Press Release:

HP Elevates Role of IT Services Business, Names Ann Livermore President of New Services Organization

Hewlett-Packard Company (NYSE:HWP) today announced the creation of a new business unit chartered with accelerating the growth of its information technology (IT) services business. Ann Livermore has been named president of the new operating unit and will report directly to Carly Fiorina, HP chairman, president and chief executive officer.

With this move, HP elevates the status of its IT services organization to an operating unit. Livermore, who was president of HP's Business Customer Organization, now has responsibility for growing HP's services businesses -- consulting, outsourcing, support, education and solutions deployment -- and for strengthening HP's relationships with system integrators. She continues as a member of HP's Executive Council.

"We've been investing aggressively in our services business for the last 18 months," said Fiorina. "It's now time we intensify our focus on this growing business to help our customers realize the full potential of their business and technology investments."

During her 19-year career at HP, Livermore has held executive and management posts in marketing, sales, business operations and research and development on the enterprise side of HP's business. Most recently, as president of HP's Business Customer Organization, she was responsible for worldwide sales, marketing and delivery of HP products and services to large companies and small- and medium- size businesses.

"It's clear we're in an era where business and IT strategy are now inextricably linked, and customers are more focused than ever on implementing solutions that deliver clear business value," said Livermore. "Our consulting and outsourcing businesses have been growing at a healthy clip in recent quarters, and our support services have a vital role in solutions for an always-on Internet infrastructure. Our services capabilities are essential components of our strategy to help companies transform their businesses."

HP Services becomes the sixth HP business organization. Two other customer-facing organizations -- one for business customers and one for consumers -- are focused on marketing, selling and packaging HP solutions. Three product-generation organizations -- Computing Systems, Imaging and Printing Systems, and Embedded and Personal Systems -- are responsible for inventing, creating and manufacturing technology solutions and products.

Additional Organizational Moves

HP also announced two additional organizational changes:

Harry W. (Webb) McKinney has been appointed president of the HP Business Customer Organization, succeeding Livermore, and becomes a member of the HP Executive Council. McKinney was vice president and general manager of the PC business within the HP Computing Systems Organization. He pioneered the development of the company's regional distribution model, which is central to HP's strategy of pushing accountability and responsibility closer to customers. He brings extensive channel management experience to the position and in his new role is responsible for HP's worldwide sales and go-to-market strategies for products and solutions sold to large corporations and small- and medium-size businesses.

HP's consumer and commercial PC business, formerly part of HP's Computing Systems business, led by Duane Zitzner, will move to HP's Embedded and Personal Systems (EPS) business, reporting to Iain Morris, president of EPS. Morris is responsible for developing HP's client products including PDAs, calculators, and personal storage appliances, along with HP's mobile and wireline e-services partnerships and the company's emerging embedded software and solutions offerings.

"By moving the PC business into EPS, we're in a much better position to make the right marketing and R&D tradeoffs on the client side of our business," said Fiorina. "We're also enabling Duane and his team to focus all their energy on building world-class systems and solutions that deliver on our always-on Internet infrastructure value proposition."

"All of these moves are designed to intensify our focus on our core businesses and position HP for accelerating growth and leadership as economic conditions improve," said Fiorina.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and solutions for an Internet infrastructure that's always on.

HP had total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Information about HP and its products can be found on the World Wide Web at

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