HP No. 1 in Worldwide Server Shipments for Eighth Consecutive Quarter, Also No. 1 in Windows, Linux and UNIX Server Revenue

Business Wire, May 28, 2004

Business Editors/High-Tech Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--May 28, 2004

HP (NYSE:HPQ)(Nasdaq:HPQ) today announced that it continued its No. 1 position for worldwide server shipments for the eighth consecutive quarter, according to first quarter calendar year 2004 figures released today by IDC.(1) HP was also No. 1 in revenue worldwide for the Windows(R), Linux and UNIX(R) server markets.

Fueled by strong demand for its industry standard HP ProLiant server portfolio, HP again leads worldwide in x86 server shipments with 31.6 percent of total units shipped in the quarter, according to the research firm's data. HP also posted strong revenue growth in the blade, EPIC/Itanium(R)-based and Linux server markets.

Other highlights include:

-- HP is No. 1 in total worldwide UNIX server revenue with 31.1

percent market share revenue, as well as No. 1 in high-end and

midrange UNIX revenue

-- In the fast growing Windows server market, HP continued to

hold the No. 1 position for revenue for the quarter with 20.7

percent growth year over year.

-- In the nearly $1 billion Linux market, HP leads in both

revenue with 28.8 percent and shipments with 25.5 percent.

-- HP holds the top spot worldwide for combined UNIX, Windows and

Linux server revenue and shipments. Together, these operating

systems represent 93.7 percent of all servers shipped in the

quarter.

-- Sales of Intel(R) Itanium 2-based HP Integrity servers

continue to lead the Explicitly Parallel Instruction Computing

(EPIC) server segment with 58.0 percent sequential revenue

growth.

-- HP gained two points of revenue market share over its

competitors in the x86 blade server market, the fastest

growing server form factor in the industry.

HP offers customers one of the broadest server portfolios in the industry, ranging from ProLiant and Integrity servers to NonStop systems, along with industry leading storage and management software and services for the Adaptive Enterprise.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the four fiscal quarters ended April 30, 2004, HP revenue totaled $76.8 billion. More information about HP is available at www.hp.com.

(1) Source: IDC's Worldwide Quarterly Server Tracker, May 2004.

Microsoft and Windows are U.S. registered trademarks of Microsoft Corp. UNIX is a registered trademark of The Open Group. Intel and Itanium are registered trademarks of Intel Corp. or its subsidiaries in the United States and other countries.

The information contained herein is subject to change without notice. HP shall not be liable for technical or editorial errors or omissions contained herein.