News release

HP Leads in Worldwide Server Revenue in Fastest Growing Market Segments -- No. 1 in x86, Linux, Blades and Windows Servers

Driven by continued strong customer demand for its ProLiant servers, HP (NYSE:HPQ) today reaffirmed its No. 1 position worldwide in the markets for x86, blades, Linux and Windows® servers - the fastest growing segments of the server market -- both in terms of factory server revenue and unit shipments, according to figures released today by IDC.⁽¹⁾

HP also continued its strong position in the UNIX® server market and remained No. 1 in terms of worldwide total server shipments, with 30.8 percent market share for the second calendar quarter of 2003.

HP held the following market leadership positions according to numbers released by IDC:

• HP is No. 1 in the worldwide x86 server market, both in terms of factory revenue and unit shipments, driven by its industry-standard Intel®-based HP ProLiant servers;
  
  
• Capitalizing on the continued strong growth of Linux, HP held a firm lead in worldwide server revenue for the Linux market with 28.9 percent market share;
  
  
• HP ProLiant BL blade servers lead in worldwide revenue and shipments for the x86 server blades market, with 31 percent market share in terms of unit shipments and 32.9 percent of factory revenue (an increase of more than 10 percentage points from the previous quarter);
  
  
• Driven by brisk HP Superdome server sales, HP leads in worldwide revenue for high-end enterprise servers (servers priced $500,000 or more) with 29.7 percent. HP also tied for the lead in the UNIX midrange enterprise server market (servers priced from $25,000 to $500,000) with 33.7 percent share of factory revenues worldwide; and
  
  
• HP is No. 1 in the worldwide Windows server market segment with 33.6 percent share of factory revenue, based on record ProLiant server sales worldwide during the second calendar quarter of 2003.

"HP ProLiant systems remain, quarter after quarter, the world's best-selling industry-standard servers, which shows that customers demand standards, value and innovation," said Scott Stallard, senior vice president and general manager, HP Enterprise Storage and Servers. "Together with the new 64-bit Integrity systems, HP offers the strongest industry-standard based server lineup of any vendor in the marketplace today."

From the industry-standard ProLiant and Integrity servers, to the high-end Superdome and NonStop systems, HP offers enterprise customers the broadest server portfolio in the industry, along with the industry's leading storage and management solutions.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing for consumers, enterprises and small and medium businesses. For the last four quarters, HP revenue totaled $71.8 billion. More information about HP is available at http://www.hp.com.

⁽¹⁾ IDC Worldwide Quarterly Server Tracker August 2003, based on factory revenue.

Windows is a U.S. registered trademark of Microsoft Corp. Unix is a registered trademark of the Open Group. Intel is a registered trademark of Intel Corporation or its subsidiaries in the United States and other countries.