News release

HP No. 1 in Worldwide Server Shipments for Sixth Consecutive Quarter

For the sixth consecutive quarter, HP (NYSE:HPQ) leads in worldwide server unit shipments, with 30.6 percent of the market, according to figures released today by IDC.⁽¹⁾ Almost one of every three servers shipped is from HP.

HP held the No. 1 revenue share position in Linux, UNIX® and Windows® servers, demonstrating its across-the-board server market strength.

In addition to continuing its longstanding lead in the worldwide x86 server market with the HP ProLiant line, HP retook the No. 1 position in x86 server revenue in the United States, with 32 percent market share. HP also retook the No. 1 position in worldwide UNIX server revenue, driven by its HP9000 and Integrity server lines.

HP holds the following market leading positions:

• HP is No. 1 in both revenue and unit shipments in the worldwide x86 server market with 31.9 percent market revenue share and 32.3 percent share of shipments.

• In the fastest growing server segment, HP increased its ProLiant blade server shipments 168.3 percent year-over-year and recently announced it has shipped more than 50,000 blade servers to date.

• HP's commanding lead in UNIX servers, with 33.8 percent share of market revenue, is driven by its No. 1 position in high-end and midrange UNIX server revenue worldwide. The company is the high-end leader for the fifth consecutive quarter. At the same time, outpacing all major competitors, HP's volume UNIX server revenue grew almost 20 percent over last year.⁽²⁾

• HP maintained its No. 1 position in EPIC servers, fueled by strong demand for HP Integrity servers running Linux, Windows and UNIX.

• HP is No. 1 in worldwide revenue and shipments for Linux servers, leading its nearest competitor by almost 9 percentage points in Linux revenue market share.

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 the fiscal year ending on Oct. 31, 2003, HP revenue totaled $73.1 billion. More information about HP is available at http://www.hp.com.

⁽¹⁾ IDC Worldwide Quarterly Server Tracker, Nov. 25, 2003.

⁽²⁾ IDC defines volume servers as less than $25,000, midrange servers as $25,000 - $499,999 and high-end servers as $500,000 or more.

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.