Press Release: May 04, 2004


Agreement Transforms Supplier Relationship Into Strategic Alliance; Managed Services Agreement Forms Basis for Joint Go-to-Market Effort

Agreement Transforms Supplier Relationship Into Strategic Alliance; Managed Services Agreement Forms Basis for Joint Go-to-Market Effort

NEW YORK, May 4, 2004

BT and HP today announced plans to develop a strategic go-to-market alliance that will address mutual growth opportunities in the global information and communications technology (ICT) marketplace. As the communications and IT sectors continue to converge, the companies see this as a major opportunity to utilize their combined capabilities in delivering enhanced service offerings to the growing global ICT market.

As a first step, the companies have signed managed services agreements with a combined value of $1.5 billion over the next seven years. Under these agreements, HP will manage BT's midrange and desktop information technology (IT) infrastructure in the UK, and BT will manage HP's voice and data network and product support call centers within the EMEA (Europe, Middle East and Africa) region.

These agreements build upon each company's core capabilities and provide a strong foundation for the longer-term alliance. The immediate focus of the companies is to implement successfully the managed service agreements over the coming months, while concurrently developing the joint go-to-market approach.

"Connections matter more than ever today, and in a world where business and technology are inextricably linked, bringing together IT and communications into one seamless environment creates a solid foundation for growth," said Carly Fiorina, HP chairman and chief executive officer. "When we capitalize on our combined strengths, we not only take our own capabilities to a new level, but we then bring the very same standard of simplicity and excellence to our own customers, quickly, securely and reliably."

Ben Verwaayen, BT chief executive officer, commented, "This is a great opportunity that delivers key components of our ICT strategy. The global market for ICT provides us with a substantial growth opportunity that can significantly benefit both companies' revenues. In a consolidating industry, we believe it makes sense to create a strong alliance between a world-class communications company and a global IT company."

Starting this summer, the companies plan initially to address targeted European enterprises, plus the UK mid-market, consumer and small- and medium-size business (SMB) markets through a combination of service offerings. Subsequently, other markets will be added as conditions and opportunities develop, in order to ultimately provide global solutions capability via the alliance.

The companies are evaluating the development of world-class propositions in segments such as ICT infrastructure, application management, mobility, workplace solutions and contact center services. The approach will include the creation of a common service delivery model that is designed to improve the technical alignment across both companies in order to deliver, both together and separately, seamless ICT services.

Editors' Note: Photos of the New York press event are available via the Associated Press Photo Network and on the Internet at Feature Photo Service's Link via

About BT

BT Group plc is the listed holding company for an integrated group of businesses providing voice and data services in the UK and elsewhere in Europe. British Telecommunications plc, a wholly-owned subsidiary of BT Group, holds virtually all businesses and assets of the BT group.

BT is one of Europe's leading providers of telecommunications services. Its principal activities include local, national and international telecommunications services, higher-value broadband and internet products and services, and IT solutions. In the UK, BT serves over 20 million business and residential customers with more than 29 million exchange lines, as well as providing network services to other licensed operators.

BT consists principally of three lines of business:

  • BT Retail, serving businesses and residential customers and including BT Openworld, one of the UK's leading ISPs.
  • BT Wholesale, providing network services and solutions within the UK, including ADSL, conveyance, transit, bulk delivery of private circuits, frame relay and ISDN connections.
  • BT Global Services, BT's managed services and solutions provider, serving multi-site organizations worldwide. Its core target market is the top 10,000 global multi-site organizations with European operations.

There are a number of other businesses within the BT group, including BT Exact, an internationally renowned centre of excellence in IT and networking technologies. It is also BT's technology and research and development business.

In the year ended 31 March 2003, BT's turnover was £18,727m. with profit before taxation of £1,829m.

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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

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never 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. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of services and their feature sets; the challenge of managing asset levels, including inventory; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks that are described from time to time in HP's Quarterly Report on Form 10-Q for the period ended Jan. 31, 2004, and HP's other Securities and Exchange Commission reports filed after HP's 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