July 3, 2003

HP Delivers Affordable, Reliable Microtower PC to Small- and Medium-sized Businesses

PALO ALTO, Calif.--(BUSINESS WIRE)--July 2,
2003--HP (NYSE:HPQ) today introduced an affordable,
high-quality desktop PC for small- and medium-sized
business (SMB) customers: the HP Compaq Business
Desktop d220 Microtower.

The microtower desktop features Intel(R) Pentium(R)
4 or Celeron(R) processors and offers three PCI
expansion slots, two double data rate (DDR) memory
slots and five drive bays in a compact microtower
platform, allowing for expansion or future upgrades.

"Our SMB customers are looking to maximize their IT
investment, and the combination of low purchase price
and consistent, reliable performance in the HP Compaq
d220 provides value-seeking businesses a solid platform
choice," said Keith LeFebvre, vice president of
business desktop division, Americas, HP Personal
Systems Group.

The HP Compaq Business Desktop d220 is designed to
keep IT simple, with the choice of customizable or
pre-configured solutions optimized for affordability
and quality. Customized solutions, available beginning
July 7, start at an estimated U.S. street price of
$349(1) with an Intel Celeron 2.0-gigahertz processor,
40-gigabyte hard drive and 128-megabyte DDR SDRAM.
Customers also can opt for an Intel Pentium 4
2.4-gigahertz processor, 40-gigabyte hard drive and
128-megabyte DDR SDRAM for as low as an estimated U.S.
street price of $499(1).

For customers interested in pre-configured
solutions with an Intel Celeron 2.0-gigahertz
processor, pricing starts at an estimated $429(1). Or,
for customers requiring additional processing power,
the HP Compaq d220 is available pre-configured with a
2.4-gigahertz Intel Pentium 4 processor, 40-gigabyte
hard drive, 512-megabyte DDR SDRAM, integrated Intel
Extreme Graphics, DVD+RW/CD-RW combo drive, six USB 2.0
ports and Microsoft Windows(R) XP Professional --
priced at an estimated U.S. street price of only
$799(1).

HP Compaq desktops are available with the latest
operating systems from the industry leader, Microsoft,
as well as a robust Linux offering from Mandrake. The
HP Compaq d220 offers a choice of Microsoft Windows XP
Professional, Microsoft Windows XP Home or Mandrake's
Linux v9.1, providing customers with the versatility
needed for today's mixed-use environments.

The HP Compaq Business Desktop d220 Microtower is
now available directly from HP or through authorized
resellers. More information about the product is
available at http://www.hp.com/products/desktops.

About HP

HP delivers vital technology for business and life.
The company's solutions span IT infrastructure,
personal computing and access devices, global services
and imaging and printing for consumers, enterprises and
small and medium business. For the last four quarters,
HP revenue totaled $70.4 billion. More information
about HP is available at http://www.hp.com.

The microtower desktop features Intel(R) Pentium(R)
4 or Celeron(R) processors and offers three PCI
expansion slots, two double data rate (DDR) memory
slots and five drive bays in a compact microtower
platform, allowing for expansion or future upgrades.

"Our SMB customers are looking to maximize their IT
investment, and the combination of low purchase price
and consistent, reliable performance in the HP Compaq
d220 provides value-seeking businesses a solid platform
choice," said Keith LeFebvre, vice president of
business desktop division, Americas, HP Personal
Systems Group.

The HP Compaq Business Desktop d220 is designed to
keep IT simple, with the choice of customizable or
pre-configured solutions optimized for affordability
and quality. Customized solutions, available beginning
July 7, start at an estimated U.S. street price of
$349(1) with an Intel Celeron 2.0-gigahertz processor,
40-gigabyte hard drive and 128-megabyte DDR SDRAM.
Customers also can opt for an Intel Pentium 4
2.4-gigahertz processor, 40-gigabyte hard drive and
128-megabyte DDR SDRAM for as low as an estimated U.S.
street price of $499(1).

For customers interested in pre-configured
solutions with an Intel Celeron 2.0-gigahertz
processor, pricing starts at an estimated $429(1). Or,
for customers requiring additional processing power,
the HP Compaq d220 is available pre-configured with a
2.4-gigahertz Intel Pentium 4 processor, 40-gigabyte
hard drive, 512-megabyte DDR SDRAM, integrated Intel
Extreme Graphics, DVD+RW/CD-RW combo drive, six USB 2.0
ports and Microsoft Windows(R) XP Professional --
priced at an estimated U.S. street price of only
$799(1).

HP Compaq desktops are available with the latest
operating systems from the industry leader, Microsoft,
as well as a robust Linux offering from Mandrake. The
HP Compaq d220 offers a choice of Microsoft Windows XP
Professional, Microsoft Windows XP Home or Mandrake's
Linux v9.1, providing customers with the versatility
needed for today's mixed-use environments.

The HP Compaq Business Desktop d220 Microtower is
now available directly from HP or through authorized
resellers. More information about the product is
available at http://www.hp.com/products/desktops.

About HP

HP delivers vital technology for business and life.
The company's solutions span IT infrastructure,
personal computing and access devices, global services
and imaging and printing for consumers, enterprises and
small and medium business. For the last four quarters,
HP revenue totaled $70.4 billion. More information
about HP is available at http://www.hp.com.

(1) Actual prices may vary.

Intel, Pentium and Celeron are U.S. registered
trademarks of Intel Corp. Microsoft and Windows are
U.S. registered trademarks of Microsoft Corp.

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 and performance
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 quarterly
report on Form 10-Q for the quarter ended January 31,
2003, 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 to update these
forward-looking statements.

Link: hp.com

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