Press Release: May 24, 2007
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HP Unveils Innovative Inkjet Supplies Strategy to Offer Customers More Choice, Greater Value

PALO ALTO, Calif., April 24, 2007

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HP is changing the way itdelivers inkjet cartridges to customers to offer them more choice,greater value and a simplified shopping experience, both in-storeand online.

Beginning this year, mostnew HP consumer printers worldwide will be introduced with multipleinkjet cartridge offerings that are designed to provide customerswith options that better meet their printing needs. In addition,the new cartridge options will deliver value by offering lowpurchase prices to customers who print a little, and lowercost-per-page to customers who print a lot.

In conjunction with thesenew cartridge offerings, HP is rolling out a new color-codedpackaging system across its entire inkjet cartridge portfolio.Three color-coded categories – standard (blue), value (green) andspecialty (red) – will allow customers to walk into a retail storeor log on to hp.com and quickly and easily scan their options tofind the right cartridge that offers the best value for theirprinting needs.

All three categoriesdeliver the superior reliability and print quality customers expectfrom HP. For the majority of new HP printers, the inkjet cartridgeoptions will be:

  • “Standard” cartridges (blue packaging), which have a lowerpurchase price, are designed for customers who print a small numberof pages on a weekly or monthly basis. HP will introduce anincreasing number of standard cartridge offerings in the $14.99price range for those customers who still want access tohigh-quality printing, but don’t want to pay a lot at the point ofpurchase.
  • “Value” cartridges (green packaging), which are designed forcustomers with higher volume printing needs, offer a lower cost perpage compared to standard cartridges. This line will include newhigh-yield “XL” cartridges that provide customers approximately30-45 percent savings on a cost-per-page basis, print up to threetimes more pages, and require fewer cartridge replacements comparedto standard cartridges. Customers can easily identify the new valueoption by looking for the green packaging and the letters “XL” nextto their cartridge number.
  • “Specialty” cartridges (red packaging), which offer additionalperformance features compared to HP’s standard ink formulations,are ideal for customers with special applications and printingjobs, such as professional-quality photographs.

“For more than 25 years,many HP printers offered customers only one cartridge choice. Now,the majority of our printers will offer customers multipleoptions,” said Pradeep Jotwani, senior vice president, Supplies,Imaging and Printing Group, HP. “Delivering customer choice andvalue is critical for driving continued growth, and theunprecedented level of innovation HP is applying toward thecustomer experience is as important as the innovation behind thetechnology that goes into our high-performance ink and paperproducts.”

Improved shoppingexperience

To improve the customerpurchasing experience, HP has extended its color-coded system topoint-of-sale materials, such as updated ink selection guides. Thechanges will attract shoppers’ attention in retail aisles anddirect them to the appropriate supplies – helping to educate peopleabout their choices and increasing overall customersatisfaction.

Similar point-of-sale toolsand the new look and feel will be employed online at www.hpshopping.com to quicklyguide customers to the right supplies for their printer andprinting requirements.

Downloadable photos of HP’snew inkjet cartridge offerings, as well as a video showcasing HP’sretail and online makeover, are available online at www.hp.com/go/supplieschoice.

AboutHP

HP focuses on simplifyingtechnology experiences for all of its customers – from individualconsumers to the largest businesses. With a portfolio that spansprinting, personal computing, software, services and ITinfrastructure, HP is among the world’s largest IT companies, withrevenue totaling $94.1 billion for the four fiscal quarters endedJan. 31, 2007. More information about HP (NYSE: HPQ) is availableat http://www.hp.com.


This news releasecontains forward-looking statements that involve risks,uncertainties and assumptions. If such risks or uncertaintiesmaterialize or such assumptions prove incorrect, the results of HPand its consolidated subsidiaries could differ materially fromthose expressed or implied by such forward-looking statements andassumptions. All statements other than statements of historicalfact are statements that could be deemed forward-lookingstatements, including but not limited to statements of the plans,strategies and objectives of management for future operations; anystatements concerning expected development, performance or marketshare relating to products and services; anticipated operationaland financial results; any statements of expectation or belief; andany statements of assumptions underlying any of the foregoing.Risks, uncertainties and assumptions include the achievement ofexpected results and other risks that are described from time totime in HP’s Securities and Exchange Commission reports, includingbut not limited to the risks described in HP’s Quarterly Report onForm 10-Q for the fiscal quarter ended Jan. 31, 2007. HP assumes noobligation and does not intend to update these forward-lookingstatements.

© 2007Hewlett-Packard Development Company, L.P. The information containedherein is subject to change without notice. The only warranties forHP products and services are set forth in the express warrantystatements accompanying such products and services. Nothing hereinshould be construed as constituting an additional warranty. HPshall not be liable for technical or editorial errors or omissionscontained herein.

About HP

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at http://www.hp.com.