Press Release:

HP Enhances PartnerONE Program to Help Partners Grow New Business and Increase Return on Investment

PALO ALTO, Calif., Oct. 21, 2004

HP today added new tools to its channel partner program that focus on growing new business and increasing return on partner investments.

Entering its third year, the HP PartnerONE program now includes:

  • Greater benefits for its channel partners selling across HP's product and services portfolio so they can increase their sales margins;

  • Simplified requirements for HP certifications;

  • Financing that makes it easier for partners to obtain demo equipment to aid their sales efforts; and

  • New marketing tools that help partners add new customers.

The enhancements take effect in the United States on Nov. 1 and are available to all solution providers participating in the HP PartnerONE program.

Added compensation for increased channel sales margins

To reward performance and initiative, the new HP PartnerONE Portfolio Tool provides added compensation to channel partners selling across HP's enterprise portfolio, which includes software, servers, data storage and a full range of maintenance and consulting services.

Simplifying certification

To match partner investment with high returns, HP has streamlined the recommended certification training across enterprise data storage, business-critical and industry-standard server product lines. The revamped certification integrates three previously separate tracks into one comprehensive training and certification credential at the generalist level that maintains a high standard for measuring partner skills. Partner benefits include the elimination of redundant content and a reduction of out-of-office training days.

Effective Nov. 1, the authorization to sell HP enterprise products requires the new certification. Existing enterprise storage and server partners meeting current certification requirements are not required to invest in the new certification at this time and will be offered a long-term migration plan based on their current investments. Other authorization requirements to sell HP enterprise products remain the same, such as annual revenue requirements and value-added expertise in specific industry or technology solutions.

Low-cost demo equipment

To maximize their working capital, channel partners can take advantage of the new PartnerONE Partner Rent benefit, which makes available low-cost demo equipment for six- or 12-months at a very affordable rental rate. Demo equipment can help increase sales by providing proof-of-concept testing and product demonstrations.

Instead of purchasing demo equipment - a prohibitive capital investment - channel partners can easily rent the latest versions of HP products for substantially less money. Plus, the partner can return the equipment to HP, which eliminates the burden of disposing equipment at the end of its life. Among the products included in this offer are select HP 9000, Integrity and blade servers, data storage arrays, tape storage, and network attached storage products.

New marketing tools to attract new customers

Since decreasing the cost of obtaining new customers is critical to managing profitability, HP is extending to all partners new marketing campaigns designed specifically to target new customers outside their installed base. Known as PWR Tools, these direct marketing "door opener" campaigns are co-branded by the partner and HP and offer specific content aimed at six HP technology solutions.

In a six-month pilot program with select partners, response rates to these campaigns were triple typical averages. Many of those partners participating in the pilot program plan to double their investment in their next campaign.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the four fiscal quarters ended July 31, 2004, HP revenue totaled $78.4 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

PWR Tools is a registered trademark of Bazzirk.

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 period ended July 31, 2004 and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003. HP assumes no obligation and does not intend to update these forward-looking statements.

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