News release

HP Takes No. 1 Position in Customer Satisfaction Study on Servers

HP surpasses Dell as top Intel server vendor, garnering high marks for server management and customer loyalty

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HP has secured the No. 1 ranking in customer satisfaction among vendors of Intel®-based servers in the first quarter of 2004, according to newly released results from Technology Business Research, Inc.'s ongoing IT customer satisfaction study.⁽¹⁾

The study of 617 U.S. and Canadian enterprise businesses confirmed that, in the competitive Intel-based server market, HP showed significant improvement over Dell in server management tool satisfaction and continued strong customer loyalty. HP has held the top rating for loyalty in the Intel server space for the last three quarters. Also contributing to HP's new leadership position this quarter, customers ranked HP tops in hardware quality/reliability, phone support, on-site support and model configuration consistency.

"HP has consistently performed well with regards to server management features. Traditionally there are many attributes that determine overall customer satisfaction," said Ramunas Svarcas, director of Custom Research, TBR. "For HP in particular, server management is strongly correlated with customer satisfaction and this had a positive impact on its overall rating this quarter. With the increasing demand for simplified solutions and more recently for server consolidation, TBR believes software tools for server management may become increasingly relevant in the marketplace."

TBR reported that HP's index moved ahead of Dell's by a "comfortable margin" of 1.9 percent to take the No. 1 ranking while Dell dropped to No. 2. IBM tied with Dell for the No. 2 spot.

"This quarter's TBR study validates HP's strategy to deliver high technology at low cost with a superior customer experience," said Brad Anderson, senior vice president and general manager, Industry Standard Servers, HP. "Our standards-based server portfolio enables us to deliver differentiated value through capabilities such as management and virtualization. It's clear that our approach is paying dividends for our customers."

The full report can be accessed online at www.hp.com/hpinfo/newsroom/press/2004/tbr_5-4-04_serv104.pdf.

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 four fiscal quarters ended Jan. 31, 2004, HP revenue totaled $74.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at www.hp.com.

⁽¹⁾ Technology Business Research, Inc., "Corporate IT Buying Behavior & Customer Satisfaction Study: Intel-based Servers – First Quarter 2004," May 4, 2004.

Intel is a registered trademark of Intel Corp. or its subsidiaries in the United States and other countries.