News release

$1 Billion in Worldwide Customer Deals Fuels HP Public Sector Momentum

Public sector customers around the world are voting for HP with their pocket books. HP today announced a significant number of new customer wins totaling more than $1 billion in new revenue as the company continues to build market momentum in the public sector, health and education market. These customer wins build on a track record of robust growth in the public sector that extends back to the founding of the company.

"For more than 60 years, HP has advanced a compellingly relevant value proposition for public sector customers around the world," said Mike Winkler, executive vice president, Customer Solutions Group, HP. "Today, HP is able to effectively focus the power of the broadest, deepest portfolio in the business as well as a complete investment strategy for the benefit of our customers."

Customers as diverse as the University of Wisconsin-Stout, Taiwan's Ministry of the Interior and the Supreme Court of Korea have selected HP for its global reach, industry-leading technology and deep knowledge of the public sector.

"Our customers know that HP understands and anticipates their needs," said Bill Mutell, senior vice president, Public Sector, HP. "We're applying HP's Adaptive Enterprise initiative and Smart Office framework to help government organizations, healthcare industry customers and educational institutions integrate their systems, data, processes, and people; provide secure access to data and applications on the go; and ultimately transform their processes and IT to better serve the public interest."

"Besides our family and our jobs, there are three areas of life that have the potential to impact people more than anything else," said Jim Weynand, vice president and general manager, Public Sector, Health and Education - Americas, HP. "Those are our relationships with those that educate us and our children, our healthcare providers and our local, state and national governments.

"HP has intensified its focus on these customers for two reasons. The first is that the public sector, health and education markets represent significant growth potential for HP because our capabilities match well with the needs of these customers. But the second reason is just as important to us: We believe that in helping these customers meet their goals, we also are helping to improve the quality of life for all. From the beginning of the company, that's been near the center of HP's corporate values."

Customers vote for HP

Among HP's recent customer wins are:

• Central Norway Regional Health Authority - With its partner, HP has won a project for the full development and operation of ICT solutions for the first construction stage of the new St. Olav's Hospital in Trondheim. The new hospital, which aims to have Norway's most advanced IT solutions, will utilize HP for both product and services. HP is responsible for the hospitals IT architecture, security solutions, testing, as well as design and implementation of a state of the art network.



• China State Post Bureau - HP, the leading technology supplier to China's postal market, has been selected by the State Post Bureau to provide the adaptive information technology (IT) infrastructure to renew its older IT frameworks across the country. The project includes the implementation of HP Superdome servers, HP StorageWorks Disk Array xp128 and HP StorageWorks MSL6030 Tape Library - forming the new IT engine to enable the State Post Bureau to better serve its customers.



• Directorate of Income Tax of India (DIT) has revamped its IT server infrastructure in three of its largest zones to cater to peak load requirements. HP and a partner worked together to develop the successful bid to migrate and upgrade DIT's existing application framework from IBM to HP UNIX® offerings. DIT's new IT infrastructure, built on HP's modular and industry standards-based solutions, enabled IT resources to be scaled up quickly and in a more cost-effective manner during peak periods.



• India Central Reserve Police Force - HP partnered to implement a $2.3 million Intranet project for India's Central Reserve Police Force (CRPF), its internal security armed organization. Called SELO, the new Intranet will enable CRPF to facilitate information sharing and communication among its members nationwide. This Intranet also provides a database of information about CRPF personnel from their enlistment to retirement. HP solutions deployed include: HP ProLiant servers, HP Compaq EVO d220 microtowers, biometric devices and printing solutions.



• Indonesia 2004 General Election - HP has been appointed to build the technology infrastructure for Indonesia's 2004 General Election. The contract was one of the largest government projects ever won by a single IT vendor in Indonesia. It included the establishment of a computerized administration system and complete data and business recovery center that encompasses 32 provinces and 4,934 districts.



• Italian Ministry of the Interior - HP is working with the Italian Ministry of the Interior in a project that will provide up to 70 million residents of Italy with Carta d'Identita Elettronica (CIE) over the next few years. These innovative identity cards will include both optical memory cards and microprocessors capable of allowing access to services, information and digital signatures. HP is building the IT structure capable of integrating, supporting, certifying and tracking each CIE and allowing authorized personnel access to documents in a controlled environment.



• Korea's Health Insurance Review Agency (HIRA) turned to HP to implement a data-warehousing project enabling the agency to better manage medical examination and treatment history of the insured. HP deployed two HP Superdomes and two HP rp8400 servers for the $1.5 million project.



• Korea's Ministry of Information & Communication (MIC) worked with HP to revamp the core banking system for Korea's Post Office. MIC chose HP's standards-based and modular IT infrastructure solutions over proprietary solutions offered by competitors as HP provided better scalability and lower total cost of ownership. HP deployed eight HP Superdome servers for the $2 million project.



• The National Institute of Education (NIE) in Singapore turned to HP to build a portal that will centralize staff communication as well as provide online services and applications. In building the $1.3 million staff portal, HP provided a comprehensive solution with its consulting and technical implementation services, servers and related infrastructure services as well as its partnering with leading portal and content management application partners. NIE staff can now access a personalized portal, where they can find individualized information and services related to work.



• Norwegian University of Science and Technology (NTNU) is working with HP to implement IT Infrastructure Library (ITIL) best practices as the foundation for IT service management. Equipped with the knowledge and insights gained during their HP ITIL training, IT staff are now in a position to achieve faster results using proven methods.



• SAF Center for Military Experimentation worked with HP to design and build a platform to serve as an experimental lab to showcase technologies developed in virtual battles and C4i labs. All divisions of the Singapore armed services will use the labs for experimenting with the latest command and control applications and technologies.



• Slovenia's National and University Library (NUL) is harnessing the capacity of the HP StorageWorks NAS B3000 system to upgrade accessibility to archived documents from two hours to a couple of seconds.



• The Supreme Court of Korea chose HP to upgrade its legacy IT infrastructure supporting population census and real estate registration. Working with partners, HP built the new $2.5 million IT infrastructure on two HP Superdome servers and two HP rp8400 servers with HP StorageWorks Disk Array xp1024.



• Taiwan's Ministry of the Interior (MOI) has engaged HP to help develop phase two of the Taiwan Residence Information System (TRIS-II). The new system will enable citizens and businesses to access detailed and accurate demographic information. HP and its partner won the $20 million project, which they built TRIS-II on HP servers, HP StorageWorks MSL6000 tape libraries, HP OpenView software and various partner solutions. On the front end, MOI chose HP notebooks and printers.



• Taiwan Tax Bureau chose HP and a partner to upgrade the IT infrastructure of its tax systems. The $12 million project involved the deployment of HP Superdome servers, HP StorageWorks Disk Array xp128 and HP workstations, desktops and printers. The Taiwan Tax Bureau has been an HP customer since 1999.



• University of Wisconsin-Stout: Founded in 1891, Wisconsin-Stout offers its 8,000 students an outstanding curriculum and facilities, and a faculty with a record of concerned service to students. The challenge was to maximize the infrastructure so that users had similar systems and support while providing optimal access in order to achieve an egalitarian community for both faculty and students. This would help to further enhance the student learning experience. The solution: 2,300 EVA nc6000 notebooks, HP Financial Services and HP CarePAQ. Now, incoming freshmen are equipped with notebooks including integrated wireless multi-ports. University of Wisconsin-Stout says, "HP's mobile technology is providing the tools our university needed to help transform the teaching/learning experience - taking the best of what we did before and looking at new opportunities to support and enhance the learning experience. We've been able to expand the concept of extending the classroom, increase and improve feedback critical to students' success and minimize frustration -by creating an infrastructure based on wireless connectivity."

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 July 31, 2004, HP revenue totaled $78.4 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

UNIX is a registered trademark of The Open Group.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever 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 and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected development, performance or rankings of products or services; statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the development, performance and market acceptance of products and services and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to HP's Quarterly Report on Form 10-Q for the period ended July 31, 2004 and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003. HP assumes no obligation and does not intend to update these forward-looking statements.