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HP Prices $1.5 Billion Bond Offering


HP (NYSE: HPQ) today announced the pricing of a sale of senior unsecured Global Notes totaling $1.5 billion. The offering consisted of two tranches: $1 billion of Global Notes due July 1, 2007, with a coupon of 5.5 percent and $500 million of Global Notes due July 1, 2012, with a coupon of 6.5 percent. The Global Notes will be rated "A3" by Moody's Investors Services, "A-" by Standard & Poor's and "A" by Fitch Ratings, in each case with a negative outlook.

The net proceeds from the sale of the Global Notes are expected to be used for general corporate purposes, which may include capital expenditures, repurchases of common stock, payment of dividends, repayment of indebtedness of HP and its subsidiaries, acquisitions of products, technology and businesses, including related restructuring expenses, and meeting working capital needs.

The Global Notes were issued under HP's effective shelf registration statement (registration statement number 333-83346). The offering is expected to close on June 26, 2002.

Bank of America Securities, Deutsche Bank Securities, and JP Morgan were joint book-running managers on the transaction.

This press release shall not constitute an offer to sell, solicitation of an offer to buy, nor shall there be any sale of the notes in any state or jurisdiction in which such offer, solicitation or sale is unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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.


This document 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 financial items; any statements of the plans, strategies, and objectives of management for future operations, including with respect to debt offerings; any statements concerning proposed new products, services, developments or industry rankings; 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 risks relating to the timing of closing 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 April 30, 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.