HP ENTERS DIGITAL PROJECTOR MARKET

PALO ALTO, Calif., April 8, 2002 -- Hewlett-Packard Company (NYSE:HWP) today announced it is extending its digital imaging expertise in printing, scanning and digital photography into the portable digital projector market by introducing two of the industry's brightest and lightest weight products.

The HP Digital Projectors xb31 and sb21 will be HP's first portable projector systems targeted to mobile users. The HP Digital Projector xb31 offers the industry's leading brightness in the three-pound class at 1,500 lumens. The HP Digital Projector sb21 is the lightest projector in the 1,000 lumens class, weighing only 2.2 pounds. Both projectors are expected to be available for purchase beginning April 15.

"Uniting our success in the printing and imaging market by printing to the screen, HP is taking its first step in becoming a leader in the portable digital projector market," said Vyomesh Joshi, president, HP Imaging and Printing Systems. "As the parameters of mobility continue to evolve, our digital projectors set the standard for how presentations will be delivered -- image quality, ease of use, performance and mobility are taken to a new level for customers."

The sub-three pound front projector market is forecasted to grow almost 130 percent annually between 2001 and 2004.(1) HP expects to help fuel this growth with its presence in the market and by introducing technological advances largely leveraged from its mobile computing and printing and imaging portfolios and from its intellectual property in Internet and wireless connectivity.

Ideal for multimedia- and graphics-intensive presentations, the HP Digital Projectors xb31 and sb21 are targeted to a wide spectrum of mobile professionals -- from the global traveler to the campus commuter. Both projectors are easy to use and feature unmatched 1,800:1 contrast ratio for deep blacks and rich, full colors. Both are based on Texas Instrument's Digital Light Processing technology.

Customers can benefit from HP's distribution relationships by purchasing the digital projectors through computer resellers. This offers customers the opportunity to avoid a second trip to audio-video specialists by purchasing complete computing and imaging solutions through one vendor.

Computer resellers are increasingly becoming the preferred choice for buying digital projectors. "According to our 2001 worldwide Projection Displays report, the computer channel is increasing its market share among all the distribution channels for front projectors," said Sweta Dash, director of projection research, iSuppli/Stanford Resources. "We expect the computer channel to be the dominant channel after 2004."

Additional Features, Services and Solutions

The HP Digital Projectors xb31 and sb21 feature:

1. Automatic image synchronization;
2. Full multimedia capabilities: support for PAL, NTSC and SECAM video formats, including HDTV (up to 1080i) compatibility;
3. Compatibility with XGA, SVGA, VGA and Macintosh video signals from one DV-I input terminal;
4. 1024x768 XGA or 800x600 SVGA resolution, depending on model;
5. Easy-to-use wireless remote control featuring complete projector functionality, additional user-friendly keys and a laser pointer;
6. Two-year limited warranty;
7. Shared connectivity cables supporting major North American, European, Asia Pacific and Latin American regional standards; and
8. Power cord, tethered lens cap, batteries and carrying case.

Pricing and Availability

Estimated U.S. street prices are $3,699 for the HP Digital Projector xb31 and $2,499 for the HP Digital Projector sb21.(2) Both products are expected to be available April 15 in the United States from HP resellers and the HP Business Store at www.buy.hp.com.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to all. HP had total revenue of $45.2 billion in its 2001 fiscal year. Information about HP and its products can be found on the World Wide Web at www.hp.com.

(1) iSuppli/Stanford Resources, Projection Displays 2001 Report.

(2) Actual prices may vary.

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 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, as amended on January 30, 2002, for the fiscal year ended October 31, 2001, 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 and does not intend to update these forward-looking statements.

Editorial Contacts:

Kipp Martell
Hewlett-Packard Company
208.396.6034
kipp_martell@hp.com

Lauren Gilligan
Weber Shandwick Worldwide for HP
617.520.7279
lgilligan@webershandwick.com