HP Unveils Innovative Inkjet Supplies Strategy to Offer Customers More Choice, Greater Value

PALO ALTO, Calif.--(BUSINESS WIRE)--HP (NYSE:HPQ) is changing the way it delivers inkjet cartridges to customers to offer them more choice, greater value and a simplified shopping experience, both in-store and online.

Beginning this year, most new HP consumer printers worldwide will be introduced with multiple inkjet cartridge offerings that are designed to provide customers with options that better meet their printing needs. In addition, the new cartridge options will deliver value by offering low purchase prices to customers who print a little, and lower cost-per-page to customers who print a lot.

In conjunction with these new cartridge offerings, HP is rolling out a new color-coded packaging system across its entire inkjet cartridge portfolio. Three color-coded categories – standard (blue), value (green) and specialty (red) – will allow customers to walk into a retail store or log on to hp.com and quickly and easily scan their options to find the right cartridge that offers the best value for their printing needs.

All three categories deliver the superior reliability and print quality customers expect from HP. For the majority of new HP printers, the inkjet cartridge options will be:

• “Standard” cartridges (blue packaging), which have a lower purchase price, are designed for customers who print a small number of pages on a weekly or monthly basis. Beginning in 2007, HP will introduce an increasing number of standard cartridge offerings in the $14.99 price range for those customers who still want access to high-quality printing, but don’t want to pay a lot at the point of purchase.
• “Value” cartridges (green packaging), which are designed for customers with higher volume printing needs, offer a lower cost per page compared to standard cartridges. This line will include new high-yield “XL” cartridges that provide customers approximately 30-45 percent savings on a cost-per-page basis, print up to three times more pages, and require fewer cartridge replacements compared to standard cartridges. Customers can easily identify the new value option by looking for the green packaging and the letters “XL” next to their cartridge number.
• “Specialty” cartridges (red packaging), which offer additional performance features compared to HP’s standard ink formulations, are ideal for customers with special applications and printing jobs, such as professional-quality photographs.

“For more than 25 years, many HP printers offered customers only one cartridge choice. Now, the majority of our printers will offer customers multiple options,” said Pradeep Jotwani, senior vice president, Supplies, Imaging and Printing Group, HP. “Delivering customer choice and value is critical for driving continued growth, and the unprecedented level of innovation HP is applying toward the customer experience is as important as the innovation behind the technology that goes into our high-performance ink and paper products.”

Improved shopping experience

To improve the customer purchasing experience, HP has extended its color-coded system to point-of-sale materials, such as updated ink selection guides. The changes will attract shoppers’ attention in retail aisles and direct them to the appropriate supplies – helping to educate people about their choices and increasing overall customer satisfaction.

Similar point-of-sale tools and the new look and feel will be employed online at www.hpshopping.com to quickly guide customers to the right supplies for their printer and printing requirements.

Downloadable photos of HP’s new inkjet cartridge offerings, as well as a video showcasing HP’s retail and online makeover, are available online at www.hp.com/go/supplieschoice.

About HP

HP focuses on simplifying technology experiences for all of its customers – from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the world’s largest IT companies, with revenue totaling $94.1 billion for the four fiscal quarters ended Jan. 31, 2007. More information about HP is available at www.hp.com.

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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 statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; anticipated operational and financial results; any statements of expectation or belief; and any statements 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, 2007. HP assumes no obligation and does not intend to update these forward-looking statements.

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