Press Release:

HP and Intuit Sign Memorandum of Understanding to Meet Needs of Small- and Medium-size Businesses

Industry leaders intend to market QuickBooks with HP PCs and servers
PALO ALTO and MOUNTAIN VIEW, Calif., March 22, 2004

As part of HP's Smart Office initiative for small- and medium-size businesses (SMBs), HP and Intuit Inc. (Nasdaq: INTU) today announced a non-binding Memorandum of Understanding to sign an agreement to jointly market QuickBooks® financial management solutions with HP PCs and servers.

HP and Intuit intend to deliver a range of products and services to help small businesses get started and grow with them, particularly as they move from a PC-based business to their first server. The memorandum reflects that Intuit has chosen HP as its intended alliance partner to scale QuickBooks to a server-based platform.

"Intuit's QuickBooks is a leading solution for small- and medium-size businesses, with great brand appeal and customer loyalty," said Nigel Ball, vice president, Small and Medium Business segment, HP. "We intend to combine HP's reliable and secure hardware, service and support with Intuit's financial management applications. We expect this to enable SMBs to easily and quickly manage their finances so they can focus on their core business."

HP and Intuit intend to market and sell the joint offerings through a variety of channels, including, Web sites, tele-web and resellers. The companies also plan to develop a "my first server" offering for SMBs combining the HP ProLiant server family with the QuickBooks Enterprise Solutions line.

"This intended alliance will provide customers with powerful all-in-one solutions from two industry leaders in the SMB market," said Dan Levin, senior vice president of QuickBooks. "HP has an impressive track record of meeting the needs of SMB customers. HP's expertise and track record of providing industry-leading solutions and products that meet the needs of SMB customers combined with QuickBooks will make HP's technology even more attractive to small businesses. As a result of this memorandum, Intuit looks forward to entering new channels where small businesses are seeking higher-end solutions."

For those small businesses growing and seeking higher-end financial management solutions, HP and Intuit intend to deliver a reliable server-based solution that will allow an SMB to add more simultaneous users, protect financial data and securely access that data when and where the business owner needs it.

The companies expect this same server-based solution will enable SMBs to more efficiently share information and more effectively collaborate across their organizations. In addition, SMBs will have access to HP's Smart Finance offerings, allowing them to make their purchases with easy, Web-based direct financing.

About Intuit Inc.

Intuit Inc. (Nasdaq: INTU) is a leading provider of business and financial management solutions for small and mid-sized businesses, consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax® software, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading tax preparation software suites for professional accountants.

Founded in 1983, Intuit had annual revenue of more than $1.6 billion in its fiscal year 2003. The company has nearly 7,500 employees with major offices in 13 states across the U.S. and offices in Canada and the United Kingdom. More information can be found at

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the last four fiscal quarters, HP revenue totaled $74.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

This news release contains forward-looking statements, including statements about the existence of the proposed agreement and the benefits of combining Intuit's and HP's products. Actual results may differ materially from Intuit's expectations. Intuit will not necessarily update information in this news release if any forward-looking statement later turns out to be inaccurate or if a binding agreement is not entered into. Risks and uncertainties affecting the proposed agreement and its benefits include the following:

  • The Memorandum of Understanding is not a binding agreement, and neither party will have any material obligation to the other unless a binding agreement is entered into.
  • HP and Intuit may not be able to reach agreement on the terms set forth in the Memorandum and may never enter into a binding agreement.
  • If HP and Intuit enter into an agreement regarding joint marketing, the terms of the agreement may be different than the terms set forth in the Memorandum resulting in different outcomes to the consumer than those described in this news release.

Additional information about factors that could affect future results and events is included in Intuit's fiscal 2003 Form 10-K and subsequent reports filed with the Securities and Exchange Commission, and at

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 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 the Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003, and reports filed after the form 10-K. 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