HP Introduces New Technology for Eight-processor ProLiant Servers

Systems Deliver Outstanding Performance and Dramatic Increase in Availability
PALO ALTO, Calif., Feb. 17, 2003

HP (NYSE:HPQ) today introduced two servers delivering record-breaking performance and an outstanding increase in server availability. They feature the groundbreaking HP F8 chipset, innovative hot-plug RAID memory capabilities and HP ProLiant Essentials management software, making them ideal platforms for high-performance, database, business applications and IT consolidation projects. The servers, the new HP ProLiant DL740 and the second-generation HP ProLiant DL760, are the latest additions to the industry-standard HP ProLiant DL700 series.

HP leads the eight-way server market with 50.7 percent market share,(1) built upon a simple approach to deliver innovation based on industry standards. HP ProLiant servers continue to lead the advance of standards-based computing higher into the enterprise, with the next-generation ProLiant DL760 server delivering an unbeaten combination of 115,025 transactions per minute (tpmC) with a price/performance of $7.69/tpmC.(2)

"Our new eight-way ProLiant servers provide a powerful platform to handle complex applications typically handled by more expensive, proprietary systems," said James Mouton, vice president, Platforms, HP Industry Standard Servers. "These additions to our ProLiant DL700 series offer new opportunities to migrate and consolidate applications to more powerful and cost-effective servers in highly available Windows- and Linux-based environments."

"The outstanding performance of the new HP 8-way servers will let us dramatically increase our server resources," said Jason Robohm, director of Technical Services, CROSSMARK®, "and the hot plug RAID memory lets us expand our server capacity on demand, without having to power it down. Plus, with the ProLiant Essentials Workload Management Pack, we can safely consolidate multiple applications onto a single server running Windows. HP makes my life easier by delivering the whole package -- great performance combined with excellent availability and manageability, which in turn enhances our ability to deliver customized client solutions with unparalleled execution."

The HP F8 chipset enables the new DL700 series servers to deliver the industry's highest, industry-standard eight-way performance based on a proven symmetric multiprocessing (SMP) architecture. A powerful follow-on to the Profusion chipset that HP jointly developed with Intel, the F8 chipset has been designed for even higher performance and bandwidth by combining PCI-X input/output technology, Gigabit Ethernet, Ultra3 SCSI and Intel® Xeon™ processor MP.

HP's hot-plug RAID memory, part of its Advanced Memory Protection software suite, provides the highest level of memory fault protection in the industry. Providing hot-replace and hot-add capabilities, HP RAID memory uses a redundant array of industry-standard dual in-line memory modules to provide fault tolerance and the ability to expand memory capacity without downtime.

With HP hot-plug RAID memory technology, these new ProLiant servers deliver levels of fault tolerance and availability ideal for running demanding applications. This higher level of availability is expected to become increasingly important as Microsoft® Windows® Server 2003 and Linux dramatically increase the addressable memory in coming months and as more customers implement IT consolidation projects.

Eight-way HP ProLiant servers also are ideal platforms for consolidation of processor-intensive applications. HP provides a range of HP and third-party technologies along with a comprehensive set of services for customers moving to a consolidation environment.

HP Workload Management Pack, based on the Microsoft Job Objects functionality contained in Microsoft Windows 2000 server operating systems, allows multiple applications to safely run on a single Windows 2000/2003 server, where each application has access to specific processor and memory resources, giving the flexibility to dynamically adjust resources as application demands change.

HP partner technology, such as VMware, further extends partitioning capabilities on HP ProLiant servers by enabling customers to run multiple, and even disparate, operating systems and applications on the same server. HP Services provides extensive assessment, consulting and integration services to ensure optimal return for customer consolidation efforts.

New HP ProLiant Essentials Software

Also announced today are two new additions to the HP ProLiant Essentials management software product line: HP Insight Manager 7 SP2 and the HP ProLiant Essentials Performance Management Pack. HP Insight Manager 7 has an enhanced user interface that provides an integrated console for the Performance Management Pack.

The Performance Management Pack features the ProLiant Performance Analyzer, which identifies and explains hardware bottlenecks on ProLiant servers. In addition to providing corrective recommendations in existing server deployments, the software aids in the optimization of new deployments, enabling customers to manage performance issues for increased application availability.

Availability and Pricing(3)

Available today, estimated U.S. prices for the HP ProLiant DL740 server start at $24,999, while estimated U.S. prices for the second-generation HP ProLiant DL760 server start at $27,999.

Licenses for the HP ProLiant Essentials Workload Management Pack are $499 per server. Estimated U.S. licenses for HP ProLiant Essentials Performance Management Pack are $99 per monitored server. The two management packs are currently available only for Windows environments. HP Insight Manager 7 SP2 ships free with ProLiant servers.

Additional information about these products is available at http://www.hp.com/products/servers/platforms.

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 http://www.hp.com.

IDC Server Tracker 3Q 2002 -- Eight-processor U.S. market share for Standard Intel Architecture Server market.

(2) http://www.tpc.org: TPC-C benchmark, ProLiant DL760 G2 server, 8 x Xeon MP 2.0 GHz CPUs, MS Windows .Net Datacenter Server, MS SQL Server 2000 Enterprise Edition SP3, system as tested availability 3/31/03 (all hardware available now).

(3) Actual prices may vary.

Intel is a U.S. registered trademark and Xeon is a trademark of Intel Corp. Microsoft and Windows are U.S. registered trademarks of Microsoft Corp.

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; 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 http://www.hp.com.