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HP’s Snapfish Becomes First Major Online Photo Service to Offer Home Movie Service

PALO ALTO, Calif., Jan. 4, 2006 - HP today announced that customers of its Snapfish online photo service can now view, share and store their digital videos online, just as they do their photos, for easy access anytime, anywhere.

Snapfish is the first major online photo service to offer a home movie service, which uses Snapfish-developed technology to recognize and convert most digital video formats to a common one playable through almost any browser.

The new home movie service, which accepts video from digital cameras and mobile phones, requires no special downloads, plug-ins or players for either the person taking the video or the recipient of a shared video.

"As more and more consumers continue to purchase digital cameras and camera phones with video capture functionality, the volume of home videos is increasing," said Ed Lee, director, Digital Photography Trends service, InfoTrends. "In fact, our recent digital camera end user survey showed that 23 percent of digital camera users already email video clips to family and friends, confirming that there is a healthy and growing market for Snapfish’s new home movie service."

Customers looking for an easy way to transfer videos that have been captured on their mobile phones can simply email the videos to save@snapfish.com. In moments, the home video becomes accessible for viewing and sharing.

"Until now, there has not been an easy way to manage and share digital home videos," said Ben Nelson, vice president and general manager, Snapfish, HP. "With this new home movie service, we’re expanding beyond photos and moving towards our vision of helping consumers enjoy, preserve and share their memories."

A free one-month trial of the new home movie service is available to customers. After the trial period, subscription to the service is $2.99 per month or $24.99 per year for unlimited viewing, storage and sharing of videos up to 10 minutes in length.

Snapfish also offers professionally developed digital camera prints as low as 10 cents, film developing for $2.99 per roll, free online photo sharing, unlimited online photo storage, free editing tools and software, wireless imaging services and more than 90 personalized photo products, ranging from calendars, mugs and mousepads, to boxer shorts, dog leashes and teddy bears.

In addition, Snapfish provides infrastructure services to leading retailers, Internet service providers and wireless carriers, allowing them to offer these same products and services to their own customers.

More information about all of Snapfish’s products and services is available at www.snapfish.com.

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 Oct. 31, 2005, HP revenue totaled $86.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://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 July 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.