Press Release: March 03, 2004

Audi to Drive Luxury in-car Experience with Intel® Itanium® 2 Processor-based HP Integrity Servers

SANTA CLARA, Calif. and PALO ALTO, Calif., March 3, 2004

Audi, the international high-quality car manufacturer, has selected Intel® Itanium® 2 processor-based HP Integrity servers to perfect design efforts related to engine cooling and air conditioning for the ultimate luxury in-car experience. The high performance levels delivered by the Itanium 2 processor-powered HP Integrity servers enable faster, more accurate simulations and design calculations, which will reduce the product development cycle and improve Audi's competitive advantage.

Audi migrated from RISC-based servers to Itanium processor-based servers to optimize computer aided engineering (CAE) systems that blueprint in-car cooling and air conditioning. The systems pinpoint how heat is extracted and the impact it has on the performance of Audi automobiles. The design team can now complete more complex simulations, which enable Audi to devise the best ways to de-ice, ventilate and air-condition its cars. The HP Integrity servers also run a MSC.Nastran application, which builds bodywork models and optimizes designs to achieve best performance from new vehicles. Audi utilized the HP Solution Center in Boeblingen, Germany to test and validate their HP Integrity solution.

"By using Intel Itanium 2-based HP Integrity servers we have been able to greatly increase the throughput of our MSC.Nastran simulations in comparison with the legacy RISC systems that were previously in use," said Hans-Ulrik von Bülow, senior CAE systems and methods analyst, Audi AG. "The Itanium 2-based servers have enabled us to better utilise the

computer resources at our disposal by significantly shortening the simulation time in comparison with the RISC-based systems previously in use."

Audi considered a number of solutions but chose a cluster of two-way HP Integrity rx2600 servers. The Itanium 2-based HP systems were selected for the price/performance ratio, which were significantly better than other servers when tested within a controlled environment. Additionally, the scalability of the Itanium processor platform will allow Audi to easily and cost-effectively expand the system as future growth requires. The deployment was conducted within a short period of time and the ease of migration enabled applications running on legacy servers to be powered immediately by the new system.

"The complex design work and calculations that contribute to the in-car experience and engine performance demands a high level of computing power," said Tom Garrison, director of enterprise marketing, Intel Europe Middle East and Africa. "Audi's move to Itanium 2-based HP Integrity servers is the latest example of the important role that Itanium platforms play in the automotive sector. Audi is benefiting from the Itanium processor's ability to handle the most demanding tasks and carry out calculations significantly quicker, which is reducing the product development cycle and improving the company's competitive advantage."

Following the migration from the legacy proprietary system, a total of 25 desktop workstations located in Audi's Ingolstadt and Neckarsulm data centres will access the new HP Integrity rx2600 servers running HP-UX 11i v2.

This spring, Audi intends to migrate a server based on 64 RISC processors, which supports exterior aerodynamics software, to an Intel Itanium 2-based HP Integrity server. The company also plans to migrate 25 percent of its CAE workstations to Intel® Xeon™ processors to power graphics-intensive programs.

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 last four fiscal quarters, HP revenue totaled $74.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

About Intel

Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at

Intel, Itanium and Intel Xeon m are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.

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This release contains forward-looking statements that involve risks, uncertainties 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 Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003, and reports filed after the form 10-K. 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