Press Release:

HP Awarded Multi-million Dollar Outsourcing Contract by Microsoft

HP to Provide Help Desk Services for 61,000 Microsoft Employees, Vendors and Contractors Worldwide

HP (NYSE: HPQ) today announced a multi-year, multi-million dollar global services contract to provide centralized end-user technical support for 61,000 Microsoft (Nasdaq:MSFT) employees, vendors and contractors in up to 68 countries.

With this agreement, Microsoft becomes one of the largest clients for the newly merged HP Services division, which combines the strengths of HP and Compaq into a $15 billion services business. HP Services provides consulting and system integration, customer support and outsourcing services to help enterprise clients design, deploy and manage mission-critical IT environments.

For the past two years, HP has provided help desk call center support to 11,000 Microsoft employees, vendors and contractors in 35 countries in Europe, the Middle East and Africa.

"As Microsoft employees are eager to try our new enterprise software products, end-user support is a vital function for supporting productivity and contributing to the evolution of our premiere software products," said Victor Bahna, director of worldwide help desk services, Microsoft Corp. "HP has made the commitment to meet our high standards for support via the application of nascent technologies, implementation of best practices and global program management."

"The new HP offers the industry's deepest expertise in Microsoft technologies and a broad array of outsourcing capabilities," said Ann Livermore, executive vice president, HP Services. "This agreement with Microsoft is just one example of the newly merged company's ability to provide superior value to our global business partners and to leverage our expanded service offerings in the marketplace."

For more than two decades, HP and Microsoft Corp. have teamed to drive the adoption of industry-standard building blocks through joint development, testing and customer deployment of leading PC and server solutions. HP continually invests in software integration and development and in the ongoing training of HP Services experts in Microsoft technologies. This close collaboration and HP's continual innovation in industry-standard computing have made HP the partner of choice for the majority of businesses deploying Microsoft-based solutions.

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 combined revenue on a pro forma basis with the Compaq transaction of approximately $81.1 billion in fiscal 2001 and has operations in more than 160 countries. 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 annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001, HP's quarterly report on Form 10-Q for the quarter ended January 31, 2002 (as filed with the SEC on March 12, 2002) and subsequently filed reports. 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