<SUBMISSION>
<ACCESSION-NUMBER>0001047469-06-014882
<TYPE>SC TO-I/A
<PUBLIC-DOCUMENT-COUNT>2
<FILING-DATE>20061208
<DATE-OF-FILING-DATE-CHANGE>20061208
<SUBJECT-COMPANY>
<COMPANY-DATA>
<CONFORMED-NAME>HEWLETT PACKARD CO
<CIK>0000047217
<ASSIGNED-SIC>3570
<IRS-NUMBER>941081436
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1031
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC TO-I/A
<ACT>34
<FILE-NUMBER>005-12061
<FILM-NUMBER>061266596
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3000 HANOVER ST
<STREET2>MS 1050
<CITY>PALO ALTO
<STATE>CA
<ZIP>94304
<PHONE>6508571501
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3000 HANOVER ST
<STREET2>MS 1050
<CITY>PALO ALTO
<STATE>CA
<ZIP>94304
</MAIL-ADDRESS>
</SUBJECT-COMPANY>
<FILED-BY>
<COMPANY-DATA>
<CONFORMED-NAME>HEWLETT PACKARD CO
<CIK>0000047217
<ASSIGNED-SIC>3570
<IRS-NUMBER>941081436
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1031
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC TO-I/A
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3000 HANOVER ST
<STREET2>MS 1050
<CITY>PALO ALTO
<STATE>CA
<ZIP>94304
<PHONE>6508571501
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3000 HANOVER ST
<STREET2>MS 1050
<CITY>PALO ALTO
<STATE>CA
<ZIP>94304
</MAIL-ADDRESS>
</FILED-BY>
<DOCUMENT>
<TYPE>SC TO-I/A
<SEQUENCE>1
<FILENAME>a2175061zscto-ia.htm
<DESCRIPTION>SC TO-I/A
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#06PAL1306_1">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>

<P><FONT SIZE=2><I> <hr noshade width=100% align=left size=4>
<hr noshade width=100% align=left size=1>  </I></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=4><B>SECURITIES AND EXCHANGE COMMISSION<BR>  </B></FONT><FONT SIZE=2><B>Washington, D.C. 20549  </B></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=4><B>Amendment No. 3 to<BR>  </B></FONT><FONT SIZE=4><B>SCHEDULE TO<BR>  </B></FONT><FONT SIZE=4><B>(Rule 13e-4)<BR>  </B></FONT><FONT SIZE=2><I>Tender Offer Statement Under Section 14(d)(1) or 13(e)(1)<BR>
of the Securities Exchange Act of 1934  </I></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=4><B>Hewlett-Packard Company<BR>  </B></FONT><FONT SIZE=2>(Name of Subject Company (Issuer) and Filing Person (Offeror)) </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2><B>Options to Purchase Common Stock, $0.01 par value<BR>  </B></FONT><FONT SIZE=2>(Title of Class of Securities) </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2><B>428236103<BR>  </B></FONT><FONT SIZE=2>(CUSIP Number of Class of Securities Underlying Options to Purchase Common Stock) </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2><B>Charles N. Charnas, Esq.<BR>
Acting General Counsel, Vice President and Assistant Secretary<BR>
Hewlett-Packard Company<BR>
3000 Hanover Street<BR>
Palo Alto, CA 94304<BR>
(650) 857-1501<BR>  </B></FONT><FONT SIZE=2>(Name, address and telephone number of person authorized to receive notices and<BR>
communications on behalf of filing person) </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2><I>Copies to:  </I></FONT></P>

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<TR VALIGN="TOP">
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>Paul T. Porrini, Esq.<BR>
David K. Ritenour, Esq.<BR>
Hewlett-Packard Company<BR>
3000 Hanover Street<BR>
Palo Alto, California 94304<BR>
(650) 857-1501</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>Katharine A. Martin, Esq.<BR>
David S. Thomas, Esq.<BR>
Wilson Sonsini Goodrich &amp; Rosati,<BR>
Professional Corporation<BR>
650 Page Mill Road<BR>
Palo Alto, California 94304-1050<BR>
(650) 493-9300</B></FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2><B>CALCULATION OF FILING FEE  </B></FONT></P>

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<TR VALIGN="TOP">
<TD COLSPAN=3 ALIGN="CENTER"><HR NOSHADE></TD>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="49%" ALIGN="CENTER"><FONT SIZE=1><B>Transaction Valuation*</B></FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="49%" ALIGN="CENTER"><FONT SIZE=1><B>Amount of Filing Fee</B></FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 ALIGN="CENTER"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2>$5,509,673</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="CENTER" VALIGN="BOTTOM"><FONT SIZE=2>$590</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 ALIGN="CENTER"><HR NOSHADE></TD>
</TR>
</TABLE>
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<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>*</FONT></DT><DD><FONT SIZE=2>Estimated
solely for the purposes of calculating the Amount of Filing Fee. The calculation of the Transaction Valuation assumes that all options to purchase the Issuer's common stock
that are eligible for exchange will be tendered pursuant to this offer. These options have an aggregate value of $5,509,673 as of November 14, 2006, calculated based on a modified Black-Scholes option
pricing model.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#253;</FONT></FONT></DT><DD><FONT SIZE=2>Check
the box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was
previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. </FONT></DD></DL>

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<TD WIDTH="30%"><FONT SIZE=2>Amount Previously Paid:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="68%"><FONT SIZE=2>$590</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="30%"><FONT SIZE=2>Form or Registration No.:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="68%"><FONT SIZE=2>005-12061</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="30%"><FONT SIZE=2>Filing party:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="68%"><FONT SIZE=2>Hewlett-Packard Company</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="30%"><FONT SIZE=2>Date filed:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="68%"><FONT SIZE=2>November 17, 2006</FONT></TD>
</TR>
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<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></DT><DD><FONT SIZE=2>Check
the box if the filing relates solely to preliminary communications made before the commencement of a tender offer. </FONT></DD></DL>

<P><FONT SIZE=2>Check the appropriate boxes below to designate any transactions to which the statement relates: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></DT><DD><FONT SIZE=2>third
party tender offer subject to Rule 14d-1.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#253;</FONT></FONT></DT><DD><FONT SIZE=2>issuer
tender offer subject to Rule 13e-4.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></DT><DD><FONT SIZE=2>going-private
transaction subject to Rule 13e-3.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></DT><DD><FONT SIZE=2>amendment
to Schedule 13D under Rule 13d-2. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>Check the following box if the filing is a final amendment reporting the results of the tender offer:&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT>
<hr noshade width=100% align=left size=1>
<hr noshade width=100% align=left size=4> </FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment No.&nbsp;3 (this "Amendment") amends the Tender Offer Statement on Schedule TO (the "Schedule TO") filed by Hewlett-Packard Company, a Delaware corporation
("Hewlett-Packard" or the "Company"), with the Securities and Exchange Commission on November&nbsp;17, 2006 relating to the offer by the Company (the "Offer") to amend certain options (the "Eligible
Options") that have been granted under the Mercury Interactive Corporation Amended and Restated 1999 Stock Option Plan, the Mercury Interactive Corporation Amended and Restated 2000 Supplemental Stock
Option Plan, and the Mercury Interactive Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees: (i)&nbsp;that were assumed by Hewlett-Packard in connection with
the acquisition of Mercury Interactive Corporation, which was completed on November&nbsp;6, 2006, (ii)&nbsp;that had original exercise prices per share that were less than the fair market value
per share of the common stock underlying the option on the option's grant date, (iii)&nbsp;that were unvested, either in whole or in part, as of December&nbsp;31, 2004, (iv)&nbsp;that are
outstanding as of the last date on which the Offer remains open for acceptance, and (v)&nbsp;that are held by individuals who are subject to taxation in the United States. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Eligible Options may be amended pursuant to the terms and subject to the conditions set forth in: (i)&nbsp;the Offer to Amend the Exercise Price of Certain Options, dated
November&nbsp;17, 2006, as amended December&nbsp;4, 2006 (the "Offer to Amend"), (ii)&nbsp;the related e-mail to all eligible option holders from Tom Hogan, dated November&nbsp;17,
2006, (iii)&nbsp;the Election Form, and (iv)&nbsp;the Withdrawal Form (collectively, the "Offer Documents"). The Offer Documents were filed with the Schedule TO as exhibits (a)(1)(A), (a)(1)(B),
(a)(1)(C) and (a)(1)(D), respectively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information in the Offer Documents, including all schedules and annexes thereto, is hereby expressly incorporated into this Amendment by reference to all of the applicable items in
Schedule TO, except that such information is hereby amended and supplemented to the extent specifically provided herein. </FONT></P>

<P><FONT SIZE=2><B>Item 11. Additional Information.  </B></FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>The
answer to Question 23 (A23) of the section of the Offer to Amend entitled "Summary Term Sheet and Questions and Answers" is hereby amended and restated as follows: </FONT></DD></DL>
<UL>

<P><FONT SIZE=2>Yes.
Amendment of your eligible options is considered a repricing of options. As a result, the Company expects to record additional stock-based compensation as a charge against earnings based on the
difference between the fair value of the options as of the closing of the offer period and the fair value of the amended option. We will not be able to determine the amount of compensation expense
until
the closing of the offer period because it depends on the price of our common stock as of the closing of the offer period. However, we have been able to determine that the maximum compensation expense
that will be recorded if all eligible optionees accept the offer will be approximately $1.1&nbsp;million. A compensation expense of this size is not material to our financial statements. (See
Section&nbsp;12) </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>The
second paragraph of Section&nbsp;12 of the Offer to Amend entitled "Status of options amended by us in the offer; accounting consequences of the offer" is hereby amended and
restated as follows: </FONT></DD></DL>
<UL>

<P><FONT SIZE=2>The
offer is considered a repricing of options with respect to all eligible options and as a result, the Company expects to record additional stock-based compensation as a charge against earnings
based on the difference between the fair value of the options as of the closing of the offer period and the fair value of the amended option. We will not be able to determine the amount of
compensation expense until the closing of the offer period because it depends on the price of our common stock as of the closing of the offer period. However, we have been able to determine that the
maximum compensation expense that will be recorded if all eligible optionees accept the offer will be approximately $1.1&nbsp;million. A compensation expense of this size is not material to our
financial statements. </FONT></P>

</UL>
<HR NOSHADE>
<P style='page-break-before:always'></p>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="jc1306_signature"> </A>
<A NAME="toc_jc1306_1"> </A>
<BR></FONT><FONT SIZE=2><B>SIGNATURE    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this Amendment No.&nbsp;3 to Schedule TO is true,
complete and correct. </FONT></P>

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<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><B>HEWLETT-PACKARD COMPANY</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><B><BR>
&nbsp;</B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><B><BR>&nbsp;</B></FONT></TD>
<TD COLSPAN=2><BR><FONT SIZE=2>/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>CHARLES N. CHARNAS</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><HR NOSHADE><FONT SIZE=2> Charles N. Charnas<BR>
Acting General Counsel, Vice President and<BR>
Assistant Secretary</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>Date:
December&nbsp;8, 2006 </FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ka1306_index_to_exhibits"> </A>
<A NAME="toc_ka1306_1"> </A>
<BR></FONT><FONT SIZE=2><B>INDEX TO EXHIBITS    <BR>    </B></FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="13%" ALIGN="CENTER"><FONT SIZE=1><B>Exhibit<BR>
Number</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="84%" ALIGN="CENTER"><FONT SIZE=1><B>Description</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(A)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Offer to Amend the Exercise Price of Certain Options, dated November&nbsp;17, 2006, as amended December&nbsp;4, 2006, as further amended December&nbsp;8, 2006</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(B)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>E-mail to all eligible option holders from Tom Hogan, dated November&nbsp;17, 2006*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(C)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Election form*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(D)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Withdrawal form*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(E)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Form of addendum*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(F)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Form of amendment(s) to stock option agreements and promise to make cash payment*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(G)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Form of acknowledgment of receipt of documents relating to the offer*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(H)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Form of reminder e-mails*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(I)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Option holder presentation materials*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(J)(i)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Form of stock option agreement under the Mercury Interactive Corporation 1999 Stock Option Plan (incorporated by reference to Exhibit&nbsp;4.1 to Mercury Interactive Corporation's Registration Statement on Form&nbsp;S-8
filed with the SEC on January&nbsp;14, 2004)*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(J)(ii)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Form of stock option agreement under the Mercury Interactive Corporation 2000 Supplemental Stock Option Plan (incorporated by reference to Exhibit&nbsp;4.2 to Mercury Interactive Corporation's Registration Statement on
Form&nbsp;S-8 filed with the SEC on February&nbsp;28, 2001)*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(J)(iii)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Form of stock option agreement under the Mercury Interactive Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(J)(iv)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Mercury Interactive Corporation 1999 Stock Option Plan (incorporated by reference to Exhibit&nbsp;4.1 to Mercury Interactive Corporation's Registration Statement on Form&nbsp;S-8 filed with the SEC on January&nbsp;14,
2004)*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(J)(v)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Mercury Interactive Corporation 2000 Supplemental Stock Option Plan (incorporated by reference to Exhibit&nbsp;4.2 to Mercury Interactive Corporation's Registration Statement on Form&nbsp;S-8 filed with the SEC on
February&nbsp;28, 2001)*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(J)(vi)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Mercury Interactive Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(K)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Form of follow-up email to employees holding discounted stock options issued by Mercury Interactive Corporation*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(1)(L)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Form of follow-up email to employees holding discounted stock options issued by Mercury Interactive Corporation who have not completed an agreement to amend*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(a)(5)(A)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Transcript of employee briefing held on November&nbsp;17, 2006*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(b)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Not applicable</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(d)(1)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Agreement and Plan of Merger by and among Hewlett-Packard Company, Mars Landing Corporation and Mercury Interactive Corporation dated July&nbsp;25, 2006 (incorporated by reference to Exhibit&nbsp;2.1 to the Company's
Current Report on Form&nbsp;8-K filed with the SEC on July&nbsp;25, 2006)*</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(g)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Not applicable</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="13%"><FONT SIZE=2>(h)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Not applicable</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>*</FONT></DT><DD><FONT SIZE=2>Previously
filed. </FONT></DD></DL>
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<DOCUMENT>
<TYPE>EX-99.(A)(1)(A)
<SEQUENCE>2
<FILENAME>a2175061zex-99_a1a.htm
<DESCRIPTION>EXHIBIT 99.(A)(1)(A)
<TEXT>
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<BR></FONT><FONT SIZE=2><B>Exhibit (a)(1)(A)    <BR>    </B></FONT></P>

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<BR></FONT><FONT SIZE=2><B>HEWLETT-PACKARD COMPANY    <BR>    </B></FONT></P>

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NAME="na1283_offer_to_amend_the_exercise_price_of_certain_options"> </A>
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<BR></FONT><FONT SIZE=2><B>OFFER TO AMEND THE EXERCISE PRICE OF CERTAIN OPTIONS    <BR>    </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><I>This document constitutes part of the prospectus relating to each of the Mercury Interactive Corporation 1999 Stock Option Plan, Mercury Interactive Corporation 2000
Supplemental Stock Option Plan, and Mercury Interactive Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees covering securities that have been registered under
the Securities Act of 1933.  </I></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><I> <A NAME="na1283_november_17,_2006,_as_amended___nov02008"> </A>
<A NAME="toc_na1283_4"> </A>
<BR>    </I></FONT><FONT SIZE=2><B>NOVEMBER 17, 2006, AS AMENDED DECEMBER 4, 2006, AS FURTHER AMENDED DECEMBER&nbsp;8, 2006    <BR>    </B></FONT></P>

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<BR></FONT><FONT SIZE=2><B>HEWLETT-PACKARD COMPANY    <BR>    <BR>    Offer to Amend the Exercise Price of Certain Options    <BR>    </B></FONT></P>

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<BR></FONT><FONT SIZE=2><B>This offer and withdrawal rights will expire at<BR>  9:00&nbsp;p.m., Pacific Time, on December&nbsp;15, 2006 unless we extend them.    <BR>    </B></FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
this Offer to Amend the Exercise Price of Certain Options (the "Offer to Amend"), we are giving all eligible option holders holding eligible options to purchase shares of our common
stock the right to amend certain outstanding options and, only if they hold eligible in-the-money options, to receive cash payments (we refer to this as the "offer"). Each
eligible option holder who has eligible options outstanding will be provided with an addendum (referred to as the "Addendum") setting forth his or her eligible options, the new exercise price that
would apply to each eligible option (if amended), a description of any potential cash payments with respect to eligible in-the-money options, and other relevant information. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
has been determined that certain of your stock options were granted at a discount from fair market value and therefore may be subject to adverse tax consequences under
Section&nbsp;409A of the United States Internal Revenue Code of 1986, as amended, (the "Code"). These consequences include income inclusion at vesting, an additional 20% penalty tax and interest
charges. If you elect to participate in this offer, your eligible options should no longer be subject to the adverse tax consequences under Section&nbsp;409A. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
are an "eligible option holder" only if you are (1)&nbsp;subject to taxation in the United States and (2)&nbsp;hold otherwise eligible options to purchase common stock of
Hewlett-Packard Company which remain outstanding on the last date on which this offer remains open for acceptance. You do not need to be an active employee or other service provider of Hewlett-Packard
Company or our subsidiaries (collectively referred to as "Hewlett-Packard," "HP," the "Company," "we," "our" or "us") in order to be an eligible option holder. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
option to purchase common stock is eligible for this offer ("eligible option") only to the extent that each of the following conditions is met: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option was assumed by us in connection with the acquisition of Mercury Interactive Corporation by Hewlett-Packard Company (the "Merger"), which was completed on
November&nbsp;6, 2006 (the "Merger closing date);
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option was granted under any of the Mercury Interactive Corporation 1999 Stock Option Plan, the Mercury Interactive Corporation 2000 Supplemental Stock Option Plan, or
the Mercury Interactive Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees (together, the "Mercury Interactive Stock Plans");
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option had an original exercise price per share that was less than the fair market value per share of the common stock underlying the option on the option's grant date
(that is, it was granted at a "discount" to the then-current fair market value of the underlying stock);
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option was unvested as of December&nbsp;31, 2004 (if only a portion of an option grant was unvested as of December&nbsp;31, 2004, the unvested portion of the grant
may be an "eligible option"); and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option is outstanding as of the last date on which this offer remains open for acceptance. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>ii</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you participate in this offer, any eligible option with respect to which you accept this offer will be replaced with the following consideration: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your
eligible option will be amended to increase the exercise price per share to the fair market value of a share of the common stock of Mercury Interactive Corporation
on the date that Mercury Interactive determined the option was actually granted (that is, on the option's grant date of record), as adjusted in connection with the Merger (the "new exercise price").
If only a portion of your option grant vested or is scheduled to vest after December&nbsp;31, 2004, then only that portion of the option grant is an eligible option and will be amended to increase
the exercise price. Your Addendum will list the original exercise price of your eligible options as adjusted in connection with the Merger (referred to as the "adjusted original exercise price"), as
well as the new exercise price of such options, should you accept this offer with respect to those options; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, if your eligible option had an original exercise price (before adjustment in connection with the Merger) less than $52.00 per share, then your option is
"in-the-money" and for each such eligible in-the-money option amended in this offer, you will receive a cash payment equal to the difference between the
new exercise price per share of the amended option (as noted above, this is as adjusted in connection with the Merger) and the adjusted original exercise price per share (as noted above, this is as
adjusted in connection with the Merger), multiplied by the number of unexercised shares of Hewlett-Packard common stock subject to the eligible option that was amended in the manner described below.
Note that the number of unexercised shares subject to your option has been adjusted in connection with the Merger. Your Addendum will list the number of unexercised shares subject to your option as
adjusted in connection with the Merger and to the extent applicable, the cash payment you will be entitled to receive for each eligible in-the-money option you elect to have
amended. </FONT></P>

<P><FONT SIZE=2><I>Receipt of Amended Options and Cash Payments  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you elect to receive an amended option for an eligible option, the eligible option will be amended on the date that this offer expires (but following the
expiration of the offer) (currently expected to be December&nbsp;15, 2006 at 9:00&nbsp;p.m., Pacific Time). Promptly following the expiration of the offer, you will receive a document entitled
"Amendment(s) to Stock Option Agreements and Promise to Make Cash Payment" evidencing the amendment of the options you elected to amend. Each amended option will
be subject to the terms and conditions of the Mercury Interactive Stock Plan under which the original option was granted (after adjustment in connection with the Merger) and as amended in accordance
with this offer. Any amended option you receive will continue to be subject to the same vesting schedule. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, the "Amendment(s) to Stock Option Agreements and Promise to Make Cash Payment" will evidence your right to receive a cash payment for the eligible
in-the-money options, if any, you elected to have amended. Cash payments will be paid on or promptly following January&nbsp;2, 2007, and all such payments will be subject to
any applicable tax withholding. Cash payments will not be subject to any further vesting conditions, so you will receive any cash payments to which you are entitled on or promptly following
January&nbsp;2, 2007, regardless of whether the eligible in-the-money option is vested and regardless of whether you are providing service to us then. </FONT></P>

<P><FONT SIZE=2><I>Other Matters  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The offer is not conditioned upon this offer being accepted with respect to a minimum number of the outstanding eligible options, but the offer is subject to
customary conditions, which we describe in Section&nbsp;7 of this Offer to Amend. You are not required to accept this offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
common stock is traded on both the New York Stock Exchange and Nasdaq Global Select Market under the symbol "HPQ." On November&nbsp;13, 2006, the closing price of our common stock
was </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>iii</FONT></P>

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<P><FONT SIZE=2>$40.22
per share as reported on the New York Stock Exchange. You should evaluate current market quotes for our common stock, among other factors, before deciding to participate in this offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>See "Risks of Participating in the Offer" beginning on page&nbsp;18 for a discussion of risks that you should consider before participating in this
offer.</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="nc1283_important_#151;action_items_to_participate"> </A>
<A NAME="toc_nc1283_3"> </A>
<BR></FONT><FONT SIZE=2><B>IMPORTANT&#151;ACTION ITEMS TO PARTICIPATE    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you participate in this offer, you must complete and sign the attached election form, and fax it to (650)&nbsp;625-3471 before 9:00&nbsp;p.m.,
Pacific Time, on December&nbsp;15, 2006. Only responses that are complete, signed, and actually received via fax by the Company by the deadline will be accepted.
Responses may be submitted only via fax. Responses submitted by any other means, including e-mail, hand delivery, United States mail (or other post) and Federal Express (or similar
delivery service), are not permitted. Responses that are received after the deadline will not be accepted. The delivery of election and withdrawal forms is at your risk. Hewlett-Packard intends to
confirm the receipt of your election form and/or any withdrawal form by e-mail within two U.S. business days. If you have not received an e-mail confirmation that
Hewlett-Packard has received your response, we recommend that you confirm that we have received your election form and/or any withdrawal form. If you need to confirm receipt after two U.S. business
days have elapsed, you may e-mail STOCKTENDER@MERCURY.COM. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
the Securities and Exchange Commission (the "SEC") nor any state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy of
this offer. Any representation to the contrary is a criminal offense. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hewlett-Packard
has engaged Deloitte Tax LLP to prepare communications regarding this offer and to provide general tax information to eligible option holders with respect to this offer.
Deloitte Tax LLP will not provide tax advice specific to an individual's circumstances or make any recommendation. We recommend that you discuss the personal tax consequences of this offer with your
financial, legal and/or tax advisors. You should direct general questions about the terms of this offer or requests for general tax information about this offer to: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>Jason
Russell<BR>
Deloitte Tax LLP<BR>
HP409A@DELOITTE.COM </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="nc1283_offer_to_amend_the_exercise_pr__off02601"> </A>
<A NAME="toc_nc1283_4"> </A>
<BR></FONT><FONT SIZE=2><B>Offer to Amend the Exercise Price of Certain Options, dated November&nbsp;17, 2006.    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>You should rely only on the information contained in this Offer to Amend or documents to which we have referred you. We have not
authorized anyone to provide you with different information. In addition, some states, including California, may impose additional penalty taxes. We recommend that you consult with your financial,
legal and/or tax advisors regarding any tax consequences, including any state tax consequences. Although our board of directors has approved this offer, neither we nor our board of directors make any
recommendation as to whether you should accept this offer. The decision to participate in the offer must be your own, after taking into account your personal circumstances and preferences. We are not
making an offer of the cash consideration or amended options in any jurisdiction in which the offer is not permitted. We are not aware of any jurisdiction where the making of the offer is not in
compliance with applicable law. If we become aware of any jurisdiction where the making of the offer is not in compliance with any valid applicable law, we will make a good faith effort to comply with
such law. If, after such good faith effort, we cannot comply with such law, the offer will not be made to, nor will options be accepted from the option holders residing in such jurisdiction. You
should not assume that the information provided in this Offer to Amend is accurate as of any date other than the date as of which it is shown, or if no date is otherwise indicated, the date of this
offer.</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>iv</FONT></P>

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<BR></FONT><FONT SIZE=2><B>TABLE OF CONTENTS    <BR>    </B></FONT></P>

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<TR VALIGN="TOP">
<TD COLSPAN=4><FONT SIZE=2>SUMMARY TERM SHEET AND QUESTIONS &amp; ANSWERS</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=4><FONT SIZE=2>RISKS OF PARTICIPATING IN THE OFFER</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>18</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=4><FONT SIZE=2>THE OFFER</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>19</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>1.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Eligibility</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>19</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>2.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Number of options and amount of consideration; expiration date</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>19</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>3.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Purpose of the offer</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>23</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>4.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Procedures for electing to participate in this offer</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>24</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>5.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Withdrawal rights and change of election</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>25</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>6.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Acceptance of options for amendment, issuance of cash payments, and amended options</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>26</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>7.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Conditions of the offer</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>8.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Price range of shares underlying the options</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>30</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>9.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Source and amount of consideration; terms of amended options</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>30</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>10.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Information concerning the Company</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>34</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>11.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Interests of directors and executive officers; transactions and arrangements concerning the options</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>35</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>12.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Status of options amended by us in the offer; accounting consequences of the offer</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>35</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>13.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Legal matters; regulatory approvals</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>36</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>14.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Material United States federal income tax consequences</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>36</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>15.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Extension of offer; termination; amendment</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>39</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>16.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Fees and expenses</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>40</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>17.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Additional information</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>40</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>18.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Financial statements</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>41</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>19.</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2>Miscellaneous</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>41</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=4 VALIGN="TOP"><FONT SIZE=2><BR>
SCHEDULE&nbsp;A&nbsp;&nbsp;Information Concerning the Directors and Executive Officers of Hewlett-Packard Company</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2><BR>
A-1</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=4 VALIGN="TOP"><FONT SIZE=2>SCHEDULE&nbsp;B Summary Financial Statements of Hewlett-Packard Company</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>B-1</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=4><FONT SIZE=2>SCHEDULE&nbsp;C Guide to Tax Issues in Canada</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>C-1</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=4><FONT SIZE=2>SCHEDULE&nbsp;D Guide to Tax Issues in France</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>D-1</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=4><FONT SIZE=2>SCHEDULE&nbsp;E Guide to Tax Issues in India</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>E-1</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=4><FONT SIZE=2>SCHEDULE&nbsp;F Guide to Tax Issues in Israel</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>F-1</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=4><FONT SIZE=2>SCHEDULE&nbsp;G Guide to Tax Issues in the United Kingdom</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT"><FONT SIZE=2>G-1</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2><B>Forward-Looking Statements  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><I>This Offer to Amend, including the section entitled "Risks of Participating in the Offer," contains "forward-looking statements." All
statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of revenue, margins, expenses, tax
provisions, earnings, cash flows, benefit obligations, share repurchases or other financial items; any statements of the plans, strategies and objectives of management for future operations, including
the execution of restructuring plans; any statements concerning expected development, performance or market share relating to products or services; any statements regarding future economic conditions
or performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks,
uncertainties and assumptions include, but are not limited to, macroeconomic and geopolitical trends and events; the execution and performance of contracts by customers, suppliers and partners; the
challenge of managing asset levels, including inventory; the difficulty of aligning expense levels with revenue changes; assumptions related to pension and other post-retirement costs;
expectations and assumptions relating to the execution and timing of workforce restructuring programs; the outcome of pending legislation, tax and accounting  </I></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

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<P><FONT SIZE=2><I> pronouncements; and other risks that are described in the section entitled "Risks of Participating in the Offer" of this Offer to Amend, that are described in the section entitled "Factors that Could
Affect Future Results" set forth in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Hewlett-Packard's Quarterly Report on Form&nbsp;10-Q for
the fiscal quarter ended July&nbsp;31, 2006, and that are otherwise described from time to time in Hewlett-Packard's Securities and Exchange Commission reports filed after that report. The safe
harbor afforded by the Private Securities Litigation Reform Act of 1995 to certain forward-looking statements does not extend to forward-looking statements made by us in connection with this Offer to
Amend.</I></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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NAME="page_ng1283_1_3"> </A> </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ng1283_summary_term_sheet_and_questions_and_answers"> </A>
<A NAME="toc_ng1283_1"> </A>
<BR></FONT><FONT SIZE=2><B>SUMMARY TERM SHEET AND QUESTIONS AND ANSWERS    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following are answers to some of the questions that you may have about this offer. You should carefully read this entire offer, the accompanying
e-mail from Tom Hogan dated November&nbsp;17, 2006, and the election and withdrawal forms together with their associated instructions. This offer is made subject to the terms and
conditions of these documents as they may be amended. The information in this summary is not complete. Additional important information is contained in the remainder of this Offer to Amend and the
other offer documents. We have included in this summary references to other sections in this offer to help you find a more complete description of these topics. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="79%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q1.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>What is the offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q2.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Why is Hewlett-Packard making this offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>6</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q3.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Who is eligible to participate in this offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>6</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q4.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Which options are eligible for amendment in this offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q5.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>How do I participate in this offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q6.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>If I decide to participate in the offer, what will happen to my current eligible options?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q7.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>What will I receive in return for my options?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q8.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>When will I receive my amended options and cash payments?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>10</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q9.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Why won't I receive my cash payment immediately following the expiration of the offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>10</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q10.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>How were my eligible options adjusted in connection with the Merger?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>10</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q11.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Am I required to participate in this offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>11</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q12.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Once my options are accepted for amendment, is there anything I must do to receive the cash payments or amended options?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>11</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q13.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>When will my amended options vest?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>11</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q14.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Will the terms and conditions of my amended options be the same as my original options?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>11</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q15.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>What happens to my options if I elect to participate in the offer with respect to eligible options but then exercise those options before expiration of the offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>11</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q16.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>What happens to my options if I do not turn my election form in by the deadline, choose not to participate or my options are not accepted?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q17.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Are there any positive or negative tax consequences to my participation in the offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q18.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>If I choose to participate in this offer, are there circumstances under which my eligible options would be amended but I would not receive a cash payment for them?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q19.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>What happens to my option and cash payment if I elect to participate in the offer but then my employment or other service with the Company terminates after expiration of the offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q20.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>How will Hewlett-Packard confirm to me that my election form or withdrawal form has been received?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q21.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Can I accept this offer with respect to shares of Hewlett-Packard common stock that I previously acquired upon exercise of options?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q22.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Will my decision to participate in the offer have an impact on my ability to receive options in the future?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q23.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Is this a repricing of options?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q24.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>How does Hewlett-Packard determine whether I have properly accepted this offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q25.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>When will my amended options expire?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q26.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Will I receive any paperwork indicating my options have been amended?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q27.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Are there any conditions to this offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q28.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>If you extend the offer, how will you notify me?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q29.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>How will you notify me if the offer is changed?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q30.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Can I change my mind and withdraw from this offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q31.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>How do I withdraw my election?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
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<BR>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<TABLE WIDTH="79%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q32.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>What if I withdraw my election and then decide again that I want to participate in this offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>16</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q33.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Can I change my mind about which options with respect to which I want to accept this offer?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>16</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q34.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>How should I decide whether or not to accept this offer with respect to my eligible options?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>16</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q35.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>What happens if I have an option grant that is subject to a domestic relations order or comparable legal document as the result of the end of a marriage?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>16</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q36.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Will my amended options remain nonstatutory stock options for United States tax purposes?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>16</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q37.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Does Section 409A impact ESPP shares or restricted stock?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>17</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Q38.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="85%"><FONT SIZE=2>Whom can I contact if I need to confirm Hewlett-Packard's receipt of my election and/or any withdrawal form, I have questions about the offer, or if I need additional copies of the offer documents?</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>17</FONT></TD>
</TR>
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<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q1.</B></FONT></DT><DD><FONT SIZE=2><B>What is the offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A1.</FONT></DT><DD><FONT SIZE=2>This
offer is a voluntary opportunity for eligible option holders to elect to have certain outstanding options amended and, with respect to certain outstanding
in-the-money options, receive a cash payment. This opportunity is described in the following questions and answers, and in the remainder of this Offer to Amend.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2><B>Terms Used in the Offer</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>The
following are some terms that are frequently used in this Offer to Amend.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"adjusted
original exercise price" refers to the original exercise price of an eligible option after adjustment in connection with the Merger, as described in Questions and
Answers 7 and 10. Your Addendum will list the adjusted original exercise price of each of your eligible options.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"amended
options" refers to eligible options that are amended pursuant to this offer.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"amendment
date" refers to the date when the eligible options with respect to which you accept this offer will be amended to reflect the new exercise price. We expect that
the amendment date will be December&nbsp;15, 2006, which is the same date as the expiration date of the offer. If the expiration date is extended, then the amendment date will be similarly changed
to the new expiration date.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"Addendum"
refers to the document that will be provided to each eligible option holder. The Addendum will list eligible options and, for each eligible option, will list the
adjusted original exercise price, the number of unexercised shares subject to the option (as adjusted in connection with the Merger), the new exercise price if the option is amended and, to the extent
applicable, the cash payment related to the eligible in-the-money option if it is amended.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"eligible
option holder" refers to all individuals who (1)&nbsp;are subject to United States taxation and (2)&nbsp;hold otherwise eligible options, if those options
remain outstanding as of the last date on which this offer remains open for acceptance.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"eligible
in-the-money options" refers to all eligible options that had an original exercise price (before adjustment in the Merger) less than $52.00
per share, with respect to which you may accept this offer in exchange for amended options and cash payments, as described in Question and Answer 4 and Section&nbsp;1 of the Offer to Amend. Note
that all eligible in-the-money options were unvested at closing of the Merger.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"eligible
options" refers to all options with respect to which you may accept this offer in exchange for amended options and, to the extent applicable, cash payments, as
described in Question and Answer 4 and Section&nbsp;1 of the Offer to Amend.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"executive
officers" refers to those officers of Hewlett-Packard listed on Schedule&nbsp;A, including those who are officers for purposes of Section&nbsp;16 of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). None of our executive officers holds eligible options and therefore none of our executive officers is an eligible option holder.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"expiration
date" refers to the date that this offer expires. The expiration date will be December&nbsp;15, 2006 at 9:00&nbsp;p.m., Pacific Time, unless the offer is
extended. We may extend the expiration date at our discretion. If we extend the offer, the term "expiration date" will refer to the time and date at which the extended offer expires.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"Mercury
Interactive" refers to Mercury Interactive Corporation, which was acquired by us through the Merger on November&nbsp;6, 2006. </FONT></DD></DL>
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<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"Mercury
Interactive Stock Plans" refers to the following stock plans: the Mercury Interactive Corporation 1999 Stock Option Plan, the Mercury Interactive Corporation 2000
Supplemental Stock Option Plan, and the Mercury Interactive Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees (which is a sub-plan of the Mercury
Interactive Corporation 2000 Supplemental Stock Option Plan).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"Merger"
refers to the acquisition of Mercury Interactive Corporation by Hewlett-Packard Company.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"Merger
closing date" refers to November&nbsp;6, 2006, which was the date upon which the Merger was consummated.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"new
exercise price" refers to the exercise price per share at which amended options may be exercised to purchase Hewlett-Packard common stock. An amended option's new
exercise price will be equal to the fair market value of a share of Mercury Interactive common stock on the date that Mercury Interactive determined the option was actually granted (that is, the
option's grant date of record), after adjustment to reflect the difference between the relative values of Hewlett-Packard common stock and Mercury Interactive common stock in the Merger. Your Addendum
will list the new exercise price for each of your eligible options should you accept this offer with respect to such options.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"offer
period" or "offering period" refers to the period from the commencement of this offer to the expiration date. This period will commence on November&nbsp;17, 2006,
and end at 9:00&nbsp;p.m., Pacific Time, on December&nbsp;15, 2006, unless the offer is extended.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>"Section&nbsp;409A"
refers to Section&nbsp;409A of the United States Internal Revenue Code of 1986, as amended, and the proposed tax regulations under the American Jobs
Creation Act of 2004
(see page&nbsp;13 under the subsection entitled "Uncertainty," for a discussion of the uncertainty caused by the fact that the tax regulations are proposed and not final).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q2.</B></FONT></DT><DD><FONT SIZE=2><B>Why is Hewlett-Packard making this offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A2.</FONT></DT><DD><FONT SIZE=2>As
a result of the Merger and pursuant to the terms of the Merger agreements, we assumed certain stock options granted under the Mercury Interactive Stock Plans and agreed to address
issues related to Section&nbsp;409A. It had been determined that certain options granted under the Mercury Interactive Stock Plans were issued with an exercise price less than the fair market value
of the underlying Mercury Interactive common stock on the date of grant. Section&nbsp;409A provides that the portion of options that were granted at a discount and vest after December&nbsp;31,
2004 will likely subject the eligible option holders to unfavorable tax consequences. If the eligible options are amended and, to the extent applicable, cash payments distributed, the unfavorable tax
consequences as described in Section&nbsp;14 of this Offer to Amend, will be eliminated. (See Section&nbsp;3)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q3.</B></FONT></DT><DD><FONT SIZE=2><B>Who is eligible to participate in this offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A3.</FONT></DT><DD><FONT SIZE=2>You
may participate in this offer if you (1)&nbsp;are subject to United States taxation and (2)&nbsp;hold eligible options, if those options remain outstanding as of the last date
on which this offer remains open for acceptance.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>You
do not need to be an active employee or other service provider of Hewlett-Packard in order to be an eligible option holder. However, if you are no
longer an active employee or other service provider of Hewlett-Packard, your options will have ceased to vest in accordance with their terms and you will be eligible to participate in this offer only
if you hold options which have vested and remain outstanding as of the last date on which this offer remains open for acceptance. (See Section&nbsp;1) </FONT></DD></DL>
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<DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>None
of our executive officers and none of our directors holds eligible options and therefore none of our executive officers or directors is eligible to
participate in this offer. (See Section&nbsp;1)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q4.</B></FONT></DT><DD><FONT SIZE=2><B>Which options are eligible for amendment in this offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A4.</FONT></DT><DD><FONT SIZE=2>An
option to purchase common stock is an eligible option under this offer only if each of the following conditions is met:
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option was assumed by us in connection with the Merger;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option was granted under any of the Mercury Interactive Stock Plans;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option had an original exercise price per share that was less than the fair market value per share of the common stock underlying the option on the option's grant date
(that is, it was granted at a "discount" to the then-current fair market value of the underlying stock);
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option was unvested as of December 31, 2004 (if only a portion of an option grant was unvested as of December 31, 2004, the unvested portion may be an "eligible
option"); and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option is outstanding as of the last date on which this offer remains open for acceptance.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q5.</B></FONT></DT><DD><FONT SIZE=2><B>How do I participate in this offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A5.</FONT></DT><DD><FONT SIZE=2>If
you choose to participate in this offer, you must do the following before 9:00&nbsp;p.m., Pacific Time, on December&nbsp;15, 2006 (the expiration date):
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>Properly
complete and sign the attached election form.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>Fax
the completed and signed election form to (650)&nbsp;625-3471.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>If
you participate in this offer, you will be required to accept the offer with respect to the entire eligible portion of each eligible option with respect
to which you participate. In other words, you must accept the offer with respect to all the shares subject to a particular eligible option, but not necessarily with respect to all your eligible
options, if you hold more than one eligible option. To help you determine your outstanding eligible options and give you the tools to make an informed decision, we will provide you with an Addendum
listing your eligible options, the new exercise price that will apply if the eligible options are amended and to the extent applicable, the cash payment you will receive for the eligible
in-the-money options, if amended. If you hold an option that is not listed on the Addendum, the option is not an eligible option.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>This
is a one-time offer, and we will strictly enforce the election period. We reserve the right to reject any election related to options with
respect to which you have elected to accept this offer that we determine are not in good order or that we determine are unlawful to accept. Subject to the terms and conditions of this offer, we will
accept all eligible options with respect to which a proper election has been made promptly after the expiration of this offer. (See Section&nbsp;4)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>Your
election to participate becomes irrevocable after 9:00&nbsp;p.m., Pacific Time, on December&nbsp;15, 2006, unless the offer is extended past that
time, in which case your election will become irrevocable after the new expiration date. The only exception is that if we have not accepted your options by 9:00&nbsp;p.m. Pacific Time on
January&nbsp;17, 2007, you may withdraw your election at any time thereafter.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>We
may extend this offer. If we extend this offer, we will issue a press release, e-mail or other communication disclosing the extension no
later than 6:00&nbsp;a.m., Pacific Time, on the U.S. business day following the previously scheduled expiration date.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2><B>If you participate in this offer, you must complete and sign the attached election form and fax it to
(650)&nbsp;625-3471, before 9:00&nbsp;p.m., Pacific Time, on December&nbsp;15, 2006. Only responses that are  </B></FONT></DD></DL>
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<P><FONT SIZE=2><B> complete, signed and actually received via fax by the Company at (650)&nbsp;625-3471 by the deadline will be accepted. Responses received after the deadline will not be accepted. The
delivery of election and withdrawal forms is at your risk. Hewlett-Packard intends to confirm the receipt of your election form and/or any withdrawal form by e-mail within two U.S.
business days. If you have not received an e-mail confirmation that Hewlett-Packard has received your response, we recommend that you confirm that we have received your election form
and/or any withdrawal form. If you need to confirm receipt after two U.S. business days have elapsed, you may e-mail STOCKTENDER@MERCURY.COM. Responses may only be submitted via fax.
Responses submitted by any other means, including e-mail, hand delivery, United States mail (or other post) and Federal Express (or similar delivery service), are not
permitted.</B></FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q6.</B></FONT></DT><DD><FONT SIZE=2><B>If I decide to participate in the offer, what will happen to my current eligible options?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A6.</FONT></DT><DD><FONT SIZE=2>If
you elect to participate in the offer, your eligible options will be amended on the same day as the expiration date (but following the expiration of the offer). The expiration date
will be December&nbsp;15, 2006, unless the offer period is extended. In addition, if you elect to participate in this offer with respect to your eligible in-the-money
options, if any, as of that same date, you will become entitled to receive the cash payment described below, less any applicable tax withholding.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>The
amended option will continue to be subject to the terms and conditions of the Mercury Interactive Stock Plan under which the original option was
granted, as adjusted in connection with the Merger, and as amended in accordance with this offer. (See Section&nbsp;6)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q7.</B></FONT></DT><DD><FONT SIZE=2><B>What will I receive in return for my options?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A7.</FONT></DT><DD><FONT SIZE=2>If
you participate in this offer, any eligible option with respect to which you accept this offer will be replaced with the following consideration:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>Your
eligible option will be amended to increase the exercise price per share to the new exercise price. The new exercise price will be the fair market value of a share
of Mercury Interactive common stock on the date that Mercury Interactive determined the option was actually granted (that is, on the option's grant date of record), as adjusted in connection with the
Merger. </FONT></DD></DL>
</DD></DL>
<UL>
<UL>

<P><FONT SIZE=2>If
only a portion of your option grant vested or is scheduled to vest after December&nbsp;31, 2004, then only that portion of the option grant is an eligible option and will be amended to increase
the exercise price. The portion that vested on or before December&nbsp;31, 2004 is not subject to the adverse tax consequences that this offer is designed to allow you to avoid and so that portion
of the option grant will not be eligible for inclusion in the offer. Instead, the portion of any option grant that vested on or before December&nbsp;31, 2004 will remain outstanding in accordance
with its original terms, including its adjusted original exercise price (as adjusted in connection with the Merger). </FONT></P>

<P><FONT SIZE=2>Your
Addendum will list the adjusted original exercise price of your eligible options, as well as the new exercise price of such options, should you accept this offer with respect to those options. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>In
addition, for each eligible in-the-money option amended in this offer, you will receive a cash payment equal to the difference between the new
exercise price per share of the amended option and the adjusted original exercise price per share multiplied by the number of unexercised shares subject to the eligible
in-the-money option that was amended, in the manner described below. As noted in the definition section of Question and Answer 1, both the "new exercise price" and the
"adjusted original exercise price" are after adjustment in connection with the Merger. </FONT></DD></DL>
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<P><FONT SIZE=2>Note
also that the number of unexercised shares subject to your eligible option has been adjusted in connection with the Merger. Your Addendum will list the number of unexercised shares subject to
your eligible option as adjusted in connection with the Merger and, to the extent applicable, the cash payment you will be entitled to receive for each eligible in-the-money
option you elect to have amended. Note that your cash payment is subject to any applicable tax withholding. </FONT></P>

</UL>
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<DL compact>
<DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>For
purposes of this offer, the term "option" generally refers to an option to purchase one or more shares of our common stock.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2><B><I>Eligible Option Example 1</I></B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>You
were issued an option to purchase 1,000 shares of Mercury Interactive common stock with an exercise price per share equal to $31.41 per share. In
connection with the Merger, this option was assumed by the Company and adjusted to represent an option to purchase 1,347 of Hewlett-Packard common stock at an exercise price per share equal to $23.32
(this is the option's adjusted original exercise price). Of the adjusted number of shares subject to your option, 337 shares vested on or before December&nbsp;31, 2004. On the option's grant date of
record, the fair market value of Mercury Interactive common stock was $33.08 per share which, adjusted in connection with the Merger is $24.56 per Hewlett-Packard share. The Merger consideration was
$52.00 per share. The portion of your option representing 674 shares was vested as of the Merger closing date (the 337 shares that vested before December&nbsp;31, 2004 and an additional 337 that
vested after December&nbsp;31, 2004) and the option's original exercise price of $31.41 per share was less than $52.00. This portion of your option was "vested and
in-the-money" on the Merger closing date, and therefore it was cancelled and cashed out in connection with the Merger. As of the offer expiration date, you had not exercised
any portion of the option. Since the option's original exercise price of $31.41 was less than $52.00, the option will be an eligible in-the-money option with respect to 673
shares (the 674 shares which were vested and in-the-money on the Merger closing date were cancelled and cashed out in connection with the Merger and are therefore not
eligible). If you accept this offer with respect to that option pursuant to the terms of the offer you will receive the following:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>The
option to purchase 673 shares will be amended to increase the exercise price to $24.56 per share.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>A
cash payment of $834.52 ($24.56-$23.32 multiplied by 673 shares) (the portion of the option eligible as of the expiration date of the offer), less any
applicable tax withholding, will be payable on or promptly following January&nbsp;2, 2007.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2><B><I>Eligible Option Example 2</I></B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>You
were issued an option to purchase 1,000 shares of Mercury Interactive common stock with an exercise price per share equal to $53.00 per share. In
connection with the Merger, this option was assumed by the Company and adjusted to represent an option to purchase 1,347 shares of Hewlett-Packard common stock at an exercise price per share equal to
$39.35 (this is the option's adjusted original exercise price). Of the adjusted number of shares subject to your option, 337 shares vested on or before December&nbsp;31, 2004. On the option's grant
date of record, the fair market value of Mercury Interactive common stock was $53.50 per share which, adjusted in connection with the Merger is $39.72 per Hewlett-Packard share. As of the offer
expiration date, you had not exercised any portion of the option. The Merger consideration was $52.00 per share. The option will be an eligible option with respect to 1,010 shares (the 337 shares
which vested on or before December&nbsp;31, 2004 are not subject to Section&nbsp;409A and are therefore not eligible) and if you accept this offer with respect to that option pursuant to the terms
of the offer, your option to purchase 1,010 shares will be amended to increase the exercise price to $39.72 per share. </FONT></DD></DL>
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<P><FONT SIZE=2>Because
the option's original exercise price of $53.00 is greater than $52.00, the option is not an eligible in-the-money option and consequently, no cash payment will be
distributed with respect to this option. Note that all eligible in-the-money options were unvested at closing of the Merger. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q8.</B></FONT></DT><DD><FONT SIZE=2><B>When will I receive my amended options and cash payments?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A8.</FONT></DT><DD><FONT SIZE=2>Any
eligible options with respect to which you have elected to accept this offer will be amended on the amendment date (following the expiration of the offer). The amendment date will
be the same date on which this offer expires. We expect the amendment date will be December&nbsp;15, 2006. If the expiration date of the offer is delayed, the amendment date will be similarly
delayed. Promptly after the expiration of the offer, you will receive an "Amendment(s) to Stock Option Agreements and Promise to Make Cash Payment" evidencing the amendment of the options you elected
to amend. (See Section&nbsp;6)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>In
addition, the "Amendment(s) to Stock Option Agreements and Promise to Make Cash Payment" will evidence your right to receive a cash payment for the
eligible in-the-money options, if any, you elected to have amended. Any cash payment owed to you will be paid to you, less any applicable tax withholding, on or promptly
following January&nbsp;2, 2007. This payment will not be subject to any vesting conditions or otherwise be subject to forfeiture. (See Section&nbsp;6)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q9.</B></FONT></DT><DD><FONT SIZE=2><B>Why won't I receive my cash payment immediately following the expiration of the offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A9.</FONT></DT><DD><FONT SIZE=2>The
proposed tax regulations under Section&nbsp;409A that allow us to offer you the opportunity to avoid unfavorable tax consequences by amending your options also impose certain
requirements regarding the timing of the cash payments. These proposed tax regulations do not allow us to make the cash payments in the same calendar year in which the options are amended. Therefore,
the earliest we can make these cash payments with respect to the eligible in-the-money options to eligible option holders who participate in the offer is in
January&nbsp;2007.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q10.</B></FONT></DT><DD><FONT SIZE=2><B>How were my eligible options adjusted in connection with the Merger?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A10.</FONT></DT><DD><FONT SIZE=2>In
connection with the Merger, each of your eligible options was assumed by Hewlett-Packard. When the options were assumed, they were adjusted in accordance with the formula
described below and became rights to purchase Hewlett-Packard common stock rather than Mercury Interactive shares. To ensure that the options were adjusted in a manner that works to preserve the
overall value of your options, the agreement between Hewlett-Packard and Mercury Interactive that governed the Merger required that the exercise price and number of shares subject to each assumed
option was adjusted as follows:
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>Each
assumed option was exercisable for a number of shares of Hewlett-Packard common stock determined by multiplying the number of shares issuable upon the
exercise of the option held by you by 1.34701, rounded down to the nearest whole number of shares. We refer to the 1.34701 as the "Exchange Ratio." The exercise price per share for each option
adjusted in connection with the Merger was determined by dividing the exercise price per share of each Mercury Interactive option held by you by the Exchange Ratio, rounded up to the nearest cent.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>For
example, if you held an option to purchase 1,000 shares of Mercury Interactive common stock with an original exercise price of $31.41 per share, it was
adjusted in connection with the Merger in accordance with the formula described above to represent an option to purchase 1,347 shares of Hewlett-Packard common stock at the exercise price per share
equal to $23.32 (this is the option's adjusted original exercise price). </FONT></DD></DL>
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<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q11.</B></FONT></DT><DD><FONT SIZE=2><B>Am I required to participate in this offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A11.</FONT></DT><DD><FONT SIZE=2>No.
Participation in this offer is completely voluntary.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>However,
if you do participate in this offer, with respect to each eligible option grant that you elect to have amended in this offer, you must accept this
offer with respect to all of the shares subject to the outstanding portion of that option grant, to the extent that such shares vested after December&nbsp;31, 2004 and except as described in
Question and Answer 35. (See Section&nbsp;2)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>If
you do not participate in this offer, you may be subject to certain adverse tax consequences. Please also see Question and Answers 16 and 17 for a
description of the potential tax consequences to you if you decide not to participate in the offer and instead keep your current options.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q12.</B></FONT></DT><DD><FONT SIZE=2><B>Once my options are accepted for amendment, is there anything I must do to receive the amended options or cash payments?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A12.</FONT></DT><DD><FONT SIZE=2>Once
the offer has expired and your election with respect to options has been accepted, your eligible options will be amended. There is nothing that you must do to receive your
amended options. Your amended options will be amended on the same day that the offer expires (but following the expiration of the offer). (See Section&nbsp;2)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>You
also do not need to do anything in order to receive your cash payments for your eligible in-the-money options. Note that you
will receive a cash payment only with respect to your eligible in-the-money options that are amended in this offer. The cash payment for these options will be made on or
promptly following January&nbsp;2, 2007, less any applicable tax withholding. Promptly following the expiration of the offer, we will send you an "Amendment(s) to Stock Option Agreements and Promise
to Make Cash Payment" evidencing your right to receive a cash payment for these options. This payment will not be subject to any vesting conditions or otherwise be subject to forfeiture.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q13.</B></FONT></DT><DD><FONT SIZE=2><B>When will my amended options vest?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A13.</FONT></DT><DD><FONT SIZE=2>If
your options are amended, they will continue to vest according to the vesting schedule of your original options. Future vesting is subject to your continued service to us through
each relevant vesting date. (See Section&nbsp;9)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q14.</B></FONT></DT><DD><FONT SIZE=2><B>Will the terms and conditions of my amended options be the same as my original options (as adjusted in connection with the Merger)?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A14.</FONT></DT><DD><FONT SIZE=2>Yes.
Except for the new exercise price of your amended options, the terms and conditions of your amended options will remain the same as the terms and conditions of your eligible
options (after those eligible options were adjusted in connection with the Merger, as described in Question and Answer 10). (See Sections 2, 9 and 14)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q15.</B></FONT></DT><DD><FONT SIZE=2><B>What happens to my options if I elect to participate in the offer with respect to eligible options but then exercise those options before expiration of the
offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A15.</FONT></DT><DD><FONT SIZE=2>If
you elect to participate in the offer but exercise your eligible options prior to expiration of the offer, those options which you exercise will no longer be eligible to be
amended in this offer and, if those options which you exercise are eligible in-the-money options, you will not receive a cash payment with respect to such options. Your options
instead will terminate upon exercise in accordance with their terms. (See Question and Answer 16)&nbsp;In addition, with respect to those eligible options you exercise prior to expiration of the
offer, you may be required to recognize ordinary income and may also be subject to an additional 20% penalty tax and interest. </FONT></DD></DL>
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<P><FONT SIZE=2>Furthermore,
some states, including California, may impose additional penalty taxes on the amounts subject to the 20% federal penalty tax. (See Section&nbsp;14) </FONT></P>

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<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q16.</B></FONT></DT><DD><FONT SIZE=2><B>What happens to my options if I do not turn in my election form by the deadline, choose not to participate or my options are not
accepted?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A16.</FONT></DT><DD><FONT SIZE=2>If
we do not receive your properly completed election form by the deadline, you choose not to participate, or your options are not accepted by us under this offer, your existing
options will (1)&nbsp;remain outstanding until they expire by their terms, including but not limited to expiration in connection with your termination of employment or other service,
(2)&nbsp;retain their adjusted original exercise price, (3)&nbsp;retain their adjusted share amount available for purchase, (4)&nbsp;retain their current terms for exercise, and
(5)&nbsp;retain their current vesting schedule. As described in Question and Answer 2, you may be required to recognize ordinary income before the options are exercised and may also be subject to an
additional 20% tax and interest penalty. In addition, some states, including California, may impose additional penalty taxes on the amounts subject to the 20% federal penalty tax. We recommend that
you consult with your financial, legal and/or tax advisors regarding any tax consequences, including any state tax consequences. (See Section&nbsp;14)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q17.</B></FONT></DT><DD><FONT SIZE=2><B>Are there any positive or negative tax consequences to my participation in the offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A17.</FONT></DT><DD><FONT SIZE=2>Yes.
As a result of participation in this offer, you may avoid potentially adverse tax consequences associated with your eligible options under United States tax law.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>Section&nbsp;409A
and proposed tax regulations under the American Jobs Creation Act of 2004 provide that stock options issued with an exercise price less
than the fair market value of the underlying stock on the date of grant (i.e., granted at a discount) must have fixed exercise dates to avoid early income recognition and an additional 20% tax. None
of the eligible options have fixed exercise dates and therefore Section&nbsp;409A would likely subject the eligible option holders to income recognition before the options are exercised and would
subject the eligible option holders to the additional 20% tax. It is likely that the eligible option holders would have income recognition equal to the difference between the fair market value of the
shares on the date of vesting and the exercise price (the "spread"). Because the proposed tax regulations do not explicitly address this, it is unclear how the additional 20% tax will be calculated,
but we think that it is likely that at a minimum the amount of the spread will be subject to the 20% tax when the options vest and it is possible that during each subsequent tax year (until the option
is exercised), the increase in value of the underlying stock will be taxed as well.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>Hewlett-Packard
cannot guarantee any particular tax results related to your options; furthermore, there is uncertainty because the proposed tax regulations
are not final. However, Hewlett-Packard will withhold taxes and report income amounts to the IRS and other taxing authorities as required by applicable laws. Because this offer involves complex tax
considerations, we urge you to consult your financial, legal and/or tax advisor before you make any decisions about participating in this offer.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2><B>Example:</B></FONT><FONT SIZE=2> You hold options to purchase 1,000 shares of Hewlett-Packard common stock with an adjusted original
exercise price per share of $23.32 which was granted at a time when the per share fair market value of Mercury Interactive's common stock was $24.56 (as adjusted in connection with the Merger). On
January&nbsp;1, 2007 a total of 250 of the shares subject to the option vest and on such date the per share fair market value of Hewlett-Packard's common stock is $40.00. Under the proposed tax
regulations, upon the vesting date, you may have taxable income equal to $4,170.00 (the difference between $40.00 and $23.32 multiplied by the 250 shares that vest) and owe an additional $834.00 due
to the 20% tax (20% of $4,170.00). Additionally, you may owe an interest penalty with the calculation of such penalty dating back to the original </FONT></DD></DL>
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<P><FONT SIZE=2>date
of grant and you may owe additional taxes in subsequent years, based on an increase in value of the underlying stock. </FONT></P>

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<DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>Please
also see Question and Answer 16 for a description of the potential consequences to you if you decide not to participate in the offer and instead keep
your current options.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>If
you participate in the offer, you should not be required under current United States law to recognize income for United States federal income tax
purposes on the option at the time you choose to accept the offer. On the amendment date, you should not be required under current law to recognize income for United States federal income tax purposes
with respect to any amended options. However, you will have taxable income to the extent you receive any cash payments with respect to any eligible in-the-money options that
are amended. (See Section&nbsp;14) In addition, you may have taxable income when you exercise your amended options or when you sell your shares. (See Section&nbsp;14)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2><B><I>Uncertainty</I></B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>Unfortunately,
the Internal Revenue Service (the "IRS") has only issued proposed regulations and has not issued definitive final guidance under
Section&nbsp;409A. There is a chance that final guidance issued by the IRS may provide some relief with respect to certain eligible options and your personal tax advisor may advocate a position
under the current statute and IRS guidance that your eligible options are exempt from Section&nbsp;409A. We cannot guarantee the effect of any future IRS guidance and will work as quickly as
possible when future guidance is issued to analyze it and provide information to our eligible option holders regarding such guidance.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>In
addition, if you are subject to taxation in the United States, and also are subject to taxation in another country, there may be additional tax
consequences relating to your participation in this offer. </FONT><FONT SIZE=2><B>Please see Schedules C through G of this Offer to Amend, as applicable, for a description of these tax consequences.
Further, some states, including California, may impose additional penalty taxes on the amounts subject to the 20% federal penalty tax. We recommend that you consult with your financial, legal and/or
tax advisors regarding any tax consequences, including any state tax consequences.</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q18.</B></FONT></DT><DD><FONT SIZE=2><B>If I choose to participate in this offer, are there circumstances under which my eligible options would be amended but I would not receive a cash payment for
them?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A18.</FONT></DT><DD><FONT SIZE=2>Yes,
if you choose to accept this offer with respect to an option that is an eligible option but not an eligible in-the-money option, you will receive an
amended option but you will not receive a cash payment. You will receive an amended option and cash payment in accordance with Sections 2 and 6 of this offer only with respect to your eligible
in-the-money options that are amended in this offer.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>However,
your option will not be amended and cash payment will not be made if we are prohibited from doing so by applicable laws. For example, we could
become prohibited from amending options as a result of changes in SEC, New York Stock Exchange, Nasdaq Global Select Market rules or applicable laws outside the U.S. We do not anticipate any such
prohibitions at this time. (See Section&nbsp;13)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q19.</B></FONT></DT><DD><FONT SIZE=2><B>What happens to my option and cash payment if I elect to participate in the offer but then my employment or other service with the Company terminates after
expiration of the offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A19.</FONT></DT><DD><FONT SIZE=2>If
you elect to participate in this offer with respect to your eligible options, such options will be amended on the same day as the expiration date (but following the expiration of
the offer). Your amended options will continue to vest according to the vesting schedule of your original options. Therefore, if your employment or other service with Hewlett-Packard terminates after
your </FONT></DD></DL>
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<P><FONT SIZE=2>options
are amended pursuant to this offer, your amended options will cease to vest in accordance with their terms. If you elect to participate in this offer with respect to your eligible
in-the-money options, if any, as of the expiration date (but following the expiration of the offer), you will become entitled to receive a cash payment with respect to those
options, less any applicable tax withholding. Such cash payments will not be subject to any further vesting conditions, so you will receive any cash payments to which you are entitled on or promptly
following January&nbsp;2, 2007, regardless of whether the amended option is vested and regardless of whether you are providing service to us then. (See Questions and Answers 12 and 13 and Sections 2
and 6) </FONT></P>

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<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q20.</B></FONT></DT><DD><FONT SIZE=2><B>How will Hewlett-Packard confirm to me that my election form or withdrawal form has been received?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A20.</FONT></DT><DD><FONT SIZE=2>Hewlett-Packard
intends to confirm the receipt of your election form and/or any withdrawal form by e-mail within two U.S. business days. If you have not received an
e-mail confirmation within two U.S. business days, we recommend that you confirm that we have received your election form and/or any withdrawal form. If you need to confirm receipt after
two U.S. business days have elapsed, you may e-mail STOCKTENDER@MERCURY.COM. (See Section&nbsp;4)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q21.</B></FONT></DT><DD><FONT SIZE=2><B>Can I accept this offer with respect to shares of Hewlett-Packard common stock that I previously acquired upon exercise of options?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A21.</FONT></DT><DD><FONT SIZE=2>No.
This offer relates only to outstanding options to purchase Hewlett-Packard common stock; specifically, the offer relates to certain Mercury Interactive options that were assumed
in connection with the Merger that now are options to purchase Hewlett-Packard common stock. You may not accept this offer with respect to shares of Hewlett-Packard common stock or other options to
purchase Hewlett-Packard common stock that were not assumed in connection with the Merger. (See Section&nbsp;2)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q22.</B></FONT></DT><DD><FONT SIZE=2><B>Will my decision to participate in the offer have an impact on my ability to receive options in the future?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A22.</FONT></DT><DD><FONT SIZE=2>No.
Your election to participate or not to participate in the offer will not have any effect on our making future grants of options to purchase common stock, or any other rights to
you or anyone else. (See Section&nbsp;7)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q23.</B></FONT></DT><DD><FONT SIZE=2><B>Is this a repricing of options?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A23.</FONT></DT><DD><FONT SIZE=2>Yes.
Amendment of your eligible options is considered a repricing of options. As a result, the Company expects to record additional stock-based compensation as a charge against
earnings based on the difference between the fair value of the options as of the closing of the offer period and the fair value of the amended option. We will not be able to determine the amount of
compensation expense until the closing of the offer period because it depends on the price of our common stock as of the closing of the offer period. However, we have been able to determine that the
maximum compensation expense that will be recorded if all eligible optionees accept the offer will be approximately $1.1&nbsp;million. A compensation expense of this size is not material to our
financial statements. (See Section&nbsp;12)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q24.</B></FONT></DT><DD><FONT SIZE=2><B>How does Hewlett-Packard determine whether I have properly accepted this offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A24.</FONT></DT><DD><FONT SIZE=2>We
will determine, at our discretion, all questions about the validity, form, eligibility (including time of receipt), and acceptance of any options. Our determination of these
matters will be final and binding on all parties. We reserve the right to reject any election form or any options under </FONT></DD></DL>
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<P><FONT SIZE=2>this
offer that we determine are not in good order or that we determine are unlawful to accept. We will accept all properly elected eligible options that are not validly withdrawn, subject to the
terms of this offer. No election with respect to eligible options will be deemed to have been properly made until all defects or irregularities have been cured by you or waived by us. We have no
obligation to give notice of any defects or irregularities in any election form, and we will not incur any liability for failure to give any notice. (See Section&nbsp;4) </FONT></P>

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<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q25.</B></FONT></DT><DD><FONT SIZE=2><B>When will my amended options expire?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A25.</FONT></DT><DD><FONT SIZE=2>Your
amended options, if any, will expire on the same date as the scheduled expiration of your original eligible options or earlier upon your termination of employment or other
service with the Company. (See Section&nbsp;9)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q26.</B></FONT></DT><DD><FONT SIZE=2><B>Will I receive any paperwork indicating my options have been amended?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A26.</FONT></DT><DD><FONT SIZE=2>Yes.
Promptly after the expiration of the offer, the Company will send you an "Amendment(s) to Stock Option Agreements and Promise to Make Cash Payment" evidencing the amendment of
the options you elected to amend. (See Section&nbsp;9)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q27.</B></FONT></DT><DD><FONT SIZE=2><B>Are there any conditions to this offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A27.</FONT></DT><DD><FONT SIZE=2>Yes.
The implementation of this offer is not conditioned upon it being accepted with respect to a minimum number of eligible options. However, the completion of this offer is subject
to a number of customary conditions that are described in Section&nbsp;7 of this Offer to Amend. (See Section&nbsp;7)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q28.</B></FONT></DT><DD><FONT SIZE=2><B>If you extend the offer, how will you notify me?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A28.</FONT></DT><DD><FONT SIZE=2>If
we extend this offer, we will issue a press release, e-mail or other form of communication disclosing the extension no later than 6:00&nbsp;a.m., Pacific Time, on
the next U.S. business day following the previously scheduled expiration date. (See Sections 2 and 15)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q29.</B></FONT></DT><DD><FONT SIZE=2><B>How will you notify me if the offer is changed?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A29.</FONT></DT><DD><FONT SIZE=2>If
we change the offer, we will issue a press release, e-mail or other form of communication disclosing the change no later than 6:00&nbsp;a.m., Pacific Time, on the
next U.S. business day following the day we change the offer. (See Section&nbsp;15)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q30.</B></FONT></DT><DD><FONT SIZE=2><B>Can I change my mind and withdraw from this offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A30.</FONT></DT><DD><FONT SIZE=2>Yes.
You may change your mind after you have submitted an election form and withdraw from the offer at any time before the expiration date. If we extend the expiration date, you may
withdraw your election with respect to some or all of your eligible options at any time until the extended offer expires. You may change your mind as many times as you wish, but you will be bound by
the last properly submitted election or withdrawal form we receive before the expiration date. However, if we have not accepted your election by 9:00&nbsp;p.m., Pacific Time, on January&nbsp;17,
2007, you may withdraw your options at any time thereafter. (See Section&nbsp;5)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q31.</B></FONT></DT><DD><FONT SIZE=2><B>How do I withdraw my election?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A31.</FONT></DT><DD><FONT SIZE=2>To
withdraw your election with respect to some or all of your eligible options, you must do the following before the expiration date:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>Properly
complete and sign the attached withdrawal form. </FONT></DD></DL>
</DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>Fax
the completed and signed withdrawal form to (650)&nbsp;625-3471. (See Section&nbsp;5)
<BR><BR></FONT></DD></DL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>Any
election with respect to options you do not withdraw will remain in effect under this offer pursuant to the last properly submitted election form.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q32.</B></FONT></DT><DD><FONT SIZE=2><B>What if I withdraw my election and then decide again that I want to participate in this offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A32.</FONT></DT><DD><FONT SIZE=2>If
you have withdrawn your election to participate and then decide again that you would like to participate in this offer, you may re-elect to participate by submitting a
new properly completed election form before the expiration date. You may elect to accept this offer with respect to some or all of the eligible option grants. The new election form must be signed and
dated after the date of your withdrawal form. (See Section&nbsp;5)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q33.</B></FONT></DT><DD><FONT SIZE=2><B>Can I change my mind about which options with respect to which I want to accept this offer?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A33.</FONT></DT><DD><FONT SIZE=2>Yes.
You may change your mind after you have submitted an election form and change the options with respect to which you elect to accept this offer at any time before the expiration
date by completing and faxing a withdrawal form to (650)&nbsp;625-3471. If we extend the expiration date, you may change your election at any time until the extended offer expires. You
may elect to accept this offer with respect to additional options, or you may choose to accept this offer with respect to fewer options. You may change your mind as many times as you wish, but you
will be bound by the last properly submitted election or withdrawal form we receive before the expiration date. Please be sure that any new election form you submit includes all the options with
respect to which you want to accept this offer and is clearly dated after your last-submitted election or withdrawal form.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q34.</B></FONT></DT><DD><FONT SIZE=2><B>How should I decide whether or not to accept this offer with respect to my eligible options?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A34.</FONT></DT><DD><FONT SIZE=2>We
understand that the decision whether or not to accept this offer with respect to your eligible options will be a challenging one for many eligible option holders. The program does
carry risk (see "Risks of Participating in the Offer" on page&nbsp;18 for information regarding some of these risks), and there are no guarantees that you would not ultimately receive greater value
from your eligible options, even considering the potential tax consequences of keeping them (as described in Section&nbsp;14) than what we are offering as consideration in the offer. The decision to
participate in the offer must be your own. </FONT><FONT SIZE=2><B>We recommend that you consult with your financial, legal and/or tax advisors to determine if participation in this offer is right for
you.</B></FONT><FONT SIZE=2> You may also contact Deloitte Tax LLP with any general questions regarding the terms of this offer or requests for general tax information about this offer. (See
Section&nbsp;3)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q35.</B></FONT></DT><DD><FONT SIZE=2><B>What happens if I have an option grant that is subject to a domestic relations order or comparable legal document as the result of the end of a
marriage?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A35.</FONT></DT><DD><FONT SIZE=2>If
you have an eligible option grant that is subject to a domestic relations order (or comparable legal document as the result of the end of a marriage) and a person who is not an
eligible option holder beneficially owns a portion of that option grant, you may accept this offer with respect to the entire remaining outstanding portion of the option if so directed by the
beneficial owner as to his or her portion in accordance with the domestic relations order or comparable legal documents. As legal owner of the eligible option, the Company will respect an election
properly made by you and accepted by the Company and will not be responsible to you or the beneficial owner of the eligible option for any errors made by you with respect to such an election. (See
Section&nbsp;2) </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

<HR NOSHADE>
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<A NAME="page_nk1283_1_17"> </A>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q36.</B></FONT></DT><DD><FONT SIZE=2><B>Will my amended options remain nonstatutory stock options for United States tax purposes?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A36.</FONT></DT><DD><FONT SIZE=2>Your
amended options will remain nonstatutory stock options for purposes of United States tax law.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>For
more detailed information, please read the rest of the Offer to Amend, and see the tax disclosure set forth under the section entitled "Material United
States federal income tax consequences." (Section&nbsp;14)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>We
recommend that you read the tax discussion in this Offer to Amend and discuss the personal tax consequences of nonstatutory stock options with your
financial, legal and/or tax advisors. (See Sections 9 and 14)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q37.</B></FONT></DT><DD><FONT SIZE=2><B>Does Section&nbsp;409A impact ESPP shares or restricted stock?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A37.</FONT></DT><DD><FONT SIZE=2>No,
ESPP shares and restricted stock are not impacted by 409A or this offer.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q38.</B></FONT></DT><DD><FONT SIZE=2><B>Whom can I contact if I need to confirm Hewlett-Packard's receipt of my election and/or any withdrawal form, I have questions about the offer, or if I need
additional copies of the offer documents?</B></FONT><FONT SIZE=2>
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>A38.</FONT></DT><DD><FONT SIZE=2>Hewlett-Packard
intends to confirm the receipt of your election form and/or any withdrawal form by e-mail within two U.S. business days. If you have not received an
e-mail confirmation that Hewlett-Packard has received your response, we recommend that you confirm that we have received your election form and/or any withdrawal form. If you need to
confirm receipt after two U.S. business days have elapsed, you may e-mail STOCKTENDER@MERCURY.COM.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>If
you need additional copies of the offer documents or the election or withdrawal forms, you should e-mail STOCKTENDER@MERCURY.COM. Copies will
be furnished promptly at Hewlett-Packard's expense. You can also view and print documents at [LINK].
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><BR></DT><DD><FONT SIZE=2>For
general questions concerning this offer or general questions about the tax consequences discussed in this offer, please contact: </FONT></DD></DL>
<BR>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Jason
Russell<BR>
Deloitte Tax LLP<BR>
HP409A@DELOITTE.COM </FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

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<UL>
<UL>
</UL>
</UL>
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NAME="page_nm1283_1_18"> </A> </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="nm1283_risks_of_participating_in_the_offer"> </A>
<A NAME="toc_nm1283_1"> </A>
<BR></FONT><FONT SIZE=2><B>RISKS OF PARTICIPATING IN THE OFFER    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><I>Participating in the offer involves a number of risks, including those described below. This list and items discussed in "Factors that
Could Affect Future Results" set forth in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Hewlett-Packard's Quarterly Report on Form&nbsp;10-Q
for the fiscal quarter ended July&nbsp;31, 2006 and in Hewlett-Packard's SEC reports filed after that report, which are incorporated herein by reference, highlight the material risks of
participating in this offer. You should carefully consider these risks and you are encouraged to speak with your financial, legal and/or tax advisors as necessary before deciding to participate in the
offer. In addition, we strongly urge you to read the sections in this Offer to Amend discussing the tax consequences in the United States, as well as the rest of this Offer to Amend for a more
in-depth discussion of the risks that may apply to you before deciding to participate in the offer.</I></FONT></P>


<P><FONT SIZE=2><B>Economic Risks  </B></FONT></P>

<UL>

<P><FONT SIZE=2><B><I> If Hewlett-Packard is acquired, your eligible options could have been worth more than your amended options plus the cash payments.  </I></B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An acquisition or similar transaction involving Hewlett-Packard could significantly affect our stock price, including potentially substantially increasing the
price of our shares. Depending on the timing and structure of a transaction of this type, you might lose the benefit of any price appreciation in our common stock resulting from a merger or
acquisition. This could result in option holders who do not participate in this offer receiving a greater financial benefit than option holders who do participate, even after taking into account the
potential adverse tax consequences of not participating. In addition, your amended options may be exercisable for stock of the acquirer, not Hewlett-Packard common stock, while option holders who
decide not to participate in this offer might be able to exercise their options before the effective date of the merger or acquisition and sell their Hewlett-Packard common stock before the effective
date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally,
if you are an employee or other service provider of Hewlett-Packard and we are acquired after the expiration date, it is possible that an acquirer could terminate your
employment or other service and therefore, to the extent that you have any amended options subject to vesting, those amended options will cease to vest and will terminate in accordance with their
terms. Regardless of whether you are an employee or other service provider of the Company on the scheduled payment date, you will still be entitled to receive any cash payments with respect to
eligible options you elected to have amended in this offer. </FONT></P>

<P><FONT SIZE=2><B>Federal Tax</B></FONT><FONT SIZE=2><B><I>-</I></B></FONT><FONT SIZE=2><B>Related Risks  </B></FONT></P>

<UL>

<P><FONT SIZE=2><B><I> The IRS could change the expected Section&nbsp;409A tax consequences.  </I></B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The IRS is expected to provide additional guidance with respect to Section&nbsp;409A and the tax implications of discount options. It is possible that such
guidance could be significantly different from the current guidance. New guidance could impose less onerous tax consequences on discount options and, as a result, it may have been more beneficial to
you not to participate in the offer and to have retained your eligible options. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
we have designed this offer in a way that is specifically contemplated by the U.S. Treasury Department and the U.S. Internal Revenue Service to avoid adverse tax treatment under
Section&nbsp;409A, there can be no guarantee of any specific tax treatment with respect to this offer or in the future should the tax laws change again in a manner that would adversely affect your
new options. In that event, Hewlett-Packard cannot provide any assurance that an offer similar to this one will be made. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_nm1283_1_19"> </A>
<BR>
<UL>

<P><FONT SIZE=2><B><I> Taxable events even if amended options are not exercised.  </I></B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any cash payments received for eligible in-the-money options will be subject to regular income and employment tax withholding at the time
of receipt. Your resulting tax liability when you file your income tax return could differ from the amount of taxes we are required to
withhold and, as a result, it is possible that additional taxes may be due for the year you receive the cash payment. </FONT></P>

<UL>

<P><FONT SIZE=2><B><I> Tax-related risks for tax residents of multiple countries.  </I></B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are subject to the tax laws in more than one jurisdiction, you should be aware that there may be tax and social security consequences of more than one
country that may apply to you. Certain eligible option holders are subject to the tax laws in the United States, and also to the tax laws in Canada, France, India, Israel, and the United Kingdom. If
you are subject to the tax laws in one of these countries, please see the description of the tax consequences of participating in the offer under the tax laws of such countries which is included in
Schedules C through G to this Offer to Amend. You should also be certain to consult your personal tax advisor to discuss these consequences. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="nm1283_the_offer"> </A>
<A NAME="toc_nm1283_2"> </A>
<BR></FONT><FONT SIZE=2><B>THE OFFER    <BR>    </B></FONT></P>

<P><FONT SIZE=2><A
NAME="nm1283_1._eligibility."> </A>
<A NAME="toc_nm1283_3"> </A></FONT> <FONT SIZE=2><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligibility.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You are an "eligible option holder" only if you are subject to United States taxation and hold otherwise eligible options, if those options remain outstanding as
of the last date on which this offer remains open for acceptance. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you are an employee or other service provider of Hewlett-Packard Company (referred to as "Hewlett-Packard,""HP," the "Company," "we," "our" or "us"), unless expressly provided by an
agreement between you and Hewlett-Packard or by the requirements of applicable law, your employment or other service with Hewlett-Packard will remain "at will" and can be terminated by you or us at
any time, with or without cause or notice. You do not need to be an active employee or other service provider of Hewlett-Packard in order to be an eligible option holder. However, if you are no longer
an active employee or other service provider of the Company, your options will have ceased to vest in accordance with their terms and you will be eligible to participate in this offer only with
respect to options which have vested and remain outstanding as of the last date on which this offer remains open for acceptance. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None
of our executive officers, listed on Schedule&nbsp;A to this Offer to Amend, including those who are officers for purposes of Section&nbsp;16 of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), and none of our directors holds eligible options and therefore none of our executive officers or directors is eligible to participate in this offer. </FONT></P>


<P><FONT SIZE=2><A
NAME="nm1283_2._number_of_options_and_amoun__2._02487"> </A>
<A NAME="toc_nm1283_4"> </A>
<BR></FONT><FONT SIZE=2><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of options and amount of consideration; expiration date.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions of this offer, we will accept for amendment eligible options that are held by eligible option holders and with respect to
which proper elections are made, and are not validly withdrawn, before the expiration date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
option to purchase common stock is eligible for this offer only if each of the following conditions is met: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option was assumed by us in connection with the merger by and among Hewlett-Packard Company and Mercury Interactive Corporation (the "Merger"), which was completed on
November&nbsp;6, 2006 (the "Merger closing date");
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option was granted under any of the Mercury Interactive Corporation 1999 Stock Option Plan, the Mercury Interactive Corporation 2000 Supplemental Stock Option Plan, or
the </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P>

<HR NOSHADE>
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<UL>
<UL>

<P><FONT SIZE=2>Mercury
Interactive Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees (together, the "Mercury Interactive Stock Plans"); </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option had an original exercise price per share that was less than the fair market value per share of the common stock underlying the option on the option's grant date
(that is, it was granted at a "discount" to the then-current fair market value of the underlying stock);
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option was unvested as of December&nbsp;31, 2004 (if only a portion of an option grant was unvested as of December&nbsp;31, 2004, the unvested portion may be an
"eligible option"); and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
option is outstanding as of the last date on which this offer remains open for acceptance. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
noted above, in order to be eligible, options must be outstanding as of the expiration date of the offer. For example, if a particular option grant expires after commencement, but
before the expiration date, that particular option grant is not eligible for this offer. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you choose to accept this offer with respect to any of your outstanding options in this offer, you need not accept this offer with respect to all of your eligible options. However, if
you do choose to accept this offer with respect to an eligible option, you must accept this offer with respect to all of the shares subject to that option grant that were unvested as of
December&nbsp;31, 2004. If you have exercised a portion of an eligible option grant, your election will apply to the portion that remains outstanding and unexercised. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you have an eligible option grant that is subject to a domestic relations order (or comparable legal document as the result of the end of a marriage) and a person who is not an
eligible option holder beneficially owns a portion of that option grant, you may accept this offer with respect to the entire remaining outstanding portion of the option if so directed by the
beneficial owner as to his or her portion in accordance with the applicable domestic relations order or comparable legal documents. As legal owner of the eligible option, the Company will respect an
election properly made by you and accepted by the Company and will not be responsible to you or the beneficial owner of the eligible option for any errors made by you with respect to such an election. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the terms of this offer and upon our acceptance of the options with respect to which you have properly elected to accept this offer, an eligible option with respect to which
you accept this offer will be replaced with the following consideration: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>Your
eligible option will be amended to increase the exercise price per share to the fair market value of a share of the common stock of Mercury Interactive on the date that Mercury
Interactive determined the option was actually granted (that is, on the option's grant date of record), as adjusted in connection with the Merger (the "new exercise price"). If only a portion of your
option grant vested or is scheduled to vest after December&nbsp;31, 2004, then only that portion of the option grant is an eligible option and will be amended to increase the exercise price. The
portion that vested on or before December&nbsp;31, 2004 is not subject to the adverse tax consequences that this offer is designed to allow you to avoid and so that portion of the option grant will
not be eligible for inclusion in the offer. Instead, the portion of any option grant that vested on or before December&nbsp;31, 2004 will remain outstanding in accordance with its original terms,
including its original exercise price (as adjusted in connection with the Merger, referred to as the "adjusted original exercise price"). </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>You
will be provided with an Addendum which will list the eligible options and, for each eligible option, the adjusted original exercise price of your eligible options, and the new exercise price of
the eligible options, should you accept this offer with respect to those options. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>In
addition, if your eligible option had an original exercise price (before adjustment in connection with the Merger) less than $52.00 per share, for each such eligible
in-the-money </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>20</FONT></P>

<HR NOSHADE>
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<A NAME="page_nm1283_1_21"> </A>
<UL>
<UL>

<P><FONT SIZE=2>option
amended in this offer, you will receive a cash payment equal to the difference between the new exercise price per share of the amended option and the adjusted original exercise price per share
multiplied by the number of unexercised shares subject to the amended option in the manner described below. Note that both the "new exercise price" and the "adjusted original exercise price" are after
adjustment in connection with the Merger. </FONT></P>

</UL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Note
that the number of unexercised shares subject to your option has been adjusted in connection with the Merger. Your Addendum will list the number of unexercised shares subject to your option as
adjusted in connection with the Merger and, to the extent applicable, the cash payment you will be entitled to receive for each eligible option you elect to have amended. Your cash payment will be
subject to any applicable tax withholding. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of this offer, the term "option" generally refers to an option to purchase one or more shares of our common stock. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the Merger, each of your eligible options was assumed by the Company. When the options were assumed, they were adjusted so that they became options to purchase
Hewlett-Packard shares rather than Mercury Interactive shares. To ensure that the options were adjusted in a manner that works to preserve the overall value of your options, the agreement between
Hewlett-Packard and Mercury Interactive that governed the Merger required that the exercise price and number of shares subject to each assumed option was adjusted as follows: </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
assumed option was exercisable for a number of shares of Hewlett-Packard common stock determined by multiplying the number of shares issuable upon the exercise of the option held by
you by 1.34701 (the "Exchange Ratio"), rounded down to the nearest whole number of shares. The exercise price per share for each option adjusted in connection with the Merger was determined by
dividing the exercise price per share of each Mercury Interactive option held by you by the Exchange Ratio, rounded up to the nearest cent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
example, if you held an option to purchase 1,000 shares of Mercury Interactive common stock with an original exercise price of $31.41 per share, it was adjusted in connection with
the Merger in accordance with the formula described above to represent an option to purchase 1,347 shares of Hewlett-Packard common stock at the exercise price per share equal to $23.32 (this is the
option's adjusted original exercise price). </FONT></P>

<UL>

<P><FONT SIZE=2><B><I> Eligible Option Example 1  </I></B></FONT></P>

<P><FONT SIZE=2>You
were issued an option to purchase 1,000 shares of Mercury Interactive common stock with an exercise price per share equal to $31.41 per share. In connection with the Merger, this option was
assumed by the Company and adjusted to represent an option to purchase 1,347 of Hewlett-Packard common stock at an exercise price per share equal to $23.32 (this is the option's adjusted original
exercise price). Of the adjusted number of shares subject to your option, 337 shares vested on or before December&nbsp;31, 2004. On the option's grant date of record, the fair market value of
Mercury Interactive common stock was $33.08 per share which, adjusted in connection with the Merger is $24.56 per Hewlett-Packard share. The Merger consideration was $52.00 per share. The portion of
your option representing 674 shares was vested as of the Merger closing date (the 337 shares that vested before December&nbsp;31, 2004 and an additional 337 that vested after December&nbsp;31,
2004) and the option's original exercise price of $31.41 per share was less than $52.00. This portion of your option was "vested and in-the-money" on the Merger closing date,
and therefore it was cancelled and cashed out in connection with the Merger. As of the offer expiration date, you had not exercised any portion of the option. Since the option's original exercise
price of $31.41 was less than $52.00, the option will be an eligible in-the-money option with respect to 673 shares (the 674 shares which were vested and
in-the-money on the Merger closing date were cancelled and cashed </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>21</FONT></P>

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<UL>

<P><FONT SIZE=2>out
in connection with the Merger and are therefore not eligible). If you accept this offer with respect to that option pursuant to the terms of the offer you will receive the following: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>The
option to purchase 673 shares will be amended to increase the exercise price to $24.56 per share.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>A
cash payment of $834.52 ($24.56-$23.32 multiplied by 673 shares) (the portion of the option eligible as of the expiration date of the offer), less any applicable tax
withholding, will be payable on or promptly following January&nbsp;2, 2007. </FONT></DD></DL>
</UL>
<UL>

<P><FONT SIZE=2><B><I> Eligible Option Example 2  </I></B></FONT></P>

<P><FONT SIZE=2>You
were issued an option to purchase 1,000 shares of Mercury Interactive common stock with an exercise price per share equal to $53.00 per share. In connection with the Merger, this option was
assumed by the Company and adjusted to represent an option to purchase 1,347 shares of Hewlett-Packard common stock at an exercise price per share equal to $39.35 (this is the option's adjusted
original exercise price). Of the adjusted number of shares subject to your option, 337 shares vested on or before December&nbsp;31, 2004. On the option's grant date of record, the fair market value
of Mercury Interactive common stock was $53.50 per share which, adjusted in connection with the Merger is $39.72 per Hewlett-Packard share. As of the offer expiration date, you had not exercised any
portion of the option. The Merger consideration was $52.00 per share. The option will be an eligible option with respect to 1,010 shares (the 337 shares which vested on or before December&nbsp;31,
2004 are not subject to Section&nbsp;409A and are therefore not eligible) and if you accept this offer with respect to that option pursuant to the terms of the offer, your option to purchase 1,010
shares will be amended to increase the exercise price to $39.72 per share. Because the option's original exercise price of $53.00 is greater than $52.00, the option is not an eligible
in-the-money option and consequently, no cash payment will be distributed with respect to this option. Note that all eligible in-the-money options were
unvested at closing of the Merger. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
vesting of your amended options will not change. As a result, once you cease to be an employee or other service provider, there will be no further vesting of your amended option. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
amended options will be subject to the terms of the option plan under which they were granted (after those eligible options were adjusted in connection with the Merger, as described
above in this Section and Question and Answer 10), and as amended in accordance with this offer. The current form of option agreements under the Mercury Interactive Stock Plans is attached as an
exhibit to the Schedule TO with which this offer has been filed. See Section&nbsp;9 of this Offer to Amend for a description of the Mercury Interactive Stock Plans. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
expiration date for this offer will be 9:00&nbsp;p.m., Pacific Time, on December&nbsp;15, 2006, unless we extend the offer. We may, in our discretion, extend the offer, in which
event the expiration date will refer to the latest time and date at which the extended offer expires. See Section&nbsp;15 of this Offer to Amend for a description of our rights to extend, terminate
and amend the offer. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>22</FONT></P>

<HR NOSHADE>
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<P><FONT SIZE=2><A
NAME="no1283_3._purpose_of_the_offer."> </A>
<A NAME="toc_no1283_1"> </A>
<BR></FONT><FONT SIZE=2><B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purpose of the offer.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the Merger and pursuant to the terms of the Merger agreements, we assumed certain stock options granted under the Mercury Interactive Stock Plans
and agreed to address issues related to Section&nbsp;409A. It had been determined that certain options granted under the Mercury Interactive Stock Plans were issued with an exercise price less than
the fair market value of the underlying Mercury Interactive common stock on the date of grant. Section&nbsp;409A provides that the portion of options that were granted at a discount and vest after
December&nbsp;31, 2004 will likely subject the eligible option holders to unfavorable tax consequences. If the eligible options are amended and, to the extent applicable, cash payment distributed,
the unfavorable tax consequences, as described in Section&nbsp;14 of this Offer to Amend, will be eliminated. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as otherwise disclosed in this offer or in our SEC filings, we presently have no plans or proposals that relate to or would result in: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
extraordinary transaction, such as a merger, reorganization or liquidation involving the Company, except as described below;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
purchase, sale or transfer of a material amount of our assets;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
material change in our present dividend rate or policy, or our indebtedness or capitalization;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
change in our present board of directors or management, including a change in the number or term of directors or to fill any existing board of director vacancies or to
change any executive officer's material terms of employment;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
other material change in our corporate structure or business;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>our
common stock being delisted from the New York Stock Exchange or the Nasdaq Global Select Market or not being authorized for quotation in an automated quotation system
operated by a national securities association;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>our
common stock becoming eligible for termination of registration pursuant to Section&nbsp;12(g)(4) of the Exchange Act;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
suspension of our obligation to file reports pursuant to Section&nbsp;15(d) of the Exchange Act;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
acquisition by any person of an amount of our securities or the disposition of an amount of any of our securities; or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
change in our certificate of incorporation or bylaws, or any actions that may impede the acquisition of control of us by any person. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the ordinary course of business, from time to time, the Company evaluates acquisition opportunities. At the present time, we are reviewing a number of opportunities. These
transactions may be announced or completed in the ordinary course of business during the pendency of this offer, but there can be no assurance that an opportunity will be available to us or that we
will choose to take advantage of an opportunity. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the ordinary course of business, the Company makes changes in the composition and structure of its board of directors and/or management. The Company expects that it will continue to
make changes in this regard. In connection with the addition of an individual to our board of directors, the Company's bylaws may be amended to provide for an exact number of directors between the
authorized number of directors of not less than eight (8) nor more than seventeen (17). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
disclosed in our public filings, the board of directors has authorized a stock buyback program or programs which are currently being implemented through open market purchases of our
common stock. The Company expects to continue to operate these programs during the pendency of this offer. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>23</FONT></P>

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<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hewlett-Packard
has effective shelf registration statements filed with the SEC that enable it to offer and sell from time to time, in one or more offerings, debt securities, common
stock, preferred stock, depositary shares and warrants. Hewlett-Packard continually evaluates and, as appropriate, adjusts its debt levels based on its consideration of a number of factors, including
cash flow expectations, cash requirements for operations, investment plans (including acquisitions), share repurchase activities and the overall cost of capital. In connection with these activities,
and in anticipation of the maturation of existing debt securities or for other purposes, Hewlett-Packard may, from time to time, offer and sell one or more classes of debt or other securities upon
terms and conditions to be determined immediately prior to the commencement of those offerings, and those offerings, if commenced, may be material in amount. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
we nor our board of directors makes any recommendation as to whether you should accept this offer, nor have we authorized any person to make any such recommendation.
Hewlett-Packard has engaged Deloitte Tax LLP to prepare communications regarding this offer and to provide general tax information to eligible option holders with respect to this offer. Deloitte Tax
LLP will not provide tax advice specific to an individual's circumstances or make any recommendation. You must make your own decision about whether to participate in this offer. We recommend that you
discuss the personal tax consequences of this offer with your financial, legal and/or tax advisors. </FONT></P>

<P><FONT SIZE=2><A
NAME="no1283_4._procedures_for_elect__no102171"> </A>
<A NAME="toc_no1283_2"> </A>
<BR></FONT><FONT SIZE=2><B>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Procedures for electing to participate in this offer.    <BR>    </B></FONT></P>

<UL>


<P><FONT SIZE=2><B><I> Proper election to elect to participate in this offer.  </I></B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participation in this offer is voluntary. To participate in this offer, you must, in accordance with the instructions of the election form, properly complete,
sign and fax the election form to the Company. Hewlett-Packard must receive the properly completed and signed election forms via fax before the expiration date. The expiration date will be
9:00&nbsp;p.m., Pacific Time, on December&nbsp;15, 2006, unless we
extend the offer. Election forms and related documents may only be submitted by fax to (650)&nbsp;625-3471. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you participate in this offer, you must accept this offer with respect to all of the shares subject to the outstanding portion of that option grant. To help you recall your
outstanding eligible option grants and give you the tools to make an informed decision, we will provide you with an Addendum listing your eligible options (including the numbers of shares subject to
the option and its adjusted original exercise price), the new exercise price that will apply if the option is amended and, to the extent applicable, the cash payments with respect to eligible
in-the-money options, if amended. If you hold an option that is not listed on the Addendum, the option is not an eligible option. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as noted in Section&nbsp;5, your election to participate becomes irrevocable after 9:00&nbsp;p.m., Pacific Time, on December&nbsp;15, 2006, unless the offer is extended past
that time, in which case your election will become irrevocable after the new expiration date. You may change your mind after you have submitted an election form and withdraw from the offer at any time
before the expiration date, as described in Section&nbsp;5 of this Offer to Amend. You may change your mind as many times as you wish, but you will be bound by the last properly submitted election
or withdrawal form we receive before the expiration date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you submit an election form, and then decide that you would like to elect to accept this offer with respect to additional options, you must fax a new election form to
(650)&nbsp;625-3471 by the expiration date. This new election form must also list all of the options with respect to which you wish to accept this offer, because your original election
form will no longer be valid. You may submit new election forms as often as you wish prior to the expiration date, but you will be bound by the last properly submitted election or withdrawal form we
receive prior to the election date. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>24</FONT></P>

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<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>The delivery of all documents, including election forms, is at your risk. Hewlett-Packard intends to confirm the receipt of your election form and/or any
withdrawal form by e-mail within two U.S. business days. If you have not received an e-mail confirmation, we recommend that you confirm that we have received your election form
and/or any withdrawal form. If you need to confirm receipt after two U.S. business days have elapsed, you may e-mail STOCKTENDER@MERCURY.COM. Only responses that are complete, signed and
actually received via fax by the Company by the deadline will be accepted. Responses may only be submitted via fax. Responses submitted by any other means, including e-mail, hand delivery,
United States mail (or other post) and Federal Express (or similar delivery service), are not permitted.</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
is a one-time offer, and we will strictly enforce the election period. We reserve the right to reject any election that we determine is not in good order or that we
determine is unlawful to
accept. Subject to the terms and conditions of this offer, we will accept all options with respect to which proper elections are made promptly after the expiration of this offer. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
receipt of your election form is not by itself an acceptance of your options. For purposes of this offer, we will be deemed to have accepted options with respect to which proper
elections have been made and are not properly withdrawn as of the time when we give oral or written notice to the option holders generally of our acceptance of options. We may issue this notice of
acceptance by press release, e-mail or other methods of communication. Options accepted will be amended on the expiration date, which we presently expect will be December&nbsp;15, 2006. </FONT></P>

<UL>

<P><FONT SIZE=2><B><I> Determination of validity; rejection of options; waiver of defects; no obligation to give notice of defects.  </I></B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will determine, at our discretion, all questions as to the validity, form, eligibility (including time of receipt) and acceptance of any options. Our
determination of these matters will be final and binding on all parties. We reserve the right to reject any election form or any options with respect to which elections have been made that we
determine are not in good order or that we determine are unlawful to accept. We will accept all options with respect to which proper elections are made that are not validly withdrawn. We also reserve
the right to waive any of the conditions of the offer or any defect or irregularity in any election of any particular options or for any particular option holder, provided that if we grant any such
waiver, it will be granted with respect to all option holders and options with respect to which elections have been made. No elections will be deemed to have been properly made until all defects or
irregularities have been cured by the option holder or waived by us. Neither we nor any other person is obligated to give notice of any defects or irregularities in elections, nor will anyone incur
any liability for failure to give any notice. This is a one-time offer. We will strictly enforce the election period, subject only to an extension that we may grant in our discretion. </FONT></P>

<UL>

<P><FONT SIZE=2><B><I> Our acceptance constitutes an agreement.  </I></B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your election through the procedures described above constitutes your acceptance of the terms and conditions of this offer. </FONT><FONT SIZE=2><B>Our acceptance
of your options for amendment will constitute a binding agreement between Hewlett-Packard and you upon the terms and subject to the conditions of this offer.</B></FONT></P>

<P><FONT SIZE=2><A
NAME="no1283_5._withdrawal_rights_and_change_of_election."> </A>
<A NAME="toc_no1283_3"> </A>
<BR></FONT><FONT SIZE=2><B>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withdrawal rights and change of election.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may withdraw the options with respect to which you previously elected to accept the offer only in accordance with the provisions of this section. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you have previously elected to accept this offer with respect to your options, you may withdraw that election with respect to some or all of these options at any time before the
expiration date, which is expected to be 9:00&nbsp;p.m., Pacific Time, on December&nbsp;15, 2006. If we extend the offer, you may withdraw your options at any time until the extended expiration
date. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>25</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, although we intend to accept all options with respect to which valid elections have been made promptly after the expiration of this offer, if we have not accepted your
options by 9:00&nbsp;p.m. Pacific Time on January&nbsp;17, 2007, you may withdraw your options at any time thereafter. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
validly withdraw some or all of the options with respect to which you previously have chosen to accept this offer, you must fax to (650)&nbsp;625-3471, in accordance
with the procedures listed in Section&nbsp;4 above, a signed and dated withdrawal form with the required information, while you still have the right to withdraw the options. Any options you do not
withdraw will remain bound pursuant to your prior election form. You may change your mind as many times as you wish, but you will be bound by the last properly submitted election or withdrawal form we
receive before the expiration date. Hewlett-Packard must receive the properly completed and signed withdrawal form before the expiration date. The expiration date will be 9:00&nbsp;p.m., Pacific
Time, on December&nbsp;15, 2006, unless we extend the offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
may not rescind any withdrawal. Your elections with respect to withdrawn eligible options will be deemed not properly made for purposes of the offer, unless you properly
re-elect to accept this offer with respect to your eligible options before the expiration date. To re-elect to accept this offer with respect to the withdrawn eligible options,
you must fax a new election form to (650)&nbsp;625-3471 before the expiration date by following the procedures described in Section&nbsp;4 of this Offer to Amend. This new election
form must be properly completed, signed and dated after your original election form and after your withdrawal form. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
we nor any other person is obligated to give you notice of any defects or irregularities in any withdrawal form or any new election form, nor will anyone incur any liability for
failure to give any notice. We will determine, in our discretion, all questions as to the form and validity, including time of receipt, of withdrawal forms and new election forms. Our determination of
these matters will be final and binding. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>The delivery of all documents, including any withdrawal forms and any new election forms, is at your risk. Hewlett-Packard intends to confirm the receipt of your
withdrawal form and/or any election form by e-mail within two U.S. business days. If you have not received an e-mail confirmation, we recommend that you confirm that we have
received your withdrawal form and/or any election form. If you need to confirm receipt after two U.S. business days have elapsed, you may e-mail STOCKTENDER@MERCURY.COM. Only responses
that are complete, signed and actually received via fax by the Company by the deadline will be accepted. Responses may be submitted only by fax. Responses submitted by any other means, including
e-mail, hand delivery, United States mail (or other post) and Federal Express (or similar delivery service), are not permitted.</B></FONT></P>

<P><FONT SIZE=2><A
NAME="no1283_6._acceptance_of_options_for_a__6._03196"> </A>
<A NAME="toc_no1283_4"> </A>
<BR></FONT><FONT SIZE=2><B>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acceptance of options for amendment, issuance of cash payments, and amended options.    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the terms and conditions of this offer and promptly following the expiration date, we will accept for amendment all eligible options with respect to which
proper elections have been made that have not been validly withdrawn before the expiration date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the terms and conditions of this offer, if elections with respect to your eligible options are properly made and accepted by us, these options will be amended as of the
amendment date (but following the expiration of the offer), which is on the same date as the expiration date. We expect that the expiration date will be December&nbsp;15, 2006 9:00&nbsp;p.m.,
Pacific Time, unless the offer period is extended. We expect that the amendment date will be December&nbsp;15, 2006, unless the offer period is extended. If the expiration date is delayed, the
amendment date will be similarly delayed. Once eligible options with respect to which you elect to accept this offer are amended, those options will be replaced in full by the amended options. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of the offer, we will be deemed to have accepted options for you with respect to which valid elections have been made and are not properly withdrawn as of the time when we
give oral </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>26</FONT></P>

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<BR>

<P><FONT SIZE=2>or
written notice to the option holders generally of our acceptance for amendment of the options. This notice may be made by press release, e-mail or other method of communication. Subject
to our rights to terminate the offer, discussed in Section&nbsp;15 of this Offer to Amend, we currently expect that we will accept promptly after the expiration date all options with respect to
which proper elections have been made that are not validly withdrawn. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
lieu of the eligible options with respect to which you choose to accept this offer, you will be entitled to receive amended options and, to the extent applicable, a cash payment, as
described in Section&nbsp;2 of this Offer to Amend, subject to any applicable vesting conditions. Eligible options with respect to which
you choose to accept this offer will be amended on the amendment date, which is the same date as the expiration date. The amendment date will be December&nbsp;15, 2006, unless the offer period is
extended. Promptly following the expiration of the offer, you will receive an "Amendment(s) to Stock Option Agreements and Promise to Make Cash Payment" evidencing the amendment of the options you
elected to amend. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, if you elected to amend any eligible in-the-money option, the "Amendment(s) to Stock Option Agreements and Promise to Make Cash Payment" will
evidence your right to receive the cash payment. Any cash payment owed to you for an eligible in-the-money option with respect to which you have chosen to accept this offer
will be paid to you, less any applicable tax withholding, on or promptly following January&nbsp;2, 2007. This payment will not be subject to any vesting conditions or otherwise be subject to
forfeiture. If you do not receive an Amendment(s) to Stock Option Agreements and Promise to Make Cash Payment within seven U.S. business days after the expiration date, please e-mail
STOCKTENDER@MERCURY.COM. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
proposed tax regulations under Section&nbsp;409A that allow us to offer you the opportunity to avoid unfavorable tax consequences by amending your options also impose certain
requirements regarding the timing of the cash payments with respect to your eligible in-the-money options. These proposed tax regulations do not allow us to make the cash
payments in the same calendar year in which the options are amended. Therefore, the earliest we can make these cash payments to eligible in-the-money option holders who
participate in the offer is in January&nbsp;2007. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
that we do not accept for amendment will remain outstanding until they expire by their terms and will retain their current exercise price, current exercise terms and current
vesting schedule. If you elect to participate in the offer but exercise your eligible options prior to expiration of the offer, those options which you exercise will no longer be eligible to be
amended in this offer and you will not receive a cash payment, to the extent you exercise options that are eligible in-the-money options. Please see Section&nbsp;14 of this
Offer to Amend for a description of the tax consequences to you of participating or not participating in this offer. </FONT></P>


<P><FONT SIZE=2><A
NAME="no1283_7._conditions_of_the_offer."> </A>
<A NAME="toc_no1283_5"> </A>
<BR></FONT><FONT SIZE=2><B>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conditions of the offer.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Hewlett-Packard is acquired prior to the expiration of the offer, we reserve the right to withdraw the offer, in which case your options and your rights under
them will remain intact and exercisable for the time period set forth in your option agreement and you will receive no amended options. Notwithstanding any other provision of this offer, we will not
be required to accept any options for amendment, and we may terminate the offer, or postpone our acceptance and amendment of any options for which elections to amend have been made, in each case,
subject to Rule&nbsp;13e-4(f)(5) under the Exchange Act, if at any time on or after the date this offer
begins, and before the expiration date, any of the following events has occurred, or has been determined by us to have occurred: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>there
shall have been threatened or instituted or be pending any action, proceeding or litigation seeking to enjoin, make illegal or delay completion of the offer or
otherwise relating in any manner, to the offer; </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>27</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_no1283_1_28"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
order, stay, judgment or decree is issued by any court, government, governmental authority or other regulatory or administrative authority and is in effect, or any
statute, rule, regulation, governmental order or injunction shall have been proposed, enacted, enforced or deemed applicable to the offer, any of which might restrain, prohibit or delay completion of
the offer or impair the contemplated benefits of the offer to us (see Section&nbsp;3 of this Offer to Amend for a description of the contemplated benefits of the offer to us);
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>there
shall have occurred:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
general suspension of trading in, or limitation on prices for, our securities on any national securities exchange or in an over-the-counter
market in the United States,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
declaration of a banking moratorium or any suspension of payments in respect of banks in the United States,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
limitation, whether or not mandatory, by any governmental, regulatory or administrative agency or authority on, or any event that, in our reasonable judgment, might
affect the extension of credit to us by banks or other lending institutions in the United States,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>in
our reasonable judgment, any extraordinary or material adverse change in United States financial markets generally, including, a decline of at least 10% in either the Dow
Jones Industrial Average, the NYSE Index, the Nasdaq Composite Index, or the Standard&nbsp;&amp; Poor's 500 Index from the date of the commencement of the offer,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
commencement or continuation of a war or other national or international calamity directly or indirectly involving the United States, which could reasonably be expected
to affect materially or adversely, or to delay materially, the completion of the offer, or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>if
any of the situations described above existed at the time of commencement of the offer and that situation, in our reasonable judgment, deteriorates materially after
commencement of the offer;
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>a
tender or offer, other than this offer by us, for some or all of our shares of outstanding common stock, or a merger, acquisition or other business combination proposal
involving us, shall have been proposed, announced or made by another person or entity or shall have been publicly disclosed or we shall have learned that:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
person, entity or group has purchased all or substantially all of our assets,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
person, entity or "group" within the meaning of Section&nbsp;13(d)(3) of the Exchange Act acquires more than 5% of our outstanding shares of common stock, other than a
person, entity or group which had publicly disclosed such ownership with the SEC prior to the date of commencement of the offer,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
such person, entity or group which had publicly disclosed such ownership prior to such date shall acquire additional common stock constituting more than 1% of our
outstanding shares,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
new group shall have been formed that beneficially owns more than 5% of our outstanding shares of common stock that in our judgment in any such case, and regardless of
the circumstances, makes it inadvisable to proceed with the offer or with such acceptance for amendment of or to set a fixed exercise date on eligible options, or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
person, entity or group shall have filed a Notification and Report Form under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, or made a
public announcement reflecting an intent to acquire us or any of our subsidiaries or any of the assets or securities of us or any of our subsidiaries; </FONT></DD></DL>
</DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>28</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_no1283_1_29"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>there
shall have occurred any change, development, clarification or position taken in generally accepted accounting principles that could or would require us to record for
financial reporting purposes compensation expense against our earnings in connection with the offer other than as contemplated as of the commencement date of this offer (as described in
Section&nbsp;12);
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
change or changes shall have occurred in the business, condition (financial or other), assets, income, operations or stock ownership of Hewlett-Packard that have
resulted or may result, in our reasonable judgment, in a material impairment of the contemplated benefits of the offer to us (see Section&nbsp;3 of this Offer to Amend for a description of the
contemplated benefits of the offer to us); or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>any
rules or regulations by any governmental authority, the National Association of Securities Dealers, the New York Stock Exchange, the Nasdaq Global Select Market, or
other regulatory or administrative authority or any national securities exchange have been enacted, enforced or deemed applicable to the Company, which might restrain, prohibit, or delay completion of
the offer or impair the contemplated benefits of the offer to us (see Section&nbsp;3 of this Offer to Amend for a description of the contemplated benefits to us). </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any of the above events occur, we may: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>terminate
the offer and promptly return all eligible options with respect to which elections have been made to the eligible option holders;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>complete
and/or extend the offer and, subject to your withdrawal rights, retain all options with respect to which elections have been made until the extended offer expires;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>amend
the terms of the offer; or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>waive
any unsatisfied condition and, subject to any requirement to extend the period of time during which the offer is open, complete the offer. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
conditions to this offer are for our benefit. We may assert them in our discretion regardless of the circumstances giving rise to them before the expiration date. We may waive any
condition, in whole or in part, at any time and from time to time before the expiration date, in our discretion, whether or not we waive any other condition to the offer. Our failure at any time to
exercise any of these rights will not be deemed a waiver of such rights, but will be deemed a waiver of our ability to assert the condition that was triggered with respect to the particular
circumstances under which we failed to exercise our rights. Any determination we make concerning the events described in this Section&nbsp;7 will be final and binding upon all persons. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>29</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<P><FONT SIZE=2><A
NAME="page_nq1283_1_30"> </A> </FONT></P>

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<P><FONT SIZE=2><A
NAME="nq1283_8._price_range_of_shares_underlying_the_options."> </A>
<A NAME="toc_nq1283_1"> </A>
<BR></FONT><FONT SIZE=2><B>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Price range of shares underlying the options.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Hewlett-Packard common stock that underlies your options is traded on both the New York Stock Exchange and the Nasdaq Global Select Market under the symbol
"HPQ." The following table shows, for the periods indicated, the high and low intraday sales price per share of our common stock as reported by the New York Stock Exchange. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="83%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>High</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Low</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2><B>Fiscal Year Ending October 31, 2006</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>4<SUP>th</SUP> Quarter</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>40.10</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>31.30</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>3<SUP>rd</SUP> Quarter</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>34.04</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>29.00</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>2<SUP>nd</SUP> Quarter</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>34.52</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>29.84</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>1<SUP>st</SUP> Quarter</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>32.48</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>27.68</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2><B>Fiscal Year Ended October 31, 2005</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>4<SUP>th</SUP> Quarter</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>29.51</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>23.66</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>3<SUP>rd</SUP> Quarter</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>25.07</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>20.12</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>2<SUP>nd</SUP> Quarter</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>22.26</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>19.56</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>1<SUP>st</SUP> Quarter</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>21.58</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>18.50</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2><B>Fiscal Year Ended October 31, 2004</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>4<SUP>th</SUP> Quarter</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>20.67</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>16.08</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>3<SUP>rd</SUP> Quarter</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>22.18</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>19.21</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>2<SUP>nd</SUP> Quarter</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>25.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>19.68</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>1<SUP>st</SUP> Quarter</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>26.28</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>21.00</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
November&nbsp;13, 2006, the closing sale price of our common stock, as reported by the New York Stock Exchange was $40.22 per share. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>You should evaluate current market quotes for our common stock, among other factors, before deciding whether or not to accept this offer.</B></FONT></P>


<P><FONT SIZE=2><A
NAME="nq1283_9._source_and_amount_of_consid__9._02400"> </A>
<A NAME="toc_nq1283_2"> </A>
<BR></FONT><FONT SIZE=2><B>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Source and amount of consideration; terms of amended options.    <BR>    </B></FONT></P>

<UL>

<P><FONT SIZE=2><B><I> Consideration.  </I></B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will issue cash payments in addition to amended options with respect to eligible in-the-money options for which proper elections have
been made and accepted as described in Section&nbsp;2 of this Offer to Amend. Cash payments will be made from Hewlett-Packard's general corporate assets, and you will be a general creditor of
Hewlett-Packard with respect to the cash payments until they are received. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we receive and accept elections from eligible option holders of all options eligible for this offer, subject to the terms and conditions of this offer, we will amend options to
purchase a total of approximately 954,033 shares of our common stock, or approximately .034877% of the total shares of our common stock outstanding as of November&nbsp;10, 2006, and the maximum
aggregate cash payments payable pursuant to the offer will be $1,074,874.06. </FONT></P>

<UL>

<P><FONT SIZE=2><B><I> General terms of amended options.  </I></B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we have accepted your election to amend your options, you will receive the consideration described in Section&nbsp;2 of this Offer to Amend. Each amended
option will be amended on the amendment date (expected to be December&nbsp;15, 2006). All amended options will be evidenced by an "Amendment(s) to Stock Option Agreements and Promise to Make Cash
Payment", which will be sent to you promptly after the expiration of the offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
for the new exercise price of your amended options, the terms and conditions of your amended options will remain the same as the terms and conditions of your eligible options
(after those </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>30</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_nq1283_1_31"> </A>
<BR>

<P><FONT SIZE=2>eligible
options were adjusted in connection with the Merger, as described in Question and Answer 10 and Section&nbsp;2). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following description summarizes the material terms of the Mercury Interactive Stock Plans. The material terms of the Mercury Interactive Corporation 1999 Stock Option Plan, Mercury
Interactive Corporation 2000 Supplemental Stock Option Plan and Mercury Interactive Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees, have substantially the
same material terms, except as will not substantially and adversely affect your rights or as described herein. Our statements in this Offer to Amend concerning the Mercury Interactive Stock Plans and
the amended options are merely summaries and do not purport to be complete. The statements are subject to, and are qualified in their entirety by reference to, the Mercury Interactive Stock Plans, and
the forms of option agreement under the Mercury Interactive Stock Plans, which have been filed as exhibits to the Schedule TO of which this offer is a part. Please e-mail
STOCKTENDER@MERCURY.COM, to receive a copy of the Mercury Interactive Stock Plans, and the forms of option agreement thereunder. We will promptly furnish you copies of these documents upon request at
our expense. </FONT></P>

<UL>

<P><FONT SIZE=2><B><I> Summary of the Mercury Interactive Stock Plans.  </I></B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Mercury Interactive Corporation 1999 Stock Option Plan permits the granting of incentive stock options and nonstatutory stock options to eligible
participants. As of November&nbsp;6, 2006, the maximum number of common shares subject to options currently outstanding under the Mercury Interactive Corporation 1999 Stock Option Plan is
approximately 8,193,070 shares, after adjustment of such options in connection with the Merger. No options or other equity awards will be granted under the Mercury Interactive Corporation 1999 Stock
Option Plan in the future. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Mercury Interactive Corporation 2000 Supplemental Stock Option Plan permits the granting of nonstatutory stock options and stock purchase rights to eligible participants. The Mercury
Interactive Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees forms a part of the Mercury Interactive Corporation 2000 Supplemental Stock Option Plan. Shares
underlying options granted under the Mercury Interactive Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees are subject to compliance with the provisions of the
United Kingdom Income and Corporation Taxes Act of 1988. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of November&nbsp;6, 2006, the aggregate maximum number of common shares subject to options currently outstanding under the Mercury Interactive Corporation 2000 Supplemental Stock
Option Plan, which includes the Mercury Interactive Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees, is approximately 1,096,266 shares, after adjustment of
such options in connection with the Merger. No options or other equity awards will be granted under the Mercury Interactive Corporation 2000 Supplemental Stock Option Plan or Mercury Interactive
Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees in the future. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Mercury Interactive Stock Plans are administered by our board of directors or a committee appointed by the board of directors (the "Administrator"). Subject to the terms of the
Mercury Interactive Stock Plans, the Administrator has the discretion to select the employees, officers, directors, and consultants who will be granted awards, to determine the terms and conditions of
such awards, and to construe and interpret the provisions of the Mercury Interactive Stock Plans and any outstanding awards thereunder. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Term of options.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term of options granted under the Mercury Interactive Stock Plans is as stated in the option agreements. All amended options granted pursuant to this offer
will expire on the same date as the scheduled expiration of the eligible options they amend. Amended options will expire earlier upon your termination of employment or other service with
Hewlett-Packard. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>31</FONT></P>

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<A NAME="page_nq1283_1_32"> </A>
<UL>

<P><FONT SIZE=2><I> Termination of employment.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are currently an employee or other service provider of Hewlett-Packard, your employment or other service will remain "at-will" regardless of
your participation in the offer and can be terminated by you or us at any time, with or without cause or notice. If your employment or other service terminates before the expiration date of this
offer, your options will have ceased to vest in accordance with their terms and you will be eligible to participate in this offer only to the extent that you hold options which have vested and remain
outstanding as of the last date on which this offer remains open for acceptance. Any options with respect to which you have accepted this offer that are not eligible for amendment will be returned to
you and will terminate in accordance with their terms. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
granted under the Mercury Interactive Stock Plans generally are exercisable, to the extent vested, for thirty (30)&nbsp;days from the date of termination if the optionee's
employment or other service terminates for a reason other than his or her death or disability. If the optionee's employment or other service terminates by reason of death or disability, the optionee
generally will have six (6)&nbsp;months from the date of termination to exercise the vested portion of the options, except, with respect to options granted under the Mercury Interactive Corporation
2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees, if the optionee's employment or other service terminates by reason of death, then the optionee generally will have
twelve (12)&nbsp;months from the date of termination to exercise the vested portion of an option. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you participate in this offer, any amended options will continue to be subject to the same vesting schedule in place under the terms of your option immediately prior to such
amendment. If you participate in this offer with respect to any eligible in-the-money option, you will be entitled to receive a cash payment, less any applicable tax
withholding, regardless of whether you remain employed with or otherwise in service to the Company on the actual cash payment date, which will be on or promptly following January&nbsp;2, 2007. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Exercise price.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Administrator generally determines the exercise price at the time the option is granted. The amended options will have an exercise price per share equal to
the fair market value of the underlying stock on the original option's grant date, as adjusted in connection with the Merger. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Vesting and exercise.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Administrator generally determines the terms of vesting. Any amended option you receive will be subject to the same vesting schedule as the option it amends,
and you will receive vesting credit for any vesting credit that accrued under the original option. That means that upon the amendment date, your amended options will be vested to the same extent and
will continue to vest at the same rate as the options they amend. Continued vesting is subject to your continued service to us through each relevant vesting date. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
exercisability of an option granted under the Mercury Interactive Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees may be subject to
achievement of a performance target or other condition. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Adjustments upon certain events.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we do not currently anticipate any such merger or acquisition, if we merge or consolidate into, or are acquired by, another entity, prior to the
expiration of the offer, you may choose to withdraw any options with respect to which you elected to accept this offer and your options will be treated in accordance with the option plan under which
they were granted and with your option agreement. Further, if Hewlett-Packard is acquired prior to the expiration of the offer, we reserve the </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>32</FONT></P>

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<P><FONT SIZE=2>right
to withdraw the offer, in which case your options and your rights under them will remain intact and remain exercisable for the time period set forth in your option agreement and you will receive
no amended options, cash payments or other consideration for the options. If Hewlett-Packard is acquired prior to the expiration of the offer but does not withdraw the offer, we (or the successor
entity) will notify you of any material changes to the terms of the offer or amended options, including any additional adjustments to the exercise price or number of shares that will be subject to the
amended options. Under such circumstances, we expect that the type of security and the number of shares covered by each amended option would be adjusted based on the consideration per share given to
holders of options to acquire our common stock that are outstanding at the time of the acquisition. Such amended options will generally have an exercise price equal to the closing price of the
acquirer's stock on the expiration date. As a result of such adjustments, you may receive options for more or fewer shares of the acquirer's common stock than the number of shares subject to the
eligible options with respect to which you accept this offer or than the number you would have received pursuant to an amended option if no acquisition had occurred. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
should be aware that these types of transactions could significantly affect our stock price, including potentially substantially increasing the price of our shares. Depending on the
timing and structure of a transaction of this type, you might lose the benefit of any price appreciation in our common stock resulting from a merger or acquisition. This could result in option holders
who do not participate in this offer receiving a greater financial benefit than option holders who do participate, even after taking into account the potential adverse tax consequences of not
participating. In addition, your amended options may be exercisable for stock of the acquirer, not Hewlett-Packard common stock, while option holders who decide not to participate in this offer might
be able to exercise their options before the effective date of the merger or acquisition and sell their Hewlett-Packard common stock before the effective date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we are acquired, it is possible that an acquirer could terminate your employment or other service and therefore, to the extent that you have any amended options subject to vesting,
such options will cease to vest and will terminate in accordance with their terms. Regardless of whether you remain an employee or other service provider on the scheduled payment date, you will still
receive any payments to which you are entitled as a result of your participation in this offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally,
if we are acquired after the options with respect to which you have chosen to accept this offer have been accepted for amended options, the treatment of your amended options in
such a transaction will be governed by the terms of the transaction agreement or the terms of the Mercury Interactive Stock Plan under which they were granted (after adjustment in connection with the
Merger) and as amended in accordance with this offer. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Changes in Capitalization.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Mercury Interactive Stock Plans generally provide that in the event of any stock split, stock dividend, combination or reclassification, or other increase or
decrease in the number of issued shares of common stock effected without receipt of consideration, the Administrator will proportionately adjust the number of shares of common stock which may be
delivered under the Mercury Interactive Stock Plans, and the number and price of shares of common stock subject to outstanding awards thereunder. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Transferability of options.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options granted under the Mercury Interactive Stock Plans generally may not be sold, pledged, assigned, hypothecated, transferred or disposed of other than by
will or by the applicable laws of descent and distribution. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>33</FONT></P>

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<A NAME="page_nq1283_1_34"> </A>
<UL>

<P><FONT SIZE=2><I> Amendment and termination of the Mercury Interactive Stock Plans.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The board of directors of Hewlett-Packard generally may amend, alter, suspend, or terminate the Mercury Interactive Stock Plans at any time and for any reason.
However, any amendment to the Mercury Interactive Corporation 2001 Inland Revenue Approved Sub-Plan for United Kingdom Employees requires approval by the UK Board of Inland Revenue and
must be made in compliance with the United Kingdom Income and Corporation Taxes Act of 1988. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Registration of shares underlying the options.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of the shares of Hewlett-Packard common stock issuable upon exercise of amended options have been registered under the United States Securities Act of 1933,
as amended (the "Securities Act"), on registration statements on Form&nbsp;S-8 filed with the SEC. Unless you are an employee who is considered an affiliate of Hewlett-Packard for
purposes of the Securities Act, you will be able to sell the shares issuable upon exercise of your amended options free of any transfer restrictions under applicable United States securities laws. </FONT></P>

<UL>

<P><FONT SIZE=2><I> United States federal income tax consequences.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should refer to Section&nbsp;14 of this Offer to Amend for a discussion of the United States federal income tax consequences of the amended options and the
options with respect to which you choose to accept this offer, as well as the consequences of accepting or rejecting this offer. We strongly recommend that you consult with your own advisors to
discuss the consequences to you of participating or not participating in this offer. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, some states, including California, may impose additional penalty taxes on the amounts subject to the 20% federal penalty tax. We recommend that you consult with your
financial, legal and/or tax advisors regarding any tax consequences, including any state tax consequences. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Federal income tax consequences in multiple jurisdictions.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a citizen or resident of the United States, and are also subject to the tax laws of another non-United States jurisdiction, you should be
aware that there might be other tax and social insurance consequences that may apply to you. Certain eligible option holders are subject to the tax laws in the United States, and also to the tax laws
in Canada, France, India, Israel and the United Kingdom. If you are subject to the tax laws in one of these countries, please see the description of the tax consequences of participating in the offer
under the tax laws of such countries which is included in Schedules C through G to this Offer to Amend. We strongly recommend that you consult with your own advisors to discuss the consequences to you
of participating or not participating in this offer. </FONT></P>

<P><FONT SIZE=2><A
NAME="nq1283_10._information_concerning_the_company."> </A>
<A NAME="toc_nq1283_3"> </A>
<BR></FONT><FONT SIZE=2><B>10.&nbsp;&nbsp;&nbsp;Information concerning the Company.    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hewlett-Packard is a leading global provider of products, technologies, solutions and services to individual consumers, small and medium sized businesses and
large enterprises. Our offerings span: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>enterprise
storage and servers,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>multi-vendor
services, including technology support and maintenance,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>consulting
and integration and managed services,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>personal
computing and other access devices, and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>imaging
and printing-related products and services. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>34</FONT></P>

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<UL>
<UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hewlett-Packard
was incorporated in 1947 under the laws of the State of California as the successor to a partnership founded in 1939 by William R. Hewlett and David Packard. Effective in
May&nbsp;1998, we changed our state of incorporation from California to Delaware. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
principal executive offices are located at 3000 Hanover Street, Palo Alto, CA 94304 U.S.A., and our telephone number is (650)&nbsp;857-1501. Questions regarding how to
participate in this offer should be e-mailed to STOCKTENDER@MERCURY.COM. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
summary of the financial information included in our annual report on Form&nbsp;10-K for the fiscal year ended October&nbsp;31, 2005 and our quarterly report on
Form&nbsp;10-Q for the fiscal quarter ended July&nbsp;31, 2006, which is incorporated herein by reference, is attached hereto as Schedule&nbsp;B to this Offer to Amend. The financial
information included in our annual report on Form&nbsp;10-K for the fiscal year ended October&nbsp;31, 2005 and our quarterly report on Form&nbsp;10-Q for the fiscal quarter ended
July&nbsp;31, 2006 is incorporated herein by reference. Please see Section&nbsp;18 of this Offer to Amend entitled, "Additional Information," for instructions on how you can obtain copies of our
SEC filings, including filings that contain our financial statements. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
had a book value per share of $13.29 at July&nbsp;31, 2006</FONT><FONT SIZE=2><B>.</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth our ratio of earnings to fixed charges for the periods specified: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="61%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=3 ALIGN="CENTER"><FONT SIZE=1><B>9 Months Ended</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="12%" ALIGN="CENTER"><FONT SIZE=1><B>Fiscal Year Ended</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="61%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="8%" ALIGN="CENTER"><FONT SIZE=1><B>July 31,<BR>
2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="12%" ALIGN="CENTER"><FONT SIZE=1><B>October 30,<BR>
2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="12%" ALIGN="CENTER"><FONT SIZE=1><B>October 31,<BR>
2004</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="61%"><FONT SIZE=2>Ratio of earnings to fixed charges</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>10.3x</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>5.4x</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>7.1x</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For the purposes of computing the ratio of earnings to fixed charges, earnings consist of income
before provision for income taxes plus fixed charges. Fixed charges consist of interest expense, amortization of debt discount and issuance costs on all indebtedness, and the estimated portion of
rental expense deemed by Hewlett-Packard to be representative of the interest factor of rental payments under operating leases. </FONT></P>

<P><FONT SIZE=2><A
NAME="nq1283_11._interests_of_directors_and__11.04006"> </A>
<A NAME="toc_nq1283_4"> </A>
<BR></FONT><FONT SIZE=2><B>11.&nbsp;&nbsp;&nbsp;Interests of directors and executive officers; transactions and arrangements concerning the options.    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A list of our directors and executive officers is attached to this Offer to Amend as Schedule&nbsp;A. None of our executive officers holds eligible options and
therefore none of our executive officers is an eligible option holder. None of our non-employee directors holds eligible options and therefore none of our non-employee
directors is an eligible option holder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth below, neither we, nor any of our directors or executive officers, nor any affiliates of ours, nor the executive officers and directors of Mercury Interactive were
engaged in transactions involving our options to purchase common stock during the 60&nbsp;days before and including the commencement of this offer: </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Catherine
A. Lesjak exercised 8,958 options on September&nbsp;22, 2006 at an exercise price of $22.22 per share and 5,000 options on September&nbsp;22, 2006 at an exercise price of
$18.80 per share. </FONT></P>

<P><FONT SIZE=2><A
NAME="nq1283_12._status_of_options_amended___12.03252"> </A>
<A NAME="toc_nq1283_5"> </A>
<BR></FONT><FONT SIZE=2><B>12.&nbsp;&nbsp;&nbsp;Status of options amended by us in the offer; accounting consequences of the offer.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options that we acquire through the acceptance of elections under this offer will be amended under the Mercury Interactive Stock Plans. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>35</FONT></P>

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<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
offer is considered a repricing of options with respect to all eligible options and as a result, the Company expects to record additional stock-based compensation as a charge against
earnings based on the difference between the fair value of the options as of the closing of the offer period and the fair value of the amended option. We will not be able to determine the amount of
compensation expense until the closing of the offer period because it depends on the price of our common stock as of the closing of the offer period. However, we have been able to determine that the
maximum compensation expense that will be recorded if all eligible optionees accept the offer will be approximately $1.1&nbsp;million. A compensation expense of this size is not material to our
financial statements. </FONT></P>

<P><FONT SIZE=2><A
NAME="nq1283_13._legal_matters;_regulatory_approvals."> </A>
<A NAME="toc_nq1283_6"> </A>
<BR></FONT><FONT SIZE=2><B>13.&nbsp;&nbsp;&nbsp;Legal matters; regulatory approvals.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are not aware of any license or regulatory permit that appears to be material to our business that might be adversely affected by our acceptance of options for
amendment and issuance of amended options as contemplated by the offer, or of any approval or other action by any government or governmental, administrative or regulatory authority or agency or any
New York Stock Exchange or Nasdaq Global Select Market listing requirements that would be required for the acquisition or ownership of our options as contemplated herein. Should any additional
approval or other action be required, we presently contemplate that we will seek such approval or take such other action. We cannot assure you that any such approval or other action, if needed, could
be obtained or what the conditions imposed in connection with such approvals would entail or whether the failure to obtain any such approval or other action would result in adverse consequences to our
business. Our obligation under the offer to accept elections with respect to eligible options and to issue amended options is subject to the conditions described in Section&nbsp;7 of this Offer to
Amend. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we are prohibited by applicable laws or proposed tax regulations from amending options on the amendment date, we will not amend any options subject to such provisions. We are unaware
of any such prohibition at this time, and we will use reasonable efforts to affect the amendment, but if the amendment is prohibited on the amendment date we will not amend any options subject to such
provisions. </FONT></P>


<P><FONT SIZE=2><A
NAME="nq1283_14._material_united_sta__nq102231"> </A>
<A NAME="toc_nq1283_7"> </A>
<BR></FONT><FONT SIZE=2><B>14.&nbsp;&nbsp;&nbsp;Material United States federal income tax consequences.    <BR>    </B></FONT></P>

<UL>

<P><FONT SIZE=2><I> If You Participate in this Offer.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of participation in this offer, you may avoid potentially adverse tax consequences associated with your eligible options. Please read this section
carefully, as well as the following section summarizing the potential tax consequences to you if you decide to keep your current options. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a summary of the material United States federal income tax consequences of participating in the offer for those eligible option holders subject to United States federal
income tax. This discussion is based on the United States Internal Revenue Code of 1986, as amended, its
legislative history, final or proposed tax regulations thereunder and administrative and judicial interpretations (the "Code" or "Internal Revenue Code") as of the date of this Offer to Amend, all of
which are subject to change, possibly on a retroactive basis. The federal tax laws may change and the federal, state and local tax consequences for each eligible option holder will depend upon that
eligible option holder's individual circumstances. This summary does not discuss all of the tax consequences that may be relevant to you in light of your particular circumstances, nor is it intended
to be applicable in all respects to all categories of option holders. We strongly recommend that you consult with your financial, legal and/or tax advisors to discuss the consequences to you of this
transaction. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>36</FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are subject to taxation in the United States, and are also subject to the tax laws of another country, you should be aware that there might be other tax and social insurance
consequences that may apply to you. Certain eligible option holders are subject to the tax laws in the United States, and also to the tax laws in Canada, France, India, Israel and the United Kingdom.
If you are subject to the tax laws in one of these countries, please see the description of the tax consequences of participating in the offer under the tax laws of such countries which is included in
Schedules C through G to this Offer to Amend. In addition, some states, including California, may impose additional penalty taxes on the amounts subject to the 20% federal penalty tax. We strongly
recommend that you consult with your financial, legal and/or tax advisors to discuss the consequences to you of this transaction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>We recommend that you consult your financial, legal and/or tax advisors with respect to the federal, state and local tax consequences of participating in the
offer, as the related tax consequences to you are dependent on your individual tax situation. You may also contact Deloitte Tax LLP with any general questions regarding the terms of this offer or
requests for general tax information about this offer.</I></B></FONT></P>

<UL>

<P><FONT SIZE=2><I> Cash payments.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cash payments you will receive as part of consideration for your eligible in-the-money options under this offer will be taxable to you
as compensation income. We generally will be entitled to a deduction equal to the amount of compensation income taxable to you if we comply with eligible reporting requirements. If you were an
employee of Mercury Interactive Corporation at the time the eligible in-the-money options with respect to which you accepted this offer were granted, any income recognized upon
your receipt of a cash payment will constitute wages for which withholding will be required. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Amended options.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are an eligible option holder who chooses to accept this offer with respect to your eligible options, you should not be required to recognize income for
United States federal income tax purposes at the time of the acceptance and amendment of such options. We believe that the acceptance and amendment of options will be treated as a
non-taxable exchange. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
eligible options are nonstatutory stock options for purposes of United States tax law. Your amended options will continue to be nonstatutory stock options for purposes of United
States tax law. Under current law, an option holder generally will not realize taxable income upon the grant of a nonstatutory stock option. However, when an option holder exercises the option, the
difference between the exercise price of the option and the fair market value of the shares subject to the option on the date of exercise will be compensation income taxable to the option holder. As a
result of Section&nbsp;409A of the Internal Revenue Code, however, nonstatutory stock options granted with an exercise price below the fair market value of the underlying stock may be taxable to a
participant before he or she exercises an award. If you elect to participate in this offer, your eligible options that are amended should no longer be subject to the adverse tax consequences under
Section&nbsp;409A that this offer was designed to allow you to avoid. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
generally will be entitled to a deduction equal to the amount of compensation income taxable to the option holder if we comply with eligible reporting requirements. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
disposition of the shares, any gain or loss is treated as capital gain or loss. If you were an employee of Mercury Interactive Corporation at the time of the grant of the option,
any income recognized upon exercise of a nonstatutory stock option generally will constitute wages for which withholding will be required. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B><I>In addition, if you are a resident of more than one country, you should be aware that there might be tax and social insurance consequences for more than one
country that may apply to you. We strongly recommend  </I></B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>37</FONT></P>

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<BR>

<P><FONT SIZE=2><B><I> that you consult with your financial, legal and/or tax advisors to discuss the consequences to you of this transaction. We strongly recommend that you consult with your financial, legal and/or tax
advisors with respect to the federal, state and local tax consequences of participating in the offer. You may also contact Deloitte Tax LLP with any general questions regarding the terms of this offer
or requests for general tax information about this offer.</I></B></FONT></P>

<UL>

<P><FONT SIZE=2><I> If You Do Not Participate in this Offer.  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of the material United States federal income tax consequences of declining to participate in the offer for those eligible option
holders subject to United States federal income tax. This discussion is based on the United States Internal Revenue Code, its legislative history, treasury proposed tax regulations thereunder and
administrative and judicial interpretations as of the date of this Offer to Amend, all of which are subject to change, possibly on a retroactive basis. The federal tax
laws may change and the federal, state and local tax consequences for each eligible option holder will depend upon that eligible option holder's individual circumstances. This summary does not discuss
all of the tax consequences that may be relevant to you in light of your particular circumstances, nor is it intended to be applicable in all respects to all categories of option holders. If you are
subject to taxation in the United States, and are also subject to the tax laws of another country, you should be aware that there might be other tax and social security consequences that may apply to
you. In addition, some states, including California, may impose additional penalty taxes on the amounts subject to the 20% federal penalty tax. We strongly recommend that you consult with your own
advisors to discuss the consequences to you of this transaction. </FONT></P>

<UL>

<P><FONT SIZE=2><B><I> We recommend that you consult your financial, legal and/or tax advisors with respect to the federal, state and local tax consequences of participating in the offer, as the tax consequences to you are
dependent on your individual tax situation. You may also contact Deloitte Tax LLP with any general questions regarding the terms of this offer or requests for general tax information about this offer.  </I></B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your decision not to accept this offer with respect to your eligible options could result in potentially adverse tax consequences to you. Please read this section
carefully and talk to your tax advisors about your decision regarding participation in this offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a result of participation in this offer, you may avoid potentially adverse tax consequences associated with your eligible options. Section&nbsp;409A provides that stock options
issued with an exercise price less than the related fair market value of the underlying stock on the date of vesting (i.e., granted at a discount) must have fixed exercise dates to avoid early income
recognition and an additional 20% tax. The eligible options were granted at a discount and holders of such options may have income recognition and owe an additional 20% tax as well as be liable for
certain interest penalties. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None
of the eligible options have fixed exercise dates and therefore they would subject the eligible option holders to income recognition before the options are exercised and would
subject the eligible option holders to the additional 20% tax. It is not entirely certain how such tax would be calculated, but we think it is likely that at a minimum the spread (that is, the
difference between the fair market value of the shares at the time of vesting and the exercise price of such shares) will be includable as income when the option vests and a 20% tax will be assessed
on the spread. Additionally, it is possible that during each subsequent tax year (until the option is exercised), the increase in value of the underlying stock will be taxed. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Example:</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;You hold options to purchase 1,000 shares of Hewlett-Packard common stock with an adjusted original exercise price
per share of $23.32 which was granted at a time when the per share fair market value of Mercury Interactive's common stock was $24.56 (as adjusted in connection with the Merger). On January&nbsp;1,
2007 a total of 250 of the shares subject to the option vest and on such date the per share fair market value of the Hewlett-Packard's common stock is $40.00. Under the proposed </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>38</FONT></P>

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<A NAME="page_ns1283_1_39"> </A>
<BR>

<P><FONT SIZE=2>tax
regulations, upon the vesting date, you may have taxable income equal to $4,170.00 (the difference between $40.00 and $23.32 multiplied by the 250 shares that vest) and owe an additional $834.00
due to the 20% tax (20% of $4,170.00). Additionally, you may owe an interest penalty with the calculation of such penalty dating back to the original date of grant and you may owe additional taxes in
subsequent years, based on an increase in value of the underlying stock. </FONT></P>


<P><FONT SIZE=2><B><I>Uncertainty  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unfortunately, the Internal Revenue Service (the "IRS") has not issued definitive final guidance under Section&nbsp;409A. There is a chance that final guidance
issued by the IRS may provide some relief with respect to certain eligible options and your personal tax advisor may advocate a position under the current statute and IRS guidance that your eligible
options are exempt from Section&nbsp;409A. We cannot guarantee the effect of any future IRS guidance and will work as quickly as possible when future guidance is issued to analyze it and provide
information to our eligible option holders regarding such guidance. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hewlett-Packard
cannot guarantee any particular tax results related to your options; furthermore, there is uncertainty because the proposed tax regulations are not final. Because this
offer involves complex tax considerations, we urge you to consult your financial, legal and/or tax advisor before you make any decisions about participating in this offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, if you are subject to taxation in the United States, and also are subject to taxation in another country, there may be additional tax consequences relating to your
participation in this offer. </FONT><FONT SIZE=2><B>Please see Schedules C through G of this Offer to Amend, as applicable, for a description of these tax consequences. Further, some states,
including California, may impose additional penalty taxes on the amounts subject to the 20% federal penalty tax. We recommend that you consult with your financial, legal and/or tax advisors regarding
any tax consequences, including any state tax consequences.</B></FONT></P>

<P><FONT SIZE=2><A
NAME="ns1283_15._extension_of_offer;_termination;_amendment."> </A>
<A NAME="toc_ns1283_1"> </A>
<BR></FONT><FONT SIZE=2><B>15.&nbsp;&nbsp;&nbsp;Extension of offer; termination; amendment.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We reserve the right, at our discretion, at any time and regardless of whether or not any event listed in Section&nbsp;7 of this Offer to Amend has occurred or
is deemed by us to have occurred, to extend the period of time during which the offer is open and delay the acceptance for amendment of any options. If we elect to extend the period of time during
which this offer is open, we will give you written notice of the extension and delay, as described below. If we extend the expiration date, we will also extend your right to withdraw elections with
respect to eligible options until such extended expiration date. In the case of an extension, we will issue a press release, e-mail or other form of communication no later than
6:00&nbsp;a.m., Pacific Time, on the next U.S. business day after the previously scheduled expiration date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
also reserve the right, in our reasonable judgment, before the expiration date to terminate or amend the offer and to postpone the expiration of the offer (resulting in a delay of our
acceptance and amendment of any options with respect to which elections have been made) if any of the events listed in Section&nbsp;7 of this Offer to Amend occurs, by giving written notice of the
termination or postponement to you or by making a public announcement of the termination. Our reservation of the right to delay our acceptance and amendment of options with respect to which elections
have been made is limited by Rule&nbsp;13e-4(f)(5) under the Exchange Act which requires that we must pay the consideration offered or return the options promptly after termination or
withdrawal of an offer like this. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to compliance with applicable law, we further reserve the right, before the expiration date, in our discretion, and regardless of whether any event listed in Section&nbsp;7 of
this Offer to Amend has occurred or is deemed by us to have occurred, to amend the offer in any respect, including by decreasing or increasing the consideration offered in this offer to option holders
or by decreasing or </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>39</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_ns1283_1_40"> </A>
<BR>

<P><FONT SIZE=2>increasing
the number of options being sought in this offer. As a reminder, if a particular option grant expires after commencement, but before amendment under the offer, that particular option grant
is not eligible for amendment. Therefore, if we extend the offer for any reason and if a particular option with respect to which an election to accept the offer was made before the originally
scheduled expiration of the offer expires after such originally scheduled expiration date but before the actual amendment date under the extended offer, that option would not be eligible for
amendment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
minimum period during which the offer will remain open following material changes in the terms of the offer or in the information concerning the offer, other than a change in the
consideration being offered by us or a change in amount of existing options sought, will depend on the facts and circumstances of such change, including the relative materiality of the terms or
information changes. If we modify the number of eligible options being sought in this offer or the consideration being offered
by us for the eligible options in this offer, the offer will remain open for at least ten U.S. business days from the date of notice of such modification. If any term of the offer is amended in a
manner that we determine constitutes a material change adversely affecting any holder of eligible options, we will promptly disclose the amendments in a manner reasonably calculated to inform holders
of eligible options of such amendment, and we will extend the offer's period so that at least five U.S. business days, or such longer period as may be required by the tender offer rules, remain after
such change. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of the offer, a "business day" means any day other than a Saturday, Sunday or a United States federal holiday and consists of the time period from 12:01&nbsp;a.m. through
12:00 midnight, U.S. Eastern Time. </FONT></P>

<P><FONT SIZE=2><A
NAME="ns1283_16._fees_and_expenses."> </A>
<A NAME="toc_ns1283_2"> </A>
<BR></FONT><FONT SIZE=2><B>16.&nbsp;&nbsp;&nbsp;Fees and expenses.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hewlett-Packard has engaged Deloitte Tax LLP to prepare communications regarding this offer and to provide general tax information to eligible option holders with
respect to this offer. Deloitte Tax LLP will not provide tax advice specific to an individual's circumstances or make any recommendation. We will not pay any fees or commissions to any broker, dealer
or other person for soliciting elections with respect to this offer. </FONT></P>

<P><FONT SIZE=2><A
NAME="ns1283_17._additional_information."> </A>
<A NAME="toc_ns1283_3"> </A>
<BR></FONT><FONT SIZE=2><B>17.&nbsp;&nbsp;&nbsp;Additional information.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Offer to Amend is part of a Tender Offer Statement on Schedule TO that we have filed with the SEC. This Offer to Amend does not contain all of the
information contained in the Schedule TO and the exhibits to the Schedule TO. We recommend that you review the Schedule TO, including its exhibits, and the following materials that we have filed with
the SEC before making a decision on whether to elect to accept this offer with respect to your options: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>Our
annual report on Form&nbsp;10-K for our fiscal year ended October&nbsp;31, 2005, filed with the SEC on December&nbsp;21, 2005;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>Our
definitive proxy statement on Schedule&nbsp;14A for our 2006 annual meeting of shareholders, filed with the SEC on January&nbsp;23, 2006;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>Our
quarterly reports on Form&nbsp;10-Q for our fiscal quarters ended January&nbsp;31, 2006, April&nbsp;30, 2006, and July&nbsp;31, 2006, filed with the SEC on
March&nbsp;10, 2006, June&nbsp;8, 2006, and September&nbsp;11, 2006, respectively;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>Our
current reports on Form&nbsp;8-K dated November&nbsp;17, 2005, November&nbsp;17, 2005, February&nbsp;14, 2006, March&nbsp;15, 2006, May&nbsp;18, 2006,
June&nbsp;23, 2006, July&nbsp;25, 2006, August&nbsp;15, 2006, August&nbsp;31, 2006, September&nbsp;12, 2006, September&nbsp;16, 2006, September&nbsp;22, 2006, September&nbsp;22, 2006,
September&nbsp;28, 2006, November&nbsp;16, 2006 and November&nbsp;17, 2006, as filed with the SEC on November&nbsp;17, 2005, November&nbsp;23, 2005, as amended on January&nbsp;19, 2006,
February&nbsp;15, 2006, March&nbsp;17, 2006, May&nbsp;22, 2006, June&nbsp;23, 2006, July&nbsp;25, 2006, August&nbsp;16, 2006, September&nbsp;6, </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>40</FONT></P>

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<UL>
<UL>

<P><FONT SIZE=2>2006,
September&nbsp;12, 2006, September&nbsp;21, 2006, September&nbsp;22, 2006, September&nbsp;27, 2006, September&nbsp;28, 2006, November&nbsp;16, 2006 and November&nbsp;17, 2006,
respectively; and </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>5.</FONT></DT><DD><FONT SIZE=2>The
description of our Common Stock contained in our registration statement on Form&nbsp;8-A/A filed with the SEC on June&nbsp;23, 2006 and any further amendment or
report filed hereafter for the purpose of updating such description. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
SEC file number for these filings is 1-04423. These filings, our other annual, quarterly and current reports, our proxy statements and our other SEC filings may be
examined, and copies may be obtained, at the SEC's public reference room at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the public reference room by
calling the SEC at 1-800-SEC-0330. Our SEC filings are also available to the public on the SEC's Internet site at www.sec.gov. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
person to whom a copy of this Offer to Amend is delivered may obtain a copy of any or all of the documents to which we have referred you, other than exhibits to such documents,
unless such exhibits are specifically incorporated by reference into such documents, at no cost, by e-mailing STOCKTENDER@MERCURY.COM. You can also view and print additional copies of the
Offer to Amend, the election form and this withdrawal form at [LINK]. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
you read the documents listed above, you may find some inconsistencies in information from one document to another. If you find inconsistencies between the documents, or between a
document and this Offer to Amend, you should rely on the statements made in the most recent document. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information contained in this Offer to Amend about us should be read together with the information contained in the documents to which we have referred you, in making your decision
as to whether or not to participate in this offer. </FONT></P>

<P><FONT SIZE=2><A
NAME="ns1283_18._financial_statements."> </A>
<A NAME="toc_ns1283_4"> </A>
<BR></FONT><FONT SIZE=2><B>18.&nbsp;&nbsp;&nbsp;Financial statements.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attached as Schedule&nbsp;B to this Offer to Amend is our summary financial information for our quarterly report on Form&nbsp;10-Q for our fiscal
quarter ended July&nbsp;31, 2006 and in our annual report on Form&nbsp;10-K for our fiscal year ended October&nbsp;31, 2005. More complete financial information may be obtained by
accessing our public filings with the SEC by following the instructions in Section&nbsp;18 of this Offer to Amend. </FONT></P>

<P><FONT SIZE=2><A
NAME="ns1283_19._miscellaneous."> </A>
<A NAME="toc_ns1283_5"> </A>
<BR></FONT><FONT SIZE=2><B>19.&nbsp;&nbsp;&nbsp;Miscellaneous.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are not aware of any jurisdiction where the making of the offer is not in compliance with applicable law. If we become aware of any jurisdiction where the
making of the offer is not in compliance with any valid applicable law, we will make a good faith effort to comply with such law. If, after such good faith effort, we cannot comply with such law, the
offer will not be made to, nor will options be accepted from the option holders residing in such jurisdiction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>We have not authorized any person to make any recommendation on our behalf as to whether you should elect to accept this offer with respect to your options.
Hewlett-Packard has engaged Deloitte Tax LLP to prepare communications regarding this offer and to provide general tax information to eligible option holders with respect to this offer. Deloitte Tax
LLP will not provide tax advice specific to an individual's circumstances or make any recommendation. You should rely only on the information in this document or documents to which we have referred
you. Except with respect to Deloitte Tax LLP to the extent abovementioned, we have not authorized anyone to give you any information or to make any representations in connection with the offer other
than the information and representations contained in this Offer to Amend the Exercise Price of Certain Options and in the related offer documents. If anyone makes any recommendation or representation
to you or gives you any information, you must not rely upon that recommendation, representation or information as having been authorized by us.</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>41</FONT></P>

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<BR>
<P ALIGN="CENTER"><FONT SIZE=2>Hewlett-Packard
Company<BR>
November&nbsp;17, 2006 </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>42</FONT></P>

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<BR></FONT><FONT SIZE=2><B>SCHEDULE A    <BR>    <BR>    INFORMATION CONCERNING THE EXECUTIVE OFFICERS<BR>  AND DIRECTORS OF HEWLETT-PACKARD COMPANY    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The directors and executive officers of Hewlett-Packard are set forth in the following table: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="76%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B>Name<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="65%" ALIGN="CENTER"><FONT SIZE=1><B>Position and Offices Held</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>Lawrence T. Babbio, Jr</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2>Director</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Sari M. Baldauf</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Director</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Richard A. Hackborn</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Director</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
John H. Hammergren</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Director</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Mark V. Hurd</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Chief Executive Officer, President, and Chairman of the Board of Directors</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Robert L. Ryan</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Director</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Lucille S. Salhany</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Director</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
G. Kennedy Thompson</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Director</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Robert P. Wayman</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Director, Executive Vice President and Chief Financial Officer</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
R. Todd Bradley</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Executive Vice President, Personal Systems Group</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Charles N. Charnas</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Acting General Counsel, Vice President and Assistant Secretary</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Vyomesh Joshi</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Executive Vice President, Imaging and Printing Group</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Ann M. Livermore</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Executive Vice President, Technology Solutions Group</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Catherine T. Lyons</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Executive Vice President and Chief Marketing Officer</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Randall D. Mott</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Executive Vice President and Chief Information Officer</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Marcela Perez de Alonso</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Executive Vice President, Human Resources</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Jon E. Flaxman</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Senior Vice President and Controller of Accounting and Financial Reporting</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Shane V. Robison</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Chief Technology and Strategy Officer</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Richard H. Lampman</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Senior Vice President of Research, HP, and Director, HP Labs</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Catherine A. Lesjak</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Senior Vice President and Treasurer</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Brian Humphries</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="65%"><FONT SIZE=2><BR>
Vice President, Investor Relations</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
executive officers and non-employee directors do not hold eligible options and therefore are not eligible to participate in this offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
address of each executive officer and director is: c/o Hewlett-Packard Company, 3000 Hanover Street, Palo Alto, CA 94304 U.S.A. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>A-1</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
<!-- ZEQ.=1,SEQ=47,EFW="2175061",CP="HEWLETT-PACKARD COMPANY",DN="2",CHK=1028200,FOLIO='A-1',FILE='DISK130:[06PAL3.06PAL1283]NU1283A.;6',USER='GMEDINA',CD=';7-DEC-2006;17:23' -->
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_nw1283_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="nw1283_schedule_b_summary_financial_i__sch03345"> </A>
<A NAME="toc_nw1283_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE B    <BR>    <BR>    SUMMARY FINANCIAL INFORMATION<BR>  OF HEWLETT-PACKARD COMPANY AND SUBSIDIARIES    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" ROWSPAN=2><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ROWSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>For the fiscal years ended<BR>
October 31,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" ROWSPAN=2><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>For the nine<BR>
months ended<BR>
July 31, 2006</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2004</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER"><FONT SIZE=1><B>In millions, except per share amounts<BR> </B></FONT><BR></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2><B>Consolidated Condensed Statement of Earnings Data:</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Net revenue</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>67,103</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>86,696</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>79,905</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Gross profit</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>16,269</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>20,256</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>19,094</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Earnings from operations</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>4,659</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>3,473</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>4,227</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Net earnings before cumulative effect of change in accounting principle</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>4,501</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,398</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>3,497</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Net earnings per share before cumulative effect of change in accounting principle:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="53%"><FONT SIZE=2>Basic</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>1.61</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>0.83</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>1.16</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="53%"><FONT SIZE=2>Diluted</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>1.57</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>0.82</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>1.15</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2><BR>
Weighted average shares used to compute net earnings per share:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="53%"><FONT SIZE=2>Basic</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>2,799</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,879</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>3,024</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="53%"><FONT SIZE=2>Diluted</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>2,870</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,909</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>3,055</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><BR><FONT SIZE=2><B>Consolidated Condensed Balance Sheet Date (At Period End):</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="53%"><FONT SIZE=2>Cash and cash equivalents</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>15,981</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>13,911</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>12,663</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="53%"><FONT SIZE=2>Current assets</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>44,325</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>43,334</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>42,901</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="53%"><FONT SIZE=2>Non current assets</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>34,867</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>33,983</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>33,237</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="53%"><FONT SIZE=2>Current liabilities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>34,982</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>31,460</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>28,588</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="53%"><FONT SIZE=2>Non current liabilities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>7,862</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>8,681</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>9,986</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="53%"><FONT SIZE=2>Total stockholder's equity</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>36,348</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>37,176</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>37,564</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="53%"><FONT SIZE=2>Par value per common share</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>0.01</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>0.01</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>0.01</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>B-1</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
<!-- ZEQ.=1,SEQ=48,EFW="2175061",CP="HEWLETT-PACKARD COMPANY",DN="2",CHK=532683,FOLIO='B-1',FILE='DISK130:[06PAL3.06PAL1283]NW1283A.;6',USER='GMEDINA',CD=';7-DEC-2006;17:23' -->
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="oe1283_schedule_c_guide_to_tax_issues_in_canada"> </A>
<A NAME="toc_oe1283_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE C    <BR>    <BR>    GUIDE TO TAX ISSUES IN CANADA    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary describes the likely income tax consequences associated with the eligible options and participation in the offer by employees who are eligible
participants resident in Canada. This summary is intended to be general in nature and is for guidance only. The summary is based on Canadian federal tax law as of November&nbsp;2006. Tax laws may
change at any time. The summary does not discuss all the various laws, rules and proposed tax regulations that may apply. Furthermore, the summary may not apply to any particular individual's tax or
financial situation. Participants should consult their own accountant, tax adviser or independent financial adviser regarding the tax implications of the offer. This summary is not intended to be and
should not be construed as legal or tax advice to any particular individual. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
taxation of the acceptance of the offer in Canada is not clear. Acceptance of the offer may be considered a full disposition of the option in exchange for a cash payment and a new
option or a partial disposition of the option in exchange for a cash payment only. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Cash Payments  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cash payment under the offer will be subject to income tax and, where applicable, Canada Pension Plan contributions, which will be deducted from the cash
payment when it is made to you and remitted on your behalf to the revenue authorities. The cash payment will also be subject to normal tax reporting. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Amended Options  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If acceptance of the offer in Canada is considered by the Canada Revenue Agency to result in a full disposition of the original option, the eligible participant
who accepts the offer will be subject to tax on the consideration for that disposition, that is any cash payment plus the value of the amended option received. This situation would require a valuation
of the amended option. If the value of the Hewlett-Packard shares on the date of the amendment is equal to or less than the amended exercise price for Hewlett-Packard shares, the value of the amended
option received would probably be considered to be zero, based on the Canada Revenue Agency's past administrative practice. If, however, the amended exercise price was less than the fair market value
of Hewlett-Packard shares on the date of the amendment, then a value would be attributed to the option received, and that value together with the cash received would be included 100% in such option
holder's income. Whether this amount would be included in income in the 2006 or the 2007 calendar year depends on when the option holder is considered to have a legal right to the consideration and to
enforce the payment. In this case, the treatment of the option holder going forward would also be affected. For example, if the exercise price as adjusted on the Hewlett-Packard shares is equal to or
greater than the fair market value of the Hewlett-Packard shares on the date of the amendment, the option holder could take the position that that option agreement as at the date of the amendment (the
date of the grant) was a fair market value option and that therefore the deferral (subject to the statutory limits) and 50% deduction rules would apply to him or her on exercise and subsequent sale of
his Hewlett-Packard shares. If the exercise price however was less than the value of the Hewlett-Packard shares on the date of the amendment, there would be a discounted option for this purpose and in
the future in the year of exercise, 100% of the difference between the exercise price and the fair market value of the Hewlett-Packard shares on the date of exercise would be included in his or her
income. Even though previously an amount had been included in the option holder's income at the time of the exchange of options deemed to occur on the increase in exercise price, there is no clear
mechanism in the tax legislation to reduce the benefit in the later year for benefits included in prior periods. There is a general rule which </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>C-1</FONT></P>

<HR NOSHADE>
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<A NAME="page_oe1283_1_2"> </A>

<P><FONT SIZE=2>might
be relied on that the same income may not be taxed twice but it is not clear that this rule would apply in these circumstances. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alternatively,
acceptance of the offer may be viewed by the Canada Revenue Agency as constituting only a partial disposition of the rights relating to the options for the amount of the
cash payment. In this case, the cash payment would be included 100% in the income of the option holder (again there is a timing question in regard to whether the income will be included in the 2006 or
the 2007 taxation year of the option holder). The increase in the option price would not otherwise have any tax consequences. On the basis that the Hewlett-Packard option was (originally) a discount
option when issued by Mercury Interactive and the exchange does not result in a new option agreement, the original defect would not be cured (even if the new exercise price is equal to or greater than
the fair market value of the Hewlett-Packard shares). Consequently, at the time of exercise of the option, the option holder would be required to include 100% of the difference between the exercise
price and the fair market value of the Hewlett-Packard shares acquired in his or her income. There would be no eligibility for deferral until ultimate disposition of the Hewlett-Packard shares and no
50% deduction on the inclusion in income. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>C-2</FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="og1283_schedule_d_guide_to_tax_issues_in_france"> </A>
<A NAME="toc_og1283_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE D    <BR>    <BR>    GUIDE TO TAX ISSUES IN FRANCE    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary describes the likely income tax and social security charges consequences associated with the eligible options and participation in the offer by
eligible participants resident in France. This summary is intended to be general in nature and is for guidance only. The summary is based on French tax and social security law as of
November&nbsp;2006. These laws may change at any time. The summary does not discuss all the various laws, rules and regulations that may apply. Furthermore, the summary may not apply to any
particular individual's tax or financial situation. Participants should consult their own accountant, tax advisor or independent financial advisor regarding the tax implications of the offer. This
summary is not intended to be and should not be construed as legal or tax advice to any particular individual. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Cash Payments  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any cash consideration received under the offer will be taxed as ordinary employment income and subject to social security charges (both for the employee and
Hewlett-Packard). The employee's fraction of social security charges will be withheld at source by Hewlett-Packard. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Amended Options  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The "exchange" of options pursuant to the offer is likely to be deemed the cancellation of the Mercury Interactive options granted initially and a new grant of
options. The cancellation of the Mercury options granted initially and the new grant of options should not trigger income tax or social security charges but a new holding period of four years would
start in respect of the newly granted options from the date on which the "exchange" takes place. The "holding period" is the minimum four-year period between the date of grant of your
options and disposal of your option shares during which you cannot dispose of your option shares without incurring a charge to income tax
and social security charges. Gains derived from option shares for which the holding period is not complied with are taxed (and subject to social security contributions) as ordinary employment income.
In principle, the employee's fraction of social security charges is withheld at source by Hewlett-Packard; if, however, this is not possible in practice, you may be required to reimburse the amount to
Hewlett-Packard. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>D-1</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="oi1283_schedule_e_guide_to_tax_issues_in_india"> </A>
<A NAME="toc_oi1283_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE E    <BR>    <BR>    GUIDE TO TAX ISSUES IN INDIA    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary describes the likely income tax consequences associated with the eligible options and participation in the offer by eligible participants resident in
India. This summary is intended to be general in nature and is for guidance only. The summary is based on Indian tax law as of November&nbsp;2006. Tax laws may change at any time. The summary does
not discuss all the various laws, rules and regulations that may apply. Furthermore, the summary may not apply to any particular individual's tax or financial situation. Participants should consult
their own accountant, tax advisor or independent financial advisor regarding the tax implications of the offer. This summary is not intended to be and should not be construed as legal or tax advice to
any particular individual. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Cash Payments  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cash received under the offer will be subject to income tax. Hewlett-Packard will withhold and deduct from the cash payment the income tax that is payable. We
will also report to income tax authority the amounts paid to you. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Amended Options  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amended options will be subject to income tax contributions when they are exercised. These will be payable on the difference between the market value of the
Hewlett-Packard shares you acquire on exercise of the amended options less the new exercise price.(1) </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
income tax payable in relation to the exercise of your options will be withheld by your employer at the time of exercise. Hewlett-Packard will also report to the income tax authority
any exercise of the amended options. </FONT></P>

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(1)</FONT></DT><DD><FONT SIZE=2>We
understand that the existing Mercury Interactive Stock Plans have not been filed with the Chief Commissioner of Income Tax. Accordingly, the original options granted pursuant to
the plans (and, hence the assumed options) will not be entitled to the beneficial tax treatment, resulting in the difference between the market value of the shares on the date of exercise and the
exercise price being taxable (as a perquisite) in the hands of each of the employees at the time of exercise. Since the offer represents an amendment to the existing plans, it is likely that the
options amended pursuant to the offer will also be liable to be taxed in the hands of the employees as a perquisite at the time of exercise. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>E-1</FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ok1283_schedule_f_guide_to_tax_issues_in_israel"> </A>
<A NAME="toc_ok1283_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE F    <BR>    <BR>    GUIDE TO TAX ISSUES IN ISRAEL    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary describes the likely income tax consequences associated with the eligible options and participation in the offer by eligible participants resident in
Israel. This summary is intended to be general in nature and is for guidance only. The summary is based on Israeli tax law, specifically, the provisions of the Israeli Income Tax Ordinance
[New Version] 1961 (the "Ordinance"), including without limitation the regulations, rules, orders or procedures promulgated thereunder, as of November&nbsp;2006. Tax laws may
change at any time. The summary does not discuss all the various laws, rules and regulations that may apply. Furthermore, the summary may not apply to any particular individual's tax or financial
situation. Participants should consult their own accountant, tax advisor or independent financial advisor regarding the tax implications of the offer. This summary is not intended to be and should not
be construed as legal or tax advice to any particular individual. </FONT></P>

<UL>

<P><FONT SIZE=2><I> General Overview of New Section&nbsp;102 of the Ordinance pursuant to the Tax Reform  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;102(b)(2) Options: the "capital gains" route with a trustee. Following the tax reform that entered into effect in January&nbsp;2003, under the
Ordinance, options and shares granted to Israeli employees may be granted only under one of certain routes available under Section&nbsp;102 of the Ordinance. We were informed that Mercury
Interactive has granted options to its Israeli resident employees under Section&nbsp;102(b)(2) of the Ordinance (the "Section&nbsp;102 Options"). Under this section, options issued to grantees are
to be held by a trustee as follows: (i)&nbsp;Section&nbsp;102 Options that were granted during the years 2003-2005 are to be held by a trustee for 30&nbsp;months from the date of
grant or two years from the end of the tax year following the date of grant, at the employee's discretion; and (ii)&nbsp;Section&nbsp;102 Options that were granted following January&nbsp;1, 2006
are to be held by a trustee for two years from the date of grant. Upon the earlier of the sale of the shares underlying the options or upon release of those shares or the options themselves from the
trust (subsequent to the end of the trust holding period), the holder thereof will realize capital gains in an amount equal to the difference between (i)&nbsp;the fair market value of the share or
the consideration received, on the date the share or option was sold or released from the trust, as the case may be, and (ii)&nbsp;the exercise price of the option. Capital gains are taxed at a rate
of 25% (assuming there was no violation of the trust holding period proposed tax regulations). Capital gains derived from the sale of shares are not subject to any social security taxes. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that the exercise price of the option is lower than the fair market value of the shares on the date of grant, then upon the earlier of the sale of the shares underlying the
options or upon release of those shares or the options themselves from the trust (subsequent to the end of the trust holding period), the holder thereof will recognize as ordinary income the
difference between the fair market value of the shares on the date of the grant and the exercise price of the option (this income is taxable at the holder's marginal tax rate (up to 49%) and will
realize capital gains in an amount equal to the difference between (i)&nbsp;the fair market value of the share or the consideration received, on the date the share or option was sold or released
from the trust, as the case may be, and (ii)&nbsp;the fair market value of the shares on the date of the grant). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the extent the shares issued upon the exercise of an option are sold or released from the trust, as the case may be, during the trust holding period, the holder of the shares will
recognize a tax event at the date of such sale or release from trust, as the case may be, and the taxable gain will be considered as ordinary income at the holder's marginal tax rate (up to 49%) and
will also be subject to social security taxes. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the purpose of calculating the tax mentioned above, the fair market value of the shares on the date of grant equals the average share price of the company over the 30 trading days
prior to the date of grant. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>F-1</FONT></P>

<HR NOSHADE>
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<A NAME="page_ok1283_1_2"> </A>
<BR>
<UL>

<P><FONT SIZE=2><I> General Overview of Section&nbsp;3(i)&nbsp;of the Ordinance  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We were informed that until January&nbsp;2003 Mercury Interactive issued options to its Israeli resident employees in accordance with
Section&nbsp;3(i)&nbsp;of the Ordinance. Under this section, the grantees will recognize a compensation income, taxable as ordinary income according to the holder's marginal tax rate (up to 49%),
upon the exercise of an option. The taxable income will be subject to social security taxes. With respect to options granted to employees under Section&nbsp;3(i)&nbsp;(the "3(i)&nbsp;Options"),
we were informed that Mercury previously obtained a tax ruling from the Israeli Tax Authorities pursuant to which gains from such options will be taxed at the maximum rate of 43.4%. </FONT></P>

<UL>

<P><FONT SIZE=2><I> U.S. taxpayers who are residents of Israel or are Israeli citizens  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a U.S. taxpayer who is currently a resident of Israel (for example, an employee that relocated from the U.S. to Israel), or who is an Israeli citizen
(for example, an employee that relocated from Israel to the U.S.), then you are subject to the Double Taxation Treaty between Israel and the United States. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you fall into one of the above categories, your tax consequences depend on your specific circumstances in general, and those relating to your applicable option grants particularly,
taking into consideration where you were located when the options were granted, where they vested, etc. Since such tax matters are very complex in nature and could have potential tax consequences
exceeding those relating solely to your options, it is strongly recommended that you consult with a tax advisor to determine the specific tax considerations and tax consequences relevant to your
participation in the Offer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
offer to Israeli residents may be deemed a cancellation of the eligible options and a grant of new options and as such, the receipt of a tax pre ruling from the Israeli Tax
Authority, to confirm that the amendment to the exercise price is not deemed a cancellation of the eligible options and a grant of new options is recommended. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
summary, with respect to Section&nbsp;102 Options: </FONT></P>

<UL>

<P><FONT SIZE=2><I> Cash Payments  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is most probable that you will recognize as ordinary income the cash payment equal to the discount (payable upon receipt of such payment). </FONT></P>

<UL>

<P><FONT SIZE=2><I> Amended Options  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is most probable that you will recognize capital gains in an amount equal to the difference between (i)&nbsp;the fair market value of the share or the
consideration received, on the date the share or option was sold, and (ii)&nbsp;the fair market value of the shares on the date of the grant (payable upon the sale of the
shares or release from trust, as the case may be). Please note that the fair market value for Israeli tax purposes is as set forth above. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that you do not obtain a tax ruling, you could be taxed as ordinary income on the amended option on the date of grant. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
summary, with respect to 3(i)&nbsp;Options: </FONT></P>

<UL>

<P><FONT SIZE=2><I> Cash Payments  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is most probable that you will recognize as ordinary income the cash payment equal to the discount (payable upon receipt of such payment). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>F-2</FONT></P>

<HR NOSHADE>
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<A NAME="page_ok1283_1_3"> </A>
<UL>

<P><FONT SIZE=2><I> Amended Options  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is most probable that you will recognize ordinary income in an amount equal to the difference between (i)&nbsp;the fair market value of the share or the
consideration received, on the date the share or option was sold, and (ii)&nbsp;the fair market value of the shares on the date of the grant (payable upon the exercise of the options). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that you do not obtain a tax ruling, you could be taxed as ordinary income on the amended option on the date of grant (and not upon the sale thereof). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>F-3</FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="om1283_schedule_g_guide_to_tax_issues_in_the_united_kingdom"> </A>
<A NAME="toc_om1283_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE G    <BR>    <BR>    GUIDE TO TAX ISSUES IN THE UNITED KINGDOM    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary describes the likely income tax and social security contributions consequences associated with the eligible options and participation in the offer by
eligible participants resident in the United Kingdom. This summary is intended to be general in nature and is for guidance only. The summary is based on income tax and social security contributions
laws in the United Kingdom as of November&nbsp;2006. Tax laws may change at any time. The summary does not discuss all the various laws, rules and regulations that may apply. Furthermore, the
summary may not apply to any particular individual's tax or financial situation. Participants should consult their own accountant, tax advisor or independent financial advisor regarding the tax
implications of the offer. This summary is not intended to be and should not be construed as legal or tax advice to any particular individual. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following paragraphs, which are intended as a general guide only, are based on current UK legislation and an understanding of the current practice of HM Revenue&nbsp;&amp; Customs
(HMRC). They summarize certain limited aspects of the UK taxation consequences of participating in the Offer. They relate only to the position of individuals who were resident and ordinarily resident
in the United Kingdom when an option was granted to them and who have continued to be so resident. You should be aware that taxation law may change. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
paragraphs are not intended, and should not be construed, to be legal or taxation advice to any particular individual. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Cash Payments  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cash payment payable under the offer will be subject to income tax and employee's national insurance contributions upon payment. Hewlett-Packard will withhold
and deduct from the cash payment the income tax and employee's national insurance contributions that are payable. Hewlett-Packard will also report to HMRC the amounts paid to you. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Amended Options  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amendment to your options may be treated for UK tax purposes as the release of your Hewlett-Packard options in exchange for the grant of new Hewlett-Packard
options with a new exercise price. The new exercise price will be equal to the fair market value of a Mercury share at the date of grant of the original Mercury option (as adjusted for the conversion
from an option over Mercury shares to an option over Hewlett-Packard shares). The amendment will not result in any income tax or employee's national insurance contributions arising at the time the
amendment is made. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you hold options that have not been approved by HMRC, the amended options will be subject to income tax and employee's national insurance contributions when they are exercised. These
will be payable on the difference between the market value of the Hewlett-Packard shares you acquire on exercise of the amended options less the new exercise price. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you hold options that were granted under the HMRC approved part of the Mercury Interactive Stock Plans, the HMRC approved status of those options may have been lost by virtue of the
fact that the options were granted at a discount to the current fair market value of the underlying Mercury Interactive stock at the time of grant. Accordingly, we expect that on the exercise of the
amended options, income tax and employee's national insurance contributions will be payable. The income tax and employee's national insurance contributions will be paid on the difference between the
market value of the Hewlett-Packard shares you acquire on exercise of the amended option and the new exercise price. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>G-1</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
income tax and employee's national insurance contributions payable in relation to the exercise of your options will be withheld by Hewlett-Packard at the time of exercise. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hewlett-Packard
will report to HMRC the amendment of the options and any exercise of the amended options. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>G-2</FONT></P>

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<P><br><A NAME="06PAL1306_2">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_na1283_1">Exhibit (a)(1)(A)</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_na1283_2">HEWLETT-PACKARD COMPANY</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_na1283_3">OFFER TO AMEND THE EXERCISE PRICE OF CERTAIN OPTIONS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_na1283_4">NOVEMBER 17, 2006, AS AMENDED DECEMBER 4, 2006, AS FURTHER AMENDED DECEMBER 8, 2006</A></FONT><BR>

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<FONT SIZE=2><A HREF="#toc_nc1283_1">HEWLETT-PACKARD COMPANY Offer to Amend the Exercise Price of Certain Options</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_nc1283_2">This offer and withdrawal rights will expire at 9:00 p.m., Pacific Time, on December 15, 2006 unless we extend them.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_nc1283_3">IMPORTANT&#151;ACTION ITEMS TO PARTICIPATE</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_nc1283_4">Offer to Amend the Exercise Price of Certain Options, dated November 17, 2006.</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_ne1283_1">TABLE OF CONTENTS</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_ng1283_1">SUMMARY TERM SHEET AND QUESTIONS AND ANSWERS</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_nm1283_1">RISKS OF PARTICIPATING IN THE OFFER</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_nm1283_2">THE OFFER</A></FONT><BR>
<UL>
<FONT SIZE=2><A HREF="#toc_nm1283_3">1. Eligibility.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_nm1283_4">2. Number of options and amount of consideration; expiration date.</A></FONT><BR>
</UL>
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<UL>
<FONT SIZE=2><A HREF="#toc_no1283_1">3. Purpose of the offer.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_no1283_2">4. Procedures for electing to participate in this offer.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_no1283_3">5. Withdrawal rights and change of election.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_no1283_4">6. Acceptance of options for amendment, issuance of cash payments, and amended options.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_no1283_5">7. Conditions of the offer.</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_nq1283_1">8. Price range of shares underlying the options.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_nq1283_2">9. Source and amount of consideration; terms of amended options.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_nq1283_3">10. Information concerning the Company.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_nq1283_4">11. Interests of directors and executive officers; transactions and arrangements concerning the options.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_nq1283_5">12. Status of options amended by us in the offer; accounting consequences of the offer.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_nq1283_6">13. Legal matters; regulatory approvals.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_nq1283_7">14. Material United States federal income tax consequences.</A></FONT><BR>
</UL>
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<FONT SIZE=2><A HREF="#toc_ns1283_1">15. Extension of offer; termination; amendment.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ns1283_2">16. Fees and expenses.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ns1283_3">17. Additional information.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ns1283_4">18. Financial statements.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ns1283_5">19. Miscellaneous.</A></FONT><BR>
</UL>
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<FONT SIZE=2><A HREF="#toc_nu1283_1">SCHEDULE A INFORMATION CONCERNING THE EXECUTIVE OFFICERS AND DIRECTORS OF HEWLETT-PACKARD COMPANY</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_nw1283_1">SCHEDULE B SUMMARY FINANCIAL INFORMATION OF HEWLETT-PACKARD COMPANY AND SUBSIDIARIES</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_oe1283_1">SCHEDULE C GUIDE TO TAX ISSUES IN CANADA</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_og1283_1">SCHEDULE D GUIDE TO TAX ISSUES IN FRANCE</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_oi1283_1">SCHEDULE E GUIDE TO TAX ISSUES IN INDIA</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_ok1283_1">SCHEDULE F GUIDE TO TAX ISSUES IN ISRAEL</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_om1283_1">SCHEDULE G GUIDE TO TAX ISSUES IN THE UNITED KINGDOM</A></FONT><BR>
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