Hewlett-Packard leads the Indian PC market

MUMBAI

DECEMBER 5, 2006

Hewlett Packard India Sales today announced that it has been ranked as the
leader across all categories in the PC market according to IDC's Asia/Pacific
Quarterly PC Tracker for Q3 2006 (July-September 2006), and IDC's Asia/Pacific
Quarterly Workstation Tracker, 3Q 2006, November 2006 release. For the first
time ever, HP has recorded the highest shipment market shares across commercial
and consumer desktops, portables and workstations.

Ravi Swaminathan, President - Personal Systems Group, Hewlett Packard India
Sales said, "HP's leadership across all computing categories in the country
highlights the trust customers have in our products."

"Over the quarter, HP has launched several unique initiatives across the
consumer and commercial segment, which has started to show phenomenal results
for the company. We remain committed to the needs of our customers and will
continue to deliver the highest value to our customers through technology
innovations to address the home, work, entertainment or mobile preferences of
the industry today," he added.

In this quarter, Compaq also grew to become India's largest selling brand of
notebook PCs with a 19.5 percent market share in terms of unit shipments.

Speaking on the success of the Compaq brand, Shuchi Sarkar, Head-Marketing -
Personal Systems Group, Hewlett Packard India Sales said, "We are happy
that Compaq's brand proposition of empowerment and our elaborate marketing
strategy to feature Bollywood star Shahrukh Khan has made the brand very popular
among PC buyers across the country. Our extensive channel and distribution
network has also enabled us to reach customers in remote areas to offer our
products and services."

Portables/Notebooks Leadership: HP led the portables (notebook PC) segment in
India with a market share of 40.5 percent in unit shipment terms during 3Q 2006.
HP witnessed a 71 percent year-on-year (Q3 2006 over 3Q 2005) growth in
shipments and a 37.7 percent growth in shipments over the previous quarter (Q3
2006 over Q2 2006) in the overall portables segment. The phenomenal growth in
the portables segment can be attributed to exciting launches of new products and
the roll out of HP's new global marketing campaign, the 'Computer is Personal
Again'.

Desktop Leadership: With an overall market share of 16.8 percent in terms of
unit shipments, HP once again emerged as the winner in the overall desktop
segment.

· Consumer Desktops: Desktops targeted at the consumer segment accounted for
a 16.7 percent market share in unit shipment terms. Demand in the consumer
domain was primarily led by home users looking at digital entertainment features
and by parents buying computers for their children's educational needs.

· Commercial Desktops: HP's leadership in the commercial desktop segment was
strongly influenced by demand from Small and Medium Businesses (SMBs) for HP's
'Designed and Made for Asia' desktops, which included the Compaq dx2280 launched
during the quarter. HP's ability in offering desktops personalized for
businesses across the manufacturing, automotive, pharma and education sectors
helped HP secure the leadership position with a 16.9 percent market share in
unit shipment terms in this market category.

Workstation Market Leadership: HP also led the total branded workstation
space in India capturing 48 percent of the market in unit shipment terms in Q3
2006. HP's success in the workstation market was driven in large measure by key
customer wins across niche industry verticals.