Press Release:

HP Leads Industry in Worldwide Market Share for Small and Mid-sized Business Segment

Customers choose HP to help them solve business problems
PALO ALTO, Calif., Jan. 18, 2005

HP today announced that it is the leading technology provider to the global small and mid-size business market, empowering SMBs to unlock their own value potential and solve business challenges. As SMB customers are building and growing their businesses, HP and its channel partners provide the right expertise needed to achieve better business results.

According to IDC third quarter 2004 data, HP remains the No. 1 overall worldwide SMB hardware vendor in total PCs (clients plus x86 servers) and in hardcopy peripherals, with 15.7 percent and 38.9 percent respectively.(1) In the combined categories of total PCs plus hard copy peripherals, HP leads with a 26.8 percent share. In addition, HP estimates that it leads the industry with annual sales to the SMB market in fiscal year 2004 of approximately $24 billion.

"HP understands the challenges small and mid-sized businesses face every day - such as keeping their critical business information secure, improving customer responsiveness, stretching small budgets to keep up with larger competitors - and we're helping solve these business problems through technology," said Robyn West, vice president, Small and Medium Business - Americas, HP. "Together with our channel partners, we continue to create and deliver a specialized set of technology products and services that help customers across a wide range of industries realize increased growth and productivity and reduced costs."

To help get the most from their technology investments, customers such as Porsche North America, Le*Nature's, City Year, Thomas Weisel Partners and Infocrossing have selected HP and its channel partners over the competition for the simple and reliable products, service and support they need.

These recent customer wins build on a track record of robust growth in the SMB space since the launch of its Smart Office initiative in September 2003. The Smart Office framework provides customers with reliable, high-quality products and solutions; local and specialized expertise; and a simplified experience with technology.

HP and its reseller partners offer customers solutions, service and support

Porsche Cars North America recently selected HP for a $2 million PC technology deal to address dealership applications, including asset tagging, imaging and installation services. The desktop PCs will be provided to various Porsche dealerships for sales, service and business applications.

"We needed more than a hardware vendor. We needed a partner that would build a solution to meet our needs then manage the entire rollout in a short timeframe," said Phil Davis, chief information officer, Porsche Cars North America. "With HP's strong product offering and services strength, the experience was seamless."

Beverage maker Le*Nature's turned to HP and reseller Datek for help in managing its tremendous employee growth - increasing from approximately 15 to 100 employees within a year. Le*Nature's chose HP because of its quality products and customer support, as well as its IT education services. HP scaleable software, servers and HP Care Pack extensions, as well as flexible leasing options offered Le*Nature's an opportunity to be cost-effective while seeing a rapid return on its IT investment.

"Our biggest challenge has been keeping up with our growth," said Ron Clark, IT director, Le*Nature's. "The decision to go with HP was an easy one, as they were able to deliver a complete scalable and stable solution to best fit our needs. We were also pleased with the outstanding customer support."

"We knew that HP could deliver a complete and stable solution that was critical for Le*Nature's small IT staff," said Rayne Martz, president, Datek. "By working hand-in-hand with Le*Nature's, we designed and implemented a full HP solution that includes desktop and notebook PCs, a storage area network and server consolidation. By standardizing on HP technology, Le*Nature's is better equipped for future growth."

City Year, a non-profit citizen service organization, recently switched PC vendors and selected HP for new PCs and monitors with the help of HP partner and reseller 4Square Technologies. While competing vendors were comparable in terms of price and features, HP was chosen for the outstanding service and support provided beyond the initial purchase, the remote management offered on the PCs' bundled Altiris solution, and the superior product engineering. HP also conducted a personalized analysis, which highlighted the lower total cost of ownership on the lifetime of the products City Year purchased.

"With HP, we knew we were getting quality products. But then we learned about the potential for the HP Compaq dc5000 Desktop PC to lower our overall total cost of ownership with features like image stability and remote management," said Mike Secor, network manager, City Year. "It's that type of expertise that separated HP from the rest."

"Together with HP, we identified City Year's goals and objectives and recommended the best solution for their business needs. Working with HP proved why they are a leader in technology," said Sonya Veeramraju, business partner, 4Square Technologies.

Merchant banking firm Thomas Weisel Partners needed to upgrade its existing infrastructure with newer and faster PCs and turned to HP partner and elite reseller Softnet Solutions for consultation and expertise. "Our traders needed PCs that had a stable lifecycle, so that we could assure they would seamlessly integrate with any future technology purchases," said Howard Sackson, director, Support Services, Thomas Weisel. "And with the recent news of IBM selling their PC business, we knew we needed to switch to a technology provider that would remain committed to our PC needs."

"Softnet Solutions offers SMB customers regional technical expertise and guidance in their technology decisions," said Marlene McLane, account manager, SoftNet Solutions. "As an extension of HP, we can help customers like Thomas Weisel build a total solution that specifically addresses their unique needs."

Infocrossing, a national provider of selective IT and business process outsourcing services to enterprise and government clients, recently tapped HP to enhance the transaction processing capacity of the company's MailWatch™ service, a boundary email security service that scans emails and prevents spam, viruses and other unwanted content from reaching a client's business.

"We needed a solution that could easily scale to accommodate the growth of our client base and daily fluctuations in email volume," said Michael Wilczak, senior vice president, Infocrossing. "We analyzed our options and determined that HP blade servers enabled us to deploy a reliable, adaptive infrastructure to support our growth."

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 Oct. 31, 2004, HP revenue totaled $79.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

(1) IDC 3Q PC Tracker for desktops, notebooks, servers; 3Q IDC Peripheral Tracker for multifunction printers; IDC Printer Tracker for inkjets and laser printers. IDC defines SMBs as companies with fewer than 500 employees.

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

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