News release

HP Closes More Than $920 Million in IT Infrastructure Services Contracts

HP (NYSE:HPQ) today announced it has won more than $920 million in IT infrastructure services contracts over the past several months. New enterprise customers around the world have chosen HP to help them design, build, integrate, manage and evolve their IT infrastructures to reduce cost and to enable them to respond more quickly to ever changing business needs and market conditions.

"These recent wins are a sampling of the new business we have closed in the last several months and strengthen our position as the leader in IT infrastructure services," said Ann Livermore, executive vice president, HP Services. "Customers today require an infrastructure that is adaptive and flexible but that can be implemented with a cost-effective approach. We've proven we can evolve current environments and make them more adaptive while helping customers optimize their IT assets and link their business and IT processes."

The new contracts add to other recently announced wins for HP Services, which was recently ranked No. 1 in overall customer satisfaction by an Information Week Research survey of more than 700 IT professionals. Previously announced wins include a $1.5 billion managed services contract with Canadian Imperial Bank of Commerce (CIBC) and significant wins with The Cat Group of France, Critical Path, the Dallas Independent School District, the U.S. Department of Veteran Affairs, Empresas Públicas de Medellín (EPM) of Colombia, the Katy Independent School District (Texas) and Microsoft. "Following its integration of Compaq, HP Services has moved quickly to consolidate and solidify its overall strategy around adaptive infrastructures," said John Madden, senior analyst, Summit Strategies. "HP's strengths in managed services, Microsoft technologies and consulting and systems integration will allow the company to increase its momentum in the coming year."

The new customers announced today span a variety of worldwide regions and industries, including financial, telecommunications and government. Some of the new IT services wins are Michelin in Latin America, the Ministry of Finance in Slovakia, the Swedish Parliament, USG and the Washington Department of Revenue.

In Europe, HP has been chosen to provide the information system for the State Treasury of Slovakia. This system is designed to bring more transparency and efficiency to the finance management of the Slovak Republic and is one of the critical success factors for European Union integration in the public finance management and control area.

Serving more than 3,000 users around Slovakia, the system includes software for expenditure management, financial planning, accounts management, accounting, payments, asset management and liquidity and debt management. HP Services also will design and implement a complete security solution.

In addition, HP has signed a new four-year agreement to provide the Swedish Parliament with a secure IT and communications infrastructure. The infrastructure is designed to provide the 360 members of the Swedish Parliament with mobile, secure and standardized access to the parliament's IT network and databases from anywhere in the country. The solution, which is designed around HP Mobile Open roaming, contains everything from broadband communications and mobile phones to portable computers with smart card access and printers connected to centrally placed HP ProLiant servers.

In Latin America, Michelin, a worldwide tire manufacturer, turned to HP for its complete computing-on-demand outsourcing model for IT. "HP's best assets are the people working for the company and their attitudes," said Gilson Santiago Freitas, information technology director, Michelin South America. "Also, the single point of contact from HP covering most of South America is a great advantage. With HP, the technology is no longer a problem for our company."

The Washington Department of Revenue has turned to HP Services' Enterprise Microsoft Practice to help it develop database technologies. These will form the basis for the agency's strategic initiative to improve its tax collection and enforcement efforts. This solution is being developed with industry-standard HP ProLiant servers and the Microsoft® SQL Server.

"We need an innovative data warehousing solution that can help us focus our enforcement efforts where they are most needed to produce the greatest results for today and tomorrow," said Tremaine Smith, special assistant to the director, Washington Department of Revenue. "HP understands the potential this technology holds for increasing our efficiency and effectiveness."

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 Corporation on May 3, 2002. More information about HP is available at http://www.hp.com.

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