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HP and DIRECTV Sign Managed Services and Technology Agreement

State-of-the-art Customer Billing Environment to Support DIRECTV Growth
PALO ALTO and EL SEGUNDO, Calif., Dec. 12, 2002

HP (NYSE:HPQ) today announced a five-year agreement with DIRECTV, Inc. to provide the technology platform and ongoing managed services and support for the nation's leading digital satellite television service provider to 11 million customers nationwide.

Under terms of the contract, HP will deliver and manage an advanced computing infrastructure to support the operation, growth and performance of DIRECTV's billing environment, allowing it to concentrate on its core business strategies.

The managed services contract calls for the deployment of HP AlphaServer GS series servers running Tru64 UNIX®, HP StorageWorks storage and third-party billing software by DST Innovis. HP Services will oversee complete management of DIRECTV's 24x7 billing environment, providing DIRECTV with expanded service levels and a more predictable method of subscriber tracking and management.

"This expansion of HP's relationship with DIRECTV is a testament to our proven track record as an infrastructure and services provider," said Ann Livermore, executive vice president, HP Services. "By establishing an excellent rapport with DIRECTV and delivering on our promises, we have built a relationship based on trust and useful, quality-driven technology."

HP is a longtime IT partner with DIRECTV, hosting the satellite television service provider's billing computing infrastructure for nearly 10 years. Last year, HP installed a 114-terabyte HP StorageWorks storage area network (SAN) to support DIRECTV's billing applications, one of the largest VMS SANs ever deployed for corporate use anywhere in the world.

"HP is building on a long-standing relationship with DIRECTV to include an enhanced managed services solution combining best-in-class technology with service and support from some of the industry's most experienced IT professionals," said Peter Blackmore, executive vice president, HP Enterprise Systems Group. "HP is creating an adaptive infrastructure that offers greater business agility and a reliable, flexible, cost-effective solution that will help DIRECTV be even more competitive."

The majority of the managed services and outsourcing operations under this new agreement will be backed by HP's worldwide customer service and support center in Colorado Springs, Colo., offering a powerful technology and service infrastructure for DIRECTV.

About DIRECTV

DIRECTV is the nation's leading digital satellite television service provider with more than 11 million customers. DIRECTV and the Cyclone Design logo are registered trademarks of DIRECTV, Inc., a unit of Hughes Electronics Corporation. HUGHES is the world's leading provider of digital satellite television entertainment, broadband services, satellite-based private business networks, and global video and data broadcasting. The earnings of HUGHES, a unit of General Motors Corporation, are used to calculate the earnings attributable to the General Motors Class H common stock (NYSE:GMH). Visit DIRECTV on the World Wide Web at DIRECTV.com.

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 Corporation on May 3, 2002. More information about HP is available at http://www.hp.com.


UNIX is a registered trademark of the Open Group.


This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of services and their feature sets; the challenge of managing asset levels, including inventory; the difficulty of keeping expense growth at modest levels while increasing revenues; 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 July 31, 2002 and reports filed subsequent to HP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001. HP assumes no obligation to update these forward-looking statements.


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.