News release

HP Server Revenue Growth Outpaces All Other Major Vendors Worldwide

HP owns No. 1 position in worldwide UNIX, Windows and Linux revenue; No. 1 in worldwide server shipments for 14th consecutive quarter

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HP's server revenue growth outpaced that of all other major server vendors worldwide, according to third quarter 2005 figures released today by IDC.⁽¹⁾

HP was No. 1 in total worldwide revenue for the three major operating systems of Windows®, Linux and UNIX® individually as well as combined - together, these three operating systems comprise more than 95 percent of all servers shipped worldwide and 80 percent of all server revenue earned.

Additionally, HP had strong year-over-year revenue growth for x86 servers (up 22.7 percent), x86 blade servers (up 64.9 percent) and Intel® Itanium® 2 (EPIC)-based servers (up 74.6 percent).

"These numbers illustrate our continued execution and momentum across our entire server portfolio, including growth businesses such as HP Integrity and HP BladeSystem servers, where we saw especially strong results," said Mark Hudson, vice president of marketing, Enterprise Storage and Servers, HP. "This quarter's numbers show once again the value we are delivering to customers and their confidence in our offerings. No other vendor demonstrates such strength across leading operating systems and industry-standard architectures."

Highlights of the analyst firm's report include:

• HP was No. 1 in total UNIX server revenue worldwide, outpacing IBM and Sun;



• HP was No. 1 in total Linux revenue and units shipped, held the top position in x86 Linux server revenue and regained the top spot in x86 Linux server units shipped;



• HP was No. 1 in Windows revenue and units, growing faster than the market year-over-year in revenue and taking market share from IBM and Dell - both of which experienced year-over-year declines in revenue share;



• HP Integrity servers, using the Itanium 2 processor, were No. 1 in worldwide units and revenue in the worldwide EPIC server market with revenue growth of 74.6 percent year-over-year;



• HP was again No. 1 in x86 server units and revenue, outpacing the market in revenue growth year-over-year and taking share from IBM and Dell. This quarter marks the 37th consecutive quarter of market share leadership for the HP ProLiant family⁽²⁾ of servers; and



• In x86-64 servers, HP was again No. 1 in server units and revenue and the HP ProLiant server family shipped 24 times as many servers as Sun in this space; in the rapidly growing AMD Opteron™ processor-based server segment, HP outpaced year-over-year unit and revenue market growth rates by well over a factor of two.

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, 2005, HP revenue totaled $86.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

⁽¹⁾ Factory revenue according to source: IDC's Worldwide Quarterly Server Tracker, November 2005.

⁽²⁾ Includes Compaq ProLiant from Q196 through Q202 and HP ProLiant from Q302 through Q305.

Intel, Itanium and Xeon are trademarks or registered trademarks of Intel Corp. or its subsidiaries in the United States and other countries. Windows is a U.S. registered trademark of Microsoft Corp. Linux is a U.S. registered trademark of Linus Torvalds. UNIX is a registered trademark of The Open Group. AMD Opteron is a trademark of Advanced Micro Devices, Inc.

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 July 31, 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.