PepsiCo International Taps HP for Global Technology Infrastructure Management

PALO ALTO, Calif., Oct. 4, 2006 - HP today announced it has signed a seven-year global services agreement with PepsiCo, Inc., (NYSE: PEP) to provide data center management services and infrastructure consolidation for the company’s PepsiCo International division.

HP will consolidate PepsiCo International’s technology infrastructure into three HP data centers located in Mexico, Singapore and the United Kingdom. These data centers will support PepsiCo business operations in more than 60 countries outside the United States and Canada.

This initiative will migrate PepsiCo International to a standardized storage and server architecture that provides capability upgrades in the areas of application management, network security, disaster recovery, asset management and operations support. HP will use a variety of storage and server systems, tools and software to manage PepsiCo International’s new data center environment.

In addition, with PepsiCo International choosing BT as its network provider, there will be more opportunities for the HP and BT alliance to help increase service integration and innovation for PepsiCo International.

“We have closely collaborated with PepsiCo International to build an IT environment that will help them become more adaptive,” said John E. Evers Jr., vice president and general manager, Managed Services – Americas, HP. “By standardizing and optimizing its server environment, PepsiCo International can better flex to meet its changing business needs and in turn provide better service to customers anywhere in the world.”

About PepsiCo, Inc.

PepsiCo Inc. is one of the world’s largest food and beverage companies with annual revenues of $33 billion. Its principal businesses include Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. Its portfolio includes 17 brands that generate $1 billion or more each in annual retail sales.

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 July 31, 2006, HP revenue totaled $90.0 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could 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 but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the achievement of expected results and other risks that are described from time to time in HP’s Securities and Exchange Commission reports, including but not limited to the risks described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2006, and other reports filed after HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2005. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2006 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP shall not be liable for technical or editorial errors or omissions contained herein.

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