Press Release:

HP to Provide Technology to Home Depot for IT Enhancement Project

Equipment Will Serve Administrative, Customer Service and Employee Education Needs in 1,456 Local Stores

HP (NYSE: HPQ) will provide approximately 40,000 PCs for use in 1,456 Home Depot (NYSE:HD) stores across the United States. The PCs will support two Home Depot programs that together will improve operations, customer service and employee education efforts in the stores.

"The increased stability the new equipment brings will provide obvious benefits from a technology upgrade of this magnitude," said Barbara Sanders, chief architect, Home Depot. "In addition, the increased capability we expect this effort to provide will pay equally good dividends in terms of productivity and customer service in our stores. After all, the less time our associates spend on the telephone trying to reach the help desk, the more time they are able to spend on the sales floor helping our customers."

The majority of the Compaq Evo D510 PCs being delivered under this contract will support the Store Technology Enhancement Project (STEP), an effort by Home Depot to standardize and upgrade the technology infrastructure in its stores. In addition to the Compaq PCs that are a part of the STEP initiative, the project includes enhancements to the wiring networks in the stores and new point-of-sale terminals.

The advanced capabilities of the new systems provide a stable, fault-tolerant technology platform capable of more effectively handling recent, often highly specialized software applications.

"A company the caliber of Home Depot must have technology that can stand up to the rigorous use that is just naturally a part of a high-volume retail environment," said Sam Mancuso, vice president of Corporate Accounts for HP. "Known for its stability, long lifecycle and capacity to support sophisticated applications, the Compaq Evo D510 PC is the ideal piece of equipment for this situation."

The remaining Compaq PCs will be used to expand Home Depot's e-learning initiative, an in-store, online training and education program to help employees build their product knowledge and work toward certifications in various disciplines. The PCs also will supplement Home Depot's employee communications program by permitting executives to disseminate information faster to the company's nearly 300,000 employees.

The Compaq Evo PCs will supplement existing Unix technology from HP that Home Depot uses in its stores and administrative offices. Delivery of the new equipment is underway. The STEP initiative is scheduled for completion during the third quarter of next year.

About Home Depot

Founded in 1978, The Home Depot is the world's largest home improvement specialty retailer and the second largest retailer in the United States, with fiscal 2001 sales of $53.6 billion. The company employs more than 296,000 associates and has 1,451 stores in 49 states, Puerto Rico, seven Canadian provinces, and Mexico. The company for the second year in a row was named sixth Most Admired Company in America by Fortune magazine, which has also ranked it as America's Most Admired Specialty Retailer for eight consecutive years. Its stock is traded on the New York Stock Exchange (NYSE:HD) and is included in the Dow Jones Industrial Average and Standard & Poor's 500 Index.

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 Corp. on May 3, 2002. More information about HP is available at

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 HP's quarterly report on Form 10-Q for the quarter ended April 30, 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 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