Best Buy to Offer HP Digital TVs.

PALO ALTO, Calif. -- HP (NYSE:HPQ)(Nasdaq:HPQ) has signed a national distribution agreement for its award-winning line of digital televisions with Best Buy Co., Inc., the nation's largest electronics retailer.

Beginning in late April, Best Buy stores nationwide will offer HP high-definition TVs, including LCD and plasma models. In late August, Best Buy also will add HP's groundbreaking MediaSmart TV in select U.S. markets.

The industry's first TV to connect home networks to home entertainment systems, the HP MediaSmart TV allows customers to access music, movies, photos and videos stored on any PC or notebook computer and to enjoy them in their living rooms.

"We look forward to being able to offer customers the opportunity to purchase HP's televisions in Best Buy stores," said Mike Vitelli, senior vice president, Merchandising, Best Buy. "Flat-panel television is growing at a tremendous rate. We believe that the addition of HP to our television lineup at this time gives customers another reason to make Best Buy their retailer of choice when shopping for a flat-panel television."

HP's latest lines of LCD and plasma HDTVs(1) have a dynamic contrast ratio of 6,000:1,(2) which sets a new standard for black levels on an LCD, and a 6ms refresh rate that virtually eliminates motion blur. The 37- and 32-inch LCD models feature the company's innovative Visual Fidelity technologies, which provide an advanced video pipeline that combines information about a room's ambient lighting with photorealistic sharpness enhancement and a 3D color enrichment system to deliver stunning detail and color.

HP's 2006 line of plasma HDTVs, including 50-inch and 42-inch models, display more than 1 billion colors and have a contrast ratio of 10,000:1.(2) They feature ultra-long life panels and integrated HDTV/analog tuners(2) so viewers can watch HD or standard broadcasts with a cable box or off-the-air antenna.(1)

"HP TVs will provide Best Buy customers with a great user experience in a way that no other company can by combining ease of use, reliability and our unique IT heritage," said Jan Luc Blakborn, director, Digital Entertainment - North America, HP. "By distributing through a company with Best Buy's scope and reputation, HP will make it even easier for customers to take digital entertainment technologies out of the box and into their lives."

Minneapolis-based Best Buy Co., Inc. has more than 930 retail stores across the United States and in Canada. Its operations include: Best Buy (BestBuy.com and BestBuy.ca), Future Shop (FutureShop.ca), Geek Squad (GeekSquad.com and GeekSquad.ca) and Magnolia Audio Video (Magnoliaav.com).

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended Jan. 31, 2006, HP revenue totaled $87.9 billion. More information about HP is available at www.hp.com.

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(1) High-definition (HD) source content varies and will depend on source input, signal, aspect ratio and other factors. HD content may require separately purchased service contract or other fees. HD content may not be available in all service areas, check with service provider.

(2) All specifications represent the typical specifications provided by HP's component manufacturers; actual performance may vary either higher or lower.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to anticipated operational and financial results; statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the achievement of expected results and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the risks described in HP's Quarterly Report on Form 10-Q for the fiscal quarter ended Jan. 31, 2006, and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2005. HP assumes no obligation and does not intend to update these forward-looking statements.

(C) 2006 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.