HP Announces HP Media Center PC with Windows XP Media Center Edition

October 11, 2002--HP (NYSE:HPQ) and Microsoft Corp. (Nasdaq:MSFT) today announced the HP Media Center PC with Microsoft Windows XP Media Center Edition is expected to be available at Best Buy, Circuit City and CompUSA in the United States, at Future Shop and Best Buy in Canada and direct from HP online at hpshopping.com by the end of October.

The HP Media Center PC is powered by Microsoft Windows XP Media Center Edition, which turns a PC into a media center that integrates digital entertainment experiences -- including live television, personal video recording with free electronic program guide, digital music, digital video, DVDs and digital photos -- with the freedom of remote control access.

"With its combination of PC power and entertainment features, the HP Media Center PC is an ideal choice for consumers looking to purchase a PC as a holiday gift," said Sam Szteinbaum, North America vice president of consumer products, HP Personal Systems Group. "It's like giving a PC and all your home entertainment center components in one."

The HP Media Center PC is ideal for digital media enthusiasts and consumers, such as teenagers, college students, young adults and families, who want to use their PC for entertainment and digital media in small, space-constrained environments. Featuring a sleek black and chrome design, the new HP Media Center PC will have a six-in-one media card reader on its front panel for quick and easy transfer of digital data, outstanding sound quality, and photo and home movie creation and editing software.

Powered by Intel Pentium 4 processors, the HP Media Center PC allows users to enjoy the digital entertainment capabilities of the newest member of the Windows XP family. Building on the stability of Windows XP and its easy-to-use digital media tools, Windows XP Media Center Edition introduces the new Media Center user experience. Media Center will serve as a unified destination for entertainment on the HP Media Center PC and is designed to be viewed from anywhere in the room.

"Windows XP Media Center Edition represents the arrival of a new type of home computing experience, and Microsoft is excited to be working with such broad-reaching retailers to bring consumers media center PCs that will offer them more freedom, more fun and deliver even more value in their everyday lives," said Mike Toutonghi, vice president of the Windows eHome Division, Microsoft.

Retailers have shown strong support for the new Media Center PC category:

"CompUSA customers understand technology. We know they'll find the idea of controlling their PC entertainment experiences from across the room to be very compelling. The remote control could well become the next standard PC peripheral; we see the HP Media Center PC with Windows XP Media Center Edition as an important first step toward the connected home." -- Tony Weiss, executive vice president, CompUSA

"The HP Media Center PC with Windows XP Media Center Edition is what the future has in store this holiday season. We're very excited about showcasing this product and demonstrating how much more our customers can get from their PC. The Media Center interface is simple, elegant and highly functional. What a great idea to be able to kick back after the e-mails and spreadsheets and simply enjoy a wide variety of entertainment choices." -- Rick Lotman, senior vice president, Merchandising and Marketing, Future Shop.

Expected to be available by the end of October, the HP Media Center PC will have an estimated U.S. street price starting at $1,399.(2)

Additional information on the HP Media Center PC is available at http://www.hp.com/go/mediacenterpc, and more information about Microsoft Windows XP Media Center Edition is available at http://www.microsoft.com/presspass/presskits/2002/winxpmediacenter/. Detailed product specifications and exact pricing will be released from HP later this month.

(1) Internet access required to download program guide.
(2) Actual prices may vary.