Press Release:

HP Sees Blade Server Market "Taking Off Like a Rocket"

HP Blade Shipments Reach Milestone: Ramp to More Than 1,800 Units per Month

HP (NYSE: HPQ) today announced it is has reached a milestone in its enterprise blade server product line by becoming the first vendor to surpass 1,800 blades sales per month. Ramping sales to customers since its single processor blades were announced last year, HP maintained its worldwide lead in the market with 54.8 percent market share -- more than 18 percentage points ahead of the nearest competitor -- according to IDC.(1)

"The blade server market is taking off like a rocket and it's only the most agile and innovative vendors that can take advantage of this opportunity," said James Mouton, vice president of enterprise servers, HP Industry Standard Servers. "HP has set the bar high by delivering truly successful blade solutions, with a winning combination of hardware, software management and services.

"Customers want a range of choices from entry-level blade servers to multi-processor performance blades and only HP can provide it today. Customer acceptance of our ProLiant BL server series proves we can grow the market through innovative, customer-focused technologies based on industry standards and partnering."

HP set the pace in the blade market, pioneering the concept of enterprise blade server design for industry standard applications in 2001. HP moved to the second phase of blades in August when it became the first major vendor to bring multi-processor blades to enterprise customers.

Today, HP is the only vendor to deliver comprehensive blade server solutions from ProLiant BL e-Class low-voltage blades to more advanced ProLiant BL p-Class dual- and, currently in development, four-processor performance blades for mid-tier and back-end applications.

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 Corp. on May 3, 2002. More information about HP is available at

(1) IDC Worldwide Quarterly Server Tracker, September 2002.

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 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 April 30, 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 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