News release

HP Brings NonStop Computing to Mid-market Customers

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 HP today unveiled an entry-level NonStop server system that delivers world-class business continuity and availability to a new segment of enterprise customers.

The HP Integrity NonStop NS1000 Server is designed for smaller companies in the healthcare, financial services and telecommunications industries, which increasingly face the same business requirements as their larger competitors: 24 x 7 availability and real-time access to critical business applications. Small and medium-size companies in these industries can cost-effectively meet these needs with the NS1000.

For example, in the financial services industry, the NS1000 can serve as the backbone of ATM and point-of-sale transactions, providing the entire stack of hardware, operating system, software and database in a single solution.

“There is a large segment of smaller enterprise customers that tends to be priced out of market for high-end, fault-tolerant servers,” said Stephen L. Josselyn, research director, IDC. “For those customers, the NS1000 server offers significant value and additional choice for application availability and fault tolerance.”

Customers in emerging markets such as Russia and China would benefit from having the superior service levels and availability that HP Integrity NonStop technology provides. Unlike in more mature markets, governments and corporations in these markets are often starting from scratch in building data centers that will meet their needs for the next 20 to 30 years; the NS1000 can serve as a key building block for these infrastructures.

The NS1000 server also supports the high-availability needs of larger companies with distributed installations, such as hospitals with satellite facilities or financial institutions with branch offices.

“No competitive offering on the market today comes close to delivering ‘five nines’ availability – 99.999% uptime over the course of a year – at this price,” said Craig Wagner, director, marketing and solutions, NonStop Enterprise Division, HP. “For customers seeking an affordable, continuously available environment right out of the box, the search ends with the HP Integrity NonStop NS1000 Server.”

The NS1000 server is based on the new NonStop Value Architecture, which pairs industry-standard hardware components with the fundamental benefits of the NonStop software suite: software fault tolerance/fault isolation, dynamic workload balancing, linear scalability, application virtualization and cluster programming transparency.

Powered by Intel^® Itanium^® 2 processors, supported configurations include: two to eight processors, four and eight gigabytes of memory, 1.3 GHz/3 megabyte cache and the ability to connect up to 32 terabytes of disk storage per system using internal disks. Customers also will be able to take advantage of future iterations of the Itanium processor, further ensuring investment protection and low total cost of ownership.

The HP Integrity NonStop NS1000 Server is now available in all regions. More information on the entire line of HP Integrity NonStop servers, including the NS1000, is available at www.hp.com/go/integritynonstop.

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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.