HP Canada and Wal-Mart Canada today announced that HP Photosmart Studios have been introduced in all Canadian SAM's CLUB stores and six Wal-Mart Canada stores. This is the first time HP Photosmart Studios have been installed in Canada.

An initial pilot period commenced in May 2006 with positive feedback resulting in plans to place the unit in other locations across Canada. At present, the HP Photosmart Studios are located in stores in Ontario and Alberta.

The HP Photosmart Studio is the first and only in-store solution where consumers can design creative products in about five minutes and pick them up in one hour - all without having to crop or place photos into individual templates.

"We are thrilled to be working with Wal-Mart Canada to bring HP Photosmart Studios into the Canadian marketplace," said Ralph McNeil, vice president of consumer marketing, Imaging and Printing Group, HP Canada. "We believe our solution opens the door to a significantly more profitable photofinishing business for retailers while offering their customers far greater choices than they've ever had in stores."

The HP Photosmart Studio was developed to help consumers transform up to 200 images into ready-to-share, professional-looking albums, calendars, CDs, greeting cards and posters in less than an hour. Simply and quickly, hundreds of photos can be laid out in minutes using proprietary image management algorithms developed by HP Labs.

"At Wal-Mart Canada, we are committed to making sure that our customers have access to the best value on the latest technology," said Tony Hugens, strategic planning and new technology manager, Wal-Mart Canada Corporation/Sam's Club PhotoCentre & PhotoCentre Online. "The HP Photosmart Studio is a great example of a revolutionary solution that enables customers to custom design creative and professional-looking products in just one hour."

For retailers, the HP Photosmart Studio offers an effective way to drive incremental sales and margins in existing photo departments, while delighting customers with new digital photo experiences. The HP Photosmart Studio is completely configurable and scalable to meet the unique needs of retailers.

About Wal-Mart Canada Corp.

Established in 1994 and headquartered in Mississauga, Ontario, Wal-Mart Canada operates a growing network of 278 outlets nationwide. In recent years more than 100 Canadian communities have lobbied or petitioned to have a Wal-Mart built in their towns. The company employs more than 70,000 Canadians and has been ranked one of Canada's best employers four out of the past five years by international human-resources firm Hewitt Associates and Report on Business Magazine.

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 April 30, 2006, HP revenue totaled $88.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at www.hp.com.

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 April 30, 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.

(C) 2006 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein. 8/2006

For further information: Editorial contacts: Sheila Wisniewski, Hill and Knowlton Canada (for HP), (416) 413-4617, Sheila.wisniewski@hillandknowlton.ca; Angela Rea, HP Canada, (905) 206-3493, angela.reae@hp.com; Tony Hugens, Wal-Mart Canada, (905) 821-2111 ext 3172, anthony.hugens@wal-mart.com; Hewlett-Packard Canada Company, 5150 Spectrum Way, Mississauga, ON, L4W 5G1, www.hp.ca

Source: newswire