Press Release:

Pre-merger Compaq Reaps Significant Gains Overseas in Storage Market Share

Retains the No. 1 Storage Position in 2001 According to Analyst Firm
PALO ALTO, Calif., June 4, 2002

HP (NYSE: HPQ) announced today that pre-merger Compaq Computer Corp., now part of the new HP, gained significant overseas market share in storage in 2001, according to a report recently published by Gartner Dataquest.(1) The company also retained the No. 1 position in internal and external RAID storage and Storage Area Networks (SANs) for the second consecutive year.

"There's nothing surprising in these numbers," said Mark Lewis, worldwide head of marketing and solutions, HP Networked Storage Solutions Group. "Everyone knows that Compaq has been a market leader in storage. Today, as part of the new HP, we offer unrivaled value to customers in networked storage with the broadest line of end-to-end solutions to match any need."

In 2001, Compaq sold the most disk-based storage and shipped the most SANs worldwide according to the Gartner Dataquest report. Compaq was the clear winner in major competitive regions, posting significant gains in EMEA (Europe, Middle East and Africa), Asia Pacific and Latin America.

"The reason that we're seeing such strong growth in these markets is because customers want complete solutions -- from servers to storage --from one vendor that can deliver on performance and price," said Lewis. "That's always been Compaq's value proposition and it just becomes stronger with the new HP."

According to Gartner Dataquest, Compaq cemented the global leadership position in terms of terabytes shipped (internal and external), SAN units shipped, external RAID controller-based storage revenue market share for Linux, and external RAID controller-based storage factory revenue market share for the Asia-Pacific region.

In May, HP announced its storage plans for the new company, offering enterprise customers a three-year product roadmap detailing a broad range of high-end, mid-range and entry-level solutions.

HP also outlined a vision of storage as a utility service to the enterprise with the ability to deliver the right information to anyone, anywhere, anytime. Building on Compaq's ENSA architecture, StorageWorks solutions and incorporating HP's OpenView software, the new company will offer the most extensive storage product line currently available, unmatched by any other company today.

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 merged with Compaq Computer Corporation on May 3, 2002. The merged company had combined revenue of approximately $81.7 billion in fiscal 2001 and operations in more than 160 countries. More information about HP is available at

(1) Gartner Dataquest, "RAID-Based Disk Storage Market Share, 2001," R. Cox, May 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 annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001, HP's quarterly report on Form 10-Q for the quarter ended January 31, 2002 (as filed with the SEC on March 12, 2002) and subsequently filed reports. 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