HP Photosmart Studio Expanded into 50 Wal-Mart and SAM’S CLUB Stores

New in-store photo solution allows consumers to create customized memories in minutes.

PALO ALTO, Calif., Feb. 27, 2006, HP and Wal-Mart today announced plans to place the recently introduced HP Photosmart Studio in a total of 50 Wal-Mart stores and SAM’S CLUB locations nationwide.
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The deal increases the number of units from the four installed in the retailers’ stores during a pilot period.

The HP Photosmart Studio is the first and only in-store solution where consumers can design creative products in about five minutes and pick them up in one hour - all without having to crop or place photos into individual templates.

“We are thrilled to be working with Wal-Mart to expand the number of HP Photosmart Studios in the marketplace,” said Vyomesh Joshi, executive vice president, Imaging and Printing Group, HP. “We believe our new solution opens the door to a significantly more profitable photofinishing business for retailers while offering their customers far greater choices than they’ve ever had in stores.”

The HP Photosmart Studio was developed to help consumers transform anywhere from one to 200 images into ready-to-share, professional-looking albums, calendars, CDs, greeting cards and posters in less than an hour. Simple and quick to use, hundreds of photos are laid out in minutes using proprietary image management algorithms developed by HP Labs.

“At Wal-Mart, we are committed to making sure that our customers have access to the best value on the latest technology,” said Sharon Wibben, vice president of Photo and Connection Centers, Wal-Mart stores and SAM’S CLUB locations. “The HP Photosmart Studio is a great example of a revolutionary solution that enables customers to custom design creative and professional-looking products in literally one hour.”

For retailers, the HP Photosmart Studio offers an effective way to drive incremental sales and margins in existing photo departments, while delighting customers with new digital photo experiences. The HP Photosmart Studio is completely configurable and scalable to meet the unique needs of retailers.

About Wal-Mart Stores, Inc.

Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood Markets and SAM’S CLUB locations in the United States. The company also operates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, South Korea and the United Kingdom. The company’s securities are listed on the New York and Pacific stock exchanges under the symbol WMT. More information about Wal-Mart can be found by visiting http://www.walmartfacts.com. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended Jan. 31, 2006, HP revenue totaled $87.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at www.hp.com.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever 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 and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected development, performance or rankings of products or services; statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the development, performance and market acceptance of products and services 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 Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2005 and other reports filed after such report. HP assumes no obligation and does not intend to update these forward-looking statements.

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