News release

HP Expands Network Storage Services Portfolio, Enhances Pay-per-use Solution for Disk Arrays

New Offerings Provide Enterprises Customized, Scalable Solutions for Optimizing Storage

HP (NYSE:HPQ) today announced five new services to help companies optimize and more effectively manage their complex, heterogeneous storage environments. In addition, HP announced enhancements to its Pay-per-use solution for HP StorageWorks XP disk arrays, allowing customers to pay based on actual storage capacity usage.

The new network storage services include: HP Data Replication Solution; HP Disaster Tolerant Management; HP Storage Optimization Assessment; HP Data Sanitization; and HP Storage Area Management Solution.

"Companies are demanding more from their IT partners, and we are delivering more with today's announcement," said Gary Wright, vice president, network storage services, HP Services. "Increasing agility and return on IT investment will continue to be critical business imperatives moving forward, and HP, with its Adaptive Enterprise strategy, is strongly positioned to help companies create more business value with services such as these."

HP Data Replication Solution Service

The HP Data Replication Solution service allows customers to manage and control their data replication needs by implementing a customized, fully integrated and operational data replication solution using HP Continuous Access and Business Copy technologies. HP provides best practice implementation and integration expertise for the installation and configuration of customers' data replication products and tightly integrates these products into the storage management environment.

With this service, customers can experience an accelerated return on IT investment and benefit from a simplified solution that can be scaled up or down based on business needs. The service delivers enhanced availability and disaster recovery protection and helps enterprises to become more responsive to change by better aligning business with IT.

HP Disaster Tolerant Management Service

In the event of a disaster, maintaining data availability and integrity can be critical to a company's survival. The HP Disaster Tolerant Management service helps customers improve the effectiveness of their data center disaster tolerant strategy by reducing downtime and stabilizing recovery processes.

The completely customized service is unique in that it extends across the entire IT environment -- encompassing facilities, storage, servers, networks and application management -- to address the entire disaster tolerant infrastructure, speed recovery times and simplify day-to-day operations.

The HP Disaster Tolerant Management service helps customers implement effective recovery solutions based on the HP StorageWorks Continuous Access Enterprise Virtual Array, a controller-based application that performs real-time data replication between arrays. This tightly integrated service provides low-risk disaster-tolerant solutions for the most demanding environments.

HP Storage Optimization Assessment Service

The HP Storage Optimization Assessment service provides expert storage capacity and performance analyses, optimization recommendations and planning assistance to help customers realize higher returns on their storage investments.

Customers are provided with solution recommendations that can help them increase data availability, storage efficiency, utilization levels and network storage performance, while decreasing wasted capacity and bandwidth. Businesses are thus able to become more agile and can plan more effectively for future capacity and performance requirements.

HP Data Sanitization Service

The HP Data Sanitization service safeguards confidential business information as the IT infrastructure evolves. Customers are able to maintain increased control of confidential information to the end of its lifecycle.

The service is designed to eliminate the possibility that sensitive data can be retrieved or reconstructed from de-commissioned storage devices. It addresses this potentially serious yet often overlooked security risk by removing confidential data from hardware after system upgrades, consolidations and storage platform migrations.

HP is the only vendor that currently provides data sanitization as a standard service offering. The HP Data Sanitization service is available for UNIX® and Windows®-based computing platforms using HP StorageWorks disk-based storage devices.

HP Storage Area Management Solution Service

Taking control of storage resources is critical to cutting costs and establishing a storage environment better aligned with business goals. The HP Storage Area Management Solution service enables companies to have better control of their increasingly complex storage environments, while being able to increase scalability, availability and flexibility. It does this by providing expert project management, design activities, environmental analysis, business process and reporting needs analyses.

HP Services storage consultants leverage their in-depth knowledge of the HP OpenView Storage Area Manager -- an integrated suite of storage area network management software products that support HP and non-HP storage devices -- to deliver a tailored solution for each customer.

Pay-per-use Solution for HP StorageWorks XP Disk Arrays

Pay-per-use on HP StorageWorks XP 128 and 1024 disk arrays lets customers pay a fixed monthly fee plus a variable fee that is based on metering the actual usage of their disk storage systems.

Updates to the solution include a refined pricing model and enhanced metering methodology. Designed to scale right along with a company's IT environment, the solution takes the guesswork out of forecasting anticipated storage needs, aligns costs with storage usage and eliminates large upfront storage investments. This can improve service levels by providing reserve storage capacity that is accessed when needed, ensuring less frequent procurement and simplifying capacity planning.

The Pay-per-use solution for StorageWorks XP is an offering in HP's industry-leading On Demand solutions portfolio and is delivered through HP Financial Services. HP was the first company to introduce a pay-per-use selling model. Related HP storage products, software and services are also available via this model.

"By helping customers improve alignment between business and IT through innovative, flexible and customized offerings, HP is enabling them to reduce complexity and optimize their assets for today and tomorrow," said Wright.

More information on the HP storage services described above is available at www.hp.com/hps/storage.

More information on HP On Demand storage solutions, including the Pay per Use solution for StorageWorks XP, is available at www.hp.com/go/ondemand.

About HP

HP delivers vital technology for business and life. The company's solutions span IT infrastructure, personal computing and access devices, global services and imaging and printing for consumers, enterprises and small and medium business. For the last four quarters, HP revenue totaled $70.4 billion. More information about HP is available at http://www.hp.com.

UNIX is a registered trademark of the Open Group. Microsoft and Windows are U.S. registered trademarks of Microsoft Corp.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development and performance of these products and services may not proceed as planned; 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 quarterly report on Form 10-Q for the quarter ended January 31, 2003, and subsequently filed reports. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP assumes no obligation to update these forward-looking statements.