Press Release:

HP Wins Euro60 Million Comprehensive Outsourcing Contract with The CAT Group

Deal with European Automotive Logistics Company to Reduce Costs by up to 30 Percent Over 5 Years

HP (NYSE: HPQ) today announced a five-year, Euro60 million contract with The CAT Group to manage the company's entire worldwide information systems. HP Services will provide a fully outsourced service including implementation, management and financing of The CAT Group's IT infrastructure and equipment.

Specifically, HP Services. CAT also has transferred its IT assets to HP thus allowing a progressive transformation of the IT infrastructure to improve its competitiveness.

The outsourcing contract is expected to generate between 25 and 30 percent cost savings for The CAT Group over the next five years.

In addition to delivering an IT environment that is flexible and responsive, the outsourcing contract also will enable The CAT Group to dedicate more financial and human resources towards application development in order to focus on its core business of automotive manufacturing logistics.

Francesco Serafini, vice president and general manager of HP Services for Europe, Middle East and Africa, described the contract as a significant endorsement of

"This deal perfectly reflects HP Services' capacity to manage complex, variable and flexible IT environments on behalf of corporations looking to focus on their core businesses.

"Through the outsourcing process, HP Services is thoroughly committed to generating and delivering measurable business benefits to our customers. And we will be working closely with The CAT Group to identify and re-invest resulting cost savings during the course of the next five years."

Founded in 1957 by Renault to transport its products sold in France and abroad, The CAT Group is a major European player in automobile logistics. Now part of Global Automotive Logistics, The CAT Group includes 19 subsidiaries in France and abroad and a workforce of some 2,600 professionals worldwide.

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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.

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