News release

HP Announces Global Realignment of Enterprise Business

New Organization Better Positioned to Leverage HP Enterprise Portfolio, Pursue Growth Markets and Expand Customer Reach

HP (NYSE:HPQ) today announced a staffing and operational realignment within its Enterprise Systems Group (ESG) intended to accelerate long-term growth and streamline operations across HP Services and ESG.

The realignment builds on HP's successful integration, cost structure and customer loyalty work since the merger, which has already improved ESG's profitability and established HP as the top global provider of servers, storage and management software.

The changes to ESG include the following:

• Creation of one hardware business unit, now called Enterprise Storage and Servers (ESS), under Senior Vice President Scott Stallard. ESS consolidates the existing units of Business Critical Systems, Industry Standard Servers and Network Storage Solutions into one global business unit for streamlined hardware operations.
  
  Stallard, who continues to report to ESG Executive Vice President Peter Blackmore, currently runs HP's Business Critical Systems unit and has extensive background in industry standard servers, UNIX® and networking. Four product line vice presidents will report to Stallard: Rich Marcello for Business Critical Systems; Brad Anderson for Industry Standard Servers; Bob Schultz for Network Storage Solutions; and Pauline Nist for NonStop Servers.
  
  
• Creation of a Business Management and Operations group, with Howard Elias appointed as senior vice president. Elias will now be responsible for managing strategy, planning and business operations for ESG. The following functions will report to Elias: strategy and business planning, enterprise marketing, operations, information technology, business management and governance, and total customer experience and quality.
  
  ESG Supply Chain and Operations, Information Technology and Marketing report jointly to their functional executive vice presidents -- Jeff Clarke, Bob Napier and Mike Winkler, respectively -- and also to Elias in his new Business Management and Operations position. Also continuing to report to Blackmore, Elias is currently responsible for Network Storage Solutions, where under his leadership, HP has grown to be the leading provider of storage solutions worldwide.
  
  
• Formation of a Global Accounts role, responsible for working with the regions to establish a strategy and support for strong growth in global accounts, with Airton Gimenes appointed as senior vice president. Gimenes is currently senior vice president of HP Services Sales and will now report to both Blackmore and HP Services Executive Vice President Ann Livermore. Gimenes will establish a multi-year transformational vision and strategy for growth in corporate accounts, working across HP's two business units for greater portfolio leverage.
  
  
• Mary McDowell, who currently leads Industry Standard Servers, has chosen to take a short sabbatical and plans to return to a senior vice president position. McDowell has led ISS to considerable success as an innovator of new categories such as blade servers and server management software, and the group is well positioned for sustained market leadership.

There will be no changes to the Software Global Business Unit, run by Senior Vice President Nora Denzel, or the regional sales leadership teams in the Americas, Europe, the Middle East and Africa, Asia-Pacific or Japan. All continue to report to Blackmore.

"HP's enterprise business is significantly stronger than one year ago, and these changes will help us move faster and deliver better value to our customers," said Blackmore. "CIOs are increasingly seeking technology partners that can provide integrated solutions and better return on IT. Today's changes will allow us to focus on delivering a leveraged portfolio and take a more holistic systems view of our enterprise business."

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.

UNIX is a registered trademark of the Open Group.