Press Release:

HP Helps NASDAQ Prepare for Growth

World's fastest-growing securities market taps HP's Adaptive Enterprise strategy to optimize and support its trading floor system
PALO ALTO, Calif., March 21, 2005

HP today announced that NASDAQ, the largest U.S. electronic equity securities market, has selected HP to upgrade its fully integrated electronic order display and execution system for the trading of its listed securities. The three-year contract extends an existing 20-plus year relationship between the two companies.

Continuous uptime of its trading floor system and the ability to respond to fluctuating transaction volumes are critical business issues for NASDAQ. Turning to HP and its powerful portfolio, NASDAQ will implement a range of HP solutions to build an Adaptive Enterprise in which business and IT are synchronized to capitalize on change. Under terms of the agreement, NASDAQ purchased more than 500 processors for its HP NonStop servers running HP OpenView enterprise management software designed to deliver 24 x 7 operations and consistent monitoring.

Additionally, HP Financial Services, HP's leasing and financing group, provided innovative and flexible financing solutions to address the needs of NASDAQ.

"With 700 trading firms as customers, on average, trading more shares per day than any other U.S. market, downtime at NASDAQ simply cannot happen," said Steve Randich, executive vice president and chief information officer, The NASDAQ Stock Market. "HP's NonStop platform and HP OpenView software deliver real-time capability, availability and scalability. This allows us to provide a continuously available stock market, as well as additional customer services such as increased and easier access for trades."

Essentially, every time a member accesses the NASDAQ system to obtain a quote or place a trade order, the request is routed to the right application via an HP NonStop system. HP NonStop servers and HP OpenView software actively and automatically balance the workload, providing the agility necessary for the exchange to meet its business objectives and handle exploding market volume without sacrificing service quality.

Since 1982, HP NonStop systems have run the core applications for the NASDAQ trading floor, which includes the buying and selling of shares electronically for large-scale institutional customers. Today, NASDAQ serves a market that is growing at a projected rate of 35 percent a year, with online trading and a robust economy continuing to fuel an explosion of investor participation. HP's Adaptive Enterprise strategy is helping NASDAQ continue to adapt to a changing business environment and ensure every trade is executed efficiently regardless of transaction volumes.

"Today's announcement with NASDAQ is a powerful endorsement of HP's Adaptive Enterprise roadmap, our core processing technology and our ability to foster customer relationships," said Pauline Nist, vice president NonStop Enterprise Division, Enterprise Storage and Servers, HP. "As the market grows, NASDAQ and HP will continue to evolve and innovate for market participants."

On any given day, NASDAQ typically handles 7.5 million quote updates, 4.2 million trade reports, 2.6 million orders and 2.3 billion shares per day, while maintaining 1/50th of a second response time to traders throughout North America. More than 700 members - ranging from small, independent brokers to large, full-service institutions with an international presence - access the NASDAQ system for quotes, orders and trade executions.

Beyond the trading floor, NASDAQ relies on HP NonStop servers for the key security, execution, reporting, comparison and switching functions that keep its innovative electronic marketplace up and running.

In addition, HP OpenView Network Node Manager provides NASDAQ with business-critical network tools and information, such as the ability to quickly pinpoint potential core network problems through root cause analysis capabilities.

NASDAQ was also an early adopter of the groundbreaking HP StorageWorks Reference Information Storage System (RISS), a solution that supports linear scalability without loss of performance by intelligently distributing terabytes of content across a grid of storage smart cells. The RISS system provides a foundation for the company's overall information lifecycle management strategy and enables NASDAQ to store, index and rapidly retrieve email and voice mail according to stringent SEC requirements.

More information about HP solutions for NonStop servers is available at

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

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 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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