Press Release:

HP Helps Simplify Oracle Application Upgrades with Cost-saving Hardware and Services Program

Innovative Program Cuts Costs of Transition to Oracle Release 11i by up to 50 Percent, Ensures Business as Usual During Upgrade Process
SAN DIEGO, Oracle AppsWorld 2003, Jan. 20, 2003

HP (NYSE:HPQ) today announced an upgrade program that enables customers to minimize costs, simplify transition complexities and reduce downtime as they upgrade to Oracle® E-Business Suite 11i, a complete set of business applications.

Available today, HP's Oracle Applications Upgrade program offers an assortment of HP products, services and tools designed to dramatically decrease the amount of time and money customers spend to upgrade or transition their applications running in an HP environment.

"This program reduces cash outlays needed for new infrastructure components by up to 50 percent,"(1) said Nigel Ball, vice president and general manager, HP Enterprise Solutions Partners. "Furthermore, the upgrade program, which includes industry-leading platforms for the Oracle environment, reduces downtime and implementation time, allowing enterprises to focus on their business and customer needs throughout the transition process."

To minimize the costs associated with the upgrades, HP offers program participants discounts on select hardware and a breadth of heterogeneous platform options, including UNIX®, Linux and Windows®. In addition, HP provides equipment reuse recommendations built into new infrastructure designs and equipment trade-ins on new purchases.

HP also offers consignment systems during the transition period. Most application environments require 40-60 percent more computing capacity after the Oracle E-Business Suite 11i upgrade, but can require 100 percent more computing capacity during the upgrade. The HP consignment systems provide the needed capacity to resolve network bottlenecks, performance issues and planned downtime.

"The strategic alliance between Oracle and HP provides a powerful solution platform. Together we have many joint customers depending on Oracle Applications to run their businesses," said Doug Kennedy, vice president, Platform Alliances, System Platforms Division, Oracle Corporation. "The Oracle E-Business Suite running on HP is an ideal platform for companies needing to improve business processes, make more informed decisions and reduce expenses. HP's expertise and performance strength can help ease the transition as customers upgrade."

Customers can work with HP, a leader in mission-critical services, for both their upgrade infrastructure hardware and services needs. To further accelerate upgrade implementation, customers can elect to work with HP and its select systems integrators that have proven capabilities and methodologies for quickly implementing an Oracle applications environment.

HP has assisted numerous enterprise customers, including American Power Conservation Corporation and Starkey Laboratories, which have already successfully upgraded to the Oracle E-Business Suite 11i.

"By having the new HP hardware running in parallel with the existing HP production environment, we were able to avoid 12 or more hours of downtime for the final switchover," said Lisa Sipe, vice president of information systems, American Power Conservation Corporation. "With the mission-critical nature of our ERP application, the cost of 12 hours of downtime almost immediately justified the purchase of those servers."

"During our upgrade to Oracle E-Business Suite Release 11i, HP helped design our new environment to meet our future needs and global operations. We consolidated our globally dispersed systems and configured the new environment for fail-over, which has worked seamlessly," said Laurie Wondra, director of information technology, Starkey Laboratories. "We saved a significant amount on the cost of the new equipment compared to the legacy servers, and there were associated support and environmental cost savings."

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) Reduced costs are based on current HP list prices less standard discounts and depend on the platform and number of users required.

Oracle is a registered U.S. trademark of Oracle Corp., Redwood City, Calif. UNIX is a registered trademark of the Open Group. 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 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