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TransAlta and AltaLink Select HP to Enhance Their Customers' Experience and Contain IT Costs

HP Services is awarded two outsourcing contracts in the energy sector totaling $40 million
MISSISSAUGA, Ont., Dec. 14, 2004

Hewlett-Packard (Canada) Co. today announced two separate outsourcing agreements with TransAlta Corporation, one of Canada's largest non-regulated power generation and wholesale marketing companies, and AltaLink, Alberta's largest supplier of transmission services.

The combined value of the contracts for the management and provision of information technology solutions and services is more than $40 million.

Through their respective co-operative arrangements with HP, TransAlta and AltaLink have been able to meet similar objectives: enhance their capabilities to supply energy reliably to the marketplace and reduce their operational costs.

HP is helping TransAlta and AltaLink achieve improved responsiveness and reliability in the supply of energy with IT solutions and services that are better able to scale and adapt to meet changing market demands. By better aligning IT with their business units, TransAlta and AltaLink will be able to monitor and react quickly to production and transmission conditions to satisfy their customer requirements.

TransAlta's multi-year agreement, awarded in a competitive selection process, marks a continuation and expansion of a 12-year outsourcing relationship with HP. HP is assisting TransAlta to implement, manage and enhance a number of business process and IT projects, encompassing enterprise resource planning, server consolidation, application development and infrastructure security. HP is providing a range of services, including remote help desk, on-site desk-side technical assistance and infrastructure management.

"Information technology is playing an increasingly pivotal role in delivering world-class performance and reliability in power generation," said Greg Wilson, chief information officer, TransAlta. "We selected HP because it is the IT partner who we trusted the most. With HP, we have access to a larger community of knowledgeable people and a broader selection of innovative technologies than we would otherwise. This expertise and these resources are critical in managing our business applications, solving problems and driving down costs."

Under the five-year agreement with AltaLink, also reached after a competitive process, HP is delivering IT solutions encompassing 24x7 help desk service and desktop, server and network administration. HP is also managing the enterprise infrastructure assets that support AltaLink's business and communications applications.

"This partnership will continue to improve the responsiveness of our business operations province-wide. We are making the right IT investments to ensure Albertans are well-served," said Alan Skiffington, vice president, Information Technology and Facilities, AltaLink. "HP provided the best solution at the best value, so we're certain that we will have the technology and support services available to meet our customers' expectations for the safe, reliable and economic transmission of electricity, now and in the future."

HP recognizes that companies working in the energy production and services sector require IT systems that deliver exemplary performance, accurate network monitoring, precise data and timely reporting, as well as the availability to process the massive amounts of information that is generated daily.

"HP's vision for an Adaptive Enterprise delivers on the need for companies to create a standardized, simplified and dynamically managed IT infrastructure that can adapt as their operational and customer requirements evolve," said Wally Hogan, managing director, HP Services Canada. "Through partnerships with HP, TransAlta and AltaLink have made a commitment to their customers to provide the highest levels of service and reliability."

TransAlta has coal, gas, hydro and renewable generation assets in Canada, the United States, Mexico and Australia. With approximately 10,000 megawatts of capacity in operation, under construction or in development, the focus of TransAlta's 2,500 employees is to efficiently operate assets to provide wholesale customers with a reliable, low-cost source of power.

AltaLink, Canada's only fully independent transmission company, is responsible for the maintenance and operation of approximately 11,850 kilometers of transmission lines and approximately 260 substations in Alberta. Serving 85 percent of Alberta's population, AltaLink is moving forward to provide a transmission system that will continue to meet the growing electricity needs of Albertans.

Operations management for TransAlta and AltaLink will be performed at HP data centres in Calgary, Toronto and Ottawa.

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 Oct. 31, 2004, HP revenue totaled $79.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.


This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to 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 period ended July 31, 2004 and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003. HP assumes no obligation and does not intend to update these forward-looking statements.

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 http://www.hp.com.