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HPand Capco to Design and Deliver Comprehensive Services and Technology Solutions for Global Financial Services Industry

Customers to Benefit from Alliance's Combined Market Offerings
PALO ALTO, Calif., and ANTWERP, Belgium, Jan. 23, 2002

Hewlett-Packard Company (NYSE:HWP) and Capco, the first services and technology solutions provider focused exclusively on the financial services industry, today announced an agreement to develop customized, large-scale, end-to-end business and technology solutions for the global financial services industry.

Under the agreement, which includes a $30 millionHPequity investment in Capco, both companies will cooperate closely in developing, marketing, selling and delivering comprehensive solutions to customers in the capital markets, private client and asset management segments of the financial services industry. The companies also plan to jointly pursue new business development opportunities, including market-making initiatives, within these sectors.

Through their global alliance,HPand Capco will provide solutions that help customers address key market issues such as consolidation, cross-border trading, changes in privacy laws, disaster recovery and the move to T+1 -- the SEC initiative to shorten the settlement cycle of a trade from three days (Trade + 3) to one day (Trade + 1) -- thereby reducing risk. Additionally, the alliance will address solutions for financial institutions to better meet the needs of their increasingly sophisticated customers.

Customers will benefit from the synergy ofHP's IT infrastructure, services and outsourcing capabilities combined with Capco's business consulting and software components as well as its thought leadership and industry expertise. The alliance will focus on developing and implementing customized, integrated solutions for transaction processing, operational risk management, straight through processing (STP), multi-channel distribution, data management, operational and financial performance management.

"This is an alliance that will truly provide the financial services industry with a solution that intimately links business process strategy to technology implementation," said Michael McNamara, financial services technology analyst, Datamonitor. "HPand Capco will give real meaning to the overused (and often misunderstood) technology vendor phrase of 'providing end-to-end solutions.' The end result for the customer will be a greatly improved success rate of technology implementations for specific business processes and, ultimately, a positive ROI."

"Our alliance with Capco is a direct response to the financial market's need for complete solutions that combine business strategy with IT strategy," said Arun Oberoi, vice president and general manager,HPWorldwide Industry and Corporate Accounts Business. "Together, our companies will combine highly complementary sets of core technologies, skills and expertise to provide our customers with superior customized solutions."

"A deep understanding of the business purposes to be served by technology and operations is required to address key market issues effectively," said Rob Heyvaert, chairman and chief executive officer, Capco. "This alliance will deliver strengthened end-to-end solutions that will help customers achieve operational efficiency, augment their technology and operational infrastructures, as well as address other business-critical needs such as sharing infrastructure to cope with rapidly rising fixed costs."

As part of the agreement,HPwill serve as Capco's preferred provider of IT infrastructure and services. Likewise, Capco will serve asHP's preferred provider of business strategy and process consulting as well as software components and solutions within the financial services sector.

The alliance is part of a broader strategic intent of both companies to develop a network of complementary business partners that will address a wide-range of customer needs and bring solutions to the market.

About Capco

Capco ( http://www.capco.com) is the first global services and technology solutions provider exclusively focused on forming the future of the financial services industry. With nearly 800 professionals located in the major financial centers around the globe (New York, London, Frankfurt, Paris, Singapore), Capco provides thought leadership and practical solutions to improve efficiency and profitability for its clients.

AboutHP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to all.HPhad total revenue of $45.2 billion in its 2001 fiscal year. Information aboutHPand its products can be found on the World Wide Web at http://www.hp.com.


Capco is a registered trademark of The Capital Markets Company N.V.


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 ofHPand 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 inHP's Securities and Exchange Commission reports, including but not limited to the annual report on Form 10-K for the year ended Oct. 31, 2000, and subsequently filed reports.HPassumes no obligation and does not intend to update these forward-looking.

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.