[June 16, 2005]

HP Sets Industry-first Milestone: Ships More Than 1 Million Linux Servers to Customers Worldwide; Company Tops Nearest Competitor by 45 Percent

PALO ALTO, Calif. --(Business Wire)-- June 16, 2005 -- HP (NYSE:HPQ) (Nasdaq:HPQ) today announced that it has set an industry-first milestone by shipping more than 1 million Linux servers to customers since 1998, 45 percent more than any other major hardware vendor.(1)


HP has led the worldwide Linux server market for 29 consecutive quarters. In the first quarter of 2005, HP grew 2.5 percentage points faster than the market in units on a year-over-year basis, shipped nearly 10 times as many Linux servers as Sun, led IBM by almost 8 percentage points in quarterly revenue share and outpaced Dell in both units and revenue.(2)

"The numbers don't lie. Customers are clearly turning to HP as their trusted partner for deploying integrated Linux and open source solutions," said Martin Fink, vice president and general manager, Open Source and Linux Organization, HP. "Through our strong commitment to Linux, HP delivers innovation and makes the experience of deploying Linux easier, laying the path to an Adaptive Enterprise."

HP is focused on Linux and open source development and innovation in key areas such as blade solutions, desktop PCs and notebooks, enterprise servers, virtualization and consumer devices. By testing new open source and Linux offerings internally for optimum performance, HP provides customers greater expertise and guidance on planning and building Linux products and platforms into their data centers.

More information on HP's Linux and open source solutions is available at www.hp.com/linux.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended April 30, 2005, HP revenue totaled $83.3 billion. More information about HP is available at www.hp.com.

(1) HP is reported as the combined entity of HP and Compaq.

(2) Source: IDC's Worldwide Quarterly Server Tracker, May 2005. Revenue is based on factory revenue.

Linux is a U.S. registered trademark of Linus Torvalds.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could 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 HP's Quarterly Report on Form 10-Q for the fiscal quarter ended Jan. 31, 2005, and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2004. HP assumes no obligation and does not intend to update these forward-looking statements.

(C) 2005 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP shall not be liable for technical or editorial errors or omissions contained herein.

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