News release

HP Extends Leadership in Service Management with New HP OpenView Software Capabilities

PALO ALTO, Calif., June 25, 2002

HP (NYSE: HPQ) today added new service management products and services to its HP OpenView software suite that allow customers to provide better services while getting more from their infrastructure assets. HP OpenView -- the industry's only management software that enables companies to improve both the end-user experience by managing and optimizing services and the fundamental voice, data and IT infrastructure -- now provides customers with powerful new service level, Web services and storage management capabilities assuring value to the end-user.

"Our customers are experiencing multiple challenges in growing their businesses, such as the explosive growth in stored data, the increased complexity of Web services and the IT demands for accountability and cost control," said Nora Denzel, senior vice president, HP Software Global Business Unit. "HP has created a number of HP OpenView products and services to help customers manage business growth issues and deliver service-driven solutions to enhance the end-user's experience."

HP OpenView Service Management

HP OpenView service management products, together with comprehensive operation management products, provide customers with the ability to measure user expectations against agreed upon service levels. Integrated together, these solutions offer customers a comprehensive management suite designed to increase return on investment and meet business goals:

• HP Service Desk enables organizations to reduce the effort required to create and maintain service level agreements by providing information about service level objectives to the tools that measure and monitor infrastructure performance and availability.

• HP OpenView Network Node Manager enhancements reduce network management events up to 45 percent and help network managers to dramatically streamline and accelerate their analysis of root causes. In addition, this includes enhancements in topology, smart event correlations, scalability and correlation maintenance

HP OpenView Web Services Management Solutions

HP has developed new capabilities that expand HP OpenView's Web services management offering for enterprises and service providers, which must adapt quickly to change in order to stay ahead of the competition.

HP OpenView's service-driven management approach enables the linkages required to manage complex Web services from end-to-end: from the ability to visualize how hardware and software components that deliver Web services relate to each other to understanding how business transactions based on Web services are performing and diagnose related issues at a component level.

The following new products maximize the performance and availability of business-critical Web services for both J2EE and .NET environments:

• HP OpenView Transaction Analyzer is the industry's first major solution that automates the isolation of performance bottlenecks in both J2EE and .NET application infrastructures. The solution enables customers using BEA Weblogic, IBM WebSphere and Microsoft .NET to analyze the actual path of transactions and quickly locate network, server or application bottlenecks. It can be deployed as a stand-alone product or together with HP OpenView Internet Services for complete, end-to-end response time monitoring and diagnosis.

• HP OpenView Smart Plug-in for webMethods provides out-of-the box discovery and maintenance of business processes. These business and service processes can be correlated to the underlying infrastructure enabling customers to visualize business processes and the infrastructure from a single console.

• HP OpenView Smart Plug-in for IBM WebSphere enables in-depth management of WebSphere environments.

• HP OpenView Smart Plug-in for Sun™ ONE Web Services provides IT organizations the ability to manage Web services built with the Sun ONE architecture.

With HP OpenView Transaction Analyzer and other HP OpenView Web application smart plug-ins, such as those for BEA WebLogic and Microsoft .NET, customers can now easily manage and optimize all of their industry-leading application servers.

HP OpenView Storage Management

HP has announced new, essential storage management tools -- an integral part of the HP OpenView software portfolio -- including HP OpenView Storage Data Protector and HP OpenView Storage Area Manager.

HP OpenView Storage Data Protector software delivers dramatically higher levels of recovery in a service-driven management approach. Shifting focus from backup to recovery, the software enables disk-based instant recovery capabilities that enable the recovery of terabytes of recent data in minutes rather than hours, ensuring continuous information availability during disasters and other potential data loss situations.

Unlike traditional tools that focus exclusively on tape-based recovery, HP OpenView Storage Data Protector enables both tape- and disk-based recovery, thus providing robust business continuity and inexpensive disaster recovery in order to address different business objectives.

HP OpenView Storage Area Manager controls and monitors the availability, performance, usage, cost and growth of multi-vendor resources across network and direct attached storage, disk and tape. HP OpenView Storage Area Manager has been expanded with the addition of new HP, IBM, HDS and XIOtech storage devices as well as interconnect devices from Brocade, Chaparral, Inrange, Nishan and Vixel.

HP OpenView Support Services and Partner Offerings

Over the past decade, HP has established the most comprehensive community of users and partners in the industry for service management. HP is extending this community by announcing its new HP OpenView Solution Alliance program, which consists of member and solution partners.

While member partners create point integrations to connect into HP OpenView solutions, solution partners work cooperatively with HP OpenView to jointly develop and market tools to better serve customers. In addition, Solution Alliance partners have access to new integration products, HP OpenView Interconnect Tools for Developers and HP OpenView Integration Guide for Developers.

The robust HP OpenView support services portfolio serves the IT community, giving customers and partners' access to hundreds of experts and support specialists. From consulting to deployment, solution optimization and third-party support, the support services group for HP OpenView offers a full range of options with more than 50 response centers and 500 support engineers worldwide. Additionally, HP is announcing new and enhanced online, proactive and partner support services.

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its merger transaction involving Compaq Computer Corp. on May 3, 2002. The company would have had combined revenue on a pro forma basis with the Compaq transaction of approximately $81.1 billion in fiscal 2001 and has operations in more than 160 countries. More information about HP is available 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 HP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001, HP's quarterly report on Form 10-Q for the quarter ended January 31, 2002 (as filed with the SEC on March 12, 2002) 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.