HP Announces Powerful Upgrades to PA-RISC and AlphaServer Lines

Enhanced Systems Outperform IBM and Sun on Industry Benchmarks, Offer Customers Unmatched Value

PALO ALTO, Calif.--(BUSINESS WIRE)--Aug. 6, 2002--HP (NYSE:HPQ - News) today announced powerful enhancements to its PA-RISC-based server and AlphaServer lines, offering customers more choice and unparalleled value for their demanding business and technical computing needs. The industry's leading UNIX® systems vendor,(1) HP also announced world-record benchmarks for both server lines, outpacing comparable Sun and IBM systems across the board.

Building on its previously announced product roadmap, HP is expanding the range of systems and levels of performance in its server lineup to include:

• the introduction of the powerful PA-8700+ processor into entry-level and mid-range HP-UX servers;
• faster Alpha processors for the HP AlphaServer family running Tru64 UNIX, OpenVMS and Linux;
• a new entry-level AlphaServer, the DS25; and
• the industry's only program allowing the temporary use of instant capacity on demand (iCOD) processors.

"With these product introductions, the new HP is proving that it can do what it said it could," said Frank Caserta, senior technical advisor, Acxiom Corp. "HP is delivering systems that will help us make our business more efficient and meet the challenges of today's economy. The enhanced products offer an easy growth path, continued value and a reduced total cost of ownership for our IT investments."

World-record Benchmarks Outpace Competitors

The 875 megahertz PA-8700+ processor, introduced in the high-end HP Superdome server in June, is now available in the 16-way HP Server rp8400, the 8-way HP Server rp7410 and the 4-way HP Server rp5400 series. These enhanced systems, running HP-UX 11i -- the industry-leading UNIX operating environment, deliver more value than ever by running enterprise applications better than comparable systems in the market.

This capability was demonstrated by new world-record results for entry-level and mid-range server performance achieved on the SPECjbb2000 benchmark for Java(TM) applications.(2) The 16-way rp8400 performance of 183,694 op/s (operations per second) was 13 percent better than IBM's 16-way Power4-based p670 at 161,904 op/s.

The rp8400 also outperformed the Sun Fire 6800 with 24 processors at 174,658 op/s, resulting in a 58 percent advantage in per-processor performance over the UltraSPARC 3-based SF6800. The 8-way rp7410, at 98,809 op/s, more than doubled the Sun Fire 6800 number of 43,353op/s, which was also achieved with eight processors, and outpaced the 8-way IBM p660 6M1 as well.

These benchmarks demonstrate the superiority of HP's high-performance PA-RISC processor to both the IBM Power4 and the Sun UltraSPARC3. These new results also add to HP's broad and growing portfolio of No. 1 benchmark achievements, including mid-range OLTP,(3) SPECweb99(4) and single server ECPerf(5) benchmarks on the HP rp8400 server and the leading SPECsfs_97 benchmark for 8-way servers on the HP rp7410 server.(6)

The entry-level rp5470 with the PA-8700+ set a world record for 4-way RISC servers for the SPECweb99_SSL benchmark,(7) outperforming the Sun v480 by a factor of two and beating the IBM p630 by a significant margin.

Faster Alpha Processors Drive Performance for Demanding Applications

HP has introduced faster Alpha processors into three new systems in its AlphaServer range:

• The 1 gigahertz AlphaServer DS25 system -- a powerful, new, 2-way platform, available now;
• The 1.25 GHz AlphaServer ES45 system and the AlphaServer SC45 Supercomputer with larger cache; these systems are currently shipping, with orders for more than 2,000 systems already received from HP customers; and
• The 1.224 GHz AlphaServer GS80, GS160 and GS320 systems with larger cache for customers requiring exceptional data processing power, expected to be available later this month.

Current and future versions of HP's Tru64 UNIX and OpenVMS operating systems will support these new AlphaServer systems, ensuring that customers can deploy the new systems into their existing environments without requiring any software changes or business disruptions. In addition, recent enhancements in OpenVMS provide for dramatic increases in application performance and scalability on large HP AlphaServer GS series systems.

"The new HP brings together leading technology for our customers," said Keith Collins, chief technology officer, SAS. "The HP future, based on Intel Itanium processor family systems, is compelling. Meanwhile, the broad set of AlphaServer systems announced today demonstrates HP's commitment to both protecting and enhancing our customers' IT investments. We plan to continue support of AlphaServers, including the release of SAS Version 9.0 on these as well as on the next generation of AlphaServer systems."

Richard Rood, acting chief, Earth and Space Data Computing Division of NASA/Goddard, said, "The new 1.25 GHz HP AlphaServer SC45 supercomputer will enable NASA to extract more information from space-based observations to make more accurate predictions of climate on seasonal and multi-decade timescales."

These new HP AlphaServer systems continue HP's technical computing leadership with performance ranging up to 11 percent over IBM and up to 62 percent over Sun in single CPU SPECint2000 and SPECfp2000 benchmarks. They also establish both performance and scalability leadership of up to three times the performance of comparable IBM and Sun systems for 2-, 4-, 8- and 32-way systems in the SPECint_rate2000 and SPECfp_rate2000 benchmarks.(8)

In addition, an HP AlphaServer ES45 system running Sybase ASE 12.5 software established a new record for four-processor RISC systems in the industry-standard TPC-C commercial benchmark, achieving 56,375 tpm/C (transactions per minute). The AlphaServer system also posted a breakthrough RISC-system price/performance figure of $9.39/tpmC, more than 39 percent lower than the previous price/performance record.(9) This result furthers HP's dominance in the 4-way RISC computing space, in which HP's ES45 and rp5470 servers are the two fastest servers as measured by the TPC-C Benchmark.

HP Business-critical Servers: Choice and Value for a Range of Needs

"The new HP continues to build momentum in business-critical computing, offering customers the most complete portfolio for business and technical computing," said Mark Hudson, worldwide marketing manager, HP Business Critical Systems. "HP's aggressive server roadmap delivers ongoing performance increases with clear and easy upgrade paths, continued enhancements and new `beyond-the-box' value-added features across the PA-RISC and Alpha product lines."

HP maintains its record for delivering the industry's best investment protection and lowest total cost of ownership by offering in-box upgrades, a transition path to future Itanium® platforms, consolidation capabilities that include dynamic partitioning, and resource and workload management.

Further information about HP's AlphaServer systems and HP-UX servers is available at http://www.hp.com/products/alphasystems and http://www.hp.com/go/servers, respectively.

Computing on Demand Offering Extended on HP-UX Servers

Exemplifying HP's beyond-the-box approach is its rich portfolio of computing on demand solutions, including its new Temporary instant Capacity On Demand (TiCOD) offering -- the industry's first capacity-on-demand solution for customers needing additional CPU resources for short-term business demands.

HP's TiCOD enables customers to meet service level agreements and temporary capacity spikes through the activation and deactivation of iCOD processors that draw upon a 30-day right-to-use license. The license can be used for more than one iCOD CPU in a server and can span usage periods of months or even years as the processing demand dictates.

Smart Communications -- the Philippines' No. 1 cellular operator with a rapidly growing subscriber base that accounts for over half of the country's total cellular market -- used TiCOD to help the company keep pace with its rapid growth. "With TiCOD, we were able to temporarily use the iCOD CPUs in our HP server to provide the extra capacity required during the migration period. TiCOD is a cost-effective solution for these types of situations," said Wilma Cruz, chief information officer, Smart Communications.

HP's Computing on Demand is a set of innovative solutions that present alternatives to traditional IT ownership and service contracting. Computing on Demand brings together HP's technology and services strengths to offer customers a broad range of computing solutions when they need them, where they need them and at a predictable price and performance level.

About HP

HP is a leading global provider of products, technologies, 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. HP completed its merger transaction involving Compaq Computer Corp. on May 3, 2002. The company would have had combined revenue on a pro forma basis with the Compaq transaction of approximately $81.1 billion in fiscal 2001 and has operations in more than 160 countries. More information about HP is available at http://www.hp.com.

• (1) D.H. Brown Associates, 2002 UNIX Function Review, published May 30, 2002. Additional information is available at http://www.dhbrown.com/dhbrown/02UnixFunRev.cfm
• (2) Competitive numbers shown reflect results available and scheduled for publication as of July 29, 2002. The comparison presented is based on best performing 8-cpu and 16-cpu systems positioned as mid-range servers currently shipping by Sun and IBM. For the latest SPECjbb2000 results, visit http://www.spec.org/osg/jbb2000.
• (3) HP Server rp8400 TPC-C Benchmark 140,239 tpmC, $14.37/tpmC, available Sept. 18, 2001. Further information is available from http://www.tpc.org.
• (4) SPECweb99: Competitive benchmark scores reflect results published on http://www.spec.org/ as of July 29, 2002. The comparison is based on all available results as of this date. For the latest SPECweb99 benchmark results, visit http://www.spec.org/osg/web99.
• (5) ECPerf results as documented at http://ecperf.theserverside.com/ecperf/.
• (6) SPECsfs_97: Competitive benchmark results shown reflect results published on http://www.spec.org as of July 29, 2002. For the latest SPECsfs_97_r1 v3.0 results visit http://www.spec.org/osg/sfs97r1.
• (7) SPECweb99_SSL: Competitive benchmark scores reflect results published on http://www.spec.org/ as of July 29, 2002. The comparison is based on all available results as of this date. For the latest SPECweb99_SSL benchmark results, visit http://www.spec.org/osg/web99ssl/.
• (8) SPECcpu2000: Competitive benchmark scores reflect results published on http://www.spec.org as of July 29, 2002. The comparison is based on the best available 1-CPU SPECint2000 and SPECfp2000 results published as of this date and best available 2-, 4-, 8- and 32-CPU SPECint_rate2000 and SPECfp_rate2000 results as of this date. For the latest SPEC benchmark results, visit http://www.spec.org/osq/cpu2000.
• (9) ES45 TPC-C Benchmark 56,375 tpmC, $9.39 tpmC, available Sept. 27, 2002. Further information is available from http://www.tpc.org .

UNIX is a registered trademark of the Open Group. 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. Java is a trademark of Sun Microsystems Inc. SPECjbb, SPECweb99, SPECsfs_97, SPECweb99_SSL and SPECcpu2000 are all Copyright (c) 1995-2002 the Standard Performance Evaluation Corp. All rights reserved. Copying of SPEC material is by permission of the Standard Performance Evaluation Corporation. SPECjbb is a trademark, and SPEC, SPECweb and SPECsfs are registered trademarks of the Standard Performance Evaluation Corp. TPC-C Benchmark Copyright (c) 2001-2002 TPC. All rights reserved. TPC-C Benchmark is a trademark of the Transaction Processing Performance Council. Intel and Itanium are registered trademarks of Intel Corporation in the United States and other countries.

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 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. 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.

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