News release

HP Strengthens Entry-level UNIX Server Line with Powerful PA-8700 Processors

HP Servers Continue to Build on Strong Customer Acceptance

PALO ALTO, Calif., Nov. 1, 2001

Hewlett-Packard Company (NYSE:HWP) today announced that its entry-level UNIX® servers now include PA-8700 processors.

With a processor performance increase of nearly 40 percent over the existing entry-level systems⁽¹⁾ and a seamless upgrade path to future technologies, the HP Server rp5400⁽²⁾ series is now better positioned than ever to meet customers' requirements for outstanding performance and value in demanding business environments.

Formerly known as the L-class, the HP Server rp5400 series has seen outstanding growth with strong acceptance by global, industry-leading companies since its introduction in September 1999. According to IDC, HP holds the No. 2 position in the entry-level UNIX server business and continues to grow steadily⁽³⁾. Demonstrating nearly four times the growth rate of IBM in this category⁽⁴⁾, HP is widening the distance between the two companies in the fast-moving entry-level race.

"Building on the recent introduction of the high-performance, PA-8700-based HP Superdome and mid-range systems, HP's UNIX server line is stronger than it has ever been," said Mark Hudson, worldwide marketing manager, HP Business Systems and Technology Organization. "Now, with the rp5400 series, our customers can take full advantage of our refreshed product portfolio to enable their always-on IT environments."

In the past quarter alone, nearly 50 percent of the Global 100 companies have purchased servers from the HP rp5400 series. Global leaders, including Best Buy, ChevronTexaco, DaimlerChrysler and Quaker Foods & Beverages are using the rp5400 series to support demanding enterprise and Internet applications such as enterprise resource planning, supply chain management and customer relationship management.

In addition, four of the top five pharmaceutical companies and eight of the top 10 telecom companies worldwide have chosen the rp5400 series as a key component to enable their always-on Internet infrastructures.

The rp5400 series decisively outperforms Sun's competing systems in the entry-level market. Results across numerous industry benchmarks, such as SPECjbb®, SPECint® and SPECfp®, all show the rp5400 series outperforming Sun's systems by 69 to 130 percent⁽⁵⁾.

Additionally, with the rp5400 series HP customers have the flexibility to upgrade to future generations of the PA-RISC or Intel® Itanium™ Processor Family architectures -- something neither Sun nor IBM offers -- protecting their investments for many years to come.

The rp5400 series can use up to four PA-8700 processors. Included in the series is the new HP Server rp5430, a powerful two-way server featuring an enhanced chipset to maximize performance for compute-intensive applications.

Availability and Pricing

HP Server rp5400 series products are available immediately with an estimated U.S. list price starting under $16,900⁽⁶⁾.

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.

⁽¹⁾ SPECint_base2000 rp5470 (750 MHz): 517 vs. L3000 (552 MHz): 373 = +39 percent. Further information is available from http://www.spec.org.

⁽²⁾ The HP Server rp5400 series comprises the rp5400, rp5430, rp5450 and rp5470 models. The PA-8700 processor will be used in the rp5430 and rp5470 models.

⁽³⁾ IDC Quarterly Server Tracker, Q2CY2001, published September 2001 and based on a four-quarter average. Low-end UNIX revenue 3Q00-2Q01: Sun 40.9 percent; HP 21.1 percent; IBM 13.7 percent.

⁽⁴⁾ IDC Quarterly Server Tracker, Q2CY2001, published September 2001 and based on a four-quarter average. Year-over-year growth: 3Q99-2Q00 versus 3Q00-2Q01 in entry-level UNIX units: HP 3.5 percent growth vs. IBM 0.9 percent growth.

⁽⁵⁾ SPECjbb results: rp5470 four-way: 34168 (+114 percent), Sun E420R four-way: 15990. SPECint base results: rp5470: 517 (+130 percent), Sun E450: 225. SPECfp base results: rp5470: 462 (+69 percent), Sun E450: 274. Competitive results reflect those published on http://www.spec.org as of Oct. 17, 2001, and those submitted to SPEC.

⁽⁶⁾ Actual prices may vary.

UNIX is a registered trademark of the Open Group.

SPEC and the benchmark names SPECfp, SPECint and SPECjbb are registered trademarks of the Standard Performance Evaluation Corporation.

Intel and Itanium are U.S. trademarks or registered trademarks of Intel Corp.

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 assumes no obligation and does not intend to update these forward-looking statements.