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 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 the annual report on Form 10-K for the year ended Oct. 31, 2000, 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 and does not intend 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