Press Release:

HP Lands Outsourcing Deals with MCI, Standard Register and TD Bank Financial Group

PALO ALTO, Calif., July 14, 2004

HP today announced three new information technology outsourcing contracts worth nearly $500 million. The new contracts, with MCI, Standard Register (NYSE: SR) and TD Bank Financial Group, reflect continued momentum in HP Services' outsourcing business, which last quarter grew more than 50 percent compared to the same period of the previous year.


HP's five-year, $112 million outsourcing agreement with MCI includes day-to-day technical support services for its employees at more than 600 locations across the United States. HP Services will also provide remote server management and asset management services, giving MCI centralized support with committed service levels to improve help desk and desk-side support performance.

Under the terms of the agreement, HP Services will manage an estimated 20,000 help desk calls per month and will support up to 36,000 notebook and desktop PCs, 1,700 workstations and 1,500 printers; provide software distribution for desktop and notebook computers; and administer UNIX® and Microsoft® Exchange systems.

Building on the strategic business relationship between the companies, MCI in a separate announcement today outlined a five-year, $125 million agreement to deliver advanced communications services to HP and become one of the selected communications providers for HP's business customers. Under terms of the agreement, MCI will continue to provide HP secure Internet remote access services, enhanced customer contact center services and SkyTel wireless paging and messaging services.

"HP's leadership and expertise delivering quality desktop support services will enable MCI to improve performance for its employees while focusing MCI resources on our core business," said Fred Briggs, president of Operations & Technology, MCI. "This new agreement and MCI's selection as one of HP's selected communications providers extend our longstanding relationship with HP and creates a strategic foundation for both companies to work more closely together in the future."

Standard Register

HP also announced a five-year, $53 million contract with leading document management technology company Standard Register Corp. (SR) to measure the agility and productivity of SR's infrastructure and applications and to provide tools and services to consolidate and streamline them.

HP Services will manage a multi-vendor environment of 650 servers, a wide area network and 30 software applications for 4,100 desktops and 5,000 employees. SR will continue software development and management of its own e-business applications including e-procurement, print management, marketing automation, document automation and other solutions it markets to customers and uses internally.

"Outsourcing our infrastructure-related activities to HP Services will not only help us reduce our total cost of technology ownership over time, but will also enable the Standard Register team to focus even more on our customer-centric technology development," said Joe Morgan, vice president and chief technology officer, Standard Register.

In addition, HP and SR will pursue various strategic initiatives together, particularly in the healthcare and financial services markets, and will assist each other in exploring mutually beneficial business opportunities. Having collaborated on forms automation technology in the past, they will also work together to further enhance HP's print and document management activities.

About 80 employees will transfer from SR to HP as a result of the contract.

TD Bank Financial Group

In a third agreement, HP and TD Bank Financial Group (TD), a leading international financial services company, announced an initiative in which HP will upgrade and manage TD's national automated banking network and point-of-sale (POS) transaction infrastructure. The process will include a business transformation initiative to enhance the automated banking experience for TD customers.

The seven-year outsourcing agreement, valued at $320 million, will upgrade approximately 2,400 automated teller machines across Canada and TD's automated banking and POS transaction processing system. This enhancement will serve hundreds of communities and improve the banking experience for hundreds of thousands of retail and commercial customers.

"Through this innovative strategy, TD's customers will benefit from the improved accessibility, security, availability and performance of new automated banking and POS networks, and from emerging technologies such as smart cards," said Chuck Hounsell, senior vice president, TD Bank Financial Group. "TD's rigorous selection process ensures that the proposed technology solution will benefit all parties. We are confident that TD will enhance its ability to provide an efficient, comfortable experience for its customers."

"These contracts illustrate that innovative customers like MCI, Standard Register and TD understand the need to respond to change quickly," said Ann Livermore, executive vice president, Technology Solutions Group, HP. "HP is the only company with the range of products, services and industry standard best practices needed to deliver an Adaptive Enterprise where business and IT are synchronized to capitalize on change."

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 April 30, 2004, HP revenue totaled $76.8 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at

Microsoft is a U.S. registered trademark of Microsoft Corporation. UNIX is a registered trademark of The Open Group.

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 proposed contract may not be entered into on the terms or within the timeframe currently contemplated or at all; 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 the Quarterly Report on Form 10-Q for the fiscal quarter ended Jan. 31, 2004, and other Securities and Exchange Commission reports, filed after the 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

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