HP Awarded Five-year U.S. Postal Service Contract

PALO ALTO, Calif., Dec. 19, 2006

HP has been awarded a five-year contract extension by the United States Postal Service to deploy a breadth of products and services, including HP servers, desktops, notebooks, printers, and integration and warranty support services.

This indefinite-delivery, indefinite-quantity contract that dates back to 1994 builds upon a long-term mutually successful relationship. HP has delivered more than $1.8 billion worth of products and services to the Postal Service from 1994-2006.

“Our goal at the Postal Service is to become more streamlined and efficient while continuing to increase the number of innovative services we offer our customers,” said Bob Otto, vice president and chief technology officer, United States Postal Service.

HP will deliver a wide array of hardware, software and services to upgrade the Postal Service’s distributed computing environment and support more than 3,000 servers and 140,000 client systems.

“With more than 700,000 employees, 37,000 post offices and an extensive network of processing and distribution facilities, the Postal Service is a complex enterprise with evolving technology needs,” said Jack Novia, managing director and senior vice president, Technology Solutions Group – Americas, HP. “HP is building on our partnership with the Postal Service by delivering the infrastructure and support needed to enable continuous change.”

About United States Postal Service

Since 1775, the United States Postal Service and its predecessor, the Post Office Department, have connected friends, families, neighbors, and businesses by mail. An independent federal agency that visits more than 144 million homes and business every day, the Postal Service is the only service provider delivering to every address in the nation. It receives no taxpayer dollars for routine operations, but derives its operating revenues solely from the sale of postage, products, and services. With annual revenues of $70 billion, it is the world’s leading provider of mailing and delivery services, offering some of the most affordable postage rates in the world. The U.S. Postal Service delivers more than 46 percent of the world’s mail volume – some 212 billion letters, advertisements, periodicals and packages a year – and serves 10 million customers each day at its 37,000 retail locations nationwide.

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 Oct. 31, 2006, HP revenue totaled $91.7 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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