HP Drives Enterprise Printing Growth with Nearly $500 Million in Total Print Management Contracts.

Business Editors/High-Tech Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 8, 2003

HP Technology and Services Portfolio Unlocks the Value of Imaging

and Printing Assets for More Than 625 Customers

HP (NYSE:HPQ) today announced that more than 625 customers representing nearly $500 million in service contracts have signed up to date for HP's Total Print Management (TPM) solution, an innovative HP technology and services combination that has helped companies save us much as 30 percent of their enterprise printing costs. HP now manages more than 30,000 output devices for clients around the world.

Analysts estimate that the market for imaging and printing business services will grow to more than $17.5 billion in 2006. Total Print Management is a key growth area for HP's market-leading imaging and printing business and one of several HP Adaptive Enterprise solutions designed to help companies capitalize on change. New contracts since HP announced its Total Print Management portfolio in March 2003 include Bayer, Bechtel SAIC Company LLC and Duke University.

"Many companies are recognizing they should manage their print environments with the same level of discipline they use to manage their overall computing environments," said Ann Livermore, executive vice president, HP Services. "As more content and business processes go digital, customers are finding opportunities to rethink their printing assets to save significant money and time. With nearly $500 million in contracts to date and $300 million in prospective business, we're seeing strong customer demand for HP's Total Print Management. From self-managed to outsourced printing, only HP has the computing, printing and services expertise required to transform printing's role in the enterprise."

Over the past year, HP has extended its leading imaging and printing capabilities to help companies reduce costs, improve business operations and attract customers with real-time targeted marketing capabilities. Total Print Management is one of the first solutions HP has brought to market to help companies manage their imaging and printing infrastructure to lower costs and improve productivity.

HP's TPM portfolio allows customers to assess, design, deploy and manage their printing and imaging environments to improve efficiency and productivity while driving down costs. Using an assortment of HP-patented assessment tools and real-time computer-based calculations, HP helps customers understand their current imaging and printing infrastructure and related costs. From that, HP can quickly turn around a custom, in-depth assessment to increase efficiency and effectiveness.

"Many customers don't realize that their out-dated printing environments are generating hidden costs, workgroup redundancies, product inefficiencies and over-priced service agreements," said Vyomesh Joshi, executive vice president, Imaging and Printing Group, HP. "Our assessments put the cost savings into black and white, making it easier to make smart decisions that can dramatically enhance a company's operations."

HP offers a comprehensive networked imaging and printing portfolio, from printing and imaging devices to management software to deployment services across the office environment. Most HP printers and multi-function devices contain embedded firmware and software that enable intelligent Internet communication with PCs and servers, and select HP printers allow efficient tracking of consumables usage and streamlined consumables ordering via a simple, intuitive Web-based process.

HP's TPM portfolio includes the industry's most widely used management software for enterprise printing environments: HP Web JetAdmin for proactive, multi-site device management and HP OpenView for integrated IT management. HP's TPM portfolio also provides a simplified, reliable print-area network with products such as HP Print Server Appliance to increase productivity through automatic driver distribution, spooling and print queue hosting.

Customers who choose a managed services option from HP also can gain access to HP's managed print portal, a Web-based set of services that provides complete, real-time visibility at a glance to the health and efficiency of a company's fleet of printing devices, leveraging HP's embedded technology and network management expertise.

More information on HP's Total Print Management initiative is available at www.hp.com/go/tpm.

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 consumers, enterprises and small and medium businesses. For the last four quarters, HP revenue totaled $71.3 billion. More information about HP is available at www.hp.com.

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 Quarterly Report on Form 10-Q for the period ended July 31, 2003 and HP's other Securities and Exchange Commission reports filed after HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2002. 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.