Press Release: July 07, 2009

Duane Reade Selects HP to Provide Photo Publishing Solutions to Customers

PALO ALTO, Calif., July 7, 2009

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HP today announced a new customer agreement with Duane Reade Inc., the “uniquely New York” drug store chain, to install HP Retail Publishing Solutions throughout its stores.

Following an extremely successful 2008 pilot program in key stores, Duane Reade now intends to offer award-winning HP Photo Center solutions in more than 200 locations in the greater New York City area, where it has the largest market share of any drug store retailer. The Duane Reade pilot stores achieved up to 50 percent year-over-year improvement versus the chain-wide average in the in-store photo category.

HP Photo Center solutions will enable Duane Reade customers to conveniently order vibrant, lab-quality photos and create a variety of photo products such as photo books, calendars, greeting cards and posters – all while they shop for everyday items to make their lives easier.

“Our brand is all about New York living made easy,” said Joe Magnacca, chief merchandising officer, Duane Reade. “Making this level of quality digital photofinishing convenient through HP kiosks and full-service counters across 200 of our stores is one more way we can be relevant and helpful to our customers on a daily basis. We’re very happy when we can partner with the best to make life easier for New Yorkers.”

Under the agreement, Duane Reade is installing a customized mix of HP Retail Publishing Solutions across its stores. In middle- to high-volume stores, the HP Photo Center provides front and back of counter operations to allow customers to order instant 4 × 6-inch and 5 x 7-inch prints, 8 × 10-inch enlargements, and creative products such as photo books, calendars, greeting cards, posters and 100-year archive DVDs.

In non-photo lab stores, Duane Reade customers will benefit from using the HP Photosmart Express instant-print kiosk – a standalone, self-serve solution designed to produce 4 x 6-inch prints and photo CDs. The intuitive interface of both the HP Photo Center and the HP Photosmart Express Station enables fast and easy ordering, getting customers in and out of the store with all of their photo needs satisfied.

“With retail photo print volume projected to grow to more than 61 percent of the total print market by 2013,(1) HP is poised to help Duane Reade transform its photo labs into publishing centers that offer customers new opportunities for creative, customized output,” said Rohit de Souza, vice president and general manager, Retail Publishing Solutions, Imaging and Printing Group, HP. “By partnering with Duane Reade, we will be able to offer our services to a wide range of customers in New York.”

About HP

HP, the world’s largest technology company, simplifies the technology experience for consumers and businesses with a portfolio that spans printing, personal computing, software, services and IT infrastructure. More information about HP (NYSE: HPQ) is available at

(1) “ U.S. Consumer Photo Prints Market Forecast: 2008-2013,” InfoTrends, April 2009.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; any statements regarding anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include macroeconomic and geopolitical trends and events; the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected operational and financial results; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2009 and HP’s other filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2008. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2009 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

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About HP

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