Walgreens awarded HP's Snapfish the contract to host their new photo printing website.  The new photo printing site is www.walgreens.com/photo.

Walgreens Press Release Excerpt:

PALO ALTO, Calif., and DEERFIELD, Ill., July 11, 2005 - HP and Walgreens (NYSE, NASDAQ: WAG) today announced that HP's Snapfish has been selected to host Walgreens new online photo website - www.walgreens.com/photo.

The new site allows Walgreens customers to enjoy Snapfish's easy-to-use tools for online photo ordering, sharing and storage. Walgreens also is rolling out on a market-by-market basis the ability for customers to upload photos to the site and pick up prints at the Walgreens store of their choice in as little as one hour. The service will be available in all markets where Walgreens operates by September. Customers can also opt for mail delivery of prints made from their uploaded photos.

"Our partnership with Snapfish gives our customers the most convenient photo services at competitive prices," said John Sugrue, divisional merchandise manager for one-hour photo operations, Walgreens.

Walgreens online photo service from Snapfish will offer:

• High-quality digital camera prints and photo CDs available for in-store pickup at local Walgreens stores by September, or by mail
• Free online photo sharing
• Free online photo storage
• A wide selection of more than 80 distinctive photo products, including:
• Personalized photo mugs, calendars and mousepads
• Photo dog collars, diaper bags, blankets
• Assorted photo T-shirts, neck ties and sweatshirts
• Photo boxer shorts, photo table placemats
• A broad range of free photo editing tools and software

"Today's news provides consumers a seamless connection to sharing their photos online and printing them at Walgreens convenient locations," said Ben Nelson, vice president and general manager for Snapfish, HP. "In combining Snapfish's leadership in online services with Walgreens leadership in retail photo processing, we're giving consumers greater choice, flexibility and access to their memories when, where and how they want them."

About Walgreens
Walgreen Co. is the nation's largest drugstore chain with fiscal 2004 sales of $37.5 billion. The company operates 4,834 stores in 45 states and Puerto Rico. Walgreens also provides additional services to pharmacy patients and prescription drug plans through Walgreens Health Initiatives (a pharmacy benefits manager), Walgreens Mail Service, Walgreens Specialty Pharmacy and Walgreens Home Care.

About HP
HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended April 30, 2005, HP revenue totaled $83.3 billion. More information about HP (NYSE, NASDAQ: HPQ) is available at www.hp.com.