News release

HP Holds No. 1 Worldwide Position for UNIX, Windows and Linux Server Revenues

Leads in Worldwide Standard Intel Architecture Servers, Blade and Itanium Revenue -- Ties in UNIX Revenue

HP (NYSE:HPQ) is the worldwide leader in total server shipments for calendar year 2002, according to figures released today by IDC. The market research firm also reported that HP led the world in standard Intel® architecture server (SIAS), blade and Itanium® server revenue and shared the lead for UNIX® revenue for this same period. Additionally, for the fourth quarter of 2002, IDC found that HP maintained the No. 1 position in SIAS and Linux and tied for the No. 1 position for UNIX server revenue.⁽¹⁾

"HP's continued No.1 position in UNIX, Windows and Linux servers underscores our ability to offer customers choice and flexibility with the broadest, most robust server line in the industry," said Peter Blackmore, executive vice president, HP Enterprise Systems Group. "Further, enterprise customers are choosing HP for emerging categories such as blade and Itanium servers -- with their innovative management and utilization features -- as the right ingredients for an IT infrastructure that can be easily adapted to respond to business changes."

HP led the server market with 30.2 percent total server units shipped in the fourth quarter of 2002. The IDC Q4 2002 server market report found HP is No. 1 in the following key server market segments:

• HP maintained its leadership in Windows®, Linux and UNIX servers procuring 31.1 percent revenue for the fourth calendar quarter of 2002.
• HP led the world in SIAS -- offering customers the outstanding price/performance advantage that only industry-standard HP ProLiant servers can deliver -- procuring 33.0 percent revenue and 32.4 percent total units shipped for fourth quarter 2002 and gained revenue share sequentially in Q4 2002 in North America;
• HP held the No. 1 position in high-end, midrange and overall UNIX revenue:
  • High-end UNIX server revenue grew sequentially 18 percent during the fourth calendar quarter of 2002 at the expense of IBM, which declined 60 percent. This growth was driven by the success of HP Superdome servers in IT consolidation, data warehousing and high-performance technical computing;
  • For the sixth year in a row, HP led the world in midrange UNIX server revenue for the fourth quarter and the calendar year 2002, shipping more systems than IBM and Sun Microsystems combined in the fourth quarter of 2002;
• HP's Itanium 2 system shipments increased sequentially 364 percent, demonstrating increasing acceptance of both technical and commercial customers;
• Highlighting HP's technical innovation and complete blade-based solutions, HP continued to drive the market for ProLiant BL blade servers, with 41 percent unit shipments -- greater than its nearest three competitors combined in calendar year 2002;
• Showcasing HP's depth of Linux-based solutions, HP continues to lead the world in Linux server revenue with 30.8 percent market share and total units shipped at 29.5 percent for the fourth quarter of 2002 at the expense of Dell, which experienced a sequential revenue share decline over the last three quarters.

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

⁽¹⁾ IDC Worldwide Quarterly Server Tracker, Q4CY2002, February 2003. IDC uses price ranges to differentiate servers into entry-level (up to $100,000), midrange ($100,000-$1 million) and high-end ($1 million and above).

Further information is available at http://idctracker.com/. Unless specified as customer revenue, all other figures are factory revenue. Data includes that for Compaq Computer Corp., which operated as a separate entity for a portion of 2002.

UNIX is a registered trademark of the Open Group. Intel and Itanium are registered trademarks of Intel Corp. or its subsidiaries in the United States and other countries. Windows is a registered trademark of Microsoft Corp.