Press Release: June 08, 2009

Telstra Signs Applications Services Contract with EDS, an HP Company

SYDNEY, June 8, 2009

EDS, an HP company, has signed one of two expanded applications services contracts – with a combined value of $330 million (AU$450 million) – that Telstra, Australia’s largest telecommunications provider, announced today to improve performance and lower costs.

EDS’ five-year, $140 million (AU$190 million) deal is one of the largest application management engagements signed this year in Australia. Its agreement also includes potential additional discretionary opportunities of up to $245 million (AU$334 million). Under the agreement, which runs through to 2014, EDS will provide applications development and management services for Telstra’s critical business applications.

John McInerney, Telstra chief information officer and group managing director of Information Technology, is confident the company’s new agreements will deliver significant benefits. “This is an important milestone for Telstra IT. One of the key outcomes of our IT transformation is the delivery of operational excellence,” said McInerney. “These expanded contracts contribute to our strategy and ensure an ongoing investment with our key partners. We are looking forward to continuing our relationship with EDS as we continue our IT transformation.”

By outsourcing some of its applications management to EDS, Telstra will gain access to global professionals, methods and innovative solutions. As a result, Telstra will benefit from flexible, scalable, predictable and reliable applications with performance levels that match its business objectives. Using its Best Shore strategy, EDS will provide services from the right place, at the right time. Standardized tools and processes allow for service delivery to be easily and effectively transferred between delivery centers worldwide.

“Telstra should receive significant cost savings from the EDS global delivery model,” said David Caspari, managing director of Australia and New Zealand at EDS, an HP company. “The agreement builds on EDS’ seven-year track record of service delivery excellence with Telstra and strengthens our position as one of their key strategic technology partners.”

About Telstra

Telstra is Australia’s leading telecommunications and information services company, with one of the best known brands in the country. Telstra offers a full range of services and competes in all telecommunications markets throughout Australia, providing more than 9.1 million Australian fixed line and more than 9.7 million mobile services. Telstra’s network and systems infrastructure underpins the carriage and termination of the majority of Australia’s domestic and international voice and data telephony traffic. Telstra is Australia’s 3G market leader, with 4.4 million 3G customers. Telstra is the second largest full-service provider in New Zealand and the leading mobile operator in Hong Kong. It has a controlling stake in China’s leading real estate and home furnishing web site, SouFun and in June 2008, acquired 55% of two Chinese internet businesses, Norstar Media and Autohome/PCPop, with leading positions in the online auto and digital device advertising sectors.

About EDS

EDS, an HP company, is a leading global technology services provider, delivering business solutions to its clients. EDS founded the information technology outsourcing industry nearly 50 years ago. Today, EDS delivers a broad portfolio of information technology, applications and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries, and to governments around the world.

About HP

HP, the world’s largest technology company, simplifies the technology experience for consumers and businesses with a portfolio that spans printing, personal computing, software, services and IT infrastructure. More information about HP (NYSE: HPQ) is available at

EDS and the EDS logo are registered trademarks of Hewlett-Packard Development Company, LP.

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 but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; any statements regarding anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include macroeconomic and geopolitical trends and events; the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected operational and financial results; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2009 and HP’s other filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2008. HP assumes no obligation and does not intend to update these forward-looking statements.

HP is an equal opportunity employer and values the diversity of its people. © 2009 Hewlett-Packard Development Company, LP.

Editorial contacts:

Paula Driscoll, EDS, an HP company:

Jennifer Harbour, HP:

About HP

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at