Press Release: June 27, 2013

HP Team Wins U.S. Department of the Navy’s Next Generation Enterprise Network (NGEN) Contract

Selection ensures seamless transition of Navy’s largest IT network

PALO ALTO, Calif. — HP Enterprise Services and its NGEN Alliance Partners, AT&T Government Solutions, Inc., IBM Global Business Services Federal, Lockheed Martin Services, Inc. and Northrop Grumman Systems Corp., today announced they have been awarded the U.S. Department of the Navy’s (DON) Next Generation Enterprise Network (NGEN) contract. 

Valued at approximately $3.45 billion over five years if all options are exercised, the contract covers a broad range of information technology (IT) services and support for more than 800,000 Sailors, Marines and civilians in the continental United States, Hawaii and Japan.

“With the award of the Next Generation Enterprise Network contract, HP is continuing its partnership with the U.S. Navy,” said Meg Whitman, HP president and chief executive officer.  “HP and its team of world-class partners recognize the importance of keeping the Navy’s backbone IT network secure, operational and moving forward for Sailors and Marines to support their operations.”

According to the Navy, the initial $321,689,010 indefinite-delivery/indefinite-quantity (IDIQ), firm-fixed award fee contract for NGEN will continue through June 2018 if all options are exercised.

In 2000, the Navy began a forward-leaning transformation of its many IT networks to an integrated and secure net-centric operations environment. With the award of the NGEN contract, the Navy and the HP-led team will now transition to a government-owned, contractor-operated environment while ensuring uninterrupted delivery of IT services to the many Sailors, Marines and civilians who use the network.

“For more than a decade, HP has operated the world’s largest and most secure purpose-built IT network for the Navy and Marine Corps,” said Marilyn Crouther, senior vice president and general manager, U.S. Public Sector, HP Enterprise Services. “We know the technology, we know what it takes to operate this massive and highly complex IT environment, and we now embrace the opportunity to help build a better enterprise network and continue the uninterrupted delivery of secure and reliable IT services while transitioning to NGEN.”

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 statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance, market share or competitive performance relating to products and services; any statements regarding anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the need to address the many challenges facing HP’s businesses; the competitive pressures faced by HP’s businesses; risks associated with executing HP’s strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third party suppliers and the distribution of HP’s products and services effectively; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; risks associated with HP’s international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the execution, timing and results of restructuring plans, including estimates and assumptions related to the cost and the anticipated benefits of implementing those plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2013 and HP’s other filings with the Securities and Exchange Commission, including HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2012.  HP assumes no obligation and does not intend to update these forward-looking statements.

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