HP Helps Mobile Operator Optimus Combat Wireless Fraud - and Minimize Revenue Losses; HP Win in Portugal Extends Global Leadership in Fraud Management.

PALO ALTO, Calif. -- HP (NYSE:HPQ)(Nasdaq:HPQ) today announced that Optimus, a leading mobile operator in Portugal, has selected the HP Fraud Management Solution (HP FMS) to combat traditional voice-based fraud, as well as new forms of fraud that are emerging with the arrival of converged voice and data services. E[acute accent]The HP FMS also will be used by Novis, Optimus' sister company that delivers fixed-line services in Portugal. E[acute accent]Optimus provides more than 2.1 million subscribers - about 20 percent of the Portugal market - with a full range of GPRS-based mobile services. In June 2004, Optimus began providing higher speed 3G mobile services based on the UMTS standard. E[acute accent]Network and service providers continue to scrutinize operating costs and pay increased attention to telecom fraud. As perpetrators infiltrate networks and steal services, fraud losses worldwide are estimated to be between $35 billion and $40 billion.(1) In response, Optimus is deploying HP FMS Version 9 to detect fraud more quickly and to reduce the revenue losses associated with it. E[acute accent]Designed to combat these losses, the highly scalable HP FMS is able to monitor every single call and data exchange, allowing operators to catch fraud while it occurs. It also enables operators to detect unbilled calls, which represent uncollected revenue. Additionally, HP FMS can help reduce operational costs in internal fraud management organizations. E[acute accent]"HP presented us with the most comprehensive and widely deployed fraud management solutions in the world," said Artur Loureiro, chief information officer, Optimus. "In addition, we found the quick implementation time as well as the reduced risk and cost-effectiveness with which HP FMS can be deployed to be very compelling." E[acute accent]HP FMS also allows Optimus and other carriers to address the new opportunities for fraud that have arisen with the convergence of voice and data services. New content-rich communications services that involve data are potentially lucrative sources of revenue, but they also present significant fraud risks for operators, particularly when valuable content is integrated into the service from a third-party content provider. E[acute accent]HP FMS enables Optimus to offer these services without incurring the substantial profitability risks and liabilities related to stolen content and value-added services. E[acute accent]"HP was the right partner for Optimus because of its knowledge of the fraud business - and the key features in its solution, especially the flexibility and the ability to detect fraud in data services," said Jose Carlos Sobreira Martins, director, Fraud Management, Optimus. E[acute accent]HP provides fraud protection for more than 250 million subscribers with nearly 70 service providers in 34 countries as well as for numerous large, multinational telecommunications enterprises around the world. Optimus will deploy the solution to more than 2 million subscribers this year. E[acute accent]"With the advent of data services - and the inevitable new forms of fraud - the stakes have become significantly higher for service providers," said Marco Limena, vice president, Network and Service Provider Solutions, HP. "They need a trusted partner that understands global fraud in all its forms. HP has more than 12 years of experience in this area, and our FMS solution is a mature product that continues to evolve to ensure that our customers are staying ahead of increasingly sophisticated fraudsters." E[acute accent]The HP Fraud Management Solution is a component of HP's comprehensive portfolio of revenue assurance and revenue enhancement offerings that help network and service providers increase revenues and improve operational efficiency across all aspects of their businesses, including fulfillment, assurance, billing and support processes. E[acute accent]More information about HP's revenue assurance and fraud management solutions is available at www.hp.com/go/fraud.

E[acute accent]About Optimus

E[acute accent]Since its launch in 1998, Optimus has been continuously growing in the Portuguese market with one goal in mind: to lead the Portuguese telecommunications market by offering high-quality services and mobile phones to its customers that make people's lives easier. E[acute accent]Optimus is the only telecommunications operator in the world to have received three GSM Awards for three consecutive years and has been recently recognized by the national telecommunications regulator as the best network operator in the Portuguese market. More information about Optimus is available at www.optimus.pt.

E[acute accent]About HP

E[acute accent]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, 2005, HP revenue totaled $81.8 billion. More information about HP is available at www.hp.com.

E[acute accent](1) Source: CFCA (Communications Fraud Control Association), March 2003.

E[acute accent]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 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 Jan. 31, 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.

E[acute accent](C) 2005 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP shall not be liable for technical or editorial errors or omissions contained herein.