News release

HP Unveils Storage Software and Services to Support Business Continuity

Instant Recovery Solutions, Innovative Pricing Model and New Services Change Data Center Economics

PALO ALTO, Calif., Dec. 3, 2001

Hewlett-Packard Company (NYSE:HWP) today announced storage software and services, including the industry's first instant recovery management solution, to help customers efficiently control data center business applications and resources while optimizing uptime.

The business continuity offerings are the latest developments in HP's Federated Storage Area Management (FSAM) strategy, which is to increase the amount of data managed on a customer's network ten-fold without adding human resources.

"Business continuity is at the heart of an always-on Internet infrastructure. IT managers can now control elements of their storage environment that lead to a healthy bottom line," said Nora Denzel, vice president and general manager, HP Network Storage Solutions Organization. "Providing customers with consistent, immediate access to data and with support services that help customers scale their storage environments are key elements of HP's FSAM strategy."

HP's Data Protection and Recovery Solutions

• HP OpenView Omniback II 4.1 software provides a way to instantly eliminate data recovery windows and optimize uptime. Customers increase the efficiency of their IT resources and storage infrastructure by fully automating the data protection process while keeping data accessible. Compatible with most operating, library and disk systems, the software provides customers with disaster recovery and increased zero-downtime backup.

• HP Surestore Fast Recovery Solutions have now been extended to HP Surestore Virtual Arrays. By using HP Surestore Business Copy or Continuous Access functionality, customers can significantly decrease the amount of time it takes to recover Microsoft® Exchange 2000 databases and restore multiple databases at once. These solutions also can improve ASP (application service provider) service level agreements by predicting data corruption.

• HP Zero Downtime Backup Solution also has been extended to HP Surestore Virtual Arrays. This is the industry's first offering of a complete, integrated package of hardware, software, consulting and services for restoring data in mission-critical applications.

HP Storage Consolidation Services

Customers can now intelligently evolve their data centers while reducing total cost of ownership in heterogeneous environments. Services in this offering include storage analysis, design and consolidation implementation.

HP Storage Management

• HP Pay Per Use (PPU) utility pricing for storage allows customers to control the economics of their data centers by reducing or eliminating capital investment and aligning storage costs to business needs. Payments are made on a gigabyte per month basis and customers pay only for the storage they use. Available for the HP Surestore XP Disk and Virtual Array families, HP PPU utility pricing incorporates HP OpenView Storage Accountant software, which tracks storage for financial analysis, budgeting and charge back.

• HP OpenView Storage Area Management consulting services enable customers to create scalable pools of storage that can evolve using modular storage appliances on any operating system. These services assist customers in building an FSAM environment.

• An updated HP OpenView Storage Area Manager software suite offers enhanced integration with HP OpenView solutions and support for multi-vendor storage management. Customers can manage their data without disrupting business by pooling storage virtually with one software solution, using "one pane of glass."

• HP Storage Area Networks (SAN) environment support services are the first in the industry to support any brand of SAN offering. Designed as a one-stop shop for customers' entire SANs, these services provide customers troubleshooting diagnostic tools, including guidance for outsourcing and HP OpenView storage management software.

Additional products announced today include the HP Surestore Tape Autoloader 1/8, the HP Surestore FC 1Gb/2Gb Switch 16B and enhancements to HP Surestore Virtual Arrays 7100 and 7400.

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 of $45.2 billion in its 2001 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

Microsoft is a U.S. registered trademark of Microsoft 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.