News release

HP Rises to Tie for No. 1 Position in Worldwide Server Revenue; Maintains Strong No. 1 Position in Unit Shipments

Company No. 1 in Linux, Windows and Mid-range UNIX Market Share

PALO ALTO, Calif., Aug. 30, 2002

HP (NYSE:HPQ) today announced that it has tied for the No. 1 position in worldwide server revenue with 27.8 percent of the market for the second quarter of calendar year 2002 according to figures released today by market research firm IDC.⁽¹⁾ HP also maintained its strong No.1 position in unit shipments with 30.8 percent of total server unit shipments.

In addition to its total market share leadership, in the standard Intel® architecture server space, its HP ProLiant servers gained more share than any other vendor in the United States and moved HP into a tie for the No. 1 position. HP also continued its five-year track record of leadership in the mid-range UNIX® server market. HP claimed a strong 42.0 percent share of mid-range UNIX server revenues, which represents a 9-point gain year over year.

The IDC numbers also show that HP is gaining momentum in the high-end server market, propelled by strong sales of its HP Superdome server. According to IDC, HP increased its year-over-year high-end UNIX revenue market share by 5 points, overtaking IBM for the No. 2 spot. HP's strength in the overall UNIX market is demonstrated by its 31.1 percent revenue market share worldwide. In the United States alone, HP's total UNIX revenue grew 25.4 percent year over year resulting in a 9-point market share gain.

HP also maintained its long-standing No. 1 position in the rapidly growing Linux server market across all server platforms with 28.1 percent unit (30.2 percent revenue) market share. In the high-volume worldwide market for industry standard servers running Windows®, HP holds a commanding No. 1 position with 33.2 percent of the market, an almost 11 percentage point market share lead over its nearest competitor.

"The new HP is tracking well in this challenging economy and we're moving quickly and aggressively to maintain and grow our leadership position," said Janice Chaffin, vice president of enterprise marketing and solutions, HP Enterprise Systems Group. "We continue to refresh and enhance our product portfolio to offer customers even more choice and value for their IT dollars. Don't blink, we're moving fast."

HP again took top honors in high-performance technical computing according to IDC, with revenues from sales of PA-RISC, Alpha and Intel Itanium®-based systems representing 34.4 percent of the total market. The company was the revenue leader in both the enterprise segment with 48 percent and the departmental segment with 40 percent.

In emerging technology, HP was No. 1 in blade servers with 54.8 percent unit market share. In the 64-bit Itanium market, HP also holds a strong No. 1 position with 58.3 percent of the market in units.

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. More information about HP is available at http://www.hp.com.

⁽¹⁾ IDC Quarterly Server Tracker, Q2CY2002, published Aug. 30, 2002. IDC uses price ranges to differentiate servers into entry-level (up to $100,00), midrange ($100,000-$1 million) and high-end ($1 million and above).

Intel and Itanium are registered trademarks of Intel Corp. or its subsidiaries in the United States and other countries.

UNIX is a registered trademark of the Open Group.

Windows is a U.S. registered trademarks of Microsoft Corp.