HP Unveils Affordable, Energy-saving Business PC Products

PALO ALTO, Calif., Nov. 15, 2006 - HP today announced a variety of affordable, energy-efficient desk-based products and environmentally friendly features for business customers.

Available today, the new HP Compaq dx2250 Desktop PC is a reliable, full-featured business computer featuring energy-efficient processors to help lower a customer’s total cost of ownership.

HP also plans to offer 80 percent efficient power supplies on select desktop business PCs. The optional power supplies offer greater energy savings to customers and will allow HP to meet the U.S. Environmental Protection Agency’s (EPA) recently announced ENERGY STAR® 4.0 requirements in January 2007 – a full six months before the new guidelines take effect.

HP additionally announced a trade-in program to make it more affordable for customers to obtain thin client technology – which uses the lowest watt processors of any business computing option – while disposing of old technology in an environmentally responsible manner.

“As the world’s largest PC manufacturer, HP understands there’s a lot at stake when it comes to energy efficiency, from the rising cost of resources to the environmental impact,” said Jeff Groudan, vice president, Business PC Marketing, Personal Systems Group, HP. “We continue to proactively design, develop and incorporate energy-saving technologies into our products.”

The HP Compaq dx2250 Business Desktop microtower PC is available with a range of high-performance AMD Athlon™ 64 X2 dual-core,(1) AMD Athlon 64(2) and AMD Sempron™ processors. It also is the second HP business desktop series to feature AMD Cool ‘n’ Quiet™ technology to help reduce processor heat for an overall cooler PC and a quieter work environment.

Featuring award-winning processor, chipset and integrated graphics technologies from AMD and ATI Radeon combined with HP design, engineering and testing, the dx2250 is simple to set up and use and offers convenient audio ports for greater flexibility. Front USB 2.0 ports and an optional 16-in-1 media reader provide quick access to digital files and a fast-track to productivity.

The dx2250’s 64-bit processors are designed to provide a seamless upgrade path to next-generation software and hardware and offer support for both Microsoft Windows® XP™ and the upcoming Windows Vista™ operating systems.(3) High-capacity hard drives help increase storage capabilities, and a PCI Express x16 slot allows for graphic upgrades.

“AMD applauds HP for recognizing the true value in developing energy-efficient solutions that address customer computing and business requirements,” said Bob Brewer, corporate vice president, Desktop Division, AMD. “As AMD64 processor-based systems including the new HP Compaq dx2250 and the previously released dc5750 desktop PCs come to market, businesses can benefit from the low power consumption and quiet operation that AMD Cool’n’Quiet technology enables, without compromising performance. AMD has long understood that IT departments are looking for ways to cut energy consumption costs without losing performance or reliability – and we remain committed to helping customers achieve these objectives.”

Starting at $359 direct from HP or through an authorized HP reseller, the dx2250 is also available with high-performance DDR-2 SDRAM memory in single or dual channel configurations, USB 2.0 for significantly increased data transfer speed, high-speed multi-functional optical storage drives, and support for SATA hard drives.

New power supplies offer energy savings to business customers

This January, HP’s 80 percent efficient power supplies will be an option for the recently introduced HP Compaq dc7700,(4) dc5700 and dc5750 series desktop PCs.

In a typical commercial building, as much as 10 to 15 percent of the overall energy bill is driven by energy consumption of the power supplies used in most business technology. The new 80 percent efficient power supplies are 33 percent more efficient than current power supplies because they reduce the power drawn in waste heat that is dispersed into the environment. This is according to 80 PLUS®, an electric utility-funded incentive program focused on integrating more energy-efficient power supplies into desktop computers and servers. HP is the first major PC manufacturer to support the program.

“The 80 PLUS Program is pleased to welcome HP as the first tier 1 computer manufacturer to join the program,” said Kent Dunn, senior program manager, 80 PLUS. “HP’s progressive approach to energy efficiency will enable its customers to enjoy the many benefits associated with 80 PLUS qualified computers.”

HP laboratory tests reveal existing HP business desktop customers could improve power efficiency as much as 45 percent by switching to a next-generation system featuring an 80 percent efficient power supply.(5) As systems are more richly configured, the savings with the new power supply increases, with the potential to save large enterprises with thousands of PCs deployed tens of thousands of dollars each year.(6)

Snohomish County Public Utility District (PUD) near Seattle has tested an 80 percent efficient power supply in its newest HP business PCs and found a significant savings potential.

“Our initial tests indicate that we would have an average annual savings of about 125 kWh per PC using these more efficient power supplies. Additionally, the reduction in harmonics will allow Snohomish PUD to have almost twice as many PCs powered from each electrical circuit,” said Scott Gibson, senior engineer, Snohomish County PUD. “It’s great working with HP to help businesses reduce PC power consumption and enjoy energy savings as a result.”

As part of HP’s commitment to reducing the environmental impact of its customers, partners and suppliers, the company works with industry and government groups to promote energy-saving programs and consistent global standards. For example, HP is the only major PC manufacturer to have 36 products registered at the Silver rating with EPEAT, an online procurement tool to help institutional purchasers in the public and private sectors evaluate, compare and select desktop computers, notebooks and monitors based on their environmental attributes.

Getting thin just got easier

In addition to a broad lineup of full-featured business PCs, HP is also the industry’s fastest growing major thin client manufacturer. Thin clients offer improved security and manageability at a lower cost than traditional desktop PCs. And with just 9-watt processors, thin clients are also the most energy-efficient desktop client option.

To make it even more affordable to migrate from traditional desktops PCs or older thin clients to the latest generation HP Compaq t5700, t5500 or t5100 series thin clients, HP is offering a trade-in program to business customers. Customers will receive fair market value for their trade-in systems, plus an additional $20 off the equivalent number of new qualified thin clients purchased, up to 100 systems per customer.

If a trade-in unit does not carry a fair market value, HP will cover the cost to recycle the product in an environmentally responsible manner, in addition to providing the $20 discount per unit. Customers and authorized HP resellers can take advantage of this offer through Jan. 31, 2007, by visiting www.hp.com/go/tctradein or contacting an HP representative.

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.

(1) This system requires a separately purchased 64-bit operating system and 64-bit software products to take advantage of the 64-bit processing capabilities of AMD Athlon 64 X2 technology. Dual-core processing available with AMD Athlon X2 technology is a recent technology innovation designed to improve performance of this system. Given the wide range of software applications available, performance of a system including a 64-bit operating system and a dual-core processor will vary.

(2) This system requires a separately purchased 64-bit operating system and 64-bit software products to take advantage of the 64-bit processing capabilities of the AMD Athlon 64 processor. Given the wide range of software applications available, performance of a system including a 64-bit operating system will vary.

(3) Not all Windows Vista features are available for use on all Windows Vista Capable PCs. All Windows Vista Capable PCs will run the core experiences of Windows Vista, such as innovations in organizing and finding information, security, and reliability. Some features available in premium editions of Windows Vista – like the new Windows Aero™ user interface – require advanced or additional hardware. Check www.windowsvista.com/getready for details.

(4) 80 percent efficient power supplies will be supported on all HP Compaq dc7700 series PCs, with the exception of the Ultra-slim desktop.

(5) According to internal HP benchmark testing of a dc7600 CMT, Intel Pentium® D 820, 1 GB memory, 80 GB HDD, DVD/CDRW vs. dc7700 CMT with 80 percent efficient power supply, Intel® Core® 2 Duo E6300, 1 GB memory, 80 GB HDD, DVD/CDRW.

(6) Actual energy savings may vary.

AMD, the AMD Arrow Logo, AMD Athlon and Cool’n’Quiet, and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Microsoft Windows are U.S. registered trademarks of Microsoft Corp. Intel, Pentium and Intel Core are trademarks or registered trademark of Intel Corp. or its subsidiaries in the United States and other countries.

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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