HP Adds PayPal as Payment Option to HP Home & Home Office Store

PALO ALTO, Calif., Oct. 26, 2006 - HP today announced that it is offering PayPal as a payment option at the HP Home & Home Office Store, making it easier than ever to purchase HP’s latest consumer technology products.

PayPal allows customers to pay for items using their credit cards, bank accounts and stored balances, without having to share their financial information when shopping on multiple sites on the web.

The most comprehensive selection of HP technology products and supplies will now be available to PayPal’s more than 122 million accounts. PayPal customers can customize desktop and notebook PCs based on their personal preferences and select from HP’s new line of high-definition products, including a 17-inch widescreen diagonal HD-DVD notebook and an HD-DVD Media Center TV PC.

“Adding PayPal as a payment option gives our customers more choices and even greater convenience,” said Sam Taylor, senior vice president, Consumer Direct, HP. “PayPal’s millions of customers can experience the HP Home Store’s award-winning customer service and unparalleled selection of HP consumer products and supplies.”

Stephanie Tilenius, vice president of merchant services for PayPal, said: “We are excited to add the HP Home Store, one of the nation’s leading e-commerce sites, to the list of merchants who accept PayPal. Many of our customers already shop for HP products and will be eager to use their PayPal accounts to do so.”

In addition to using PayPal, HP Home Store customers may use most major credit cards to make purchases at the site. For added convenience and savings, the HP Home Store also offers qualifying customers an e-financing program.

Further details and additional promotions are available at www.hpshopping.com or by calling
+1 888 999 4747.

About PayPal

PayPal enables any individual or business with an email address to send and receive payments online securely and easily using a bank account, credit card or stored balance. Because PayPal allows customers to shop online without sharing their financial information, privacy is built into the service. PayPal has more than 122 million accounts and is available to users in 103 markets around the world. More information about the company can be found at www.paypal.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 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. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

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