Press Release:

HP and BDI-Laguna to Provide PCs and Printers to Rent-to-own Market

HP (NYSE:HPQ) and BDI-Laguna today announced an agreement to provide consumer technology products to the rent-to-own retail market. BDI-Laguna will be HP's distribution arm supplying PCs, printers and notebooks to this growing retail industry. HP plans to market both the Compaq Presario and HP Pavilion brands to this channel.

BDI-Laguna, a leading national specialty distributor headquartered in Atlanta, supplies convergence products, including consumer electronics and computer equipment, to the nation's leading retailers. BDI-Laguna was a pioneer in selling personal computer equipment to the rent-to-own (RTO) channel and has been actively selling products into this market for more than 10 years. Previously, BDI-Laguna was Compaq's exclusive distributor for the RTO channel.

The RTO market produced approximately $5.6 billion in revenues in 2001, up $300 million from the prior year. The market is serviced by approximately 8,300 storefronts.

"By partnering with BDI-Laguna, HP expects to capture significant market share within the RTO channel, providing incremental revenue opportunities for the HP Pavilion product line," said Leslie Hertford, district sales manager, HP Imaging and Printing Group.

"BDI-Laguna is very excited about our new relationship with HP," said Joel Blank, executive vice president, BDI-Laguna. "I am confident HP and Compaq brands will become the leading lines of personal computers within the RTO channel."

About BDI-Laguna

BDI-Laguna is a total solution provider committed to delivering leading-edge products to the nation's most successful retailers through state-of-art logistical services. The company sells a full line of technology products ranging from computer systems to large screen plasma displays. The company utilizes three strategically located warehouse facilities allowing product to arrive via ground within two days. System capabilities include providing just-in-time inventory for retailers and full point-to-point backend logistical support, including customer drop ship capability. More information 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 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 and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; the difficulty of keeping expense growth at modest levels while increasing revenues; 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 January 31, 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. 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