Press Release: November 11, 2003

HP to Acquire Persist Technologies, Advancing Portfolio of Information Lifecycle Management Offerings

Solutions to help enterprises satisfy emerging compliance regulations, extract business value from reference information
PALO ALTO, Calif. -- HP (NYSE:HPQ) today signed a definitiveagreement to acquire Persist Technologies, Inc., a leading providerof software designed for long-term storage and access of referenceinformation. The acquisition is expected to improve HP's ability todeliver complete information lifecycle management (ILM) solutions.ILM is HP's strategy to actively manage information from itscreation through deletion and according to its changing businessrelevance over time.

With Persist's activearchiving software, HP expects to deliver enhanced archivingsolutions to assist customers in complying with emerging andstringent data retention regulations and extract business valuefrom large amounts of reference information.

"Customers today arelooking for ILM solutions that reduce the cost of managingreference information while enabling compliance with data retentionregulations," said Bob Schultz, senior vice president and generalmanager, Network Storage Solutions, HP. "The market demandsreliable and scalable solutions that perform search and retrievalon reference information to extract value from stored data assets.With Persist, we gain immediate access to technologies that bolsterour ability to deliver on these critical customer needs."

"Persist builds on HP'scomprehensive portfolio of ILM solutions and global reach withunique and innovative software, skilled personnel and in-depthexperience in the burgeoning ILM market segment," said PaulO'Brien, chief executive officer, Persist. "We are looking forwardto becoming part of the HP team and offering our customers a moretightly coupled solution and specialized sales and support."

Persist develops andmarkets software for active archiving of e-mail, Microsoft® Officeand other popular data types. When integrated with HP ProLiantservers and ProCurve switches, the Persist software creates anactive archive system that can scale to handle exploding contentstorage demands.

With Persist, informationand attributes are divided across self-contained modules, calledSmartCells. SmartCells incorporate both storage and processingpower and can be federated to create redundant, modular, grid-likecomputing and storage capacity.

Additionally, SmartCells ofprocessing and storage hardware can be added non-disruptively,enabling customers to deploy a single, scalable solution for themanagement of reference information that readily scales asadditional capacity is required to satisfy compliance regulationsand business demands.

The Persist software alsoincludes highly functional index, search and retrieval capabilitiesthat makes it possible to search and retrieve both structured andunstructured content. The search and retrieve capability isindependent of the creating application and executed using a searchengine-like interface - delivering a true active archivingsolution.

Providing afoundation for an adaptive enterprise

ILM allows enterprises todocument and design the processes and deploy the technologies thatactively manage and store information from creation to deletion,according to its changing business relevance over time. ILMsolutions contribute to HP's adaptive management offerings thatcombine people, processes and technologies to deliver managementfrom the resource level to the business-level. HP's adaptivemanagement offerings are a critical component of an adaptiveenterprise and are essential to establishing a dynamic link betweenbusiness and IT.

In a separate announcement,HP today introduced more than 40 new and enhanced softwaresolutions and services to manage an adaptive enterprise by helpingcustomers to integrate their mixed technology assets, cutmanagement costs by up to 30 percent and increasingly automatetheir information technology systems' responsiveness to real-timebusiness demands.

More information about HP'sadaptive management launch is available in an online press kit at information about HP's ILM offerings is available at

Microsoft is a U.S.registered trademark of Microsoft Corp.

This news releasecontains forward-looking statements that involve risks anduncertainties, as well as assumptions that, if they evermaterialize or prove incorrect, could cause the results of HP andits consolidated subsidiaries to differ materially from thoseexpressed or implied by such forward-looking statements andassumptions. All statements other than statements of historicalfact are statements that could be deemed forward-lookingstatements. Risks, uncertainties and assumptions include thepossibility that the closing of the acquisition may not occur atall or may occur on terms and conditions that are amended from theterms and conditions contained in the executed acquisitionagreement; that the market for the sale of certain products andservices may not develop as expected; that development andperformance of these products and services may not proceed asplanned; any statements of belief; any statements of assumptionsunderlying any of the foregoing; and other risks that are describedfrom time to time in HP's Quarterly Report on Form 10-Q for theperiod ended July 31, 2003 and HP's other Securities and ExchangeCommission reports filed after HP's Annual Report on Form 10-K forthe fiscal year ended October 31, 2002. If any of these risks oruncertainties materializes or any of these assumptions provesincorrect, HP's results could differ materially from HP'sexpectations in these statements. HP assumes no obligation and doesnot intend to update these forward-looking statements.

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