Press Release:

HP First Major Vendor to Introduce Four-processor Blade Server

SAN Connectivity in Two- and Four-processor Blades Extends HP ProLiant BL Line Further into the Enterprise
PALO ALTO, Calif., Jan. 20, 2003

Building on its worldwide leadership in the Intel-based server market,(1)HP (NYSE:HPQ) today became the first major server vendor to introduce a four-processor blade server. With the new HP ProLiant BL40p server, HP's blade server portfolio now spans one-, two- and four-processor systems, allowing enterprise data centers, service providers and telecommunications companies to build complete, multi-tiered environments using blade servers.

The HP ProLiant BL40p server addresses back-end enterprise availability through heterogeneous storage area network (SAN) connectivity, which enables customers to move critical business applications to a blade server environment with a full complement of storage options.

HP also unveiled the next generation of the HP ProLiant BL20p server, which also offers heterogeneous SAN connectivity while using the latest Intel® Xeon™ processor, as well as the updated HP ProLiant BL10e server with a 900-MHz processor, so applications now run even faster on the most power- and space-efficient ProLiant server.

Building on its market-leading 54 percent blade server unit market share(1) and a recent milestone of 15,000 HP ProLiant blade servers shipped, HP offers the widest customer choice of blade servers for front-end, mid-tier and back-end application deployments.

"HP's blade servers enable customers to reduce cost and complexity through integrated management and increased server/storage utilization," said James Mouton, vice president, Platforms, HP Industry Standard Servers. "With these new products, HP is building on its adaptive infrastructure strategy: linking servers, storage and network capacity that can be dynamically allocated, accessed and shared by users and applications."

"CenterBeam has built the core of its IT architecture on HP ProLiant e-class and p-class blade servers. They meet CenterBeam's exacting standards for performance, reliability and scalability," said Dr. Glenn Ricart, chief technology officer, CenterBeam. "Equally important is that CenterBeam can manage the HP blade servers with HP OpenView and ProLiant Essentials, critical tools in our management strategy. We are very enthusiastic about the products HP has introduced today."

The HP ProLiant BL Server Family -- Addressing Enterprise Needs

HP's adaptive infrastructure strategy is designed to provide businesses the ability to quickly and efficiently respond to change and to optimize customer infrastructures for the future. New hardware and software technologies such as ProLiant blade server architectures illustrate how HP is helping make its customers more agile in response to change.

The HP ProLiant BL40p blade server is designed for environments that require multi-processor support and SAN connectivity, such as large enterprise application systems, including messaging systems, CRM and ERP applications, which require a robust and highly available platform.

The next-generation HP ProLiant BL20p blade server is an ideal solution for terminal server farms, Web hosting environments and e-commerce and streaming media applications, while also protecting critical server information.

Ideal for network edge and infrastructure applications such as Web serving, firewalls, and caching servers, the HP ProLiant BL10e blade server remains the industry's market leader in power-efficient blade servers. Customers can install 20 HP ProLiant BL10e blade servers in a 3U enclosure and 280 servers in a full-size 42U rack for better utilization of valuable data center space and power and cooling capacity, with minimal cabling.

Aiding customers' investment protection, the ProLiant BL p- and e-class servers are backward-compatible with existing BL enclosures.

The HP ProLiant BL blade server line is easily managed with HP ProLiant Essentials, HP Insight Manager 7 and HP OpenView software. The HP ProLiant Essentials Rapid Deployment Pack enables automatic configuration and installation of operating systems and applications on hundreds of servers simultaneously. These technologies are optimized to integrate with the HP OpenView software suite for seamless management over IT, voice and data infrastructures.

SAN Connectivity -- Bringing Storage Scalability to Blade Servers

The addition of heterogeneous SAN connectivity to the ProLiant BL p-class server line marks a milestone in the efforts to accelerate the adoption of blade servers for enterprise applications. With SAN connectivity, enterprises can implement enterprise applications in the blade server environment to reduce management costs and realize the benefits of an integrated server, network and storage system.

Optimized for HP blade servers, HP StorageWorks SANs and network attached storage (NAS) systems are the preferred and recommended solutions for customers. SAN connectivity enables storage scalability to hundreds of terabytes; broadens enterprise data center solution support; enables blade application and database connectivity to both SAN and NAS/SAN fusion (file and block data storage environments) solutions; and delivers network storage management benefits through HP OpenView Storage Area Manager software.

Availability and Pricing

Expected to be available to order by mid-March, estimated U.S. prices for the HP ProLiant BL40p server start at $8,999, while estimated U.S. prices for the next-generation HP ProLiant BL20p server start at $3,399. The HP ProLiant BL10e server with 900-MHz processor is available today, starting at an estimated U.S. price of $1,859.(2)

Additional information about these products is available at

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 merger transaction involving Compaq Computer Corporation on May 3, 2002. More information about HP is available at

(1) IDC Q3 2002 Server Tracker. (HP has 32 percent unit market share worldwide in the Standard Intel Architecture Server market.)

(2) Actual prices may vary.

Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.

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 quarterly report on Form 10-Q for the quarter ended July 31, 2002 and reports filed subsequent to HP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001. 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