News release

HP Eclipses Sun with $200 Million in Revenue in Competitive Wins in First Half of 2005

Migration programs help to nearly double revenue from same period last year

HP has generated more than $200 million in revenue from wins in 150 Sun customer accounts during the first half of calendar year 2005. These figures nearly double the revenue HP earned during the same period last year.

Customers who have recently transitioned to HP solutions include Samsung Security, Hyundai, Samsung Marine, Currenex, Schneider Electric, ABV, C.F. Martin & Co., Inc., Korean Ministry of Home Affairs, LS Group, Sogo, Tai Fook Securities, Korea HBW and KT-Trade.

"Given recent market share figures, customers are obviously concerned about the uncertainty of Sun's server roadmap," said Mark Hudson, vice president of marketing, Enterprise Storage and Servers, HP. "Customers are turning to HP for the value of stable, standards-based platforms with a broad portfolio of solutions for Linux, HP-UX and Windows operating systems. The breadth of HP platforms - servers, storage, management software and services - provides customers compelling choice for greater value and flexibility."

To drive this opportunity even further, HP has expanded its Sun Eclipse Program of services and incentives that help Sun customers move to HP solutions. The program now includes additional migration incentives, expanded channel programs, new Linux migration tools and additional support options to offer Sun customers more choice and flexibility to migrate to Linux, HP-UX 11i and Windows® on standards-based HP Integrity, BladeSystem and ProLiant servers.

Currenex, supporting $30 billion a day in currency trades, was one of many financial services entities that recently switched from Sun to HP.

"With currency markets changing so rapidly, there is not a millisecond to spare from bid placement to execution. Making the decision to switch from Sun to HP came down to one thing: performance," said Kevin Young, director of engineering for Currenex, the leading provider of foreign exchange and money market trading solutions to banks, funds, corporations and other market participants. "HP's systems immediately enabled a 30 percent reduction in execution time, giving us the confidence that migrating to HP was a competitive necessity."

The increase in Sun migration momentum demonstrates the strength of HP's Sun Eclipse Program, to which HP introduced the following enhancements:

• Worldwide, HP is offering a new suite of tools to assist customers with the transition of Solaris-based applications to Linux or HP-UX 11i on HP platforms. The code analysis methodology and the level of automation provided with the tools greatly simplify the porting process, reducing time to market of custom applications.



• HP channel programs have been extended to give partners access to sales tools, customer incentives and training to assist in migrating Sun customers to HP.

Schneider Electric believed in the financial merits of transitioning to HP. "From a business perspective, it made perfect sense. The cost of HP's proposed infrastructure was 24 percent less than the cost of upgrading our existing system," said Lee Chong Leong, regional MIS manager for Schneider Electric, a leader in electrical distribution, automation and control. "No matter how you upgrade a three-year-old system, the fact is the new infrastructure will always perform better. When you take this into consideration, the choice was obvious."

The new enhancements support HP's other current Sun migration programs:

• The Sun Solaris ISV Migration Program provides focused engineering and marketing efforts to assist in the delivery of Linux and open source ISV solutions on HP Integrity servers, HP ProLiant servers and HP BladeSystem solutions as an alternative to Sun's Solaris platforms.



• HP Integrated Support helps customers manage their heterogeneous environments at strict service levels under one HP service agreement. By aggregating support, HP reduces complexity and enables customers to improve IT service significantly while enabling customers to better manage costs. This can serve as a first step to transitioning to HP server solutions.

For "The Real Story" on Sun's x86 server prospects, see http://www.hp.com/go/sunx86realstory. More information about why more Sun customers are choosing HP is available at http://www.hp.com/go/maketheswitch.

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 July 31, 2005, HP revenue totaled $85.2 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

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 fiscal quarter ended April 30, 2005, and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2004. HP assumes no obligation and does not intend to update these forward-looking statements.