Press Release:

HP Extends Midrange UNIX Leadership in Q1 2002

IDC Figures Demonstrate HP's Overall Market Strength, Doubling of High-end Market Share

HP (NYSE: HPQ) today announced that in the first quarter of calendar year 2002, the company increased both its year-over-year and sequential share of total UNIX® server revenues, according to figures released today by market research firm IDC.(1)

The IDC numbers also show that HP -- No. 1 in midrange UNIX server revenue for the past five years -- continued its midrange dominance, again claiming the No. 1 spot for the first quarter of 2002 with a commanding 35 percent share of midrange UNIX server revenues.

No. 2 in total UNIX server revenue for the last four years prior to its merger with Compaq, HP continued this strong position in the first quarter of 2002. HP accounted for 27 percent of all UNIX server revenue for the quarter, compared to the 17 percent share of the third place contender, IBM.

HP experienced tremendous growth in the high-end of the UNIX server market, anchored by the strong sales of the HP Superdome server. HP grew its year-over-year high-end revenue by 74 percent, doubling its share of high-end UNIX server revenue to 24 percent. HP's growth came at the expense of IBM and Sun, whose high-end revenues declined 38 percent and 24 percent, respectively, during the same period.

"These IDC results once again highlight HP's leadership position in the highly competitive UNIX server market, a position that has only been strengthened by the merger with Compaq," said Mark Hudson, worldwide marketing manager, HP Business Critical Systems. "Our high-end HP Superdome server is selling better than ever, our recently enhanced midrange lineup is the best that HP has ever offered, and our entry-level servers are holding their own."

Combined, HP and Compaq had more UNIX server revenue in the first quarter than any other vendor. Looking beyond UNIX to the total server market, HP and Compaq together sold more servers in the first quarter than any other company in the world -- 80 percent more than the nearest competitor.

In addition to gaining revenue market share in the midrange UNIX server category, HP continued to lead the midrange in total shipments in the first quarter. HP's year-over-year shipments grew 5 percent at the expense of IBM and Sun, accounting for 37 percent of all midrange UNIX servers shipped in the first quarter.

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 Corp. 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) IDC Quarterly Server Tracker, Q1CY2002, published May 31, 2002. IDC uses price points to differentiate servers into entry-level (which is up to $100,000), midrange (which is $100,000-$1 million) and high-end (which is $1 million and higher).

UNIX is a registered trademark of the Open Group.

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