Press Release:

University Health Network Selects HP to Manage Technology Infrastructure and Data Centre

HP Services to provide comprehensive technology solutions to enhance access, sharing and security of healthcare information
MISSISSAUGA, ON, May 17, 2004

HP today announced a new six-year outsourcing agreement with University Health Network (UHN), an organization that is among the world's leading providers of exemplary patient care and innovative research and teaching.

Composed of Toronto General Hospital, Toronto Western Hospital and Princess Margaret Hospital, UHN is also an affiliated teaching institution of the University of Toronto.

Taking effect on May 1, 2004, the contract has been put into place to help UHN deliver world-class customer service and support to its staff and physicians and underpin the growing information technology needs of the organization.

Within the new agreement, HP will deliver a comprehensive suite of managed services, including help desk, PC/desktop support, server and network administration, utility-based electronic mail and support for UHN's wireless and virtual private network initiatives to improve accessibility and expand access to information beyond the hospital walls.

As part of this agreement, HP Services will move UHN's data centre to an HP location in Mississauga. The state-of-the-art facility will immediately provide UHN with increased security and environmental protection, but may also pave the way for future collaborative relationships with other healthcare organizations sharing the data centre location, fulfilling an objective for UHN to become linked to the broader healthcare community.

HP plans to provide services that will develop and maintain an adaptive infrastructure that will provide UHN's physicians, staff, researchers and students with efficient and reliable access to information and applications. This approach to enterprise-level computing will improve the quality and efficiency of care and enhance patient safety.

"We selected HP because the company understands the healthcare sector and the significant contribution technology can make to improve and modernize our processes, operations and services," said Tom Closson, president and chief executive officer, University Health Network. "HP's extensive experience and expertise working with healthcare institutions, as well as its genuine commitment to innovation and collaboration, made us absolutely confident that a long-term partnership would enable us to address our current objectives and look to future service integration initiatives at regional and provincial levels."

UHN recognizes that a number of factors and forces are transforming healthcare in Canada, including rapid advancements in information technology, the evolving needs and changing demographics of patients, the impact of biotechnology, and the restructuring of healthcare funding.

UHN appreciated the value of engaging an IT partner that could help it thrive in this new environment. The agreement is a continuation and expansion of a previous five-year outsourcing relationship between UHN and HP.

"HP is excited to be partnering with UHN and building upon our past successes. UHN truly understands the need to synchronize its IT resources with its business operations to adapt to the changes occurring in healthcare delivery," said Wally Hogan, managing director, HP Services Canada. "A complete portfolio of outsourcing services, combined with hardware and software solutions, are essential elements in becoming an Adaptive Enterprise. UHN is clearly a visionary organization that is using technology to improve healthcare practices and services for providers and patients."

The HP Adaptive Enterprise strategy dynamically links and aligns business and IT to capitalize on changing conditions. Through simplification, standardization, modularity and integration of infrastructure, applications and business processes, organizations can create competitive advantages, reduce costs and foster innovation.

The UHN organization includes more than 11,000 employees, 3,100 students, 1,200 physicians and 600 volunteers. In 2002-2003, UHN had more than 800 beds, 29,000 inpatient cases, 950,000 clinical visits, 876,000 ambulatory visits and 73,000 emergency visits.

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 Jan. 31, 2004, HP revenue totaled $74.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

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. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development and performance of these products and services may not proceed as planned; and other risks that are described from time to time in HP's Quarterly Report on Form 10-Q for the period ended Jan. 31, 2004, and HP's other Securities and Exchange Commission 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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