UPDATE 1-HP to buy Web-based software developer Tabblo

(Adds details, background; changes dateline, previous NEW YORK)

SAN FRANCISCO, March 22 (Reuters) - Hewlett-Packard Co. (HPQ.N), the world's largest computer and printer maker, said on Thursday that it agreed to buy Tabblo Inc., a privately held developer of Web-based software, for undisclosed terms.

Tabblo's technology helps consumers arrange and print text, graphics and photos from the Internet using so-called AJAX technology, which allows for drag-and-drop, desktop-type functions within a Web page.

Vyomesh Joshi, who runs HP's imaging and printing group, said that Palo Alto, California-based HP aims to make printing content from the Web as easy as possible, whether printing a simple map or a book of favorite blogs.

HP Chief Executive Mark Hurd has told investors and analysts not to expect, in general, large, multibillion-dollar acquisitions. Instead, he said the company plans to make smaller, targeted acquisitions to fill in its businesses.

HP, whose printing business is the world's largest, said it expects the purchase of Cambridge, Massachusetts-based Tabblo to be completed within the next few weeks.

Late in February, HP said it agreed to buy closely held storage software maker PolyServe Inc. for undisclosed terms. It said then that the deal would boost its access to the network-attached storage market, one of several technologies for storing large amounts of data in networks.

(Additional reporting by Ritsuko Ando in New York)

((Reporting by Duncan Martell, editing by Martin Golan; e-mail: duncan.martell@reuters.com; telephone: +1 415 677-2536)) Keywords: TABBLO HP/

(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN22354879