Press Release: January 23, 2007

HP Forms New Business Unit for Server and Storage Software

PALO ALTO, Calif., Jan. 23, 2007

HP has created a new business unit within its Enterprise Storage and Server (ESS) organization to advance its software capabilities that help customers manage, virtualize and automate their IT systems.

The ESS Software unit will bring together assets from across several HP storage and server software portfolios. The new unit is chartered with differentiating HP’s current server and storage software and developing additional capabilities to help companies build out an Adaptive Infrastructure that flexes with business priorities. Through the unit, HP also will drive open standards and broaden support for its server and storage platforms.

Bob Schultz, 48, has been appointed senior vice president and general manager of the unit with immediate effect. In this role, he will be responsible for strategic planning, product development, product management and go-to-market efforts.

Initially, ESS Software offerings will include: HP Systems Insight Manager, the industry’s first cross-platform server and storage management software; HP Storage Essentials, based on software from the company’s acquisition of AppIQ; HP Virtual Server Environment, which optimizes server resource utilization in real time; and, HP ProLiant Essentials for management of HP ProLiant servers.

Since 2003, Schultz has been senior vice president and general manager of the HP StorageWorks division, the second largest vendor of external storage by worldwide revenue in the third calendar quarter of 2006, according to IDC.(1) He will continue to lead HP StorageWorks until a successor is named in the next few weeks.

“The formation of a focused storage and server software unit will help HP differentiate our servers and storage solutions and better integrate with our business technology optimization offerings,” said Scott Stallard, senior vice president and general manager, Enterprise Storage and Servers, HP. “Bob’s ability to build strong businesses, collaborate across teams and drive results with our sales and partner organizations are crucial skills well-matched to the needs of the new unit.”

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, 2006, HP revenue totaled $91.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

(1) IDC, “Worldwide Disk Storage Systems Quarterly Tracker” for 3Q06, December 2006.

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 or market share relating to products and services; 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 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 Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2006 and other reports filed after that Form 10-K. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP shall not be liable for technical or editorial errors or omissions contained herein.

About HP

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at