Press Release:

Telecom Italia and HP Announce Strategic Outsourcing Agreement

Five-year Agreement Valued at 225 Million Euros
ROME and PALO ALTO, Calif., Feb. 21, 2003

Telecom Italia, one of the most important Italian groups, a leader in wireline and wireless telecommunication services and a key player in the ICT market, and HP (NYSE:HPQ) have reached a Management Services & Outsourcing agreement, for a duration of five years, worth 225 million Euros (approximately $244 million).

Under the terms of the agreement, HP would provide IT management services for the desktop systems of Telecom Italia's 90,000 users. As a result, Telecom Italia expects to achieve significant cost savings in the group's distributed IT environment management and be able to focus its skills and resources on its core business. Moreover, HP would team with Telecom Italia and leverage its operational structures and skills in the SAP® solutions environment for Italy. This is designed to enable the flexibility and economies of scale HP needs for its fast-growing requirements in this field. The main components of the agreement are:

  • HP will provide asset management, help desk, maintenance and management services for 90,000 users, leveraging the existing competencies of approximately 600 specialists from IT Telecom -- the Telecom Italia Business Unit Information Technology Group -- who will join a new HP entity specialized in the delivery of such services.
  • IT telecom will host HP systems and will manage HP operations for SAP solution environments.

"This agreement enables Telecom Italia to reinforce its strategy focusing on its core business while further consolidating its competitiveness. The partnership with HP will result in a significant IT cost reduction and better service levels," said Arrigo Andreoni, chief executive officer and general manager, IT Telecom, "while ensuring a high level of services and quality to HP for SAP systems management."

"This agreement reinforces HP's leading position in the SAP and desktop outsourcing markets and as a provider of on-demand IT services. It also clearly demonstrates HP's innovation, efficiency and leadership in the management of IT infrastructure in complex environments," said Francesco Serafini, senior vice president and general manager for Europe, the Middle East and Africa, HP Services. "Our ability to provide services in response to different demand levels and user profiles has been a key element in our offer and supports Telecom Italia's requirements to drive more business value from its IT investments while further increasing the group's flexibility towards changing market requirements."

The agreement between HP and Telecom Italia is subject to consultations with worker unions, anti-trust requirements and the approval of the Italian Antitrust Authority prior to becoming operational.

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its acquisition of Compaq Computer Corporation on May 3, 2002. More information about HP is available at

This news 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; that required consultations may not be completed and approvals may not be obtained in a timely manner or at all; 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 year ended October 31, 2002, as filed with the Securities and Exchange Commission on January 21, 2003, and subsequently filed reports. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP assumes no obligation 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