Press Release:

Series of Customer Wins Highlights Strength of HP Business Partner Sales

HP Channel Programs Gain Recognition as Best in the Industry

HP (NYSE: HPQ) today expressed continued commitment to its business partners and recognition of the vital role they play in driving HP technology, service and solution sales in the marketplace.

Several key solution provider partners have experienced strong sales as a result of customers' confidence in the new HP to offer the industry's broadest and deepest portfolio of products and solutions and in the company's dedication to serving customers.

HP business partners Avnet Computer Marketing, BCG, Inc., CDW, Dimension Data and Pioneer-Standard Electronics, Inc., and Sysix Technologies are winning customers and realizing strong sales. Increased partner revenues coupled with the results of two recent surveys -- the CRN Channel Champion Awards and the VARBusiness Partner Program Survey -- emphasize the positive response of partners and end users to HP's channel programs.

"Solid momentum in partner-led sales and these awards indicate that HP's products and channel programs are a winning combination for our partners," said Kevin J. Gilroy, vice president and general manager, HP Commercial Channels, Americas. "However, we aren't taking our success for granted. We will continue to execute on three fundamental principles: providing predictability, keeping an open line of communication and making an ongoing investment in the channel and our partners."

Solution providers in the United States continue to show confidence in delivering HP technology to their customers. "We continue to build strong relationships and drive investments in key growth areas such as high-performance servers, storage, software and solutions," said Dan Vertrees, vice president, HP Enterprise Partners, Americas. "Today, enterprise solution providers can offer their customers the best and broadest product portfolio in the industry along with services and solutions that surpass the competition."

Avnet, a value-added distributor dealing with both HP and Compaq partners, is confident of the opportunities ahead. "Avnet has deep and long-standing relationships with both HP and Compaq, and we see the combination of the two leading to growth opportunities for our partners," said Rick Hamada, president, Avnet. "We will leverage our expertise with both companies to allow resellers and enterprise customers to capitalize on the best of both worlds."

Pacific Northwest-based solution provider BCG, Inc., is delivering the latest storage technology to customers in the healthcare, telecommunications and financial industries such as Washington Mutual, VoiceStream Wireless and Premera Blue Cross Blue Shield. Customers deploying infrastructure projects are driving strong sales. For the first quarter 2002, sales of HP and Compaq products were up 24 percent over the same period last year. And 2001 marked the best sales year in the seven-year history of the company.

"Customers rely on us for planning, managing and deploying storage and server solutions and our ability to integrate these into their corporate infrastructure at the best ROI," said Seth Basker, president, BCG, Inc. "We are truly excited about the unique benefits of the combined company and our ability to offer customers a broad solution set. We are investing in engineers and technical skills as well as sales consultants to drive implementation of HP technology in the marketplace."

CDW -- a Fortune 500 direct marketer of technology products and services to small- and medium-sized businesses, government agencies and educational institutions -- has experienced strong sales with HP and Compaq.

"CDW has outstanding long-term relationships with HP and Compaq. The new HP is well-positioned to deliver the additional value customers demand through its product leadership, greater product innovation and global brand presence," said John Edwardson, chairman and chief executive officer, CDW. "We look forward to working with a company with greater financial strength and an even stronger commitment of resources and support for the channel."

Dimension Data, with U.S. headquarters in Reston, Va., is a leading technology services company providing infrastructure and multi-channel solutions to global corporations. Over the last nine months, the company saw its HP and Compaq sales increase three-fold since the merger was announced. Sales to customers, including PSS World Medical, Hughes Supply and Georgia-Pacific, among others, have earned Dimension Data several million dollars in first-quarter shipments, with additional revenues for sales and support expected over the next 12 months.

New HP business partner Pioneer-Standard, based in Cleveland, has trained its staff and is ready to provide customers with the best technology and services the new HP offers. "We're really looking forward to working with an expanded set of innovative products and offering the best service to our customers," said Arthur Rhein, president and chief executive officer, Pioneer-Standard. "The combined company will have enhanced breadth and depth in areas that are important to our customers, including technology innovation and solutions in such key areas as servers, storage, software and services."

Sysix Technologies, a Chicago-based business partner and provider of technology infrastructure solutions, says revenues are up substantially over the past three months. "Our first quarter revenues are up 37 percent over this quarter last year," said John Sheaffer, chief executive officer, Sysix. The company was a partner with both Compaq and HP. "We had success with the great trade-up programs for storage and server consolidations along with the best products and support available. This, coupled with a willingness to work cooperatively, has allowed us to deliver $4.2 million in HP products over the last quarter, with another $3.4 million booked," said Sheaffer.

Channel Programs Receive Top Industry Recognition

In addition to winning new business with reseller partners, HP is gaining overall industry recognition for its channel programs. HP was awarded the highest rating available -- five-stars -- in all eligible categories in the VARBusiness Partner Program Guide, ahead of all competitors, including IBM and Sun. The guide rates vendors on 16 criteria and then assigns a star rating based on results -- five stars being "superior," one star being "problematic."

Also, HP received four channel champion awards from CRN magazine as part of its annual Channel Champion survey. CRN asked over 7,500 solution providers to rate their satisfaction with vendors in 20 product categories, ranging from storage to security networking. Solution providers gave HP's technologies high marks as well as its channel programs such as technical and field sales support. HP was named Channel Champion in Network Management Software, Network Color Printers, Wintel servers and Storage Area Network Arrays.

About HP

HP is a leading global provider of technology products, 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. The merged company had combined revenue of approximately $81.7 billion in fiscal 2001 and operations in more than 160 countries. Information about HP and its products can be found at

This document contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. Further, these forward-looking statements do not constitute new or amended overall financial guidance for HP, and any anticipated aggregate contract values referred to in this document do not independently provide a basis for determining the future timing of revenue.

All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues (including where the underlying contract has already been signed), or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include performance of contracts by customers and partners; employee management issues; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; the difficulty of keeping expense growth at modest levels while increasing revenues; 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.

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