INDUSTRY

PALO ALTO, CA -- Walter B. Hewlett, Eleanor Hewlett Gimon, Mary Hewlett Jaffe and The William R. Hewlett Revocable Trust announced today that they intend to vote their shares of Hewlett-Packard Company (NYSE: HWP) against the proposed merger of Hewlett-Packard and Compaq Computer Corporation (NYSE: CPQ) if the transaction is brought before Hewlett- Packard's stockholders for a vote. Mr. Hewlett also announced that he has been informed by an independent committee of The William and Flora Hewlett Foundation that the Foundation has reached a preliminary conclusion to vote its Hewlett-Packard shares against the merger. Walter B. Hewlett, Eleanor Hewlett Gimon and Mary Hewlett Jaffe are children of Hewlett-Packard co-founder William R. Hewlett. Walter Hewlett is a trustee of the William R. Hewlett Revocable Trust. That Trust, the Hewlett Foundation and the family members together own more than 100 million shares of Hewlett-Packard stock. Mr. Hewlett stated, ``After careful deliberation, consultation with my financial advisor and consideration of developments since the announcement of the merger, I have decided to vote against the transaction. I believe that Hewlett-Packard can create greater value for stockholders as a stand-alone company than as a company combined with Compaq. Hewlett-Packard has a strong tradition of innovation and product development, a highly profitable printer and imaging business, a strong foundation for expanding its outsourcing and consulting services business and an extremely talented work force. ``I firmly believe that partnering with Compaq will not give Hewlett-Packard what it needs most to create additional stockholder value -- expansion of its printer and imaging business as well as the higher-end segments of its services and server businesses. The combination would dramatically increase Hewlett-Packard's exposure to the unattractive PC business and dilute current stockholders' interest in Hewlett-Packard's profitable printer business. Given the lack of stockholder benefits, I believe the extensive integration risks associated with this transaction are not worth taking.'' ----- HP Statement on Hewlett Announcement PALO ALTO, CA -- Hewlett-Packard Company issued the following statement: While we regret very much the Hewlett family's decision, we are not surprised. The HP Board of Directors and HP and Compaq remain fully committed to the merger and expect shareholder approval. HP's S-4 registration statement will be filed within the next several days and will serve as the basis for thoughtful shareowner evaluation. For more information visit www.hp.com