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HP Announces HP Financial Services Wholly Owned Subsidiary

World's Second Largest IT Leasing Company

(NYSE: HPQ) today announced HP Financial Services, the company’s new leasing and financial services subsidiary. HP Financial Services is designed to enhance HP ’s worldwide sales efforts by delivering a broad range of financial services and asset management capabilities that can positively impact HP ’s customer and partner relationships and shareowner value.

HP Financial Services operates as a wholly owned subsidiary of HP, and HP intends to include its performance as one of five segments in HP’s quarterly financial segment reporting. HP Financial Services represents approximately 4 percent of HP’s total revenue. Ten percent of total HP sales are leased transactions.

The merger of HP and Compaq has brought together more than 1,500 IT financing professionals -- managing nearly $10 billion in assets in more than 50 countries -- to form one globally consistent team focused on making the process of acquiring, managing and retiring IT solutions simpler. HP Financial Services is the second largest captive IT leasing company in the world and operates in more countries than any other leasing company in its segment.

“HP Financial Services brings to the new HP a centralized business model for the financial services we offer our customers as part of a total HP solution. We are confident our subsidiary will help fuel company growth and increase shareowner value,“ said Peter Blackmore, executive vice president, HP Enterprise Systems Group. “The new HP is ready to execute for current and future customers, and HP Financial Services is ready to meet their financial asset management needs throughout the technology life cycle.”

HP Financial Services is headed by former Compaq Financial Services president and chief executive officer Irv Rothman and has headquarters in Murray Hill, N.J. Regional headquarters are in Dublin, Ireland, and Sydney, Australia. Rothman brings 29 years of financial and leasing experience to the company.

“The combination of HP Technology Finance and Compaq Financial Services has brought together two great organizations to create a global leader in IT financing -- better equipped than ever before to provide customers with globally consistent offerings and ready to take our place among the best-performing financial services companies in the world,” said Rothman. “Customers are looking for solutions that fully integrate products and services -- including financial services. Our new organization helps sharpen HP ’s competitive edge by delivering the broadest range of global IT financial services available.”

Rothman will be supported by a team of 11 senior executives including: Tom Adams, Finance; Ed Andrews, Global Structured Finance; Gerri Gold, Corporate Development; Ann Henry, Corporate Resources; Keith Kendall, North America; Cynthia Klustner, Integration Management; Dan McCarthy, Legal; Matt Minetola, Information Technology; Constantin Salameh, Europe, Middle East and Africa; Cintia Silverstre, Latin America; and John Sutherland, Asia Pacific. Current customers from HP and Compaq will continue to receive the same level of service and quality they have come to expect from their account teams.

Complete IT Asset Management Solutions for Any Enterprise

Through its global leasing and financial asset management solutions, HP Financial Services makes managing the IT financial life cycle simpler. Its cradle-to-grave solutions include cost-effective leasing offers, trade-in programs, and asset management and asset recovery services. HP Financial Services helps customers cost-effectively access, manage and retire their IT assets including hardware, software and services as part of multi-vendor/multi-technology solutions.

Unlike other IT finance companies that promote cookie-cutter solutions to customers, HP Financial Services offers superior flexibility and customization, with increased worldwide consistency in financing terms and conditions, pricing and service delivery.

In addition to offering global leasing and financial asset management services, HP Financial Services markets multi-vendor, pre-owned equipment to customers who request it as part of a complete HP solution. HP Financial Services operates two Technology Renewal Centers -- in Andover, Mass., and Nijmegen, the Netherlands -- where pre-owned equipment is refurbished, tested, configured and HP certified.

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 combined revenue on a pro forma basis with the Compaq transaction 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; 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.

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.