Press Release:

HP Provides IT Flexibility to Emerging Businesses with New ProLiant Servers

New Offerings Provide Growing Businesses Range of Server Options, Enabling Them to Do More with Less
PALO ALTO, Calif., Sept. 17, 2002

HP (NYSE: HPQ) today introduced a new generation of HP ProLiant servers designed to reduce IT complexity and improve flexibility for growing and emerging businesses.

The expansion-ready HP ProLiant ML300 series servers offer improved customer choice through a portfolio of entry-level models combining powerful management capabilities, affordable performance, scalability and high-availability features. With these features, the servers enable growing businesses to conserve IT resources and adapt quickly and easily to changing business needs.

The new entry-level HP ProLiant ML310 server and enhanced versions of the HP ProLiant ML350 and ML370 servers provide adaptive infrastructure technologies as well as the performance, virtual presence and control management, and data protection that growing and emerging businesses need to power general purpose and advanced business applications such as file/print, CRM, ERP and firewalls.

"Growing businesses look to HP and its resellers to deliver a suite of total solutions that are affordable and easy to use, without sacrificing the performance they need," said James Mouton, vice president, Platforms Division, HP Industry Standard Servers. "Delivering on our promise to provide customers with adaptive infrastructures, HP is offering industry-standard solutions that enable businesses of all sizes to grow as their business needs change. With our new ProLiant ML series servers, customers can focus on their businesses, rather than IT."

Adaptive Infrastructure: HP's Lights-out Management Technologies

As business becomes more demanding, growing and emerging companies need technologies that reduce operating costs and increase their ability to respond rapidly to changes in market conditions or customer demands. The HP ProLiant ML300 series servers provide customers advanced management and cost savings through HP's innovative lights-out management technologies.

With these technologies, customers can securely manage and control one or several HP ProLiant servers within their environment or at remote locations around the world. Customers can do this with the same level of control as if they are physically in front of the server, saving network managers time and effort in managing branch office solutions.

The HP ProLiant ML370 server extends management capabilities and value by integrating an HP Integrated Lights-out (iLO) management processor into every server. The HP ProLiant ML310 and ML350 servers offer customers flexibility to enhance their remote management with the HP Remote Insight Lights-out Edition (RILOE) management card.

Value-added resellers and system integrators can offer customers enhanced service using RILOE and iLO to achieve virtual presence and control that enables them to easily install, configure and manage HP ProLiant servers for their customers.

"As a trusted advisor to growing and emerging businesses, we need to meet our customers' demand for total solutions that are economical, easy to manage and maintenance-free, but still meet the highest levels of performance and reliability," said Ken Allen, Ken Allen Systems Integrator. "We consistently look to HP to enable us to provide our customers with innovative technology that is reliable and simple to deploy and manage."

Server Portfolio Designed for SMB IT

Ideal for growing businesses and customers with branch offices, the HP ProLiant ML310 server enables users to run sophisticated small business applications and branch office solutions with the reliable data protection and manageability they need to simplify ownership.

The first HP ProLiant server to use an Intel® Pentium® 4 processor, the ProLiant ML310 offers superb out-of-the-box data protection with integrated ATA RAID. For higher performance and reliability, customers can choose SmartArray SCSI RAID array controllers and HP tape backup devices to protect their most important data. In addition, the ML310 is the only single-processor server to offer a global pre-failure warranty covering processors, memory and hard drives.

The HP ProLiant ML350 server offers affordable two-way performance and essential levels of intelligent fault resilience to minimize expensive downtime and provide entry-level corporate customers as well as growing businesses increased peace of mind. The server's expandable 5U rack or tower platform is easy to service and provides flexibility through six hot-plug drive bays, five expansion slots and up to 8 GB of memory for headroom for future growth. The ProLiant ML350 is available with Intel® Xeon 2.0 GHz and greater processors, PCI-X, DDR memory providing the processing power that is required by customers of all sizes.

The HP ProLiant ML370 server is engineered to provide corporate workgroups and branch offices with manageability, high performance and intelligent fault resilience in a versatile, easy-to-manage two-way rack or tower expansion server. Featuring iLO technology and tool-free serviceability, the server is scalable to two Intel® Xeon 2.4 GHz processors with hyper-threading technology, up to 12 GB DDR memory, six open PCI-X 64-bit/100 MHz slots, PCI-X and up to eight hard drive bays providing customers with maximized productivity.

Pricing and Availability

The new HP ProLiant ML300 series servers are available today and support Windows® and Linux operating platforms. Pricing for the HP ProLiant ML310 server with 128 MB of memory and a 40 GB IDE hard drive starts at an estimated U.S. Internet list price of $1,199. Pricing for the HP ProLiant ML350 server starts at an estimated U.S. Internet list price of $1,849 (tower) and $2,099 (rack). Pricing for the HP ProLiant ML370 server starts at an estimated U.S. Internet list price of $2,709 (tower) and $3,009 (rack).(1)

HP Financial Services is now offering customers two percent cash-back rebates for leased purchases of up to $50,000 on ProLiant servers. The lease-rebate program runs until Oct. 31, 2002, with rebates paid within 60 days of the product purchase, and is available to customers purchasing directly from HP or through solution providers or affiliate Web sites.

More information on the products announced today 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 Corp. on May 3, 2002. More information about HP is available at

(1) Actual prices may vary.

Intel and Pentium are U.S. registered trademarks of Intel Corp.

Windows is a U.S. registered trademark 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 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