HP Press Release 12/02/04

HP Revamps Digital Camera Lineup, Increases Investment to Become a Top Vendor

LAS VEGAS—(Business Wire)—Feb. 12, 2004 R&D Investment in Imaging and Printing Simplifies Capture, Share and Print Experience for Consumers

HP (NYSE:HPQ) (Nasdaq:HPQ) today unveiled plans to revamp its digital camera lineup as part of an aggressive strategy to become a leading vendor. The new camera line will include the introduction of eight cameras with revolutionary consumer industrial design and exclusive HP technology to improve image processing and ease of use for mainstream consumers. Industry-first improvements include HP In-Camera Red-Eye Removal, which instantly removes red-eye from photos right on the camera without using a PC.

The revamp is the result of a significant increase in HP’s digital camera research and design efforts, nearly doubling the investment dollars in the past 18 months as part of HP’s overall $1 billion-plus research and development budget in imaging and printing.

Additionally, HP is bolstering its retail efforts with comprehensive online and in-store training programs for sales representatives in more than 4,500 stores across the United States. HP trainers reach approximately 15,000 store associates every week, assisting associates in understanding how HP products work better together—from capture to share to print.

“In 2004, HP digital cameras will establish a higher standard by which the mainstream digital camera market will be judged both in technologic advancements and image quality as well as ease of use,” said Vyomesh Joshi, executive vice president, Imaging and Printing Group, HP. “Combined with HP’s line of exceptional photo-quality printing systems that offer fade resistance for up to 115 years, we are providing consumers the means to capture, share and print true-to-life quality photos right in the comfort of their own homes.”(1)

The HP Photosmart line of digital cameras will feature a completely new look and feel, including a stylish and durable brushed stainless steel construction and a one-of-a-kind ergonomic grip for steady, one-handed shots.

To help ensure that printed photos result in picture-perfect color output, HP’s new camera line also will incorporate HP Real Life technologies, a series of technical advancements that make it virtually impossible to take a bad picture.

HP Real Life technologies include:

—HP Adaptive Lighting technology, which automatically adjusts high-contrast photos to bring faces out of shadows and details out of backgrounds.

—HP Image Advice, which analyzes photos and then provides tips to users on how to adjust settings to improve future shots, thus helping the photographer learn to take better photos.

—HP In-Camera Red-Eye Removal, which instantly removes red-eye from photos right on the camera without using a PC—an industry first.

—HP In-Camera Panorama Preview, which allows consumers to take up to five pictures that are then combined into a panorama picture composition and reviewed in-camera.

—A new image engine, developed through collaboration between HP and Texas Instruments, which provides outstanding image quality and feature flexibility. This image engine, based on Texas Instruments’ digital media processing technology and found exclusively in HP cameras, is the power behind HP Real Life technologies, translating what the photographer’s eye sees into the image captured.

The first model to feature HP Real Life technologies is the HP Photosmart R707 digital camera with HP Instant Share, a technology that makes sharing, printing and saving digital photos easy. In addition, the HP Photosmart R707 digital camera offers 5.1-megapixel resolution, 24x total zoom, 32 megabytes of internal storage and PictBridge, all of which help consumers achieve professional-quality photos.

The HP Photosmart R-series camera dock will allow users—in one, quick step—to easily share, print, e- mail and store photos and video clips. At the same time, the dock recharges the in-camera battery, in addition to an included spare battery via the dual charging bay. The HP Photosmart R-series camera dock also allows users to view digital photos on a TV with a wireless remote.

The HP Photosmart R707 digital camera and HP Photosmart R-series camera dock are expected to begin shipping in May and have estimated U.S. street prices of $349 and $79, respectively.(2) The products will be available at hpshopping.com and retail outlets worldwide.

Vivid, photo-quality prints in a variety of sizes with exceptional fade resistance

Announced on Feb. 10 and being shown at PMA, the HP Designjet 30 and HP Designjet 130 printing systems offer creative professionals affordable, convenient printing of high-quality photos, prints and proofs that resist fading for 70 years.(3)

In addition to accurate color and photo image quality, the two HP Designjet systems deliver fast color stability and color consistency, an array of color management tools for flexible and improved workflow as well as new media and ink cartridges to deliver optimal performance. Designed for professionals, HP’s state-of-the-art dye-based ink formulations offer the rich color depth, gloss uniformity, color stability and consistency to produce stunning results when combined with HP’s innovative media technology.

Industry standard for printing from camera phones at home

Also at PMA, home photo printing leaders HP, Epson and Canon announced the Mobile Imaging and Printing Consortium. The consortium will define industry standards for providing consumers with a simple and spontaneous experience when printing images taken with camera phones at home.

According to a recent report by Strategy Analytics, camera phones will account for 55 percent of global handset sales in 2008, up from 15 percent in 2003.(4) The increasing number of camera phones being sold directly correlates to a rise in the number of photos taken and HP is making every effort to streamline the printing of these photos at home.

For more information regarding HP at PMA is available in an online press kit at www.hp.com/go/pma2004.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the fiscal year ending on Oct. 31, 2003, HP revenue totaled $73.1 billion. More information about HP is available at www.hp.com. (1) According to Wilhelm Imaging Research (see www.wilhelm-research.com for details). The reference to 115 years is to black and white print fade resistance in normal indoor display conditions, when used with the HP 59 gray photo inkjet print cartridge and HP Premium Plus Photo paper. Display Permanence Ratings are based on accelerated light stability tests conducted at 35 klux with glass-filtered cool white fluorescent illumination with the sample plane air temperature maintained at 24 C and 60% relative humidity. Data were extrapolated to display conditions of 450 lux for 12 hours per day using the Wilhelm Imaging Research, Inc. “Visually-Weighted Endpoint Criteria Set v3.0.” and represent the years of display for easily noticeable fading, changes in color balance, and/or staining to occur. (2) Actual prices may vary. (3) Preliminary results from tests conducted by Wilhelm Imaging Research, Inc. indicate that prints made with HP No. 85 ink cartridges and HP Premium Plus Photo and Proofing Gloss paper may be displayed indoors under glass for approximately 70 years before noticeable fading and staining will occur (see www.wilhelm-research.com for details). (4) Strategy Analytics, Camera Phones Outsell Digital Still Cameras in H1 2003 and Beyond, September 2003.