HP Claims No. 1 Worldwide Position for UNIX, Windows and Linux Servers

PALO ALTO, Calif.--(BUSINESS WIRE)--Nov. 27, 2002-- HP (NYSE:HPQ) has taken the No. 1 position in total worldwide UNIX® server revenue and has maintained the No. 1 position in Standard Intel Architecture Servers revenue for the third quarter of calendar year 2002, according to figures released today by market research firm IDC.(1) HP also is No. 1 in total worldwide server shipments (30.3 percent), shipping more than twice as many servers as IBM. In addition, HP leads the emerging Itanium®-based server market with 80 percent of market revenue.

HP took the No. 1 spot over a dropping Sun in total worldwide UNIX servers with 32.9 percent market share.(2) Additionally, it gained 15.8 market share points sequentially (35.6 percent) to take the No. 1 position in high-end worldwide UNIX server revenue, demonstrating the success of HP Superdome servers and AlphaServer supercomputers over competitive high-end offerings. HP's high-end worldwide UNIX revenue increased by 33.9 percent from Q2 to Q3 2002 as compared with Sun's revenue, which decreased by 44.8 percent, and IBM's, which was down by 57.9 percent in the same period.

In the high-volume worldwide market for Standard Intel Architecture Servers (SIAS), industry-standard HP ProLiant servers continue to hold a commanding No. 1 position with 32.2 percent of market shipments, more than 10 percent over its nearest competitor. In the United States, HP remains No. 1 in customer revenue market share for industry-standard servers with 33.3 percent.

HP continued its leadership in Windows®-based server shipments, with HP ProLiant servers holding 35 percent customer revenue market share worldwide. In the important emerging category of blade servers, the HP ProLiant BL family held 53.9 percent unit share worldwide, setting the pace for competitors trying to enter this segment. HP also maintained its long-standing No. 1 position in the rapidly growing Linux server market across all server platforms with 31.7 percent customer revenue market share worldwide.

"HP continues to dominate the highly competitive industry-standard server category in both unit and revenue market share worldwide," said Mary McDowell, senior vice president and general manager, HP Industry Standard Servers. "We are showing solid gains in unit share sequentially in EMEA, where we hold No. 1 market share in every country, and in Latin America as well. With our commitment to leadership worldwide in four-way, eight-way and the emerging blade server market, we are well-armed to continue to drive the success of ProLiant servers further in the data center."

HP maintained its dominant No.1 position in worldwide midrange UNIX servers, again gaining share with 42.5 percent of worldwide market revenue and shipping more than half of all servers in this segment. By comparison, Sun lost 40.4 percent revenue sequentially in this market segment. In the entry-level worldwide UNIX market, HP maintains a No. 2 position, narrowing the gap for the No. 1 spot with Sun, which lost 7.4 percent market share sequentially.

"HP's strength in the UNIX market is shown by our No. 1 positions in total, high-end and midrange worldwide UNIX revenue," said Scott Stallard, senior vice president and general manager, HP Business Critical Systems. "At this critical time in the market, HP's results, in contrast to some of our competitors', show solid customer acceptance and a positive trend for the future."

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 Corporation on May 3, 2002. More information about HP is available at http://www.hp.com.

• (1) IDC Quarterly Server Tracker, Q3CY2002, published Nov. 27, 2002. IDC uses price ranges to differentiate servers into entry-level (up to $100,000), midrange ($100,000-$1 million) and high-end ($1 million and above).
• (2) "IDC Tracker Q3, 2002: Sun total worldwide UNIX server revenue market share -8.2 percent, Q2'02-Q3'02"

Further information is available at http://idctracker.com/. Unless specified as customer revenue, all other figures are factory revenue.

UNIX is a registered trademark of the Open Group. Itanium is a registered trademark of Intel Corp. Windows is a registered trademark 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 and performance 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 quarterly report on Form 10-Q for the quarter ended July 31, 2002 and reports filed subsequent to HP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001. 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.

     HP
     Kathy Sowards, 972/497-3061
     kathy_sowards@hp.com