News release

HP OpenView Solutions Selected by Logical to Improve Customer IT Operations

PALO ALTO, Calif., July 16, 2002

HP (NYSE: HPQ) today announced that its HP OpenView solutions are being deployed worldwide in all areas of Logical's e-Business Operations Centers (e-BOC). An international e-business integration and managed service provider with operations in 10 countries, Logical designs, deploys and manages customized solutions for customers ranging from midsize to Fortune 500 leaders. Logical's e-BOC services provide organizations with a source for managed services via a single operations center.

Logical is using a variety of HP OpenView solutions such as Network Node Manager, OpenView Operations, Service Information Portal, Omniback II, OpenView Reporter, database and application smart plug-ins (SPIs), Measureware, Perfview and Glanceplus. These solutions, which are part of an integrated support solution that includes ticketing, reporting, alerting, monitoring, and service level agreement management tools, will enable Logical to bundle service offerings in new ways to meet specific customer and market segment needs.

HP OpenView products are industry-leading tools that provide a basis for Logical's experts to deliver productivity gains in all areas of services management for their customers' environments. Additionally, the commonality of the HP OpenView solutions allows Logical to develop a worldwide knowledge base and share that information with customers to bring new offerings and solutions to market.

"HP provides us with the tools to be more responsive, predict potential problems with greater accuracy and provide enhanced reports and trends to our customers," said Bill Johnson, national director, managed services, Logical. "Through these activities, our goal is to provide our customers with monitoring and management services that lower the cost of technology management."

Logical provides support for the full spectrum of HP OpenView solutions across critical areas such as network, systems and storage management, element and performance management, as well as applications and Web services management. Additionally, Logical resells a wide range of HP OpenView solutions such as Network Node Manager, HP OpenView Operations and SPIs.

"Logical is uniquely positioned to use HP OpenView offerings in its own business, while operating software to provide its customers with a complete managed services solution," said Jim Grant, general manager, HP OpenView Business Unit. "Our customized suite of solutions enables Logical to offer the right services to meet their customer needs."

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 and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; the difficulty of keeping expense growth at modest levels while increasing revenues; 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. HP assumes no obligation and does not intend to update these forward-looking statements.