News release

HP Ships More Servers Than Any Other Vendor for Four Years Straight

Company shares No. 1 spot for total server revenue in first quarter 2006

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For the 16th consecutive quarter, HP has outshipped all other major vendors in the worldwide server market, according to first quarter 2006 figures released today by IDC.⁽¹⁾

HP assumed the No. 1 spot for total server revenue, taking share from IBM and moving into a statistical tie for the leadership position.

HP is No.1 in worldwide revenue for the Windows®, UNIX®, Linux, x86, x86-64, AMD Opteron™ and Intel® Itanium®-based server markets.

“The numbers from IDC affirm HP’s across the board leadership in the worldwide server market,” said Mark Hudson, vice president of marketing, Enterprise Storage and Servers, HP. ”HP is meeting and exceeding customer needs while delivering solid business results, giving customers continued confidence that we are a strong partner for the long term.”

Highlights of the analyst firm’s worldwide report include:

• HP takes the No. 1 spot in total UNIX server revenue worldwide, gaining unit and revenue market share, fueled by strong growth in the high-end where HP saw revenue growth of 34.6 percent year-over-year;
• HP continued its Windows leadership with the No. 1 position in revenue and units shipped, and a commanding 34.5 percent revenue share of the Windows market that leads the nearest competitor by more than 12 percent;
• HP maintained Linux market leadership with the No. 1 position in total revenue and units shipped, delivering strong double-digit growth in this segment year-over-year;
• HP again led the x86 server market, holding the market leadership position in units and revenue at more than 10 revenue market share points greater than the nearest competitor; this quarter marks the 39th consecutive quarter of market share leadership for the HP ProLiant server family in both revenue and units;⁽²⁾
• HP outgrew the total worldwide blade server market in both revenue and units with respective growth figures of 45.9 percent and 37.2 percent year-over-year;
• HP Integrity servers, using the Itanium 2 processor, were No. 1 in worldwide revenue and units in the worldwide EPIC server market with revenue growth of 62.4 percent year-over-year;
• In the rapidly growing x86-64 based server segment, HP was No. 1 in revenue and units shipped with revenue growth of 95.9 percent; in Opteron-based servers, HP grew more than twice as fast as the market in units and took an additional 15 percentage points in market share.

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 April 30, 2006, HP revenue totaled $88.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

⁽¹⁾ Source: IDC’s Worldwide Quarterly Server Tracker, May 2006.

⁽²⁾ Includes Compaq ProLiant from Q196 through Q202 and HP ProLiant from Q302 through Q106.

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

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could 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 but not limited to anticipated operational and financial results; statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the achievement of expected results and other risks that are described from time to time in HP’s Securities and Exchange Commission reports, including but not limited to the risks described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended Jan. 31, 2006, and other reports filed after HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2005. HP assumes no obligation and does not intend to update these forward-looking statements.