HP Europe Press Release

BOEBLINGEN, Germany, 10 July 2006 – HP’s Pan-European online photo service PIXACO today announced a summer of online photo fun with its best value pictures yet. Holiday makers already routinely organise flights and accommodation online and now they can do the same for quick, hassle-free and most importantly great-value holiday snaps. PIXACO has lowered prices in some European countries by up to 36 percent.(1) Quality 10x15cm images on premium paper now cost nine cents(2) and 9x13cm prints are already being sold for eight cents,(2) making PIXACO one of the continent’s best value online photo services, offering not just cost-effective prints but a range of value-added extras.

PIXACO is continuing to deliver on its promise of providing a simple, fast, cost-effective photo service. It has become one of the most popular services in Europe due to its free software for uploading photos along with its easy-to-use, registration-free website, competitive delivery costs, delivery times from two-to-three days and gift range including photo albums, mugs and t-shirts.
The service was acquired by HP in December 2005, offering economies of scale which made it possible for PIXACO to offer even better value for money to its customers.

“As a pan-European leader in online photo printing, PIXACO, now a part of HP, is focused on providing its customers with high-quality prints and photo merchandise at the best value,” Karsten Schneider, managing director of online photo services, HP Imaging and Printing Group, Continental Europe, commented. “With the recent addition of PIXACO to HP’s digital photography portfolio, we are now able to give consumers brilliantly simple and inventive solutions whatever their requirements - from quick, convenient home photo printing to customer-friendly online ordering.”

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 April 30, 2006, HP revenue totalled $88.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at www.hp.com.
More information about PIXACO is available from www.pixaco.com - a service from HP - simple - fast - cost-effective.

(1) Some products cost up to 36 percent less than previously in France, Belgium, Luxemburg, Netherlands and Austria.
(2)  Prices stated in this release apply to Austria, Belgium, France, Luxemburg, Netherlands and Germany. In Sweden 10x15cm prints prices have dropped to 0.99SEK and 9x13cm prints to 0.89SEK.  All prices are in Euros unless otherwise stated. Delivery, postage and packing not included.