JOHANNESBURG, Aug 27, 2007 (AFP) - Hewlett-Packard has become the first multinational to be exempted from selling 30 percent of its business in South Africa to black investors, the US computer giant and government said on Monday.

Under an agreement reached with the government, the company will instead invest millions of dollars in a new business institute to provide training for 1,800 students over the next six years.

Hewlett-Packard said the deal demonstrated the company's commitment to racial transformation of the business sector in South Africa.