Press Release:

HP to Drive Financial Sector Momentum with Integrated Solutions Portfolio

HP Plans to Step Up Efforts Focused on Customer Needs in Financial Services Sector

HP (NYSE: HPQ) today confirmed plans to intensify its focus on financial services markets. The new HP's Enterprise Systems Group will include a business unit focused solely on developing solutions that tailor business applications, computing infrastructure and services to retail and wholesale banks, card services firms, securities exchanges, settlement houses, investment banks, brokerages and insurance companies.

In the months prior to the HP and Compaq's merger, in what continued to be a tight enterprise IT spending environment, the two companies' sales to financial services companies totaled nearly $1 billion.

"Both Compaq and HP were highly valued by financial services customers for their strong solutions and expertise," said Peter Blackmore, executive vice president, HP Enterprise Systems Group. "The two companies' strengths in this market were almost perfectly complementary and now they are combined to form an even stronger partner for our financial customers. We'll continue to expand our portfolio of partner company relationships, architectural and integration services, managed services and business-critical technologies we offer this industry."

According to Blackmore, competitors' claims that the merger would dissuade customer relationships were simply wrong. "The facts prove that enterprise customers remain confident in the new HP as a technology partner," said Blackmore. "Closing $1 billion in new business with finance industry customers in just three months during this time represents a significant accomplishment."

HP closed more than 65 new contracts valued from $1 million to $25 million each in the three-month period. The contracts include financial customers from more than 20 countries representing regions around the world, demonstrating HP's ability to deliver integrated, comprehensive solutions that address the specific requirements of finance industry customers. Examples of these sales include the following:

Retail Banking

HP is building on a long history of leadership strategic solutions for multi-channel retail banking delivery, Internet banking and electronic customer relationship management (eCRM). HP leads the development of real-time retail banking with Zero Latency Enterprise (ZLE) enabled solutions.

ARVEST Bank Operations Inc., the largest banking group headquartered in Arkansas, chose an end-to-end storage solution from HP to help ensure that its electronic banking systems are always available.

State Bank of Mauritius, one of the world's top 100 banks, chose HP servers to support its new e-payment processing software.

Wachovia Corp., the nation's fourth largest financial holding company, purchased HP Superdome and rp7400 servers valued at $10.2 million. Wachovia Bank will be using these servers to run their HR PeopleSoft, commerce banking, data warehouse and financial applications running on Oracle databases. HP assisted the bank in developing a compelling business and financial case through total cost of ownership analysis. This server consolidation initiative will reduce the number of servers for these applications from 25 to 12.

Emaar Bank, of the United Arab Emirates, chose HP to deliver and prime servers, printers, storage, scanners, handheld devices and services for their core banking system, call center, Internet banking, automatic teller machine (ATM) switch, credit card system, CRM, treasury, branch automation and outsourcing with a multi- million contract over the following 18 months.

Conavi, the second largest private bank in Columbia with over 200 offices across the country, deployed a NonStop(TM) server-based ZLE architecture. The ZLE solution creates an infrastructure for Conavi in which information and transactions from multiple customer channels are propagated throughout the bank in real time in order to establish consistent, personalized customer relationships. This single, up-to-the-second, integrated view of the banks' customers is then driven through a system of Web-enabled, rules-based ATMs to facilitate the cross-selling of product.

Concord EFS, Inc. -- a leading electronic commerce processor -- recently selected the fault-tolerant, massively scalable NonStop server to handle rapid and unpredictable increases in transaction processing and authorization traffic for the largest network of ATMs in the United States and Concord's extensive network of point-of-sale (POS) terminals. Concord will be upgrading existing NonStop systems, providing enhanced online expansion capabilities and improved price/performance, as well as adding new NonStop servers as disaster recovery systems, ensuring increased disaster protection and cost savings through the consolidation of existing data centers.

Banco Popular in Puerto Rico, one of the largest banks in Latin America, selected HP to supply a .50 terabyte storage infrastructure for the bank's most important business applications. HP was chosen over EMC and IBM and is providing HP storage systems for an overall storage area network (SAN) solution. The bank's heterogeneous environment includes HP Superdome servers running HP-UX.

KorAm Bank, a leading bank in Korea focusing on retail banking, chose HP to reinvent its Internet banking infrastructure, which last year served more than 10 million users. KorAm selected HP in a $2.5 million deal that includes HP servers and storage systems due to product performance and reliability, strong service and financial industry expertise.

Fundacion Social, the largest financial company in Colombia, is updating its core banking platform for main and branch offices as well as other organizations within the company. The upgrade includes HP servers, storage and software. HP also is providing consulting services to implement the solution.

Bank Central Asia, one of the largest banks in Indonesia, is upgrading its HP PCs, industry-standard servers and printers in a deal valued at $1.5 million.

Global Trust Bank of India chose HP to implement a disaster recovery project incorporating AlphaServers and StorageWorks technology.

Banesto, a leading retail bank in Spain, has chosen HP desktop PCs and monitors for all of their branch offices.

Germany's Hypovereins Bank, running a fully HP infrastructure, also has selected industry-standard ProLiant servers and services for their real estate subsidiary.

In the United Arab Emirates, Mashreq Bank's ATM switch and card management applications run on HP NonStop systems.

Nordea Bank in Finland has contracted HP business-critical services for their Solo Web Banking infrastructure at an estimated annual value of $1.45 million.

Wholesale Banking

HP's NonStop Payments Plus solution provides integrated payment and cash management, and HP provides real-time and integrated, operational systems and liquidity management. HP's innovation in next-day transaction settlement (T+1) also offers tangible efficiencies to wholesale banking settlement operations.

The Brazilian Central Bank (Banco Central) -- a governmental institution that coordinates and regulates the national financial system -- purchased 60 industry-standard ProLiant servers, more than 1,100 desktop PCs and a variety of expansion kits, significantly increasing the processing capacity of its Web server, database, email and enterprise critical applications. By doing this, Banco Central improved the productivity and quality of services in its regional offices, located in the capitals of main Brazilian states. The institution also contracted for on-site support for a three-year period. The bank's investments reduce its IT environment total cost of ownership and ensure the availability of its applications.

Banco Commercial Português has awarded HP a three-year, $6.4 million contract for the outsourcing of its Intel®-based servers.

HP recently enhanced the NonStop Payments solution with a Web-based, remote access wire transfer solution from Magnet Communications, Inc., that will allow commercial banks to streamline their high-value payments operations and provide enhanced services to their corporate customers. The solution integrates key elements of Magnet's Internet Banking Suite(TM) with HP's NonStop Payments solution, giving corporate customers the ability to initiate both domestic and international wires via the Internet and to receive confirmations from the bank that these payments have been successfully transmitted.

BRI, one of Indonesia's largest government banks with branches throughout the country, selected HP to provide a workgroup infrastructure to connect BRI branches to the bank's main data center.

In Macedonia, HP has launched the phase one rollout of a contract with the government to establish the first card management system aiming at nationwide ATM and POS coverage for the country.

Card Services

HP is the premier transaction processing solution provider in the industry, handling more than 80 percent of ATM transactions, 66 percent of the POS transactions and 70 percent of the estimated 66 trillion card-based financial transactions worldwide supported by HP services and platforms. HP also leads in development of cross-platform security and authentication technology in e-commerce and wireless services.

American Express chose HP to provide technology, services and support, including thin clients and industry-standard ProLiant servers in the United States, Europe, Asia and South America through a five-year, multi-million dollar contract.

Visa Debit Processing Service, a division of Visa USA and the largest processor of Visa check card transactions in the United States, upgraded their transaction processing infrastructure to include five massively scalable NonStop server systems and associated services, totaling more than $4 million, to support their business growth. Visa DPS is the second largest issuing processor of all Visa transactions in the United States, handling over 295 million transactions monthly, and processes 35 percent of all Visa check cards in the United States.

HP's leadership in storage and clustering technology, as well as close relationship with Oracle, recently led Retriever Payment Systems to select HP storage and AlphaServer technology for their internal data storage facility.

Exchanges and Settlement

HP is the leading IT solutions provider within the securities and commodities exchange market with more than 130 exchange customers around the world, and core systems at 14 of the world's 15 top stock exchanges are supported by HP services and platforms.

CRESTCo, a clearinghouse in England, has awarded HP a three-year contract for NonStop systems and enterprise-wide license agreements.

The Bolsa de Madrid has recently acquired six data center solutions valued at $2.5 million.

Investment Banking and Brokerages

Tied to its offerings for exchanges and settlement, HP also is the leader in global trading technology, delivering the most comprehensive selection of solutions on multiple platforms, as well as tested and proven business continuity solutions. HP supports the U.S. mandate of next-day transaction settlement (T+1) and leads in adoption of industry-standard building blocks to create cost-effective T+1 solutions. The solutions enable global financial institutions to realize Straight-through-processing and T+1 settlement through HP's IT services and leading application partners.

In February, HP and Intel launched the Compass program, a collaborative technology and marketing effort, to deliver financial trading cycle solutions featuring industry-standard servers.

The Principal Financial Group, a diversified financial services organization offering a full range of retirement savings, investment and insurance solutions to more than 13 million customers worldwide, recently awarded HP the renewal of its multi-year, multi-million dollar hardware and servicing arrangement.


HP solutions power the enterprise needs of nine of the top 10 U.S. life carriers and eight of the top 10 property and casualty carriers (both segments by annual premium rank). HP services and technologies help leading insurers drive improvements in distribution channel efficiency, e-business initiatives, claims service efficiencies, financial services offerings, CRM and product time to market.

Korea Life Insurance committed $14 million to an HP disaster recovery system and acquisition of 5,000 Evo N400 notebooks.

National Insurance Company, Ltd., of India chose HP to provide a $5 million package of LAN infrastructure incorporating more than 900 industry-standard ProLiant servers, more than 4,000 desktop PCs and more than 2,000 printers in all of its offices across the country.

First American Corp. is making a $10 million investment in HP technology and services with plans to deploy 6,000 professional workstations and notebooks, 4,000 computer monitors and hundreds of servers.

Allianz, an insurance firm in Germany, recently purchased 12,000 thin clients for their back office applications, replacing Dell products.

Willis Group Holdings, a leading global insurance brokerage firm, chose HP through a multi-million dollar global enterprise agreement to standardize IT equipment and services across more than 300 offices in more than 100 countries.

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

HP-UX Release 10.20 and later and HP-UX Release 11.00 and later (in both 32? and 64-bit configurations) on all HP 9000 computers are Open Group UNIX 95 branded products. UNIX is a registered trademark of the Open Group. Intel is a U.S. registered trademark of Intel Corp. Windows is a U.S. registered trademark of Microsoft Corp.

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