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HP Expands UNIX Server and StorageWorks Portfolios to Offer Customers Greater Value and Flexibility on Standards-based Platforms

Enhancements Include Faster Release of HP-UX, Virtualization Suites, Better Cluster Management and Tiered Storage

CHICAGO—(BUSINESS WIRE)—Aug. 16, 2004— HP (NYSE:HPQ) (Nasdaq:HPQ) today announced enhancements to its UNIX(R) server and HP StorageWorks systems portfolios, offering unmatched agility and value for enterprise and public sector customers by enabling them to leverage the latest technologies on standards-based platforms. The innovations include:

-- A faster HP-UX 11i operating environment, which now runs on both HP 9000 and HP Integrity servers and includes new features for running high-performance data centers and clustered environments;

-- A new multi-OS (operating system) version of the HP Virtual Server Environment with more fine-grained control and two all-in-one virtualization suites that are integrated with high availability and utility pricing for greater assurance of service levels;

-- Enhanced HP StorageWorks Enterprise Virtual Arrays with the industry's first tiered storage offerings based on a new class of lower-cost-per-gigabyte, high-capacity Fibre Channel drives developed by HP, Hitachi Global Storage Technology and Seagate; and

-- AlphaServer systems with new, faster processors and price reductions on current models.

"HP innovation builds a broad foundation for customers to choose their own path to becoming an Adaptive Enterprise," said Ann Livermore, executive vice president, Technology Solutions Group, HP. "For example, HP's extraordinary achievements in UNIX with HP-UX have paved the way for us to deliver industry-leading capabilities across multiple operating environments. This enables customers to reduce costs and simplify change through standardization without compromising on agility."

Changeable infrastructure assets liberate IT capital for innovation

To help free up information technology (IT) capital for innovation, HP virtualization capabilities will include a multi-OS offering for the HP Virtual Server Environment (VSE) for HP Integrity servers. HP's VSE allows enterprises to achieve a greater return on IT investment by automatically optimizing server resource utilization in accordance with changing business priorities. By providing unequaled utilization and application availability solutions across multiple operating systems, HP empowers customers with increased control of service-level management and optimized IT environments.

"HP was one of the first companies to recognize the importance of virtualization and is a leader in this area," said Vernon Turner, group vice president and general manager, Enterprise Computing, IDC. "The power of HP's virtualization strategy lies with its integrated approach, including hardware, management software and services, to offer a complete and flexible solution."

Additionally, HP unveiled enhancements to its VSE for HP-UX 11i, providing more control, high availability and greater partitioning capabilities. HP also plans to bundle its virtualization solutions into two all-in-one VSE solution suites, which will be easy for customers to purchase and deploy. The new virtualization capabilities are expected to be available to customers throughout 2004 and 2005.

New HP-UX 11i v2 and EV7 processor enhancements deliver on Integrity roadmap

HP also introduced HP-UX 11i v2 for HP 9000 and new AlphaServer processors that simplify the transition to Integrity platforms. HP-UX 11i v2 offers a common operating system for HP 9000 and HP Integrity servers with industry-leading data center enhancements, including 128-way support, virtualization capabilities, high availability, disaster tolerance, hybrid clustering and up to a 25 percent performance increase for HP 9000 customers upgrading from HP-UX 11i v1.

BECU is the largest financial cooperative in the state of Washington and one of the top five credit unions in the nation. It serves more than 330,000 members worldwide and has assets of more than $4.5 billion.

"Implementing HP-UX 11i v2 for our HP Integrity environment has allowed us to process customer financial transactions more quickly, reliably and accurately," said Jim Ratchford, director of IT Infrastructure, BECU. "Our core banking system transaction processing time has decreased 35 percent. We now have more time to make the system available for customer transactions, and we have a more agile core processing environment that can scale up on an as-needed basis as our business grows."

To allow enterprises to match service levels against changing market needs, HP-UX 11i v2 also includes improvements to HP Serviceguard software, the foundation of HP's high-availability and business continuity solutions. Serviceguard enhancements include faster failover to maximize application availability, the ability to mix HP 9000 and Integrity servers within a cluster, and improved cluster management for simplified and secure confirmation and role-based management.

HP has also added performance enhancements to the AlphaServer product line with new EV7z and faster EV7 processors, providing Tru64 UNIX and OpenVMS customers with a cost-competitive platform. More information about the server portfolio solutions is available at www.hp.com/go/businessvalue.

Innovative HP StorageWorks SAN solutions increase value, eliminate barriers to entry

HP also announced the availability of the industry's first storage area network (SAN) arrays to integrate an innovative new class of hybrid disk drives called Fibre Attached Technology Adapted. Developed by HP, Hitachi Global Storage Technology and Seagate, and designed specifically for Fibre Channel arrays, the innovative, industry-first drive technology, branded as FATA drives by HP, has been integrated into the HP StorageWorks Enterprise Virtual Array (EVA) family to address the growing need for businesses to cost-effectively store less critical or infrequently accessed information in a more economical fashion.

FATA drives utilize lower-cost, higher-capacity disk drive mechanisms and a Fibre Channel interface to deliver nearly 50 percent lower cost-per-gigabyte storage when compared with conventional enterprise-class drives.(1) The combination of lower-cost FATA drives and higher-performance enterprise-class drives within the same device provides customers with the flexibility and cost-effectiveness of low-cost tiered storage while protecting the investment in their existing SAN infrastructure.

HP also introduced the HP StorageWorks EVA3000 Starter Kit, a 2-gigabyte Fibre Channel SAN array bundle that integrates hardware, management software and specialized services to enable simple and cost-effective first-time SAN implementation. The EVA3000 Starter Kit provides first-time SAN customers with a fully functional and highly expandable array solution with all-in-one pricing and packaging. The bundled solution drives down the total solution cost for customers and virtually eliminates the need to custom build the solution from scratch.

More information about the solutions and services described in this announcement and HP World 2004 is available at www.hp.com/go/innovation2004.

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 July 31, 2004, HP revenue totaled $78.4 billion. More information about HP is available at www.hp.com.

(1) Aberdeen Group, "Tech Edge, Storage Networking World Online," March 2004.

UNIX is a registered trademark of The Open Group.

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 the risks described in HP's Quarterly Report on Form 10-Q for the period ended April 30, 2004 and reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003. HP assumes no obligation and does not intend to update these forward-looking statements.

(C) 2004 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.



Contact:
HP
Don Gentile, 408-447-4410
don.gentile@hp.com
HP Media Hotline, 866-266-7272
pr@hp.com
www.hp.com/go/newsroom
or
Burson-Marsteller for HP
Vineeta Durani, 415-591-4006
vineeta_durani@sfo.bm.com

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