HP Targets Small- and Medium-Sized Businesses with New Technology Offerings


Partner Network, Affordable HP Solutions Extend Local Support, Expertise and Value to SMB Market


PALO ALTO, Calif.--(BUSINESS WIRE)--May 1, 2003-- HP (NYSE: HPQ) today launched new technology offerings -- including a partnering network, notebook PCs, entry-level servers and a portfolio of packaged services -- to provide small- and medium-sized businesses (SMBs) the service, support and solutions necessary to meet real business needs.

These offerings build on HP's introduction last month of its expanded portfolio of imaging and printing products and services designed especially for small businesses.

"The SMB market is vitally important to HP," said Robyn West, vice president of SMB marketing and sales, HP Personal Systems Group. "Our announcement today is yet another example of how HP is delivering more of what business customers need to thrive: more reliability, more service and support, more local expertise -- all at a competitive price. That's why HP is the company to watch and the company to do business with in the small and medium business market."

Partner Network Delivers Local Support, Customized Solutions

Recognizing that SMBs depend heavily on local technology solution providers, HP is enhancing its partnerONE program to include new benefits designed to help local providers be more effective and profitable. PartnerONE members with SMB practices can choose to join the partnerONE SMB network, currently in the United States, to receive a variety of focused and valuable tools, benefits and support to help them deliver HP solutions to their customers.

"Creation of the partnerONE SMB Network is another example of HP's trust in solution providers to deliver customized customer solutions and local expertise," said Kevin Gilroy, Americas vice president and general manager, HP Commercial Channels.

New Products for the SMB Market

HP is introducing new products designed specifically for the SMB market, including its HP Compaq nx9010 notebook PC, which is available from HP and through local solution providers. With an estimated U.S. street price starting at $1,549,(1) the notebook delivers performance, reliability and practicality -- all at a competitive price.

The notebook offers optional 54g wireless technology and provides higher data transfer speeds over longer distances than other wireless LAN technologies, enabling mobile users to significantly enhance their productivity from work or while on the go. This next-generation wireless technology also is more secure, supporting various security features, including 128-bit WEP (wired equivalent privacy) encryption.

In addition, HP is unveiling the industry-standard HP Server tc2120 and HP ProLiant ML300 server series, providing small business customers with affordable and reliable storage and management software in entry-level models. These servers have an estimated U.S. street price starting at $549(1) and are designed to manage files, share printers, host a Web site or host a database.

To ensure strong back-office support, HP and its solution providers deliver entry-level storage solutions suited for emerging enterprise applications using small data centers and remote office locations.

HP Packaged Services, Leasing Keep SMBs Running

According to a report published in CIO Magazine,(2) 42 percent of companies that experience unplanned downtime, lose approximately $1,000 per hour while experiencing downtime. Twenty-six percent of companies lose approximately $10,000 per hour of downtime. Unplanned downtime can be expensive for companies of any size -- particularly SMBs, which HP defines as companies with fewer than 1,000 employees.

HP's portfolio of packaged services -- HP Care Pack -- provides the support SMB customers require and goes beyond basic hardware and software warranties. HP Care Pack services are designed to help protect small business customers from unexpected downtime, which can reduce their productivity and profitability. From warranties to mission-critical levels, these services can be purchased directly from HP or through authorized HP solution providers at the time of product sale and can be renewed upon expiration of the original term.

To increase business continuity, HP Financial Services -- the world's second largest IT finance company -- offers leasing options to help small businesses use their capital investment dollars and resources to grow. Leasing also protects against IT obsolescence and end-of-life technology equipment costs and concerns.

Recent Venture Provides Contracting Opportunities for SMBs

HP further extended its presence in the SMB market by partnering with the Small Business Administration and U.S. Chamber of Commerce in January to launch the Business Matchmaking Program. Expected to give small businesses a chance to win billions of dollars in contracts, this groundbreaking program brings together small businesses with government agencies and private companies in face-to-face appointments regarding specific business opportunities.

"Industry-leading initiatives such as the Business Matchmaking Program demonstrate our commitment to the SMB market," said West. "Together with our business partners, we can provide small business customers with the reliable hardware, expertise, software and support that differentiates us from other vendors. In short, HP customers 'get more' for their investment."

For more information about HP's products, services, solutions and programs, or to find a local reseller or integrated solution provider for small and medium business, please visit http://www.hp.com/go/smb.

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.

Note to Editors: For additional information regarding HP's imaging and printing solutions for SMBs, see the April 2 press release titled, "HP Announces Innovative New Products and Services for Small and Medium-sized Businesses," ( http://www.hp.com/hpinfo/newsroom/press/2003/030402a.html). For additional information on entry-level servers, see the March 17 HP release titled, "HP Sets Sights on SMB Customers with New Low-cost Server," ( http://www.hp.com/hpinfo/newsroom/press/2003/030317b.html). For additional information on the new HP Compaq nx9000 series notebooks, see today's HP release titled, "HP Delivers Reliable, Affordable Wireless Notebook to Mobile Small and Medium Business Customers."

(1) Actual prices may vary.

(2) CIO Magazine, "Trend Lines," published June 15, 2000, http://www.cio.com/archive/061500/tl_downtime.html.

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 January 31, 2003, 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 to update these forward-looking statements.

CONTACT: HP
             James Barnes, 281/514-6990
             
Email Contact
             Elizabeth Gillan, 281/518-1786
             
Email Contact



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