Press Release:

HP Wins $48.5 Million Contract with European Commission

Deal to increase EU cross-border security and combat terrorism and crime
GENEVA, April 28, 2005

HP today announced that it has signed a $48.5 million contract with the European Commission in consortium with Steria to develop two important central information systems, the second generation of the Schengen Information System (SIS II) and the Visa Information System (VIS).

The SIS is the largest border control and police information system in the world and the development of SIS II is an important precondition for the lifting of border controls between current members of the Schengen area and the 10 member states that acceded to the European Union in May 2004. The VIS will manage visa requests for entry to European countries of the Schengen area.

HP was selected in consortium with Steria as well as two other European companies - Mummert in Germany and Primesphere in Luxembourg - to provide a high-quality technology model designed for the two information systems that offers a good value for taxpayers' money.

In addition, benchmarking tests conducted by the European Commission showed that HP's model remained fully operational in a disaster recovery situation where sites were nearly 500 miles apart. HP focused its approach on standardized platforms and optimized scalability, which are ideal when working with multiple countries.

"Ensuring citizen safety and security requires that technologies be able to adapt to the demands of global migration, border security, terrorism and crime prevention," said Bernard Meric, senior vice president and managing director, Europe Middle East and Africa, HP. "These demands are constantly changing, expanding in scope and can be unpredictable in nature. Whether success is measured in life and death terms or simply in the speed of tracking and apprehending stolen goods across the border, HP's high-availability services and high-end technology are created with these demands in mind."

The existing SIS, currently used by 15 EU countries, was mandated by the Schengen Treaty, an agreement originally signed in 1985 to end internal border controls, harmonize external border controls and allow free movement of persons in Europe.

Its replacement, SIS II, will provide information on wanted persons as well as stolen vehicles, ID documents and banknotes through a database accessed by national police authorities of all participating member states. Once it is fully functional in 2007, SIS II will be much more flexible than the current system and will also be able to store photographic images and fingerprints. In addition, the infrastructure of the new system will make it easier to adapt to future EU requirements.

VIS is a new centrally deployed, large-scale information system that will allow member state authorities to access all visa requests for entry to Schengen area countries. It is expected that there will be more than 20 million visa requests and more than 45 million requests to check the validity of issued visas made yearly.

Under the terms of the agreement, the consortium will provide the European Commission with Integrity Superdome servers based on the latest Intel® Itanium® processor, high-end and high-availability storage, and management of the system's infrastructure and business processes through HP OpenView software. Within the consortium, HP is responsible for providing ongoing services to ensure the availability and performance of the infrastructure and for ongoing monitoring of the solution. The consortium will begin building the new systems immediately and the Commission will validate them in 2007.

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 Jan. 31, 2005, HP revenue totaled $81.8 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, 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 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 fiscal quarter ended Jan. 31, 2005, and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2004. HP assumes no obligation and does not intend to update these forward-looking statements.

About HP

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