News release

HP Broadens Customer Choice with Expansion of Industry-leading Standards-based Server Portfolio

Major software providers, including Microsoft and Oracle, embrace HP's standards-based computing strategy, including support for x86 extensions

In a significant expansion of the market's broadest standards-based server portfolio, HP today announced its move into the x86 extensions arena. HP unveiled new industry-standard HP ProLiant servers featuring the AMD Opteron^TM processor. Additionally, HP outlined its plans to roll out Intel® Xeon® 64-bit extensions, in conjunction with Intel's roadmap for later this year, into current ProLiant models.

HP's strategy is to deliver the best choice and value to customers based on the complementary, industry-standard x86 and Itanium® architectures. HP ProLiant servers with x86 extensions offer customers running 32-bit applications increased performance and memory addressability. In addition, they provide customers with a path to more powerful, 64-bit computing to meet evolving business needs for greater processing power and performance. For customers that require a full, robust 64-bit environment, Itanium-based HP Integrity systems provide unmatched reliability, scalability and performance.

"Today's announcement builds on our consistent efforts to provide customers with the world's broadest standards-based server portfolio and industry-leading innovation in areas such as management, availability, security and virtualization," said Scott Stallard, senior vice president and general manager, Enterprise Storage and Servers, HP. "As a result of this strategy, HP ships more servers than anyone in the world and we intend to grow our leadership market position with servers based on x86 extensions, as well."

Enabling customers to standardize their infrastructures as part of the HP Adaptive Enterprise strategy, the new ProLiant servers with x86 extensions help lower costs and simplify change. Specifically, the systems provide greater memory capacity, price/performance and value to target markets including high-performance technical computing (HPC), government and financial services.

To help facilitate the go-to-market strategy of HP ProLiant servers using the AMD Opteron processor, HP and AMD also have entered into a multi-year purchasing, marketing and technology collaboration agreement (for details, see today's news release, "HP and AMD Form Relationship to Power Server Innovation and Performance").

"HP continues to invest in extending the reach of its x86 and Itanium architecture server portfolio," said Mark Melenovsky, research director, Global Enterprise Server Solutions, IDC. "The introduction of AMD Opteron processor-based ProLiant servers, the continuing innovation of Intel Xeon processors with x86-64 extensions and the broadening of the scalable Itanium product family provide HP customers a solution portfolio that runs the breadth of the server market, including Windows, Linux and UNIX environments on both 32-bit and 64-bit servers."

Industry-leading partners have embraced HP's standards-based server strategy and expect to enable their customers to take full advantage of 64-bit extension technology in the near future.

"Solutions based on ProLiant with x86 extensions and Windows Server 2003 provide a flexible path to 64-bit computing that customers demand," said Bob Kelly, general manager, Windows Server Product Group, Microsoft Corp. "The new ProLiant offerings enable HP and Microsoft to augment our portfolio of end-to-end standards-based Windows solutions, addressing customers' toughest x86 performance requirements. Beyond that, for the highest levels of scalability that customers require for the enterprise data center, Microsoft and HP continue to strategically invest in 64-bit solutions for Itanium-based Integrity servers."

"Oracle is excited about the launch of HP's new AMD Opteron processor-based ProLiant servers," said Doug Kennedy, vice president, System Platforms Division, Oracle Corp. "These new servers along with HP's Itanium-based Integrity servers, and HP's planned servers with Intel Xeon 64-bit extensions allow us to provide our joint customers more choice, performance and value. Oracle, in addition to supporting the Xeon and Itanium platforms, is committed to supporting the 64-bit AMD Opteron platform."

HP expands portfolio with AMD Opteron processor

For HP, the AMD Opteron processor provides features such as an integrated memory controller, 64-bit memory addressability, HyperTransport™ technology and full-speed memory controllers that improve 32-bit performance and price/performance for many two- and four-processor servers running compute-intensive applications. The processors also provide customers with the ability to migrate to 64-bit applications as their needs require.

In the first half of 2004, HP plans to offer two new AMD Opteron processor-based ProLiant servers:

• HP ProLiant DL145, a simple and affordable two-processor, 1U (1.75-inch) server that is ideal for HPC, Web serving, security and streaming media; and

• HP ProLiant DL585, a four-processor workhorse in a 4U (7-inch) design that is ideal for improving performance of memory-constrained applications, such as databases and Microsoft® Exchange environments.

In the second half of 2004, HP expects to ship an ultra-dense, two-processor HP ProLiant blade server that maximizes performance in dynamic data center environments and provides an efficient choice for HPC deployments.

Time-to-market plans with Xeon 64-bit extensions

HP will continue to provide its customers with more choice across its Xeon-based ProLiant line with 64-bit extensions. As Intel's new Xeon processors become available later this year, HP expects to deliver one- and two-way ProLiant servers with the new Xeon processors this summer, with four- and eight-way models expected next year.

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 last four fiscal quarters, HP revenue totaled $74.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

AMD, the AMD Arrow logo, AMD Opteron and combinations thereof are trademarks of Advanced Micro Devices, Inc. HyperTransport is a licensed trademark of the HyperTransport Technology Consortium. Intel and Itanium are registered trademarks and Xeon is a trademark of Intel Corp. or its subsidiaries in the United States and other countries. Microsoft is a U.S. registered trademark of Microsoft Corp. Oracle is a registered trademark of Oracle Corporation and/or its affiliates.

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 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.