HP Advances Digital Entertainment Solutions with Industry Leaders.

Business Editors/High-Tech Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--March 2, 2004

Technology Alliances Target Flexible Consumer Experiences That

Support Artists, Businesses and FCC Guidelines

HP (NYSE:HPQ)(Nasdaq:HPQ) today announced several initiatives to advance the security of digital entertainment content for consumers, artists, media companies and distributors alike. HP has become a member of a leading digital rights management licensing and compliance framework, has licensed new video protection technologies from Intel, and has partnered with Philips to propose a copy protection technology solution to the U.S. Federal Communications Commission (FCC).

These initiatives highlight HP's efforts to deliver a simple and compelling entertainment experience while also addressing the copyright protection crucial to the success of the digital media market. They also are in keeping with HP's three key principles for solutions that respect digital rights management: ensure great consumer experiences drive the evolution of the market, build and deliver reasonable content protection solutions, and respect intellectual property and copyright.

"From creation to consumption, HP has deep experience and insight in the technology used to produce and distribute digital music, movies, TV and photographs," said Vikki Pachera, vice president, Global Alliances and Business Development, HP. "The three initiatives announced today extend our leadership in the digital entertainment market to provide a powerfully simple, compelling and affordable experience that is supported by a fair business model for content creators."

Content Management Licensing Authority

HP has joined the Content Management Licensing Authority (CMLA) as a founding Member Contributor in order to support industry-wide adoption of mobile handsets and other devices that deploy Open Mobile Alliance's Digital Rights Management (DRM) version 2.0 technical specification.

The CMLA will address critical digital content delivery concerns by creating a licensing and compliance entity that implements the specification. This entity will provide the necessary keys and certificates to licensed device manufacturers and service providers and enable interoperability between participants.

The CMLA also will facilitate open participation in the Open Mobile Alliance DRM environment by defining standard agreements among service providers, content providers and device manufacturers. Members of CMLA include companies such as Intel, Nokia, Panasonic and Samsung. More information about CMLA is available at www.cm-la.com.

Intel's high-bandwidth digital content protection technology

HP has licensed Intel's high-bandwidth digital content protection (HDCP) technology to offer customers safe and flexible use of digital content.

HDCP technology is designed to protect video content traveling across a digital visual interface (DVI) or a high-definition multimedia interface (HDMI) connection to a display or television. The technology is designed to ensure that video cannot be intercepted as it travels between devices and that the destination device also follows the usage rights associated with that video.

HP digital video devices enabled with HDCP technology offer customers a robust, cost-effective and transparent method for transmitting and receiving protected digital content via DVI and HDMI connections.

HP and Philips copy protection technology

HP and Philips announced their joint development of a new copy protection technology for DVD+R and DVD+RW optical discs. The innovative technology is designed to enable protected digital recordings of digital broadcast and cable television according to the rules adopted by the U.S. Federal Communications Commission in its recent "Broadcast Flag"(1) ruling and it is also designed to enable direct recording of "copy-once" content from digital broadcast signals.

More information is available in a separate release issued today, "HP and Philips Develop New Copy Protection Technology for Direct Digital Broadcasting Recording."

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the last four fiscal quarters, HP revenue totaled $74.7 billion. More information about HP is available at www.hp.com.

(1) Scheduled to be introduced in July 2005.

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 and performance 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 fiscal year ended Oct. 31, 2003, and reports filed after the Form 10-K. HP assumes no obligation and does not intend to update these forward-looking statements.

The information contained herein is subject to change without notice. HP shall not be liable for technical or editorial errors or omissions contained herein.