News release

HP Ranks No. 1 in Worldwide Total Disk Storage Systems for 10th Consecutive Quarter

HP continued its No. 1 position in worldwide total disk storage systems factory revenue for the 10th consecutive quarter, with 23.6 percent market share and revenue growth of 2.4 percent quarter-over-quarter, according to market data released today by IDC.⁽¹⁾

Other highlights for the third quarter of 2004 included:

• HP tied for the No. 1 position in the open storage area network (SAN) market with 27.6 percent market share and posted a revenue share gain of 1.4 points quarter-over-quarter. HP also holds the No. 1 market position in total open SAN unit shipments. During the quarter, HP shipped more SAN units than the next two highest competitors combined. This is consistent with HP's strategy and new product offerings focused on increasing the accessibility of SANs for small and mid-size business customers.



• In network attached storage (NAS), an emerging, high-growth market, IDC reported that HP again posted the strongest quarter-over-quarter and year-over-year revenue growth among the reported vendors with 20.2 and 55.9 percent growth, respectively. HP also posted a revenue share gain of 1.8 points year-over-year - the largest of any reported vendor.

During the quarter, HP delivered key new StorageWorks products and has taken a number of steps to further strengthen its market leadership position. Highlights for the quarter include:

• Established a market leadership position in an emerging technology with the introduction of the HP StorageWorks Grid strategy and roadmap.



• Expanded R&D efforts for the company's Information Lifecycle Management and compliance initiatives.



• Continued to increase the number of storage sales specialists.



• Introduced the HP StorageWorks XP12000 disk array - delivering breakthrough performance, capacity and business-critical functionality to the high-end market.



• Introduced the HP StorageWorks Modular Smart Array 1000 Small Business SAN Kit - an entry-level SAN solution providing small business customers with all-in-one pricing and packaging for breakthrough simplicity in SAN acquisition, configuration and installation.



• Hosted approximately 7,500 HP customers and partners at HP StorageWorks conferences in the United States, Europe and Asia.

According to HP's reported financial results for its fourth fiscal quarter ended Oct. 31, 2004, these efforts helped the HP StorageWorks division grow storage revenues by 16 percent quarter-over-quarter.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended Oct. 31, 2004, HP revenue totaled $79.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

⁽¹⁾ Source: IDC "Worldwide Quarterly Disk Storage Systems Tracker," December 2004.