Press Release:

HP, DreamWorks Announce Strategic Alliance Aimed at Revolutionizing Animation Production

PALO ALTO and GLENDALE, Calif., Jan. 30 2002

Hewlett-Packard Company (NYSE:HWP) and DreamWorks SKG today announced a three-year, multi-million dollar technology strategic alliance aimed at revolutionizing animation production.

HP will provide computing infrastructure for DreamWorks' next-generation digital studio at its main facility in Glendale, which will make it possible to create the latest computer-generated animation more quickly, cost effectively and with greater artistic quality than ever before.

The alliance designates HP as DreamWorks' sole "preferred technology provider" for core technology purchases. HP will supply technical workstations, servers, printers, networking and Linux technologies as DreamWorks develops its newest animation pipeline. HP also will receive certain rights for product and brand placement.

In addition, HP and DreamWorks will explore technologies that could enable creative collaboration by producers, directors, animators and others working from remote locations. The two companies also have agreed to jointly explore other technologies that may translate into new products, process improvements or solutions.

"This collaboration is a great example of how HP can put its inventive resources and systems solutions capabilities to work for customers," said Carly Fiorina, HP chairman and chief executive officer. "We believe that HP technology will help the creative minds at DreamWorks provide movie fans with enriched, more entertaining experiences."

"Technology has been pivotal to our success at DreamWorks," said Jeffrey Katzenberg, DreamWorks co-founder. "Our goal is to remain on the cutting edge, both creatively and technically, and that's why we're excited about working with HP."

Relationship Began with "Shrek" Collaboration

The two companies established the alliance after HP helped DreamWorks with the completion of "Shrek," an animated tale about a lovable ogre, which became one of the highest grossing films of 2001. Four months before the film was released, HP delivered more than 40 HP Netserver lp1000 systems that enabled the studio to meet the production schedule.

Subsequently, engineers from HP's graphics labs developed enhancements to Linux software to help power DreamWorks' proprietary animation software, ToonShooter. This tool was essential to the production of DreamWorks' next animated film, "Spirit: Stallion of the Cimarron," a tale about a wild mustang stallion and its journey through the untamed American frontier. The film, which was created on more than 200 Linux-based HP workstations and servers, will be released nationwide May 24.

HP will provide a broad range of products, services and integration expertise to create the new DreamWorks production facility at the Glendale campus. The facility will include the addition of more than 200 high-end Linux-based workstations, a 500-processor Linux renderfarm, 15 terabytes of storage and a high-speed Ethernet-based infrastructure.

About DreamWorks

DreamWorks SKG was formed in October 1994 by its three principal partners -- Steven Spielberg, Jeffrey Katzenberg and David Geffen -- to produce live-action motion pictures; animated feature films; television programming; home video entertainment; records; books; toys; and consumer products.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to all. HP had total revenue of $45.2 billion in its 2001 fiscal year. Information about HP and its products can be found on the World Wide Web 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 the annual report on Form 10-K for the year ended Oct. 31, 2000, 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