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Regal CineMedia Corp. Names HP as the Standard for its Digital Distribution Network

HP Wins Client/Server Shootout for the Big Screens

HP (NYSE:HPQ) and Regal CineMedia Corporation (RCM), the media subsidiary of Regal Entertainment Group (NYSE:RGC) -- the largest theater owner in the United States with more than 550 theaters including Regal Cinemas, Edwards Theatres and United Artist Theatres -- today announced a two-year agreement making HP the client/server standard for RCM's digital distribution network.

"What really got our attention was the breadth of technology, the depth of expertise HP had to offer and their willingness to work with us on our specific needs," said Tom Galley, executive vice president of technology, Regal CineMedia.

In June, RCM began a pilot implementation with 100 Compaq Evo D510 desktop PCs to use for the development of its digital distribution network in more than 400 of its theatres. The systems were manufactured to order in Ontario, Calif., where a custom bracket was added to accommodate the graphics card RCM requested. The PCs were then shipped directly to theatre facilities and installed with no problems.

Beyond a Doubt

It's anticipated that over the next 12 to 18 months, more than 5,000 systems will be manufactured and shipped from the various HP Direct facilities to more than 400 Regal Entertainment Group theatres across 36 states. RCM is developing the world's largest video and communications network in its theatres for the delivery of digital content including on-screen and in-lobby marketing and advertising products, as well as sports, education and entertainment content. Regal Entertainment Group expects its new advertising and digital content network will be rolled out nationwide in 51 markets to nearly 4,600 screens by the end of 2003.

"One of the things that happened with the merger between HP and Compaq is that the new company emerged on day one with more clarity in its product roadmap than either company had before the merger -- and much more clarity than any of our competitors," said Jim Milton, managing director, HP Americas, and senior vice president, HP Enterprise Systems Group. "Clarity across all our product lines combined with an intense focus on putting the customer first is giving the new HP an edge in the marketplace many of our competitors underestimated."

About Regal CineMedia

Regal CineMedia ("RCM") is a wholly-owned subsidiary of Regal Entertainment Group, a leading motion picture exhibitor operating the largest theatre circuit in the United States. RCM is developing a first-of-its-kind digital distribution network, connecting high-quality digital projectors in nearly 4,600 theatre auditoriums and plasma screens in its theatre lobbies in over 400 theatres in its top 51 markets in the U.S. by the end of 2003. RCM expects to utilize its industry leading digital network to distribute digital advertising and digital programming. More information about RGC and RCM is available at www.regalcinemas.com and www.regalcinemedia.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 Corp. on May 3, 2002. The company would have had revenue on a combined company basis with Compaq of approximately $81.1 billion in fiscal 2001 and has operations in more than 160 countries. More information about HP is available at http://www.hp.com.


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 products, 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 products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; 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 January 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 and does not intend to update these forward-looking statements.

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein may constitute forward-looking statements. Although Regal Entertainment Group ("the Company") believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the risk factors contained in the Company's prospectus dated May 8, 2002. All forward-looking statements are expressly qualified in their entirety by such factors.

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.