CEO Carly Fiorina Demonstrates HP's Drive to Make Digital Imaging Mainstream.

Business Editors/High-Tech Writers

CES 2002

LAS VEGAS--(BUSINESS WIRE)--Jan. 8, 2002

Consumer Electronics Show Keynote Highlights HP's Imaging

Innovation, Previews Breakthrough Image-sharing Technology

Hewlett-Packard Company (NYSE:HWP) Chairman and Chief Executive Officer Carly Fiorina today described the company's initiatives to make digital photography mainstream by making it easy for everyone to use and experience.

During her CES keynote address to consumers and business people, Fiorina outlined HP's approach to helping everyday users of digital imaging technology. That approach includes creating innovative products like the new HP Photosmart 812 digital camera, which features an exclusive image-sharing technology that allows people to instantly and easily share photos with friends and family around the world.

"Our primary focus is to apply our expertise and intellectual property in electronics and systems to create a great end-to-end experience for anyone who uses a camera," said Fiorina. "We're not just thinking about the camera or the printer or the PC or the content or the network connection or the new kinds of services you can use to create T-shirts or coffee mugs or holiday cards -- we're thinking about the whole system of devices, technologies, infrastructure and services required to deliver the experience -- including that of the person who's receiving the images. As a result, we're pushing the boundaries of what's possible in this new digital imaging space."

Fiorina highlighted a number of projects underway from HP's digital imaging research and development teams, which produced 2,500 patent applications in calendar year 2001.

"We are conducting tele-immersion research that composites multiple captured images and creates a virtual environment that viewers can manipulate at will. We have technology that allows you to stream media-rich content in real time to all kinds of devices such as PDAs, cell phones, ATM machines or car dashboards. We're making it possible for devices of all types -- wired and wireless -- to capture images and share them via open networks. We're also helping people capture moments that are a closer representation of the 3D reality we live in," said Fiorina.

"Fundamentally, we're doing everything we can imagine to push the limits of how people capture, experience and use digital images -- and we're making it mainstream."

Fiorina unveiled the new HP Photosmart 812 digital camera during her keynote speech. The camera features the breakthrough HP Instant Share technology, which allows users to easily designate how an image will be shared -- something no other camera offers. The user can select up to 14 destinations, including e-mail addresses and printers, which can automatically receive photos the next time the user connects to a PC or the optional new HP Photosmart 8881 digital camera dock.

Fiorina also commented on HP's directions to advance digital imaging in the future to benefit consumers and businesses. As part of HP's goal to make imaging more immediate as a communications medium, she described an HP collaboration with NTT DoCoMo in Japan to make real-time sharing of small images possible so people can use a cell phone with an embedded camera attached to send images to colleagues' phones.

"We also intend to make imaging more personally valuable and appropriate for your needs," said Fiorina. "We're developing technology that would allow a person to easily organize their images based on a variety of factors, like time, subject or location, and print a custom photo album using an application that automatically processes and formats the photos to their liking."

Another key initiative involves integrating image-capture into people's daily lives so that it becomes even easier, what HP calls "casual capture."

In addition, HP is focusing on the business applications of digital imaging technology. "More and more, businesses will use rich media and photographs to add a more human element to their interactions with customers, partners and employees, which means that color standards, content identification standards and the ability to seamlessly link this type of information into existing business processes will all be critically important going forward," said Fiorina.

"As consumer and business markets develop, HP will be in a unique and powerful position to lead the way ... by applying our R&D expertise to develop the next wave of digital imaging breakthroughs and by augmenting our R&D capability with Compaq's, especially in the areas of scalable systems, wireless multimedia and human interaction, all of which will play a huge role in enhancing the digital imaging experience.

"The real promise, the real growth opportunities ahead in the consumer and business world will result from harnessing the combined power of imaging, printing, computing, storage, devices, networks and services. Our merger with Compaq is all about building the industry's best technology portfolio, and together, putting it to work for customers."

Additional Details on the HP Photosmart 812 Digital Camera

The HP Photosmart 812 digital camera joins a line of HP digital imaging solutions, including scanners, PCs, handhelds, photo printers, all-in-one devices and DVD-writers, offering features that make the process of capturing and sharing photos easy.

The HP Photosmart 812 digital camera produces photo-quality printed enlargements up to 11 x 17 inches with four-megapixel total resolution. The camera also offers 21x total zoom, featuring a Pentax precision lens with 3x optical and 7x digital zoom to deliver sharp, clear results. In addition, consumers can truly capture the essence of a moment -- complete with motion and sound -- using video with audio clips to capture up to a full minute of footage.

Users can create a digital slide show by connecting the camera directly to a TV or the HP Photosmart 8881 digital camera dock, HP's first camera dock. They also can connect it directly to an HP USB inkjet color printer or the optional camera dock for easy snapshot or portrait printing with precise, stay-true detail.

To ensure the HP Photosmart 812 digital camera is always ready to capture the moment, optional NiMH rechargeable batteries can be recharged in the camera via the optional A/C adapter or the camera dock. As an added convenience, only two AA batteries are needed to operate the digital camera -- half as many batteries as many competitor's digital cameras require -- giving the camera a slim, on-the-go look.

Pricing and Availability

The HP Photosmart 812 digital camera and HP Photosmart 8881 digital camera dock are expected to be available this spring at estimated U.S. street prices of $599 and $79, respectively.(1)

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 http://www.hp.com.

(1) Actual prices may vary.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; 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. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP assumes no obligation and does not intend to update these forward-looking statements.