HP No. 1 in Worldwide Midrange UNIX Server Revenues in 2001; IDC Figures Show HP Grows UNIX Server Market Share in Every Category in 2001, Closing the Gap on a Faltering No. 1

Business Wire, March 8, 2002

Business Editors/High-Tech Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--March 8, 2002

Hewlett-Packard Company (NYSE:HWP) announced today that for the fifth consecutive year it has secured the No. 1 position in worldwide midrange UNIX(R) server revenues according to 2001 figures released this morning by market research firm IDC.(1)

The IDC figures also show that -- year-over-year -- HP has strengthened its positions in the entry-level, mid-range and high-end UNIX server markets and has grown its share of overall UNIX server revenues. According to IDC's calendar year 2001 figures, HP retains the number two position in overall UNIX server market share by revenue and is closing in on a faltering number one. For total UNIX revenue, HP is number one for calendar year 2001 in Western Europe and number one for Q4 2001 in the U.S., Latin America and Japan.

HP has led the midrange market for the past five years and has bolstered its offering with the recent introduction of the HP Server rp7410, a new 8-way server that provides the dependability, adaptability and operational efficiency businesses need to keep up with changing workloads. The HP Server rp7410 complements the HP Server rp8400, introduced in September 2001, each of which deliver high-end server technology in a midrange system. The newly released numbers from IDC show that HP increased its share of the midrange UNIX server market based on revenue to 30.7 percent in 2001, up from 29.7 percent in 2000.

In the high-end UNIX server market, HP Superdome sales have increased dramatically. According to the IDC figures. HP gained ground to increase its share of high-end UNIX server revenues from 11.7 percent in 2000 to 18.5 percent in 2001. Comparing IDC's Q4 2000 to Q4 2001 revenue figures alone, HP's share of the high-end UNIX server market nearly tripled, increasing from 8.1 percent to 21.8 percent.

HP's share of entry-level UNIX server revenues has also increased year-over-year according to IDC, growing from 20.1 percent in 2000 to 22.1 percent in 2001. Earlier this week, HP reinforced its entry-level portfolio by introducing the PA-8700 processor into both its 1- and 2-way entry-level UNIX servers -- the HP Servers rp2430 and rp2470, respectively -- while dropping starting prices to less than $1,000.

"These numbers speak volumes about the strong growth of the HP UNIX server business," said Mark Hudson, director of worldwide marketing, HP Business Systems and Technology Organization. "Our product portfolio is the strongest it has ever been and we will continue to enhance our offerings to ensure that we are meeting and exceeding our customers' needs, as well as growing revenue share and beating the competition across the board. The market is tough, but overall 2001 was a strong year for our UNIX server business, and I'm proud of our accomplishments."

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 http://www.hp.com.

UNIX is a registered trademark of the Open Group.

(1) According to IDC's Quarterly Server Tracker, Q4CY2001, published March 8, 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 above).

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.