PALO ALTO, Calif.--(BUSINESS WIRE)--March 3, 2003--HP (NYSE: HPQ) continued its position as the world's leading supplier of PCs to the small- and medium-sized business (SMB) industry in the fourth quarter of calendar year 2002 with 17 percent unit market share worldwide based on 12 percent sequential growth, according to results released Monday by market research firm IDC.(1)

In North America, HP outgrew the overall PC market with 12.5 percent sequential growth compared to a 0.1 percent increase for the total market and gained 1.9 points of share sequentially from the third quarter to the fourth quarter in 2002. Year-over-year, HP grew 9.1 percent and gained 1.4 points of share in North America. In Europe, Middle East and Africa, HP is the clear market leader with more than 10 points of share above its closest competitor. And, in Asia Pacific plus Japan, HP overtook IBM as the No. 1 provider of desktop and notebook PCs to SMB in the fourth quarter.

"In today's challenging economic environment, we are driving our teams and resources to deliver high-impact solutions -- including our industry-standard servers, storage, imaging and printing, services and financial services -- that benefit customers in their current business cycles," said James P. McDonnell, senior vice president of marketing, HP Personal Systems Group. "We are also broadly and aggressively promoting our wins and successes in the SMB market so companies understand the scope of our capabilities and how we and our partners are helping customers achieve their business objectives."

"HP is building relationships with key organizations that serve the SMB segment, as well as using third-party affirmation through its customers and partners, to drive awareness of its capabilities," said Andrew Levi, president and chief executive officer of Aztec Systems, one of HP's largest authorized solution providers. "By mobilizing resources and building alliances in the SMB market, HP is credibly demonstrating how its products are helping businesses enhance productivity to compete successfully in today's environment."

Since the company's merger, HP has successfully broadened relationships with prominent organizations that serve small business. In January, HP announced a partnership with the Small Business Administration and U.S. Chamber of Commerce to promote the SBA Matchmaker Program, a nationwide economic stimulus program designed to match small business with government and private-industry contracts. HP also is enhancing its reach to SMBs with an existing agreement to demonstrate small business productivity solutions in various markets across the United States with partners such as Microsoft.

Overcoming flat IT spending among enterprise companies, HP's SMB and enterprise sales teams are working together to offer existing enterprise customers such as Nike and UPS customized supply chain solutions that enhance their ability to work more productively with their retailers and end-users. Additionally, HP has leveraged its powerful imaging and printing franchise to introduce its full product portfolio to real estate, legal and accounting organizations.

In many cases, these customer success stories are the result of HP's commitment to a set of value-added reseller partners who are themselves SMBs. "HP goes to market through several thousand solution providers, many of which are small and medium size businesses, to deliver customized IT support in communities worldwide," said McDonnell. "We know that SMBs are the engine of growth in the U.S. economy and in many other countries, and we are determined to continue fueling this engine through SMB channel partners."

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

(1) IDC Worldwide Quarterly PC Tracker, March 3, 2003. For yearly comparisons, HP and Compaq data is combined.

CONTACT: HP
             James Barnes, 281/514-6990
             
Email Contact
             or 
             Roger Frizzell, 281/514-2352
             
Email Contact