HP Unveils Imaging and Printing Solutions to Reduce Costs and Complexity for Enterprise and Mid-Size Businesses.

FRANKFURT, Germany -- Delivering on Strategy to Transform Copier Market, HP Uses Customer Feedback to Develop Industry's Most Affordable High-Performance Multi-Function Product

HP (NYSE:HPQ) (Nasdaq:HPQ) today unveiled 14 new imaging, printing and digital information solutions, including a groundbreaking multi-function product that provides a low-cost, high-performance alternative to expensive and complex copiers.

HP also showcased new customers that are saving money and increasing productivity through HP's Total Print Management initiative, which integrates devices, software and services so customers can optimize their imaging and printing environments.

The highlight of today's announcement is the HP LaserJet 4345mfp, a breakthrough alternative to mainstream copiers because it delivers similar performance -- up to 45 pages per minute -- at a third of the cost of comparable devices.

HP customers provided the feedback and day-to-day usage scenarios that fueled the creation of the HP LaserJet 4345mfp, which offers rich but simple-to-use management features for greater IT efficiency and user satisfaction. And unlike the restraints of traditional copier engagements, HP does not require costly service contracts. Instead, customers are encouraged to decide what level of support best meets their business needs.

"The HP LaserJet 4345 has provided instant value to our bottom line," said Drew Yoder, account manager with The Security Group, an Idaho-based designer and seller of fully integrated security systems. "We have been able to more effectively manage our daily print operations, yielding enhanced productivity and efficiency for our business."

According to Keith Kmetz, program director of IDC Hardcopy Peripherals Solutions and Services, "HP's LaserJet 4345mfp has the potential to significantly disrupt the traditional copier business model by bringing its low cost, no service contract requirement and open distribution approach to the higher-speed office segment. Customers are asking their suppliers for products and services that reduce their costs while maintaining essential functionality. HP is addressing this need with a unique offering in the workgroup MFP market."

Businesses around the world across a variety of industries face a similar day-to-day challenge: save money while better serving a growing clientele in the face of increasing competition. HP helps solve this challenge through a variety of imaging and printing solutions, products and services that reduce complexity and costs while improving business processes and document workflow.

"HP found that 80 percent of customers are paying for copiers overloaded with features and functions that are rarely used. The HP LaserJet 4345mfp delivers the performance and reliability customers want but doesn't make them pay for the extras they don't need," said Vyomesh Joshi, executive vice president, Imaging and Printing Group, HP. "With all of the solutions announced today, HP is answering the real-world needs of its customers so they can save money while increasing productivity."

A Superior Customer Experience

Some of the customers benefiting from HP solutions include:

--The University of Lincoln: A rapidly growing student population put a huge burden on the demands of the school's imaging and printing facilities. Professor David Chiddick, vice chancellor of the University of Lincoln, said: "In the first year of implementing HP's balanced deployment model, we achieved our goal of eliminating material waste and reducing print volume by 25 percent, saving over $180,000 in expenses and eliminating over $1,800,000 in capital costs."

--Swiss Post: With 56,000 employees delivering more than 16 million letters per day, Switzerland's primary mail company needed to lower costs and better meet the needs of its customers, resulting in the consolidation of its entire fleet of printers, photocopiers and fax machines. "The complete overhaul of our output management operation allows us to optimize our business processes, save money and free our internal resources to fully focus on our core competencies," said Jean-Pierre Streich, business management specialist, Swiss Post.

--Popeye's Chicken and Biscuits: Operating more than 1,800 restaurants in more than 40 states, Popeye's Chicken and Biscuits wanted to combine imaging and printing resources across multiple companies into one system for easier management and greater operating efficiencies. "Adopting a managed print approach has allowed us to significantly simplify and streamline our printer infrastructure and save money by reducing half the number of printers to support operations," said Rob Hough, chief information officer, Popeye's Chicken and Biscuits. "Our divisions now require less support from the help desk and can more effectively utilize our printing environment."

--Public Assistance Hospitals of Paris (APHP): Conducting clinical research with 350 active projects and 35,000 patients, APHP uses HP Forms Automation System to keep paper forms as their main data acquisition method while accessing clinical research data at any time during the research. "We use the HP Forms Automation System in 50 hospitals across France, enabling us to capture and share data quickly within the research community," said Dr. Philippe Ravaud, head of Epidemilogy and Biostastics Department, APHP. "Having timely access to the information allows us to make informed decisions sooner, yielding more accurate and cost-effective results."

--Eurocopter: The world's leading manufacturer of helicopters needed to keep paper forms in the process, but the data was not easily accessible and was prone to error upon keyed entry. "The HP FAS solution has been quickly adapted to our existing work routines. It gives us the advantages of traceability, combined with data capture and processing for real-time data analysis, and ensures better quality assurance during the manufacturing process. Given the strong results we've experienced thus far, we will further extend the use of HP FAS technology to all Eurocopter assembly lines," said Georges-Eric Moufle, manufacturing methods director, Eurocopter.

Breakthrough Products and Solutions

HP has expanded its printing and digital information offerings to provide customers with more productive and efficient options for improving document workflow and management, helping customers to unlock the value of their IT assets.

These new offerings enhance HP's Total Print Management initiative, enabling customers to achieve a flexible printing environment. For example, all of the HP MFPs announced today feature a common control panel and intuitive user interface requiring less IT management across the network and providing greater end-user satisfaction.

New HP multi-function, volume and color printing solutions include:

--HP LaserJet 4345mfp series: The HP LaserJet 4345mfp series consolidates everyday features customers need (printing, copying, scanning and faxing) in a device small enough for the desktop, making it ideal for businesses with limited floor space. Built on the industry-leading HP LaserJet technology, networking and management capabilities, including HP Web Jetadmin, the HP LaserJet 4345mfp is an ideal printing solution for nearly every office environment. Estimated street price starts at $2,599.(1)

(Unless otherwise noted, all offerings are expected to be available beginning Nov. 30.)

--HP LaserJet 9040mfp and HP LaserJet 9050mfp: Ideal for large workgroups that require efficient workflow with worry-free reliability, the HP LaserJet 9040/50mfp's include key features such as high-resolution prints and copies at 40 and 50 ppm, respectively. These high-performance units boost productivity with printing, copying, faxing and digital sending in one device. Estimated street prices start at $9,999.(1)

--HP Color LaserJet 9500mfp: This color multifunction device -- designed especially for demanding networked workgroups and departments -- provides color printing, copying, scanning, scan-to-email, analog faxing and document finishing within a single device. Estimated street price starts at $12,549.(1)

--HP LaserJet MFP Analog Fax Accessory 300: This easy-to-install, internal fax card for HP MFPs improves workflow productivity and increases functionality. Estimated street price starts at $249.(1)

--HP Designjet 4000 series: Powered by new HP Double Swath technology, which provides faster performance without sacrificing image quality, the HP Designjet 4000 series delivers high-speed color and monochrome printing up to 42 inches wide with outstanding line accuracy, image quality and remote printer management. The HP Designjet 4000 series is ideal for line drawings, graphics, maps, renderings and presentations for medium and large businesses. Expected availability begins Feb. 7, 2005, with an estimated street price starting at $9,995.(1)

HP Innovative Technologies

HP continues to lead the industry with digital information solutions that provide fast and affordable ways of transforming data from the static to the dynamic. Solutions unveiled today include:

--HP 9200c Digital Sender: Users can easily, accurately and securely scan documents directly to e-mail, fax services, network folders and content/document management systems, while reducing costs and enhancing productivity with one dedicated device. Estimated street price starts at $3,199.(1)

--HP Digital Sending Software 4.0: Customers can improve core business processes and streamline critical business document handling with HP Digital Sending Software 4.0. Because it integrates with existing IT infrastructures, customers can maximize return, mitigate risk and reduce business costs. Estimated street price starts at $399.(1)

--HP Digital Send Authentication Solution (DSAS): Designed for the HP Officejet 9100 series, HP DSAS ensures secure NT domain user authentication, allowing only valid users to access the network through an all-in-one device -- a reliable and affordable way to quickly enhance network security for digital sending or other walk-up jobs. Expected availability begins Jan. 1, 2005, with an estimated street price starting at $299.(1)

--HP AutoStore: The industry standard for distributing document capture workflow automation, HP AutoStore enables IT managers to fully control, manage and simplify complex content capture pipelines into content management systems, enabling businesses to dramatically shrink costs, increase productivity and reduce risk. HP AutoStore now offers the option of HP support, maintenance and upgrades via the award-winning HP Care Packs, non-HP device compatibility and many new modules. An OEM version of NSi AutoStore and developed using HP's Chai open development platform, HP AutoStore is a product of the companies' five-year collaboration to offer customers a version of superior quality and functionality. Compatible with all Chai-enabled HP LaserJet MFPs and Digital Senders, HP AutoStore will be available through HP resellers worldwide and has an estimated street price starting at $3,042.(1)

--HP Digital Pen and Paper: New for the HP Forms Automation Solution system is the HP Digital Pen 250, an enhanced digital pen featuring a slim design, increased physical security and sizable memory -- holding up to 200 form pages before a download is needed. Also, HP FAS now supports additional HP printers and new digital layout design tools to automate form design. The HP Digital Pen 250 is available now with an estimated street price starting at $200.(1)

--HP Web Jetadmin 7.8: HP's latest enhancement to its industry-leading imaging and printing management software enables customers to use one solution to manage their heterogeneous imaging and printing environments. New features include device alerts, diagnostics and configuration options for HP and non-HP devices; fleet configuration of HP MFP digital send-to-email and fax settings; automatic device configuration; a plug-in able to discover PC-connected printers; and a certification program for more advanced management of non-HP devices. The software is now available via a free download from www.hp.com/go/webjetadmin.

--HP Web Jetadmin Report Generation Plug-in v2.0: Customers can easily collect, store and display printer and supplies usage data with this latest software. Enhanced features allow users to track and forecast supplies usage, device assets and error logs to increase productivity and reduce network impact. The software is available now as a free download from www.hp.com/go/wja_reports.

--HP Web Delivery 1.5.1: Businesses can rely on HP Web Delivery 1.5.1 for the sharing and delivery of business-critical documents to the web. In addition to the customization, delivery and notification of documents standard in previous versions, HP Web Delivery 1.5.1 improves performance with optimized queries and user interface enhancements. Available immediately with an estimated street price starting at $25,000 per HP Web Delivery server.(1)

More detailed information on the offerings mentioned above is available in an online press kit at www.hp.com/go/EIP2004.

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 four fiscal quarters ended July 31, 2004, HP revenue totaled $78.4 billion. More information about HP is available at www.hp.com.

(1) All prices shown are HP's recommended street prices and also reflect the price of products purchased directly from HP under www.hp.com. All prices are subject to change without notice. Reseller prices may vary.

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 period ended July 31, 2004 and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003. HP assumes no obligation and does not intend to update these forward-looking statements.

(C) 2004 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.