Developments Further Simplify Consumers' Ability to Capture, Share and Print Images

LAS VEGAS, Photo Marketing Association Tradeshow, March 3, 2003

HP (NYSE:HPQ) today announced market trials for its retail and central labs photofinishing systems and two digital cameras that include enhancements to HP Instant Share technology.

"HP continues to drive forward its vision for the 'digital conversation,' making it easier and more convenient for consumers to engage in image-rich communications anytime, anywhere," said Mary Peery, senior vice president, HP Digital Imaging and Publishing Organization. "From capturing to sharing to printing, HP offers consumers greater choice, control and convenience so no one is excluded from the conversation -- and today's announcements are proof of this."

Retail and Central Lab Photofinishing Market Trials

Last year at PMA, HP announced its entry into the consumer photofinishing industry. Today, HP validates its commitment to this market by announcing that the Phogenix DFX Digital Photofinishing System is now being test-marketed by Future Shop, Canada's largest and fastest growing consumer electronics retailer and e-tailer.(1) Future Shop is a division of Best Buy Canada, a wholly owned subsidiary of Best Buy Co. Inc.

Built on commercial thermal inkjet technology from HP, the Phogenix DFX solution is an affordable system that allows more retailers to participate in the exploding digital imaging market and benefits both traditional film and digital camera users who want cost-competitive, convenient digitization and printing options.

Additionally, as a result of its Indigo acquisition in 2002, HP has announced that it will be seeding its first central photofinishing lab trial unit in Europe later this year. HP Indigo photofinishing solutions serve the high-capacity needs of central labs with advanced, high-speed digital color photo printing systems that enable an all-digital workflow. All-digital workflow offers compelling business advantages, including the elimination of manually intensive batch-production processes and top-line growth from being able to service the growing digital capture market.

"Almost one year after announcing our entry into the consumer photofinishing market, HP is pleased to announce that it is now delivering on its goal to be a complete digital imaging solutions provider to both onsite retail and central labs," said Gary Cutler, vice president, HP Digital Imaging Organization. "It's HP's leadership in digital color printing technology coupled with our expertise in world-class computing solutions that has allowed us to deliver on this vision. These photofinishing trials illustrate HP's commitment to provide consumers with a number of options to conveniently print their digital images."

HP Photosmart 935 and 735 Digital Cameras

HP introduced the HP Photosmart 935 and 735 digital cameras with HP Instant Share technology and the HP Photosmart 8886 camera dock.

The HP Photosmart 935 digital camera with HP Instant Share features 5.3-megapixel total resolution and 21x total zoom (Pentax 3x optical zoom lens and 7x digital zoom), enabling consumers to capture and produce picture-perfect photos and beautiful enlargements up to 11x17-inches. In addition, the camera allows users to capture and store memories with the included 32-MB secure digital (SD) memory card.

The compact HP Photosmart 735 digital camera with HP Instant Share produces crisp photos with 3.2-megapixel total resolution and 15x total zoom (Pentax 3x optical zoom lens and 5x digital zoom) for outstanding close-ups. The pocket-sized camera comes with 16-MB internal memory and an SD memory card slot for the option to add more memory.

HP Photosmart 935 and 735 digital camera users have the freedom to choose between automatic or manual controls to select camera settings for ISO, exposure and white balance. Audio messages can be recorded with video clips and still photos to highlight memories as they happen.

The digital cameras ship with both HP Photo and Imaging Gallery and HP Memories Disc Creator software, which allow users to easily edit, create and print photos, including photo album pages and digital slideshows that can be viewed on a TV or computer.

Added Features to HP Instant Share

The HP Photosmart 935 and 735 digital cameras feature the latest version of HP Instant Share, which, since its introduction last year, has allowed consumers to easily share and print digital photos. HP Instant Share is an Internet-based software application that allows consumers to select destinations from the back of the camera; then, by connecting the camera to a computer, the photos are instantly sent to the selected destinations -- e-mail addresses, printers or hpphoto.com. Receivers of the HP Instant Share e-mail can easily view, print and save the photos from a secure Web page -- all without downloading attachments.

The latest version of HP Instant Share adds a photofinishing ordering capability, allowing consumers to tag photos for professional photofinishing by Shutterfly, including convenient delivery at home. Additionally, HP Instant Share now includes 34 destinations, an increase from 14 destinations previously featured.

The enhanced HP Instant Share also allows consumers to share photos that were previously stored on a computer from the HP Photo and Imaging Gallery software. The Gallery now includes one-button access to HP Instant Share, allowing consumers to view, select and edit photos in the Gallery first, and then e-mail the photos with customized messages using HP Instant Share. Consumers have access to other HP Instant Share services in the Gallery, which include uploading photos to hpphoto.com and ordering professional prints from Shutterfly (U.S. only).

The option for consumers to copy themselves when tagging photos for e-mailing is another new feature of HP Instant Share. This allows the sender to receive the same e-mail message containing thumbnail-sized photos as the recipient, which enables the sender to also enjoy hassle-free viewing of photos without large attachments to download.

HP Photosmart 8886 Camera Dock

The HP Photosmart 8886 camera dock is compatible with both the Photosmart 935 and Photosmart 735 digital cameras. When the cameras are placed in the dock, users can easily re-charge the included NiMH batteries, share, print, e-mail or order prints at the touch of a button. Additionally, the HP Photosmart 8886 camera dock allows users to view digital photos on a TV with a wireless remote.

Price and Availability

The HP Photosmart 935 digital camera with HP Instant Share and HP Photosmart 8886 camera dock are expected to begin shipping in April. The HP Photosmart 735 digital camera with HP Instant Share is expected to ship in June. All products will be available at hpshopping.com and retail outlets nationwide.

Estimated U.S. street prices(2) are as follows:

HP Photosmart 935 digital camera with HP Instant Share $449
HP Photosmart 735 digital camera with HP Instant Share $299
HP Photosmart 8886 camera dock $79

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its acquisition of Compaq Computer Corporation on May 3, 2002. More information about HP is available at http://www.hp.com.

(1) Refer to HP and Phogenix press release, titled "HP and Phogenix Announce First Market Trial of Digital Inkjet Minilab for Consumer Electronics Industry," issued March 3, 2003.

(2) Actual prices may vary.


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This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development and performance of these products and services may not proceed as planned; 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 annual report on Form 10-K for the year ended October 31, 2002, as filed with the Securities and Exchange Commission on January 21, 2003, and subsequently filed reports. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP assumes no obligation to update these forward-looking statements.