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HP and InkCycle Reach Settlement in Intellectual Property Litigation

InkCycle changes ink formulations to respect HP patents
PALO ALTO, Calif., June 8, 2005

HP and InkCycle today announced that they have resolved their patent infringement lawsuit regarding the inks used in the refilling of certain HP inkjet cartridges.

Under the terms of the confidential agreement, InkCycle has agreed to acquire re-formulated, non-infringing ink sets for three InkCycle products and has agreed to pay HP an undisclosed sum.

The lawsuit was initially filed in March 2005 after HP discovered that refilled inkjet cartridges sold under the Staples brand contained patent-infringing ink.

"HP will continue to invest in technology that benefits consumers and to aggressively protect this investment," said Pradeep Jotwani, senior vice president, Imaging and Printing Supplies Business, HP. "HP is pleased to be able to resolve this matter quickly without extensive litigation and will constantly monitor InkCycle and others for possible patent infringement."

"As an ethical company, InkCycle respects all IP rights. Our experience with HP has led to a further strengthening of our IP knowledge base, a critical factor for InkCycle's continuing aftermarket leadership," said Brad Roderick, vice president, InkCycle. "We worked quickly and in collaboration with HP to procure reformulated inks when we learned of the problem and believe that helped bring this matter to a speedy resolution."

About InkCycle

InkCycle is a leading volume producer of remanufactured inkjet cartridges in North America. Selling under private and proprietary labels, InkCycle provides cartridges to several of the most respected remanufactured inkjet brands. More information is available at http://www.inkcycle.com.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended April 30, 2005, HP revenue totaled $83.3 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.


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 the expected development, performance or rankings of products or services; statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the development, performance and market acceptance of products and services 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 fiscal quarter ended Jan. 31, 2005, and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2004. HP assumes no obligation and does not intend 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.