Press Release:

HP No. 1 in Worldwide Itanium-based Workstation Shipments for Q3

Software Developers and Power Users Increasingly Choose Solutions from HP

PALO ALTO, Calif., Jan. 3, 2002

Hewlett-Packard Company (NYSE:HWP) today announced that it holds the number one market position for Itanium™-based workstation shipments worldwide for the third quarter of calendar year 2001. This was the first full quarter in which these systems shipped.

According to reports by industry research and advisory firms Gartner/Dataquest and International Data Corporation, HP is the leading Itanium-based workstation vendor -- number one in Itanium-based workstation revenues and shipments. Both the Gartner and IDC reports show that HP shipped more than one and a half times its closest competitor and holds 50 percent of the Itanium-based workstation market.(1)

"The level of enthusiasm for the Itanium architecture HP co-developed with Intel is steadily increasing," said Barry Crume, business product manager for Itanium workstations, HP Technical Computing Division. "HP's workstation market share growth during the third quarter also reflects the advantage of being the only Itanium-based supplier shipping a commercial UNIX."

HP's Itanium-based workstations support three 64-bit operating systems: HP-UX 11i version 1.5, Microsoft® Windows® XP 64-bit edition and Red Hat Linux 7. The workstation's large memory addressing capability, large number of registers and advanced compiler technologies work together to make this the architecture of choice for power users.

The single processor model is a cost-effective solution application for porting and development. Software ported to this generation will have full binary compatibility with future Itanium-based systems.

The dual processor, high-performance model is designed for the toughest problems in Computer Aided Engineering (CAE), Mechanical Computer Aided Design (MCAD) and Digital Content Creations (DCC).

Side Effects Software, a world leader in the development of advanced 3D graphics and special effects software for use in film, broadcast and game development, is one of several DCC software developers porting applications to the Itanium platform.

In addition, Sony Picture Imageworks, in an effort to improve productivity, is currently testing HP's Itanium-based workstations for processing-intensive tasks such as rendering and compositing.

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 all. HP had total revenue of $45.2 billion in its 2001 fiscal year. Information about HP and its products can be found on the World Wide Web at

(1) Gartner Dataquest Alert, Did Workstation Decline Slow Down in 3Q01 Because of the Terrorist Attack?, published Oct. 26, 2001. IDC, Quarterly Server Tracker, Q3CY2001, published Nov. 15, 2001.

Intel and Itanium are trademarks or registered trademarks of Intel Corporation in the U.S. and other countries and are used under license.

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. Microsoft and Windows are U.S. registered trademarks of Microsoft Corp.

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 the annual report on Form 10-K for the year ended Oct. 31, 2000, 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