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Starbucks,HPand T-Mobile Rollout High-Speed Broadband Wireless Internet Access

World's Largest Wi-Fi Network Now Accessible in Approximately 1,200 Starbucks Locations in United States and Europe
SAN FRANCISCO; August 21, 2002

High-speed wireless Internet access becomes faster, simpler and more convenient today as Starbucks Coffee Company (Nasdaq: SBUX), T-Mobile International, the wireless subsidiary of Deutsche Telekom (NYSE:DT), andHP(NYSE:HPQ) officially launch T-Mobile HotSpot service in Starbucks coffeehouses. A press conference will be held at 10 a.m. Pacific in San Francisco with Howard Schultz, Starbucks chairman and chief global strategist; John Stanton, Chairman, T-Mobile U.S.A; and Michael Capellas, president ofHP.

As easy as ordering their latte, Starbucks customers can check e-mail, surf the Web, watch streaming video or download multi-media presentations in the comfort of Starbucks via a fast, reliable standards based wireless Internet connection for notebook computers and Pocket PCs. Starting today, Starbucks customers can trial T-Mobile HotSpot service for free at approximately 1,200 Starbucks stores in the United States. An additional 800 Starbucks locations in the U.S. are scheduled to feature the service by the end of the year. With an eye toward global expansion, Starbucks and T-Mobile have also initiated a six-month pilot in select London and Berlin locations.

"This service is a natural extension of the Starbucks coffeehouse experience, which has always been about making connections with the people and information that are important to us over a cup of coffee," said Howard Schultz, Starbucks chairman and chief global strategist. "Mobile professionals across the globe have been waiting for just such an offering: high-speed wireless Internet access in a familiar and widely available location that keeps them connected while on the road, or between the home and office. It's the right service offered in the right environment."

T-Mobile HotSpot service uses standards based "Wi-Fi" (802.11b) technology and is easily accessible for Starbucks customers with a wireless-ready notebook computer or Pocket PC. Backed by T-1 connections in popular venues in the U.S., T-Mobile HotSpot service is reliable and fast enough to accommodate the full spectrum of applications from checking e-mail to multi-media video conferencing with a high-speed wireless connection as much as 40 - 50 times faster than standard dial-up Internet access.

As the preferred technology provider for Starbucks corporate headquarters and its network of retail stores,HPalso introduces the new Wireless Connection Manager. The free, downloadable software makes it simple for mobile professionals to configure their wirelessly enabled notebook and Pocket PCs to automatically sense and connect to available wireless networks, making the move from home to office to Starbucks a breeze. The easy-to-use Wireless Connection Manager software will assist Starbucks customers in moving between T-Mobile HotSpot and other wireless networks in which they may connect. Starbucks customers can visit www.starbucks.com/hotspot to download the freeHPsoftware and order specially bundledHPmobile products such as Evo notebook computers, iPAQ Pocket PCs, and Wireless PC cards.

With today's announcement, the service is now available at Starbucks stores in Atlanta; Austin, TX; Boston; Connecticut; Denver; Dallas-Ft-Worth; Houston; New York; New Jersey; Philadelphia; Portland, OR; the San Francisco Bay area; and the Seattle-Puget Sound region. Additionally, stores in southern California, including Los Angeles; Chicago; Maryland; Pittsburgh; Virginia; and Washington DC, are scheduled to be enabled before the end of the calendar year. Customers can easily identify which of their favorite Starbucks have broadband wireless Internet access by looking for the T-Mobile HotSpot sign near Starbucks entrances or by visiting Starbucks and T-Mobile's websites.

The service is also available in select Starbucks stores in London and Berlin. Additional cities will be added to the European pilot over the next several months.

John Stanton, Chairman, T-Mobile U.S.A., said T-Mobile HotSpot service demonstrates how T-Mobile is using its leadership position in wireless data to deliver on its "Get More" promise to customers, enabling them to use the most current innovations in wireless services to get more from life. "Our relationship with Starbucks andHPdemonstrates T-Mobile's commitment to deliver on the promise of fast, reliable, and convenient wireless Internet access," said Stanton. "Today, T-Mobile's HotSpot service represents the largest carrier-owned 802.11b network in the world and a powerful, comprehensive service offering when combined with the reach of our nationwide GSM/GPRS voice and high-speed data network. T-Mobile will continue to form alliances with great partners, like Starbucks, to deliver what customers crave from wireless data services - coverage where they want it, and speed when they need it."

"HP's vision is to eliminate the boundaries of mobile computing, making wireless access fast, easy and rewarding," said Michael Capellas, president ofHP. "Not only doesHPoffer the broadest array of innovative mobile technology today, but we're collaborating with Starbucks and T-Mobile on future technologies to deliver a constant stream of wireless products and places to enrich the mobile experience for our mutual customers worldwide."

To connect, customers need a T-Mobile HotSpot account and Wi-Fi capability for their notebook computer or Pocket PC. To log in to the service and establish a connection, customers with a properly configured notebook or Pocket PC simply need to launch their Internet browser from within a participating Starbucks and login.

T-Mobile is offering Starbucks customers a Free Day Pass, available in participating Starbucks locations, to get a free one-time 24 hour trial of the wireless broadband service. Additionally, T-Mobile offers a variety of Internet access service plans to accommodate the needs of all customers, including National and Local Unlimited monthly subscription plans, as well as Prepay and Pay-As-You-Go plans. Rate and location information can be found at www.t-mobile.com.

According to the Yankee Group 2002 Corporate Wireless Survey, almost 25 percent of all enterprise workers are considered mobile, spending more that 20 percent of their time away from their workspace. This equates to approximately 40 million mobile professionals in the U.S. who still want and need access to their e-mail, the Internet, or their corporate intranet. A number of corporate customers in the U.S. are participating in a pilot to extend faster and more affordable remote access options to their mobile workforces. Starbucks customers, including KPMG Consulting Inc., John L. Scott Real Estate, and others, have found that the service keeps them connected while they're away from the office-offering them a familiar, comfortable location, with the benefit of a high-speed Internet connection.

"Today's mobile executives want the flexibility of wireless Internet access," said Michael Surface, managing director for Retail/Wholesale, KPMG Consulting, Inc., which also has Starbucks as a client. "We are seeing growing interest from consumers for breakthrough wireless capabilities. Starbucks has pioneered this space by offering this technology in its retail stores, enabling consumers to stay connected while on the road."

About Starbucks Coffee Company

Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world. In addition to retail locations in North America, Europe, the Middle East and the Pacific Rim, Starbucks sells coffee and tea products through its specialty operations, including its online store at Starbucks.com. Additionally, Starbucks produces and sells bottled Frappuccino® coffee drink, Starbucks DoubleShotä and a line of superpremium ice creams through its joint venture partnerships. The Company's other brands enhance the Starbucks Experience through best-of-class products: Tazo Tea Company offers a line of innovative premium teas, and Hear Music produces and distributes a line of exceptional compact discs.

AboutHP

HPis 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.HPcompleted 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 aboutHPis available at http://www.hp.com.

About T-Mobile U.S.A.

Based in Bellevue, Wash., T-Mobile USA is one of the fastest growing wireless service providers in the United States. T-Mobile debuted its brand in the U.S. with the launch of service in California and Nevada in July and will transition its current VoiceStream brand to T-Mobile nationwide by the end of the year. T-Mobile is committed to providing the best value in wireless service through its "GET MORE" promise to provide customers with more minutes, more features and more service than any other wireless provider. T-Mobile USA is a leading provider of standards based wireless Internet access for mobile users operating the largest all digital GSM/GPRS voice and high speed data network in the country and the largest carrier owned 'Wi-Fi' 802.11b wireless broadband, (WLAN) network in the world, with service in popular Starbucks coffeehouses, American Airlines Admirals Clubs, and select airport locations. T-Mobile USA is a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom (NYSE "DT"). Through its subsidiaries and other investments, Deutsche Telekom serves more than 69 million wireless subscribers worldwide, ranking it one of the top three wireless carriers globally. For more information, visit the company web site at www.t-mobile.com.


This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; and other risks that are described from time to time inHP'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 toHP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect,HP's results could differ materially fromHP's expectations in these statements.HPassumes 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.