Press Release:

HP Introduces Innovative High-performance PC and Workstation Products

Also Announces Professional and Essential PC Lines So Customers Can Easily Choose the Best Products for Their Business Needs

Hewlett-Packard Company (NYSE:HWP) today announced a new family of high-performance business PC and workstation products intended to reduce customers' ownership costs across the life of the products.

Together with HP's wide range of PC lifecycle programs, the PCs and monitors announced today are an integral part of customers' computing infrastructure -- reducing lifecycle costs for IT managers and providing users an enhanced work environment. In addition, HP introduced an entry-level workstation designed for professionals demanding more performance solutions.

HP also has simplified its desktop PC product structure into two lines to make it easier for customers to select products based on the features they need, regardless of the size of their businesses. The Professional line meets the needs of customers looking for flexibility and long product lifecycles with optimized performance choice, configurability and stability. For companies looking to meet core computing needs, the Essential line offers proven technology at the best price.

The products introduced today include the HP e-pc, HP Vectra vl420 PC, HP Vectra xe310 PC, a 15-inch LCD monitor and a flat-screen 21-inch CRT monitor. HP also introduced the HP workstation x1000, which, along with the HP Vectra vl420 PC, includes the Intel® 845 chipset with industry-standard SDRAM memory and the Intel Pentium® 4 processor for advanced performance at mainstream prices.

Customers and resellers also will benefit from the introduction of the HP Web Associate Program -- a Web-based sales tool that offers customers new purchasing options, streamlines the procurement process, increases sales opportunities and reduces capital requirements for the reseller (1). The program gives customers the ease of online ordering with the ongoing services, consultation and support of the reseller.

"HP's simplified product line structure will make life easier for both our customers and our partners," said Eric Cador, vice president and general manager, HP Business Desktop Division. "Not only will they have faster, more direct access to the products and services that best fit their needs, but they also will find our Professional and Essential lines to be very competitively priced as a result of HP's recent cost reduction initiatives."

Professional Line

HP's Professional line of products focuses on flexibility and stability by providing customers with a choice of four packages and a variety of performance and configuration combinations. Innovative services and tools help customers decrease PC lifecycle costs through comprehensive deployment, management and support solutions. All of the Professional line business desktop PCs are Windows® XP ready and an upgrade program is available for all Windows 2000 business desktop PCs(2).

With the HP e-pc, HP continues to reinforce its commitment to PC innovation by reinventing the typical PC into a smaller, modern-looking package. The most compact desktop in the industry, the HP e-pc enhances user comfort with its stylish design and extremely low acoustic levels. It meets the performance needs of business users through its support for Intel Celeronä and -- before the end of the year -- Pentium 4 processors.

For IT managers, the HP e-pc's simple and reliable design coupled with its distinctive bundle of services can significantly lower total cost of ownership. Comprising only four, easily swappable modules, the HP e-pc greatly improves serviceability, while the exclusive HP Instant Swap support pack upgrade -- an inexpensive, same-day, on-site parts replacement service -- drastically reduces downtime(3). The HP Port Control system and sealed box design further decrease total cost of ownership by ensuring that IT managers have increased PC control.

The HP Vectra vl420 PC offers customers Pentium 4 performance at a mainstream price, an extremely high level of configurability and improved serviceability. Available in three sizes -- desktop, mini-tower or small form factor -- using the same software image, the HP Vectra vl420 PC decreases lifecycle costs by enabling IT personnel to qualify one PC and deploy many.

With a modern, two-color design, the HP Vectra vl420 PC enhances user comfort and work environments by featuring the HP Ultraflow intelligent cooling mechanism that makes it the quietest Pentium 4 system on the market.

Optimized to work with HP's business desktop PCs, the 15- inch LCD and 21-inch CRT monitors provide customers with exceptional image quality and comfort-enhancing features to match any business need. The 15-inch display features the latest LCD technology at CRT prices and integrates with the HP e-pc for a unique "all-in-two" solution. Ideal for graphics-intensive applications, the HP 21-inch CRT monitor features advanced flat-screen technology and matches the HP Vectra vl420 PC two-color scheme for a stylish alternative to traditional-looking systems.

Essential Line

HP's Essential line of products includes proven technology and features to meet the core computing needs of customers at the best price. When IT budgets are constrained, HP's Essential line offers the reliability and support needed to help businesses grow.

As HP's most affordable business PC, the HP Vectra xe310 PC exemplifies the company's Essential line by providing quality HP technology for day-to-day office work. Quiet and modern-looking with enhanced expandability capabilities, the PC features Intel Celeron processors up to 1.1 GHz, built-in support tools for quick online advice and access to troubleshooting and support information, as well as tool-less entry to internal components for easier and faster modifications.

HP Workstations

The HP workstation x1000 delivers true workstation performance at a great price. The HP x1000 also provides expanded memory, application certification by major independent software vendors, and professional 2D and 3D graphics options along with top-quality HP technical expertise and support.

Intended for engineers, designers, digital content creation artists, as well as users requiring additional performance or graphics options, the HP workstation x1000 eliminates the need to compromise performance for the sake of economy.

Pricing and Availability

The HP e-pc with the Intel Celeron processor, the HP Vectra vl420 PC and the HP Vectra xe310 PC are expected to be available Oct. 1 in North America. The HP e-pc with the Intel Pentium 4 processor is expected to be available before the end of the year.

Estimated prices start at $579 for the HP e-pc with Intel Celeron processor, $849 for the HP e-pc with the Pentium 4 processor, $899 for the HP Vectra vl420 PC and $549 for the HP Vectra xe310 PC. With an estimated price starting at $1,235, the HP workstation x1000 is expected to begin shipping in October(4).

The HP 15-inch LCD and 21-inch CRT monitors, with estimated pricing starting at $499 and $849, respectively, are expected to be available Oct. 1 in North America(4). HP's new fall business products are available in North America October 2001 through channel partners and online through the HP business store at

Additional information on HP's new business desktop products is available at

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 Web Associate Program available in the U.S. only.

(2) These PCs meet the minimum hardware requirements to run Microsoft Windows XP. Hardware drivers, if necessary, are available from HP upon the release of Windows XP.

(3) The HP Instant Swap support pack upgrade is available as an optional warranty package.

(4) Actual prices may vary.

Intel, Celeron and Pentium are U.S. trademarks or registered trademarks of Intel Corp.

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 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