Opening statements from Dunn, Sonsini and Adler.

Patricia Dunn:

All corporate directors have a solemn duty of confidentiality. Leaks create unfair advantages to some stockholders over others. When HP board asked me to become chairman, I expected challenges but I never imagined these circumstances could ever occur.

I took the mandate to stop leaks seriously. As detailed in written testimony, she sought out Bob Wayman, acting CEO and CFO. He referred her to Kevin Huska, global security, who led her to Delia. In talking to Delia, she learned that checking phone records was SOP and were drawn from public sources.

In Jan. 06, there were leaks about CSC acquisition. Baksins felt strongly that Hunsaker should run the investigation. He brought in the same team for Kona II as Kona I. His draft report was given to Dunn and Hurd. I requested and received assurances that investigation was legal and proper.

In June Sonsini told her Perkins raised concerns. Sonsini concluded "the process well done and within legal limits." He later told the board the methods were not generally unlawful.

I deeply regret that so many people - including me - by were deeply let down this reliance. I hope that Congress enacts legislation to protect themselves from leakers.

Larry Sonsini:

Wilson Sonsini was not involved in the design or conduct of Kona 1 or 2. I was not even aware of them when they were being conducted. HP asked WS to provide legal advice.

In my opinion, pretexting is plainly wrong. They should not be used by businesses or anyone. When we were asked by board, although generally pretexting was not specifically unlawful, we could not confirm the methods used in the investigation were legal.

Although pretexting is clearly wrong, the law is not as clear as it could be. As the chairman said, it is probably illegally. It needs to be clearly illegal.

A board cannot function effectively if its most sensitive deliberations are leaked to outsiders. Boards are greatly weakened without confidentiality. HP remains a company we can all be proud of.

Fred Adler, HP IT security investigations

I became uncomfortable when I learned of the investigatory techniques. One must understand legal issues around obtaining records. HP employees sign agreement to give company records from computers, email, phone records. Information we use to make inquiries must comply with law.

When we grew concerned, a coworker and I brought matter to attention of managers. We raised concerns with counsel. We were advised by counsel that investigation was legal. Those opinions have since been questioned.