HP Demos Advanced TV Technology that Delivers Direct Access to Multimedia PC Content; Company Also Ships Digital Entertainment Centers and New Line of TVs in Time for Holiday Buying Season.

INDIANAPOLIS -- HP (NYSE:HPQ) (Nasdaq:HPQ) today demonstrated advanced digital media technology for its high-definition televisions (HDTVs) that will give people direct access to digital content -- from movies to photos to music to personal videos -- that's currently stored on their PCs.

The company is also shipping a new line of microdisplay, plasma and LCD TVs as well as its high-definition Digital Entertainment Centers in time for holiday shopping.

Showcased this week at the Custom Electronics Design and Installation Association (CEDIA) tradeshow and slated for distribution next summer, the advanced digital media technology will enable HP HDTVs to communicate with all PC devices on a home network, including HP Digital Entertainment Centers.

HP HDTVs that ship with this functionality will also contain other advancements that will provide consumers with new ways to access entertainment. These future televisions will provide consumers with multimedia services over the Internet -- directly via their HP advanced digital media HDTV.

"This is among the world's most advanced television technology," said Steve Nigro, senior vice president and general manager, Imaging and Printing Technology Platforms, HP. "By creating even smarter HDTVs, HP will help consumers access digital content over the Internet or content that was previously quarantined on the PC. Now that content will be readily available through the heart of home entertainment -- the TV."

The prototype HP HDTVs demonstrated at CEDIA contain a built-in digital media receiver that enables the TVs to communicate, wired or wirelessly, with practically any PC in a home.

Accompanying HP software will allow consumers to create virtual databases of media content on their PCs -- from digital images to audio and video files. Once the library of personal media is created and the wired or wireless connections are made, consumers can use their remote controls to easily access libraries of content from their PCs or broadband networks directly on their advanced digital media HP HDTVs.

"More than 50 percent of American consumers are storing digital video or music on their hard drives, and 25 percent of U.S. households rate the ability to view digital photos on a large-screen display as extremely important," said Tim Bajarin, president of analyst firm Creative Strategies. "With all that digital content, there is a growing consumer demand to find a way to efficiently manage and ultimately simply enjoy that content through a single source."

High-definition HP microdisplay TVs

HP is shipping three sizes of DLP(TM)-based microdisplay televisions (MDTVs) in time for the holiday season -- the 50-inch (MD5020N), 58-inch (MD5880N) and 65-inch (MD6580N) models.

The 58- and 65-inch MDTVs will be available in 1080p resolution, the highest resolution on the market, and come "digital cable ready" with a built-in CableCARD slot. The 1080p sets feature advanced picture technology and are capable of receiving and displaying native and compressed 1080p HD content through an HDMI interface. The 50- and 58-inch models also will be available in 720p resolution.

All HP MDTVs feature HP Visual Fidelity technologies, including "wobulation," which effectively doubles addressed pixel resolution and produces a smoother high-definition picture with clear and crisp images. HP's color science and print expertise have been deployed to produce a natural picture with vibrant colors and rich detail, even in a room filled with bright daylight.

These sets also include a first-of-its-kind on-screen thumbnail navigation feature that allows consumers to see, on one screen, all of the video sources feeding into the TV. With this feature, users can easily select the desired input instead of having to scroll through numerous inputs on the remote to find the right one.

All the MDTVs ship with a built-in ATSC tuner and include the HP-invented lighted front connection panel that enables consumers to hook up to 10 sources in front of the TV, versus the back, making connections a snap. The sets are expected to be available in the United States and Canada in October.

High-definition HP LCD TVs

HP is also shipping three new HP Pavilion High-Definition LCD TVs, available in 26-inch (LC2600N), 32-inch (LC3200N) and 37-inch (LC3700N) models. These HDTVs feature the latest in LCD panel technology, including an intuitive ambient lighting feature that automatically adjusts image quality to match the ambient light in any room.

HP's latest generation of LCD HDTVs also features 4,000:1 contrast, providing a clear, progressively scanned image with rich colors and deep black levels. The televisions virtually eliminate motion blur, producing a crisp image that makes these sets ideal for watching sporting events.

They also offer unparalleled digital connectivity, including integrated high-definition tuners, CableCARD slots, HDMI, DVI and i-Link. These sets are expected to be available in the United States and Canada this month.

High-definition HP plasma TVs

HP is additionally shipping two new plasma HDTVs - the 42-inch (PL4200N) and the 50-inch (PL5000N) models. Built on state-of-the-art video processing that delivers up to 8 billion colors and 2,048 levels of gradation, these HDTVs ensure that even the subtlest details are rendered with uncompromising clarity.

The new HP plasma HDTVs feature ultra-long-life panels with advanced phosphors that create an image 10 percent brighter than conventional panels. In addition to an integrated CableCARD slot and HDMI, the new plasma sets come with a built-in memory card slot so consumers can view their digital pictures right from the comfort of their own couch. Additionally, a six-speaker sound system ensures the most realistic theatrical experience possible. HP plasma HDTVs will be sold in the United Stated and Canada this month.

HP Digital Entertainment Centers

HP's HD Digital Entertainment Centers (DECs) are designed to pull everything together in one package, serving as a management, recording and storage component for all digital content -- including music, photos, television programming, movies and games.

The HP z555 and z557 high-definition Digital Entertainment Center series, now shipping, come with three tuners: One ATSC over-the-air (OTA) HDTV tuner for the ability to pause, play and record HD OTA programming and two NTSC tuners for recording two standard-definition shows simultaneously.

The z555 model comes with a 250 gigabyte (GB) 7,200 rpm Serial ATA hard drive, and the z557 model comes with two 300 GB hard drives, one being a personal media drive to deliver over half a terabyte of combined storage.

Both units offer high-performance TV quality with the Nvidia GeForce 6600 PCI-Express graphics card. This product enables digital entertainment enthusiasts to combine entertainment features and digital media management with the ability to surf the web or instant message friends, all in the convenience of their living rooms, by fusing the best of PC and audio-video elements.

All HP Digital Entertainment Center models are available for purchase now in North America, Sweden and France.

More information about the products mentioned above is available in an online press kit at www.hp.com/go/cedia2005.

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 July 31, 2005, HP revenue totaled $85.2 billion. More information about HP is available at www.hp.com.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever 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 and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected development, performance or rankings of products or services; statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the development, performance and market acceptance of products and services 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 Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2005, and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2004. HP assumes no obligation and does not intend to update these forward-looking statements.

(C) 2005 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.