Press Release:

Department of Veterans Affairs Selects HP in Software Licensing Deal Worth More Than $225 Million

HP (NYSE: HPQ) has been awarded a task order to deploy and manage Microsoft software for all desktop systems at the Department of Veterans Affairs. The value to HP of the contract -- which covers all Microsoft® desktop software licensing for the department -- exceeds $225 million.

"Working with the Department of Veterans Affairs gives us immense satisfaction because they are a customer whose efforts support the needs of the men and women who served our country," said Jim Weynand, vice president and general manager, HP Public Sector Organization. "Helping an organization of this magnitude implement the right IT solution isn't just about hardware. It isn't just about software. It isn't just about services. It's about applying all these elements to help them meet VA's unique challenges."

The software licensing agreement is an outgrowth of the PCHS-2 contract that VA awarded to Compaq shortly before it merged with HP. The company's relationship with VA goes back 15 years.

"As one of VA's strategic IT partners, HP brings value to the department by leveraging our strategic relationships with global partners like Microsoft," said Chuck Kinzel, director for the Department of Veterans Affairs, HP U.S. Public Sector Federal Organization. "Providing these software licenses as part of our integrated approach to working with VA ensures the best end-to-end solution for their needs."

One of HP's largest federal customers, the Department of Veterans Affairs is managed by a dedicated HP federal team committed to high levels of customer satisfaction. The Department of Veterans Affairs consists of three major entities to serve military veterans: the Veterans Health Administration (VHA) with 163 medical centers nationwide; the Veterans Benefits Administration (VBA), providing benefits to veterans at more than 58 regional offices; and the National Cemetery Administration, providing burial benefits and managing 120 national cemeteries nationwide.

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. The company would have had revenue on a combined company basis with Compaq of approximately $81.1 billion in fiscal 2001 and has operations in more than 160 countries. More information about HP is available at

Microsoft is a U.S. registered trademark of Microsoft Corp.

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 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. HP assumes no obligation and does not intend to update these forward-looking

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