HP Outships All Server Vendors Worldwide; Extends Linux and Windows Leadership in Factory Revenue and Units

PALO ALTO, Calif.—(BUSINESS WIRE)—Aug. 27, 2004— HP (NYSE: HPQ) (Nasdaq: HPQ) continued its No. 1 position in worldwide server shipments for the ninth consecutive quarter, according to second quarter calendar year 2004 figures released today by IDC.(1) HP shipped nearly twice the number of servers than IBM during the quarter. HP also was the No. 1 server vendor in factory revenue and servers shipped worldwide for the x86, Linux and Windows(R) server markets.

Other highlights of the quarter included:

-- For the three major operating environments combined -- UNIX(R), Windows and Linux (representing 93.9 percent of all servers shipped worldwide) -- HP is No. 1 with 32.5 percent factory revenue and 30.7 percent unit market share. Demonstrating the sustained strength of HP's strategy, this is the highest percentage of unit market share in the past nine quarters.

-- In the high-growth industry-standard x86 server market, HP was the only major vendor to grow shipments faster than the market both year-over-year and quarter-over-quarter. HP grew worldwide x86 server factory revenue to gain more share than any other major vendor and was No. 1 in x86 server shipments and factory revenue. This indicates strength in both the small and medium business and enterprise segments.

-- In the United States, due to both direct and partner growth, HP grew x86 server factory revenue more than three times as fast as the market year-over-year, gaining the No. 1 share position by 3.5 points at the expense of Dell, which lost U.S. share. HP also was No. 1 in every European country tracked by IDC.(2)

-- HP leads the worldwide Intel(R) Itanium(R) 2-based server segment with 77.3 percent growth in Itanium server units year-over-year, and 277.0 percent year-over-year growth in factory revenue.

-- HP leads in high-end(3) and midrange(4) UNIX server factory revenue. In the high-end, HP gained 5.5 points unit market share sequentially, showcasing continued and sustained strength with HP Superdome servers. HP increased its factory revenue lead over IBM in the overall UNIX market sequentially.

-- HP continues to lead the fast-growing worldwide Linux server market, with 30.8 percent factory revenue market share.

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) Source: IDC's Worldwide Quarterly Server Tracker, August 2004.

(2) Source: IDC's EMEA Quarterly Server Tracker, August 2004.

(3) The UNIX high-end enterprise server market consists of all UNIX systems with an average sales value of $500,000 and higher.

(4) The UNIX midrange enterprise server market consists of all UNIX systems with an average sales value of $25,000 to $500,000.

Microsoft and Windows are U.S. registered trademarks of Microsoft Corp. UNIX is a registered trademark of The Open Group. Intel and Itanium are registered trademarks of Intel Corp. or its subsidiaries in the United States and other countries. Linux is a U.S. registered trademark of Linus Torvalds.

(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.

Don Gentile, 408-447-4410

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HP Media Hotline, 866-266-7272

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Burson-Marsteller (for HP)
Stephen Berger, 415-591-4024

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