News release

HP Unveils Comprehensive Solutions for Service Providers

Products, Alliances, Services and Programs Address Needs of Hosting, Broadband and Mobile Service Providers

PALO ALTO, Calif., May 21, 2001

Hewlett-Packard Company (NYSE:HWP) today introduced a broad range of solutions for service providers to generate demand for their offerings, better manage their operations and enhance and deploy their information technology (IT) infrastructures.

"Service providers face complex business pressures -- from the need for a highly reliable IT infrastructure to the ability to rapidly deliver new services that instill customer loyalty and drive growth," said Rich Raimondi, vice president and general manager, HP Service Provider and Mobile Solutions Organization. " HP's diversified approach to providing solutions that meet these challenges has resulted in a number of top service providers selecting HP as a strategic ally."

HP addresses three distinct needs of service providers: cooperative creation of demand, management of the services life cycle and deployment of next-generation infrastructures.

Generating Demand

The HP Service Provider Program generates awareness and drives demand for joint HP and service provider solutions. Program features include co-selling, incentive and co-marketing programs.

To help differentiate service providers within the market and set standards of excellence, HP has also instituted a comprehensive, end-to-end infrastructure, applications and operations qualification program.

To complement these programs, HP also is working with mobile service providers and more than 400 mobile developers to rapidly develop and deploy mobile e-services. The HP Opencall product enhances mobile communication services through solutions such as location-based services for in-call advertising and real-time pre-paid billing.

Integrating Operations Management

HP Integrated Service Management (ISM) solutions include software, hardware and services that support service delivery, service assurance and billing. HP has automated these processes to give service providers visibility into and direct control over the life cycle of their services.

The HP ISM solution is based on HP OpenView, HP Internet Usage Manager (IUM), HP Process Manager and a roster of products from HP's third-party providers. Enhancements to the HP IUM give service providers expanded usage capabilities, General Packet Radio Service (GPRS) mediation and business intelligence for revenue and profit analysis.

Combined HP and third-party products deliver comprehensive ISM solutions for services such as virtual private networks (VPN), voice over Internet protocol (VoIP), broadband DSL and Web hosting. Regional HP ISM solution centers enable service providers to consult with technical specialists and customize and evaluate solutions prior to implementation.

Working with industry-leading Internet companies like Cisco Systems, HP has developed targeted ISM solutions for service providers, creating a framework that allows customers to easily adapt and develop their current environment with new solutions and services.

"Comprehensive HP ISM solutions and Cisco networking infrastructure provide our customers with an informational edge, enabling new value-added services to be rolled out effectively," said Sameer Padhye, vice president, Service Provider Solutions and Technology, Cisco Systems EMEA. "The ISM solutions provide our customers greater visibility into the entire services life cycle, improving operational efficiencies and overall customer service."

Enhancing and DeployingNext-generationInfrastructures

HP e-utilica -- which enables service providers to offer on-demand, pay-per-use application hosting and compute capacity services -- has now been enhanced for business computing service processing.

The penetration of high-bandwidth services for enterprises and end users requires infrastructures that support media-rich digital content. HP is working with Nortel Networks™ to provide the HP Broadband Solution framework, which offers a high-performance, integrated infrastructure to broadband service providers.

"Nortel Networks and HP working together expect to deliver exciting solutions to the broadband market," said Dominic Orr, president, Content Networking, Nortel Networks. "Nortel Networks' intelligent content networking technology, based on our market-leading Shasta 5000 Broadband Service Node along with HP's services, offers service providers a whole new world of revenue-generating opportunities through the delivery of personalized value-added services."

HP also has alliances with many industry-leading software vendors, including Infovalue, PacketVideo Corporation, and 2netFX, to create exceptional broadband solutions.

More information about these programs and an online press kit are available at http://www.hp.com/communications/.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and solutions for an Internet infrastructure that's always on.

HP had total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

Nortel Networks is a trademark of Nortel Networks Corporation

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the annual report on Form 10-K for the year ended Oct. 31, 2000, and subsequently filed reports. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP does not intend to update these forward-looking statements.