Press Release:

The New HP Regains Top Spot in IA-32 U.S. Server Market and Leads U.S. Shipment Market Share

Also Captures Market Leadership in Overall Server Shipments in the U.S., Outpacing Its Competitors

HP (NYSE: HPQ) today announced it has reclaimed the No. 1 position in U.S. shipments of industry-standard IA-32 servers in the second calendar quarter of 2002, a market it pioneered more than a decade ago with the ProLiant server family. According to calendar year, second quarter 2002 figures for the U.S. server market from industry research firm Dataquest,(1) as a result of the combined market shares of HP and Compaq, the new HP(2) regained the premier spot in the United States for popular IA-32-based server shipments, with 28.7 percent market share, compared with its closest competitor. In addition, HP's shipments grew 18.4 percent sequentially in IA-32-based servers, which is almost three times faster than its closest competitor.

Gartner's second quarter data reinforces HP's unit share leadership in the overall U.S. server market, with 26.4 percent share of shipments, outpacing its competitors in unit market share and sequential growth.

"Despite competitors' efforts to take market share at a time when they thought we were vulnerable, the fact is that they haven't made a dent. Our value proposition resonates clearly with customers and we continue to lead the industry standard server business with HP ProLiant servers," said Mary McDowell, senior vice president and general manager, HP Industry Standard Servers. "Coupled with ongoing improvements in our business operations, these combined market share numbers show that the new HP is already off to a strong start. As a result of our intense focus on addressing customers' needs, HP continues to extend its leadership through innovation and by delivering the highest levels of performance and reliability with our ProLiant family of servers."

"HP continues to address the broad requirements of both enterprise and growing businesses with innovative and industry-defining ProLiant solutions that are highly optimized for Windows, Linux and other key operating systems," said David Petts, general manager, HP Industry Standard Servers -- Americas. "Recent examples include driving new product categories such as blade servers, addressing customers' business and technology requirements through its adaptive infrastructure strategy, introducing ProLiant Essentials management software and bringing Advanced Memory Protection features to the ProLiant family."

Announced in December 2001, the adaptive infrastructure strategy enables organizations to adapt to changing market conditions, conserve valuable human and technology resources, and rapidly respond to their customers in a dynamic business environment.

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. The company would have had combined revenue on a pro forma basis with the Compaq transaction of approximately $81.1 billion in fiscal 2001 and has operations in more than 160 countries. More information about HP is available at

(1) Dataquest U.S. Server Statistics, Aug. 9, 2002.

(2) Market share derived by combining the data for both HP and Compaq, which is currently listed separately in Gartner Dataquest's Q-Stats database.

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 January 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 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