News release

HP Announces Major Advances to HP OpenView Service Management Software

PALO ALTO, Calif., June 12, 2001

Hewlett-Packard Company (NYSE:HWP) today added a range of advanced solutions to its HP OpenView management software to help service providers and companies conducting business over the Internet grow quickly, reduce costs, improve operational efficiencies and increase their competitiveness.

HP has expanded HP OpenView Integrated Services Management (ISM) -- a set of powerful software, services and support building blocks -- with 11 advanced solutions that help optimize the customer experience and automate critical operations.

"Businesses today need major breakthroughs to deliver and support products and services," said Patty Azzarello, vice president and general manager, HP OpenView Business Unit. "Service management is increasingly recognized as the most effective way to maximize revenue from IT operations and to increase revenue growth by launching new services quickly and effectively. HP OpenView ISM is a key enabler to this success path."

"Our projections indicate that up to 40 percent of today's service providers will not be around by the end of 2003," said Dennis Drogseth, vice president, Enterprise Management Associates. "Competitive advantage is everything. Solutions such as HP OpenView ISM have tremendous strategic potential to support superior operational efficiencies and to introduce new, high-quality services that will increase revenue and customer retention."

The HP OpenView ISM solutions transparently automate the life cycle of services -- from the moment an order is placed and accessed through the moment it is reported and billed -- and manage mixed computing environments both inside and across the firewall. These solutions improve operational performance and can measure, monitor and troubleshoot across all elements of the service transaction, including voice and data networks, servers, storage and applications.

Last week, HP announced it is dramatically expanding its global software distribution channels to increase incentives for resellers and original equipment manufacturers (OEMs) to extend their market opportunity with HP OpenView and HP Netaction software. Today, HP is extending its partnering activities again with a series of announcements with its strategic global alliance partners, Cisco Systems, Sun Microsystems and Microsoft Corporation.

More information about today's announcement, including product news briefs, is available at the HP OpenView Web site at http://www.openview.com.

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 all. 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.

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.