HP Captures No. 1 Position in Total Server Revenue Worldwide

PALO ALTO, Calif.--(BUSINESS WIRE)--May 30, 2003--HP (NYSE: HPQ) today announced that it has taken over the No. 1 worldwide position in overall total server revenue, with 27.9 percent market share for the first calendar quarter of 2003, according to figures released today by IDC(1). HP gained 2.1 percent in server market revenue share over the previous quarter, Q402.

HP continues to showcase the power of its broad server portfolio for enterprise customers, as demonstrated by the following worldwide leadership positions:

-- HP tied for the No. 1 position in overall UNIX(R) server revenue, extending HP's UNIX high-end enterprise server leadership (servers priced at $500,000, or more) for a third consecutive quarter, based on IDC's new server taxonomy(2). HP's growth in UNIX high-end enterprise servers is based on strong HP Superdome server sales worldwide.
-- HP continued its No. 1 position in overall Windows(R) server revenue, based on strong ProLiant server sales worldwide.
-- HP maintained its No. 1 position in overall Linux server revenue and sustained its leadership for the Linux x86 segment, gaining market share sequentially in both revenue and units.

"Thanks to loyal customers, a powerful portfolio and continued innovation, HP is now the world's most popular server vendor," said Peter Blackmore, executive vice president, HP Enterprise Systems Group. "HP's multi-OS strategy uniquely sets us apart from others, and it is evident that customers are embracing HP's vision for the Adaptive Enterprise."

About HP

HP delivers vital technology for business and life. The company's solutions span IT infrastructure, personal computing and access devices, global services and imaging and printing for consumers, enterprises and small and medium business. For the last four quarters, HP revenue totaled $70.4 billion. More information about HP is available at http://www.hp.com.

(1) IDC Quarterly Server Tracker, Q1CY2003, published May 30, 2003.

(2) IDC's new Server Taxonomy uses the following price ranges to differentiate servers into "Volume servers" less than 25K$, "Midrange Enterprise Servers" 25K$-500K$, "High-end Enterprise Servers" greater than 500K$.

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. 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 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: Hewlett-Packard Company
             Kathy Sowards, 972/497-3061 (Editorial)
Email Contact
             Burson-Marsteller for HP
             John Alejandro, 202/530-4611
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