Date: October 4, 2002

HP Gives the Gifts of Creativity and Entertainment with New Holiday Line of HP Pavilion PCs

PALO ALTO, Calif., Oct. 4, 2002 -- HP (NYSE:HPQ) today announced new HP Pavilion desktop and notebook PCs for this holiday season, designed for performance, creativity and entertainment.

Optimized to work well with all digital devices and sporting a new, sleek chassis design, the HP Pavilion 700 series desktop PCs provide powerful performance, connectivity and software solutions for an advanced digital entertainment experience. The HP Pavilion 500 series desktop PCs are perfect for families looking for a full-featured, affordable PC that's easy to set up and use for work or play.

In addition, HP is now offering the ability to burn CDs across all models in the retail desktop PC line at very appealing prices. With the included CD-RW drive and HP Memories Disc Creator software, all HP Pavilion customers can now easily create personalized digital photo slide shows on CD for sharing with family and friends.

The holiday retail notebook PC lineup delivers powerful performance and simplicity while keeping consumers mobile with several new models in the HP Pavilion ze4100 notebook series. HP also is offering new Pavilion ze5000 series notebook PC models for the latest technology needed to stay connected and productive in a bold, stylish design.

"With our new features and prices for the HP Pavilion line, consumers now have more flexibility to choose and explore the digital experiences that interest them most and best fit into their budget," said Sam Szteinbaum, North America vice president of consumer products, HP Personal Systems Group. "The performance and software we've included in our Pavilion home PCs give our customers the easy-to-use tools they need to explore digital photography, video, music, gaming or whichever digital interests they are looking to discover and enjoy."

HP Pavilion Desktop PC Holiday Lineup

Ready for work or play right out of the box, the HP Pavilion 503n is powered by an Intel® Celeron® 1.7-GHz processor and includes 128 MB DDR SDRAM, a 40 GB Ultra DMA hard disk drive, integrated Intel Extreme graphics with up to 32 MB shared video memory, 32x max CD-RW drive, Polk Audio stereo speakers, front access USB 2.0 ports and a 10/100 Base-T LAN interface. Priced at a low $499(1) for the holidays, the HP Pavilion 503n is a great family PC and is expected to be available in retail stores beginning Oct. 13.

For the digital photography and video enthusiast, HP offers the Pavilion 753n. Powered by an Intel Pentium® 4 2.53-GHz processor, the 753n includes 512 MB DDR SDRAM and an 80 GB Ultra DMA hard disk drive with plenty of room for digital music, images and videos files. It also has integrated Intel Extreme graphics with up to 64 MB shared video memory, both a DVD-ROM and 40x max CD-RW drive, front-access USB 2.0 and IEEE 1394 ports in addition to ArcSoft 's PhotoImpression and Showbiz software applications for complete home photography and video editing capabilities. The HP Pavilion 753n is expected to be available in retail stores starting Oct. 6 for $999.(1)

For consumers looking for advanced performance and entertainment features, the HP Pavilion 763n is powered by an Intel Pentium 4 2.53-GHz processor and includes 512 MB DDR RAM, both an HP DVD-writer dvd200i drive and CD-ROM drive, a huge 80 GB Ultra DMA hard disk drive and front-access USB 2.0 and IEEE 1394 ports. In addition, the 763n features an NVIDIA GeForce4 MX420 graphics card with 64 MB DDR SDRAM video memory and TV-out functionality ideal for high-performance gaming and Sonic Solution's MyDVD software to quickly and easily save home movies to DVD or CD. At an estimated U.S. street price of $1,249,(1) the HP Pavilion 763n is expected to be available in retail stores beginning Oct. 13.

In addition, all HP Pavilion desktop PCs feature Polk Audio stereo speakers, high-speed V.90 56k data/fax modem, easy-access front USB ports for quick connection to digital photography peripherals and a 10/100 Base-T network interface.

All HP Pavilion desktop PCs also come bundled with a variety of valuable software programs such as the intuitive HP Pictures and Video Toolkit, which features ArcSoft Showbiz PhotoImpression, Greeting Card Creator and FunHouse, HP Memories Disc Creator, and HP Photo Printing software for complete home photography and video editing.

New HP Pavilion Notebook PCs

Five new notebook PC models from HP also were unwrapped for the holiday buying season: the HP Pavilion ze4115, ze4125, ze4145 ze5155 and ze5185.

Both the HP Pavilion ze4100 and ze5000 series notebooks feature HP Memories Disc Creator and ArcSoft software for easy creation of slide shows and archives of digital images for display on a PC or home DVD player, or to create photo albums and slide shows to share with friends and family over the Web. The notebooks also can double as portable digital entertainment studios with PowerDirector Pro(3) for digital video editing and MUSICMATCH Jukebox -- a complete, personal music system -- to help consumers enjoy and manage all their digital content.

The HP Pavilion ze4100 notebook series enables consumers to enjoy digital media and entertainment on the go with thin and light notebooks at great prices. The HP Pavilion ze4125 model features a 15-inch XGA display, AMD Athlon XP 1600+ processor with PowerNow! technology, 256 MB PC2100 DDR 266 MHz SDRAM, DVD/CD-RW combo optical drive, 40 GB hard drive, integrated 10/100 LAN and integrated V.90/V.92 56k modem, all for an estimated U.S. retail price of $1,349.(2)

The HP Pavilion ze4115 model features a 14-inch XGA display, AMD Athlon XP 1500+ processor with PowerNow! technology, 256 MB PC2100 DDR 266 MHz SDRAM, DVD/CD-RW combo optical drive, 30 GB hard drive, integrated 10/100 LAN and integrated V.90/V.92 56k modem, all for an estimated U.S. retail price of $1,199.(2)

The HP Pavilion ze4115 and ze4125 are expected to be on retail shelves starting Oct. 6.

The HP Pavilion ze4145 model features a 15-inch XGA display, AMD Athlon XP 1800+ processor with PowerNow! technology, 512 MB PC2100 DDR 266 MHz SDRAM, DVD/CD-RW combo optical drive, 40 GB hard drive, integrated 10/100 LAN and integrated V.90/V.92 56k modem, all for an estimated U.S. retail price of $1,499.(2) The HP Pavilion ze4145 is expected to be on retail shelves starting Oct. 13.

The HP Pavilion ze5000 notebook series enables consumers to enjoy maximum creativity and ultimate entertainment with powerful digital audio, photo and video capabilities. The ze5155 notebook PC is powered by the Intel Pentium 4 1.8-GHz processor, ATI MOBILITY RADEON graphics controller with 32 MB of dedicated video memory, 15-inch XGA display, 40 GB hard drive and DVD/CD-RW combo optical drive in an all-in-one design. Expected on retail shelves beginning Oct. 13, the new HP Pavilion ze5155 will have an estimated U.S. retail price of $1,699.(2)

The HP Pavilion ze5185 provides complete desktop convenience and functionality in a mobile PC, featuring an Intel Pentium 4 2.4-GHz processor, ATI MOBILITY RADEON graphics controller with 32 MB of dedicated video memory, 15-inch SXGA+ display, 60 GB hard drive and DVD/CD-RW combo optical drive in an all-in-one design. Expected on retail shelves starting Oct. 1, the HP Pavilion ze5185 will be priced starting at $1,999.(2)

Availability

HP's holiday 2002 line of HP Pavilion desktop and notebook PCs are to be available in October at consumer electronics and computer superstores nationwide as well as direct from HP via www.hpshopping.com or HP's retail kiosks. Consumers also can customize their own PC through HP's configure-to-order program via www.hpshopping.com.

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 merger transaction involving Compaq Computer Corp. on May 3, 2002. More information about HP is available at http://www.hp.com.

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(1) Based on estimated U.S. street prices. Actual prices may vary.

(2) Based on estimated U.S. street prices. Includes $100 mail-in rebate. Actual prices may vary.

(3) Available only on notebook models with optional IEEE 1394 port.