HP Issues $1.5 Billion of Five-year Global Notes in Public Bond Offering

Business Wire, June 9, 2000

Business Editors

PALO ALTO, Calif.--(BUSINESS WIRE)--June 9, 2000

Hewlett-Packard Company (NYSE: HWP) today issued $1.5 billion of five-year Global Notes in a public bond offering. The securities carry a coupon of 7.15 percent, which the company has swapped to floating rate payments. HP's shelf registration to sell up to $3 billion in securities became effective on March 17.

"We have been waiting for a more attractive rate environment since filing our shelf registration," said Lawrence (Larry) Tomlinson, HP vice president and treasurer. "HP's growing market and financial momentum lined up well with an improving bond market, so it made sense to be aggressive. In addition, enthusiastic market response to HP's reinvention activities and strategic focus, as well as strong reported top-line growth, created strong demand for our securities. This demand, together with an opportunistic approach to the market, produced a favorable all-in rate to the company."

Proceeds from this bond offering will be used for general corporate purposes, and to replace maturing and matured debt. In addition, HP's expected growth rate will require increased capital investment, primarily in business lines expected to generate recurring revenue, such as printing supplies and customer financing.

HP has been out of the public debt markets since October 1997; it has repaid approximately $1.3 billion of debt since the first fiscal quarter of 1999.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and an Internet infrastructure that's always on.

HP has 86,000 employees worldwide and had total revenue from continuing operations of $42.4 billion in its 1999 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.