HP Outgrows Market, Continues to Rank No. 1 in Worldwide Total Disk Storage Systems Revenue

Business Wire, Sept 2, 2005

PALO ALTO, Calif. -- HP (NYSE:HPQ)(Nasdaq:HPQ) outgrew the total disk storage market by 4 percentage points in the second quarter of 2005, according to market data released today by IDC.(1)

HP's worldwide total disk storage systems factory revenue increased by 13.9 percent year-over-year for the quarter.

Major new storage product releases and portfolio enhancements over the last several months helped HP maintain the No. 1 position in worldwide total disk storage revenue for the 13th consecutive quarter, with 23.5 percent market share and more than $1.3 billion dollars in revenue in a $5.6 billion market in the period.

The report also indicated that HP tied for the No. 1 position in revenue in the open storage area network (SAN) and iSCSI market with 24.8 percent market share. HP also held the No. 1 market position in total open SAN unit shipments.

HP's steady growth in the storage market is further illustrated by the latest quarterly financial results from HP, which showed that midrange storage revenues increased by 44 percent year-over-year, with the new HP Enterprise Virtual Array (EVA) family displaying strong market acceptance.(2)

In related news, HP was named "Company of the Year" in Network Storage in the recently announced VARBusiness 2005 Annual Report Card. HP received the highest overall score in the category for Partner Loyalty, indicating that HP continues to be the preferred storage vendor for solution providers.

Over the last several months, HP has delivered a number of new StorageWorks products that are expected to help maintain steady growth in its storage business. Recent announcements include:

--HP Systems Insight Manager 5.0 and HP Storage Essentials -- the industry's first unified platform to manage heterogeneous servers and storage from the same console

--HP StorageWorks Scalable File Share 2.0 -- advancing the StorageWorks Grid with 10 times greater bandwidth than Network File System-based scalable systems

--HP StorageWorks XP10000 -- bringing affordable enterprise-class virtualization technology to the broader market

--Digital Audio Tape USB tape drives -- an industry first providing small and mid-size businesses with affordable data protection

--Fibre Attached Technology Adapted disk drives -- improving efficiencies for customers and providing high-capacity, low-cost storage for the HP EVA family

More information about the new HP StorageWorks offerings is available at www.hp.com/go/storageworks.> About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended July 31, 2005, HP revenue totaled $85.2 billion. More information about HP is available at www.hp.com.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever 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 and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected development, performance or rankings of products or services; statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the development, performance and market acceptance of products and services 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 Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2005, and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2004. HP assumes no obligation and does not intend to update these forward-looking statements.

(C) 2005 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.