Chairman Out at HP; CEO Takes Position

He continued: "I do not recall seeing, nor do I recall approving, the use of tracer technology," he said, referring to the plan by HP's investigators to embed tracing technology in the e-mail to track where the reporter subsequently sent the message.

A lawyer retained by HP to review the leak probe also mentioned the e-mail tracer. "The concept of sending the misinformation to the reporter and the content of the misinformation to be contained in the message . . . was approved by Mark Hurd," said Michael J. Holston of the San Francisco law firm Morgan, Lewis & Bockius LLP, who also attended the news conference. "We have found no evidence that he was asked to approve the use of the tracer."

Computer crime law has not caught up with technology, legal experts said, and it is unclear whether embedding tracer technology in an e-mail message is a crime.

"As of today, we still do not have all the facts," Hurd said. "I also cannot guarantee that we will ever be able to obtain all of the information . . . due to its complexity and number of people involved."

He said that the probe in 2005 yielded no results. HP started another leak investigation in January.

"While many of the right processes were in place, they unfortunately broke down and no one in the management chain, including me, caught them," Hurd said.

Hurd, 49, was brought on in April 2005 after another HP imbroglio involving then-chairman Carly Fiorina, who clashed with the board after HP's tumultuous merger with Compaq Computer Corp., resulting in her ouster. Hurd, the former chief executive at NCR Corp., moved quickly to establish himself as a leader, slashing expenses and eliminating more than 15,000 jobs.

On Sept. 8, Hurd hired Morgan, Lewis & Bockius to review the HP leak probe. Morgan Lewis lawyer Holston said yesterday that he has collected more than 1 million pages of documents.

Holston said those involved in HP's leak probe had "provided assurances" to HP senior investigators early this year that the investigative techniques being used were legal. He said those providing assurances included Kevin Hunsaker, HP's senior counsel and ethics director, and a Boston firm hired by HP.

He said in February, outside investigators "may have conducted a search of individuals' trash." But at this time, he said, "we do not know who the targets of these efforts were."

Dawn Kawamoto, the CNet.com reporter who was sent the e-mail with tracer technology, expressed anger at the firm. "At first I was stunned," she said, when she was alerted by California investigators that her phone records may have been obtained by subterfuge. "When it was confirmed, I was furious."

"It's like the golden rule," she said. "Had we journalists in general done the same thing to the executives, the directors of HP, I'm sure they would have gone ballistic."

At the news conference, Hurd addressed all the targets of HP's surveillance. "On behalf of HP, I extend my sincere apologies to those journalists who were investigated and everyone who was impacted."

Special correspondent Catherine Ho in Palo Alto, Calif. contributed to this report.