News release

HP Teams with Ericsson to Deliver Unified Communications Solution for Businesses

Solution enables businesses to integrate IT and telephony systems and offer combined voice and data services to employees

Targeted at large as well as small- and medium-size businesses, the solution enables employers to provide seamless voice and data services for employees, whether they are in the office or traveling. Employees also can reduce the number of devices they use and can have a single phone number for both mobile and fixed calling.

The converged solution combines multiple, high-overhead systems such as deskside voice services (for example, voicemail) and deskside data services (for example, e-mail and instant messaging) regardless of the networking technology. It also integrates mobile services that are provided through wireless operators.

Demonstrating the value of the HP Adaptive Enterprise strategy to dynamically link business processes with IT, the standards-based, modular solution delivers specific benefits for enterprises, including predictable traffic costs and reduced total cost of ownership, increased manageability and the ability to provide employees with new productivity-enhancing services based on Internet Protocol (IP) technology.

Mobile operators play a vital role in this offering. For example, the solution allows mobile voice and data calls to be routed through a central switch, which is either IP-based or circuit-switched, thus allowing flat-rate bulk billing arrangements. This can make costs lower and more predictable for mobile operators.

"Unified communications has long been an important objective for businesses, and Ericsson and HP have taken a huge step forward toward this goal," said Sebastiano Tevarotto, vice president and general manager, Network and Service Provider Solutions, HP Services. "This open, modular solution illustrates how the HP Adaptive Enterprise strategy can help enterprises evolve their communications systems to take advantage of IP technologies."

"HP and Ericsson have complementary strengths in the telephony and enterprise markets, and this new solution demonstrates how the two companies can cooperate to deliver real business value for customers anywhere in the world," said Mats Dahlin, president, Ericsson Enterprise AB.

Ericsson and HP combine strengths and global reach

The HP unified communications solution leverages advanced PBX (private branch exchange) solutions with new IP-based technologies, without compromising flexibility, availability, redundancy or security. It includes the Ericsson MD110 Convergence Communication System and applications, HP OpenView network management software and industry-standard HP ProLiant servers running both Windows® and Linux.

HP Services provides the consulting and integration support to help enterprises build the solution into their existing infrastructures.

The HP solution is fundamentally modular, so an enterprise can begin with its existing infrastructure and add components as needed, without disrupting operations. It also enables a positive return on investment because 50-75 percent of the needed components are already in place. Also, since the solution is standards-based, it is an attractive environment for software developers to create innovative communications applications.

The solution initially is expected to be available in Europe during the second quarter and in the rest of the world by the end of the year.

HP Sweden demonstrates value of unified communications solution

In a production deployment in HP's 20 offices throughout Sweden, the solution linked mobile voice and data services with fixed office services, thus enabling a single, consolidated inbox for voicemail and e-mail. HP reduced the number of PBXs, reduced end-user devices to one per employee and managed more efficiently its wireless airtime costs with the local operator. Overall, HP reduced communications costs by 38 percent. HP plans to roll out the solution at its locations in other European countries.

The solution will be demonstrated at the HP stand at 3GSM World Congress in Cannes, Feb. 23-27, in Hall 1 at Stand A-10, in the Palais des Festivals.

About Ericsson

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.

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 (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

Intel is a registered trademark of Intel Corp. or its subsidiaries in the United States and other countries. Microsoft and Windows are U.S. registered trademarks of Microsoft Corp.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of services and their feature sets; the challenge of managing asset levels, including inventory; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003, and reports filed after the form 10-K. HP assumes no obligation and does not intend to update these forward-looking statements.