HP Teams with Infowerk AG to Deliver On-demand Car Manuals for Volkswagen; Short-run, Multi-version Printing Expected to Increase Customer Satisfaction and Reduce Costs.

Business Editors/High-Tech Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--April 7, 2003

HP (NYSE:HPQ) today announced that Infowerk AG in Nuremberg, Germany, is installing the first HP Indigo Press w3200 in Europe to print on-demand car manuals for Volkswagen. This enables the car manufacturer to more cost-effectively produce documentation in multiple languages and for multiple car types.

"There are two major reasons why digital printing technology is a good fit for Volkswagen," said Holger Lippe, manager of customer service information management, Volkswagen. "First and foremost, the HP Indigo printing technology meets the high quality standards required by Volkswagen corporation. Additionally, it allows us to support, on-demand, our growing number of niche car model manuals in multiple languages. This can only be done cost-effectively with digital printing."

On-demand printing enables companies to print smaller runs while decreasing inventory and ensuring that all information is up to date. Volkswagen is the third German car manufacturer to take advantage of Infowerk's innovative digital printing services. Infowerk estimates that the Volkswagen application will reach approximately 16 million pages per year.

"Volkswagen joins other leading companies who are increasing their marketing effectiveness with HP digital publishing," said Bill McGlynn, vice president, HP Digital Publishing Solutions. "The automotive industry's growing acceptance of on-demand, personalized, short-run printing is just one example of how HP is driving the transformation of marketing communications."

The fourth HP Indigo digital press to be installed at Infowerk, the HP Indigo Press w3200 significantly increases the company's digital printing capabilities. Infowerk is the largest digital printer in Bavaria and a leading German provider of database-supported media products and services.

Designed for high-volume commercial, publishing and direct mail applications, the seven-color HP Indigo Press w3200 creates high-impact printed products that incorporate personalized text and images and are composed and printed in real time on a wide range of substrates. It delivers a print speed of 8,000 A4 full-color images per hour and is designed for 24x7 production, making it the world's highest productivity digital offset color press.

"Our powerful combination of consulting, system development, media production and digital printing has proved to be a unique selling proposition and this is what has convinced VW to enter into digital printing with Infowerk AG," said Thomas Zlamal, managing board member, Infowerk. "Equally persuasive is the success we have been having with our HP Indigo presses to the point that today we offer the largest digital printing capacity in Europe."

Customization and personalization are already an integral part of Infowerk's expertise. The company has developed corresponding database solutions that automatically generate individual print output. By offering database-driven printing, finishing and distribution, Infowerk has built a one-stop total solution and service offering -- ensuring continued high levels of customer satisfaction.

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its acquisition of Compaq Computer Corporation on May 3, 2002. More information about HP is available at http://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 Securities and Exchange Commission reports, including but not limited to HP's annual report on Form 10-K for the year ended October 31, 2002, as filed with the Securities and Exchange Commission on January 21, 2003, 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 to update these forward-looking statements.