HP Unveils Complete Point-of-Sale Solution for Retailers

Paul Demery

CHICAGO--May 22, 2006--HP (NYSE:HPQ) (Nasdaq:HPQ) today announced a complete point-of-sale transaction management system designed for retailers ranging from small to large that want to lower costs and simplify the checkout experience for customers.

Unveiled at the Retail Systems 2006 Conference and Exposition, the easy-to-setup solution is based on the HP rp5000 point-of-sale system and includes the first-ever HP-branded and tested retail peripherals running on an open-standards hardware and software platform.

"No retail IT project has as much at stake as a new point-of-sale rollout," said Rob Garf, research director, AMR Research. "If the point-of-sale system doesn`t work, sales don`t happen. A new point-of-sale platform has the potential to enable a number of consumer-facing initiatives that will help retailers compete and win."

Designed to withstand the rigors of the retail environment, the HP-branded offering includes a receipt printer, scanner, cash drawer, magnetic stripe reader, keyboard and touch screen display -- all seamlessly integrated into the rp5000 system. The HP peripherals, which offer improved compatibility and ease of use, can be purchased separately or as part of a complete solution.

The HP point-of-sale system`s long five-year lifecycle and industry-standard PC-based architecture make it easier for retailers to transition from more expensive proprietary systems. HP also began offering new low-rate financing with flexible terms and options as well as credit line capabilities that allow eligible customers to easily add to the solution.

"The delivery of a complete HP-branded point-of-sale solution is a bold, competitive move, and we believe this offering represents the cutting edge of transaction management at the point of sale," said Carol Potts, vice president, Retail Industry Solutions, HP. "With it we are offering low total cost of ownership to the entire spectrum of retailers, from the single store retailer to large corporate chains."

The system features a five year lifecycle and three-year warranty, as well as four powered serial ports, four powered USB 2.0 ports, two standard USB 2.0 ports and two full height PCI slots for maximum connectivity. It also incorporates the Intel(R) Pentium(R) 4 processor with the 845GV chipset and a choice of Microsoft Windows(R) XP Professional or Microsoft Windows Embedded for Point of Service operating systems.

The Microsoft Point of Sale application will also be available pre-loaded as part of a total packaged solution. Microsoft Point of Sale provides small, single store retailers an easy-to-use application to track sales, inventory and customer information. Designed to replace the electronic cash register, the application helps users save time and money, automating stores at an affordable price.

"We are pleased that HP has chosen Microsoft Point of Sale to be part of this solution for retailers," said Mike Dickstein, general manager, U.S. Small and Mid-market Sales and Partners, Microsoft Dynamics, Microsoft Corp. "Together, Microsoft and HP are making retail store automation simple, affordable and accessible."

Since the HP rp5000 point-of-sale system was unveiled nearly three years ago, more than 300,000 single systems have been committed to major retailers worldwide, including Publix Super Markets, Inc., Starbucks, Chico`s(R), Federal Express and The UPS Stores.

HP`s bundled point-of-sale solution is available immediately to retailers in the United States, either through direct sale or channel partners.

HP is present at the Retail Systems conference in booth 1124.

More information on HP`s retail solutions is available at www.hp.com/go/retail.

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 totaled $88.9 billion. More information about HP is available at www.hp.com.

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Intel and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. Microsoft and Windows are U.S. registered trademarks of Microsoft Corporation. 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 anticipated operational and financial results; statements of expectation or belief; and any statement 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 Jan. 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.

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