Date: September 3, 2002

HP Defines the Digital Lifestyle with New HP Media Center PC

PALO ALTO, Calif., Sept. 3, 2002 -- HP (NYSE:HPQ) today announced the HP Media Center PC, which integrates both computing and entertainment features into an all-in-one, easy-to-use and affordable digital media center.

The only PC to be available this holiday season in North America with the new Microsoft® Windows® XP Media Center Edition software, the HP Media Center PC will combine the functionality of a PC, DVD and CD players and recorders, a TV, a digital jukebox and other consumer electronics components for spaces where consumers would want both a PC and entertainment solution -- such as a den, game room, teenager's bedroom, dorm room or small apartment.

"Entertainment is already one of the most popular uses for consumer PCs," said Duane Zitzner, executive vice president, HP Personal Systems Group. "HP is taking advantage of the convergence of these two market segments by providing users an all-in-one entertainment PC."

Featuring a sleek black and chrome design, the new HP Media Center PC will have a six-in-one media card reader on its front panel for quick and easy transfer of digital music, photos and other data. In addition, the PC will feature a specially designed remote control and front and back USB 2.0 and IEEE 1394 ports for simple hook up of handheld devices and transfer of video. Offering the latest in PC technology, it will also be configurable with powerful Intel® Pentium® 4 processors over 2 gigahertz, NVIDIA GeForce4 graphics, Klipsch speakers, HP DVD Writer, and photo and home movie creation and editing software.

The new Microsoft Windows XP Media Center Edition will allow the HP Media Center PC user to enjoy digital entertainment -- including live television, personal video recording, digital music, digital video, DVDs and pictures -- in an easy-to-use, remote-controlled interface similar to the simple, point-and-choose menu screens found on today's DVD movies. Intended to be used with a PC monitor, the HP Media Center PC also will be able to connect to a TV for a large-screen viewing experience.

"Consumers are ready to get more from their home PC, and together with Windows XP Media Center Edition and HP's Media Center PC we're poised to bring a really exciting new computer experience to market this fall," said Mike Toutonghi, vice president of the Windows eHome Division, Microsoft. "We applaud HP's efforts in innovating well beyond the traditional beige box. We hope consumers who are shopping for a PC this holiday season will be equally impressed and take home the HP Media Center PC to enjoy their favorite digital media as well as leverage the power of this machine as a productivity center."

With this new PC and remote control, recording popular TV shows will be as easy as selecting the program from the free(1), easy-to-use programming guide information that is downloaded from the Internet. Choose the "record" function with the remote and the system will record the program onto the PC for future viewing, without the need to program channels and recording times as with traditional VCRs.

Digital photos, videos and music will be able to be viewed and shared easily with the new Windows Media Center Edition interface. When saving these types of digital files to the PC, Windows automatically prompts the user to save the content into one of the default "My Pictures," "My Music" or "My Videos" folders. The Media Center interface will then automatically retrieve and display the saved photos, video images and music information directly out of these folders. All users have to do is point the remote to choose the file they want to view or listen to, without having to access the traditional multiple PC file menus.

Expected to be available through major retailers across the United States and Canada for the holiday buying season, the HP Media Center PC will have an estimated U.S. street price in the $1,500 to $2,000 range, depending on configuration.(2) Additional information is available at http://www.hp.com/go/mediacenterpc. Detailed product specifications, availability dates and exact pricing will be released later this fall.

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) Internet access required to download program guide.

(2) Actual prices may vary.