Press Release:

HP Provides Banks with Real-time Wholesale Payments Solution Designed to Streamline Operations, Reduce Costs and Increase Flexibility

New hub architecture unifies isolated operations into enterprise-level view
PALO ALTO, Calif., Oct. 7, 2004

HP today announced a wholesale payments solution that helps banks address key business concerns, such as cost pressures, stringent regulatory requirements, operational risk management and post-911 business continuity, merger complexities and rising client service needs.

The HP OpenPayments solution is a framework of platforms, technologies, common data models, partner solutions and professional services - all of which enable wholesale banks to integrate, at the enterprise level, key payments operations that today are typically separate and isolated within operational groups. HP OpenPayments also allows banks to move from end-of-day batch processing to real-time transaction processing.

"The constraints faced by wholesale banks, with their siloed payment operations, are not new. But wholesale banks' greater emphasis on managing customer relationships versus deals, as well as increased competitive and regulatory pressures, are calling for a streamlining of payment operations," said Gwenn Bézard, senior analyst at Celent Communications, a research and consulting firm focused on the application of information technology in the global financial services industry. "Payment hub frameworks such as HP OpenPayments are offering a comprehensive and pragmatic response to these burning issues."

The foundation for HP OpenPayments is the HP Real Time Financial Services (HP RTFS) infrastructure, which consists of a powerful central processing and database resource. HP RTFS, with its advanced operational data store, is the central hub in HP OpenPayments that brings together live information from all the different operations, and generates a real-time, enterprise-level view of the payments landscape.

Because the central operational data store records all transactions as they occur and instantaneously updates all applications, managers have a comprehensive, always-current view of all facets of the payments cycle. Furthermore, they are able to make more informed, more timely decisions about payments authorization, straight through processing, intraday transaction flow, risk management, liquidity management, regulatory compliance, anti-fraud, anti-money laundering, and customer relationship management, among other issues.

Also, HP OpenPayments, with the HP RTFS-enabled hub architecture, can help reduce internal costs and risk. By streamlining the entire payments cycle, it can facilitate performance that is much faster and more efficient than that of a point-to-point architecture, which can be cumbersome - and costly - particularly as a business grows and diversifies.

"Most large banks recognize the benefits and need for a real-time, enterprise-wide payments system. The challenge lies in the necessary transformation required," said Daniel Mayo, lead analyst, financial services technology, Datamonitor. "The hub approach, such as provided by HP, is a cost-effective method that minimizes risk and will allow rapid business benefits without cumbersome changes to existing systems."

HP OpenPayments builds and delivers on existing IT investments

The HP OpenPayments framework uses HP software and application interfaces that enable point solutions from partners such as LogicaCMG, Dovetail and Gresham. HP OpenView software and solutions may be used in tandem with HP OpenPayments to enhance infrastructure management and meet service levels.

Fundamentally flexible and scalable, HP OpenPayments can be configured to meet a wide variety of business needs. The solution runs on a variety of HP platforms including Intel® Itanium®-based HP Integrity servers, HP ProLiant servers, HP blade servers and HP NonStop servers. Operating systems include Microsoft Windows®, HP-UX, Linux and HP NonStop. The real-time database, or operational data store, runs on the HP NonStop platform.

The entire HP OpenPayments solution can be integrated with existing infrastructure to create a complete enterprise, real-time hub.

"Our payments customers have been telling us that they need a real-time, integrated view of their business operations and their customers," said John Wallace, vice president and managing director, Global Financial Services Industry, HP. "OpenPayments is our answer. It reflects the power of HP's Adaptive Enterprise strategy, and I believe it will arm our customers with a strategic weapon that can provide a competitive edge."

More information about HP OpenPayments and HP's offerings for the financial services industry is available at

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

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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

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