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HP Pavilion Home PCs Led U.S. Retail Market in First Two Months of 2000.

Business Editors & High Tech Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--April 18, 2000

HP Announces New HP Pavilion Home PCs with Web Page Software

PALO ALTO, Calif.--(BUSINESS WIRE)--April 18, 2000

Hewlett-Packard Company today announced that its HP Pavilion home PCs led the U.S. retail market in the first two months of 2000, capturing 43 percent of total unit share, vs. Compaq's 34 percent unit share, according to NPD INTELECT Market Tracking.(1)

"The success of the HP Pavilion home PC is a result of working closely with our retail partners to deliver customers value-driven products offering a wide range of computing solutions," said Sam Szteinbaum, business manager of HP's North America Consumer Computing Organization. "Our goal is to provide the best overall computing experience, so we have ensured that the new HP Pavilion PCs include features such as Internet and music-making capabilities that are applicable to the evolving needs of the customer."

HP also announced new HP Pavilion home PC models that take advantage of new processor speeds, such as the Intel(R) Celeron(TM) 566MHz processor. Additionally, all new HP Pavilion PCs include Trellix Web software that offers customers the latest technology and most comprehensive solutions for building and publishing their own Web sites, which is an increasingly popular way for people to share personal news and photos with family and friends.

The HP Pavilion home PCs announced today include the following configurations:


- The HP Pavilion 9695c PC is powered by an AMD Athlon
 850MHz processor and includes 128MB SDRAM, a 40GB Ultra
 DMA hard-disk drive, an HP CD-RW drive, an 8x DVD drive,
 a 10/100Base-T networking card, a 1.5Mbps Digital Lucent
 WildWire DSL modem, 16MB Nvidia TNT2 Pro AGP card, HP's
 one-touch Internet USB keyboard, USB scroller mouse, and
 a translucent cobalt-blue chassis. The HP Pavilion 9695c
 PC is expected to sell for an estimated U.S. street
 price of $2,099.(2)

- The HP Pavilion 8665c PC is powered by an Intel
 Pentium(R) III 600MHz processor and includes 128MB
 SDRAM, a 30GB Ultra DMA hard-disk drive, an HP CD-RW
 drive, an 40x CD-ROM drive, a 10/100Base-T networking
 card, a V.90 56K modem and one-touch Internet keyboard.
 The HP Pavilion 8665c PC is expected to sell for an
 estimated U.S. street price of $1,249.(2)

- The HP Pavilion 8655c PC is powered by an Intel Pentium
 III 533MHz processor and includes 64MB SDRAM, a 30GB
 Ultra DMA hard-disk drive, an HP CD-RW drive, a 40x
 CD-ROM drive, a V.90 56K modem and one-touch Internet
 keyboard. The HP Pavilion 8655c PC is expected to sell
 for an estimated U.S. street price of $1,049.(2)

- The HP Pavilion 6645c PC is powered by an Intel Celeron
 566MHz processor and includes 64MB SDRAM, a 15GB Ultra
 DMA hard-disk drive, an HP CD-RW drive, a V.90 56K modem
 and one-touch multimedia keyboard. The HP Pavilion 6645c
 PC is expected to sell for an estimated U.S. street
 price of $849.(2)

- The HP Pavilion 6635 PC is powered by an Intel Celeron
 533MHz processor and includes 64MB SDRAM, a 10.2GB Ultra
 DMA hard-disk drive, a 40x CD-ROM drive, a V.90 56K
 modem and one-touch multimedia keyboard. The HP Pavilion
 6635 PC is expected to sell for an estimated U.S. street
 price of $649.(2)


HP Pavilion home PCs are available at consumer electronics, computer and office superstores nationwide and at www.hpshopping.com.

More information on HP Pavilion home PCs is available on the Web at www.hp-at-home.com or by calling 1-800-PC-HOME-1.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services for business and home -- is focused on capitalizing on the opportunities of the Internet and the proliferation of electronic services.

HP announced that it will spin off Agilent Technologies and distribute its shares of Agilent on June 2, 2000 to HP shareowners of record as of May 2, 2000. Agilent consists of HP's test and measurement, semiconductor products, chemical analysis and healthcare solutions businesses.

HP has 85,400 employees worldwide and had total revenue from continuing operations of $42.4 billion in its 1999 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

Note to Editors:

(1) NPD INTELECT Market Tracking, through February 2000 YTD Total U.S. Retail Desktop Unit Share.

(2) Actual prices may vary. Prices do not include monitor.

Intel and Pentium are U.S. registered trademarks and Celeron is a U.S. e trademark of Intel Corporation.

This news release may contain forward-looking statements that involve risks, uncertainties and assumptions that could cause results of Hewlett-Packard Company to differ materially from management's expectations. Such risks are detailed from time to time in Hewlett-Packard's Securities and Exchange Commission reports, including but not limited to the annual report on Form 10-K for the year ended Oct. 31, 1999 and any subsequently filed reports.
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