News release

HP Announces Worldwide IT Services Customer Wins

HP Services lands deals with leading consumer brands, including DHL, Jim Beam and Sanyo

HP today announced that it has signed multiple information technology services wins with worldwide customers in the consumer electronics, healthcare, manufacturing, retail and telecommunications industries.

The global customer contracts build on HP Services' record revenue growth - a 13 percent increase year-over-year, or three times the market growth rate - as reported last month in HP's financial results for its fourth fiscal quarter ended Oct. 31, 2004.

HP will provide an array of consulting and integration, customer support and managed services to the following clients: Carl Zeiss AG, Central Bank of Montenegro, Deutsche Flugsicherung GmbH (DFS), DHL, Jim Beam Brands Co., Neuf Telecom, Oklahoma Department of Human Services, Sanyo Electric Company, Ltd., the city of St. Cloud (Stevens Plantation), Fla., and TDC.

"Customers around the world continue to tap HP for critical IT outsourcing, consulting and support services to help their businesses become more agile," said Ann Livermore, executive vice president, Technology Solutions Group, HP. "With more than 65,000 professionals and a broad set of global, multi-vendor capabilities in our HP Services organization, we're helping customers across a wide range of industries become Adaptive Enterprises, where business and IT are synchronized to capitalize on change."

Examples of HP customer wins:

Jim Beam Brands Co.

Jim Beam Brands Co. is the spirits and wine business of consumer products company Fortune Brands, Inc (NYSE:FO). Jim Beam Brands Co. turned to HP to enhance its information sharing abilities between operations, sales and customers. Jim Beam Brands Co. wanted to upgrade its current e-business infrastructure to support newly merged entities as well as to cater to any potential future mergers or acquisitions.

To meet this need, HP provided a Microsoft® .NET solution for Internet-enabled business, allowing Jim Beam Brands Co. to deliver enterprise content to multiple business audiences through an integrated enterprise Internet, extranet and intranet platform. By integrating several .NET products into a single enterprise, Jim Beam Brands Co. has a resource that combines personalization, analytics, collaboration, security and Web services.

"We were looking to upgrade our e-business infrastructure and develop a comprehensive Web services environment," said Rudy Mascorro, vice president, IT, Jim Beam Brands Co. "The strengths of HP's products and services proved to deliver a viable solution for our company."

Sanyo Electric Company, Ltd.

Sanyo Electric Company, Ltd. is reinventing itself as a 21st century entity, leaving behind old patterns rooted in the 20th century. Sanyo looked to HP for IT consolidation and reform of its entire IT infrastructure.

DHL (Czech Republic)

In 2003, Deutsche Post World Net integrated the operations of DHL, Danzas and the Deutsche Post Euro Express group of companies to offer a complete portfolio of integrated express and logistics services, under the worldwide brand name DHL.

DHL previously ran its applications from the United Kingdom, but is relocating to a new data center in Prague. The new data center requires a new infrastructure implementation. HP consulting and integration and customer support teams are involved in the plan, design and implementation of the new data center and related infrastructure.

Carl Zeiss, AG

Carl Zeiss, AG, the global leader in optical and opto-electronic industries, has further expanded its IT services relationship with HP based on previous successful experiences.

Zeiss' plans over the next six years call for HP Services to support the Zeiss headquarters in Oberkochen and other divisions across Germany with a wide array of services for infrastructure and application management. This includes complete desktop management (with a user help desk) for 6,800 clients, the management of approximately 300 servers and support for all applications, including SAP R/3, Lotus Notes and CAS. HP also will take over IT hardware responsibilities and existing third-party contracts, and a total of 150 employees will transfer from Carl Zeiss to HP.

Central Bank of Montenegro

Working with CMA Small Systems AB, HP and CMA will provide the Central Bank of Montenegro with a new automated inter-banking payment system, supporting Montenegro's economic momentum-building efforts. The HP and CMA solution will enable the bank to process Real Time Gross Settlements for high-value payments, as well as bulk payments that are processed under a separate automated clearing house system.

Under the agreement, HP will develop the Central Bank of Montenegro's IT infrastructure for the new solution and oversee the management of the project. CMA will implement, customize and integrate the central payments software. CMA will also train the bank's staff of the new system. This win underscores HP and CMA as major suppliers of choice in inter-banking payment systems in the emerging economies of Europe, Middle East and Africa.

DFS

HP is working with the German air traffic control authority, Deutsche Flugsicherung GmbH (DFS), to update its existing technology infrastructures and develop new services offerings in regional air traffic control centers throughout Germany. Specifically, HP will implement an even more powerful, scalable and up-to-date IT infrastructure for the DFS that will significantly benefit air traffic controller working position systems. The project involves HP AlphaServers ES47 and DS25 based on Tru64 UNIX® and HP StorageWorks EVA3000 storage systems.

Neuf Telecom

Neuf Telecom, a leading high-speed ADSL service provider in France, has chosen HP to put in place its new platform dedicated to Internet services for its enterprise customers. HP Services will be in charge of implementing the new system, consolidating the three existing platforms and later migrating customers to this platform.

Oklahoma Department of Human Services

Oklahoma Department of Human Services is designed to help individuals and families in need lead safer, healthier, more independent and productive lives.

Oklahoma Department of Human Services has selected HP as the primary hardware and services provider for migration to Windows® Server 2003 and the Microsoft .NET Framework. HP Services will be providing consulting for Active Directory, which will assist the state in organizing their overall architecture and assist with plans for a centralized environment.

The city of St. Cloud (Stevens Plantation)

The city of St. Cloud, near Orlando, Fla., is transforming a 590-acre family-owned ranch into a mixed use business district and residential area called the Stevens Plantation. To attract professionals, the city plans to provide broadband Internet access to commercial areas and all homes at no additional charge using wireless technology. To attract visitors to the city, the public wireless LAN access is expected to include several locations in downtown St. Cloud. HP Services is contracted to install an 802.11 wireless system covering the entire site.

As part of this project, HP has already implemented at no charge a wireless HotZone which covers 12 square blocks of historic downtown. Conceived as an economic development and growth planning project, the Stevens Plantation development has been designed to enhance the city job base and to fund and build much needed transportation.

"We are excited to make a wireless local area network available to our residents," said Glenn Sangiovanni, Mayor of the city of St. Cloud. "With the help and support of HP, the city of St. Cloud is well on its way to provide high-speed wireless Internet access to all citizens in the city, fulfilling our vision of providing universal connectivity to all residents and visitors."

TDC

HP has signed a deal with Danish telecommunications company TDC concerning server consolidation and fine tuning of the company's server infrastructure. HP will be operating as the sole supplier of UNIX, Windows and Linux servers and associated services for TDC data centers, resulting in a reduction of TDC's total cost of ownership by an estimated 25 to 30 percent. Specifically in phase one, HP will be responsible for the architecture, design and server consolidation of 1,500 Windows and 600 UNIX servers together with ITSM processes, internal accounting models and business continuity services.

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.

Microsoft and Windows are U.S. registered trademarks of Microsoft Corp. UNIX is a registered trademark of The Open Group. Linux is a U.S. registered trademark of Linus Torvalds.

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.