HP’s Snapfish Introduces One-hour Photo Pick-up at Walgreens

Online photo service also adds new print-at-home and web-to-phone photo-sharing features

PALO ALTO, CA, Aug. 29, 2005
HP today announced that customers of its Snapfish online photo service can now order prints online and pick them up in as little as one hour at their local Walgreens.

The new in-store pick-up service, which includes 4 x 6-inch, 5 x 7-inch, 8 x 10-inch and wallet-sized prints, is now available on the Snapfish website for select Walgreens locations in Boston, New York and San Francisco. Snapfish expects approximately 4,000 Walgreens stores to be participating by September, with additional retail chains expected to be added over time.

Snapfish customers now have the benefit of speedy turnaround when they need their photos quickly and want the comfort of dealing with their local Walgreens. Customers simply choose the “pick up” option, enter their zip code, and select a Walgreens store from the provided list of locations.

This follows last month’s news of Walgreens selecting Snapfish to provide the retailer’s own online photo service at http://www.walgreens.com/photo.

For added convenience and choice, Snapfish also announced a free print-at-home feature that makes it easy for customers to print their Snapfish photos on their home printers. Customers simply select photos from their account, choose a print size, edit and print. This is a particularly valuable feature for recipients of shared photos who don’t have the original image on their PC’s hard drive.

In addition, Snapfish launched a new web-to-phone photo-sharing feature that allows customers to send their favorite photos, along with a personalized message, from the Snapfish website to up to 10 mobile phone numbers of their choice. The easy-to-use, three-step process also allows customers to personalize their own mobile phones with photo wallpaper - offered free for a limited time.

“With these enhancements to our service, Snapfish is leading the way in providing consumers with the ultimate choice of when, where and how they print their photos,” said Ben Nelson, vice president and general manager, Snapfish, HP. “In the end, we’re breaking down the silos of how consumers manage their photos - online, at home or at retail.”

Snapfish makes it easy for camera phone users to print and share photos

Snapfish offerings include a mobile service launched last year that allows users to upload photos from camera phones directly to Snapfish by sending them to save@mysnapfish.com. Once on the Snapfish website, customers can print, share and store their favorite camera phone photos, just like those from their digital cameras.

According to a May 2005 national survey, camera phone users find printing via a camera phone a major obstacle. The survey was commissioned by Snapfish and conducted by consumer and marketing research firm Greenfield Online.

The survey results, released today, reveal dozens of other findings on camera phone usage and opinions, including the fact that 81 percent of those surveyed would trust an online photo service like Snapfish more than their wireless carrier to store and manage their camera phone photos.(1)

Other highlights from the survey include:

Interest in printing camera phone photos is high, but actual printing is low. Only 11 percent of camera phone owners are printing, despite 61 percent indicating an interest in doing so.
The low incidence of actual printing is due to user difficulty, as printing is rated as the most difficult function to perform on a camera phone.
Those with both a camera phone and a digital camera take 35 percent more photos per month.
More information on the survey findings and Snapfish is available at http://www.snapfish.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, 2005, HP revenue totaled $85.2 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

(1) In conducting the survey, Greenfield Online, based in Wilton, Conn., collected data from approximately 1,000 people who either own a camera phone or intend to buy one in the next year.

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 Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2005, and other reports filed after HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2004. HP assumes no obligation and does not intend to update these forward-looking statements.

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