*NEWS*HP CEO HURD APPROVED ’ STING’

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Date: Monday September 25, 2006 11:29:00 am
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    HP CEO Hurd Approved ‘Sting’ on Journalist, Report Says
    SAN
    FRANCISCO (Sept. 06) – Hewlett-Packard Co.’s Chief Executive Mark Hurd
    had approved a “sting” operation on a reporter to investigate boardroom
    media leaks, The Washington Post reported, and embattled Chairman
    Patricia Dunn said she looked forward to “setting the record straight”
    soon.The Post said in its Thursday edition that an e-mail by a company
    lawyer to Dunn was the first document linking Hurd to the internal
    investigation which is now the subject of criminal probes. Private
    investigators impersonated people to gain the phone records of
    directors, HP employees and reporters, the company has acknowledged.”I
    spoke to Mark (Hurd) a few minutes ago and he fine with both the
    concept and the content,” of the sting, senior counsel Kevin Hunsaker
    told Dunn in a February 23 e-mail, according to the Post.Dunn, who
    spearheaded the internal leak probe, was inducted Wednesday night into
    the Bay Area Council’s Hall of Fame and made her first public comments
    since reports appeared this week that deepened the scandal. The issue
    erupted when HP disclosed its potentially illegal investigation on
    September 6.

    Dunn announced this month that she would not serve
    as chairman beyond January, but would remain on the board.”Please be
    aware I am fully alive to the irony of being inducted into the Bay Area
    Council Business Hall of Fame,” Dunn told members at the Bay Area trade
    group on Wednesday night. “I look forward to the time in the near
    future when I can set the record straight.”HP said earlier that Hurd
    would hold a press conference in the Bay Area on Friday “regarding the
    board leak investigation.” HP spokesman Ryan Dononvan declined further
    comment, and the Post said HP also declined to comment on its report.
    It was not clear whether Dunn would be at the news conference.With
    Dunn’s installation into the Hall of Fame, she joins honorees including
    Larry Sonsini, Silicon Valley’s most prominent attorney, who has agreed
    to testify regarding his role in the leak investigation at a U.S. House
    subcommittee hearing. She also joins HP founders David Hewlett and
    William Packard.The Post report said Hunsaker, who led the
    investigation ordered by Dunn, and an HP colleague in Boston concocted
    a fictitious personal, “Jacob,” who would pose as a disgruntled HP
    executive to cultivate a reporter at technology news Web site Cnet.The
    plan was to lure the reporter to open an e-mail attachment with
    software that would let HP see where the e-mail was forwarded, hoping
    it would pinpoint board member George Keyworth as the source. Keyworth
    has since resigned from the HP board.

    California State Attorney
    General Bill Lockyer said earlier on Wednesday he does not know when
    his office would issue any indictments.”We’re still in the middle of
    following the chains of communications,” Lockyer said in a telephone
    interview. “We don’t yet know for sure which people (will be indicted)
    or how soon we’ll complete the investigative work.”HP is under scrutiny
    by both state and U.S. prosecutors over whether the company used
    illegal tactics to obtain phone records of directors, at least two HP
    employees and journalists, as part of its inquiry to find the source of
    boardroom leaks to the media dating back to 2005.The Wall Street
    Journal, citing internal e-mails, reported on Wednesday that Dunn
    personally helped direct the leak investigation. The New York Times
    also reported on Wednesday that HP had studied the feasibility of
    placing spies in the newsrooms of two publications as part of the
    investigation.

    HP-Gate: New spying claims
    September
    2006 — Palo Alto (CA): Hewlett-Packard (HP) allegedly considered
    planting spies in the offices of news corporations, The Wall Street
    Journal and CNET Networks, according to the New York Times.It is
    alleged that the company’s management team was briefed on the
    possibilities of investigators posing as administrative or custodial
    staff at the news companies.The paper cites an anonymous individual
    acquainted with HP’s investigation techniques.

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