Press Release:

HP and AAFD Announce Technology Discounts for 12,000 Franchised Businesses Nationwide

Agreement to Promote Growth of Technology Use Among Franchised Small Businesses

In conjunction with the American Association of Franchisees and Dealers (AAFD) annual conference and 10-year anniversary celebration, HP (NYSE:HPQ) today announced a co-marketing agreement with AAFD to offer discounts on IT products and Internet services to its members. AFFD is the nation's oldest and largest direct member non-profit trade association representing more than 12,000 franchised businesses nationwide.

Through HP 's affiliate program, AAFD members can take advantage of special pricing on award-winning HP products and receive discounts on reliable Internet services through the AAFD Web site at These benefits are available through the AAFD Suppliers Network which links to HP 's online store where technology solutions for small- and medium-sized businesses are featured.

"Reaching the 10-year mark is a noteworthy achievement that demonstrates our commitment to utilizing the marketplace to encourage our vision of 'Total Quality Franchising,'" said Robert Purvin, chairman, AAFD. "Our agreement with HP helps us provide our members with access to quality and affordable technology which exemplifies our mission."

"We are pleased to join the AAFD Suppliers Network and congratulate them on their 10-year anniversary," said Robyn West, vice president of marketing, HP Personal Systems Group. "This agreement reinforces HP 's commitment to provide emerging enterprises and franchise businesses access to technology solutions that will help them achieve their goals and better serve their members and customers."

During the conference, representatives from HP and AAFD will promote e-business solutions, such as online direct mail services through AAFD's exclusive and innovative direct mail program, AAFDMailNow, and custom email and Internet services -- ranging from unlimited dial-up Internet access for $9.95 per month; AAFD private, spam-free email for as little as $3 per month; and up to 90 percent discounts on Web design and development services.

The Computer Renaissance Franchisees Chapter of the AAFD, an association of independent Computer Renaissance dealers, encourages HP 's relationship with AAFD. "Technology is a competitive advantage that is often misunderstood and underestimated by entrepreneurs and small business owners," said Robert Lowrance, chapter president, The Computer Renaissance Franchisees Chapter of the AAFD. "HP and AAFD are proactively working with franchisors and franchisee associations to encourage the use of e-business to better serve their customers."

About AAFD

The American Association of Franchisees and Dealers, is the oldest and largest direct member non-profit trade association representing the interests of franchisees and independent dealer networks throughout the United States. Stressing market solutions and franchisee empowerment through independent franchisee associations, the AAFD has grown to represent more than 12,000 franchised businesses nationwide. More information about AAFD 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 merged with Compaq Computer Corp. on May 3, 2002. The merged company had combined revenue of approximately $81.7 billion in fiscal 2001 and 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