Press Release: July 22, 2003

Avaya and HP to Bring Internet Protocol Solutions to Small and Medium-Sized Businesses

HP ProLiant Servers Certified, Recommended Platform with Avaya's IP Office for Voice and Data Communications
BASKING RIDGE, N.J. and PALO ALTO, Calif.

Avaya Inc. (NYSE:AV) and HP (NYSE:HPQ) today announced a joint marketing agreement to bring together products for voice and data communications to small and medium-sized businesses (SMBs). Avaya and HP are building a common channel in which to distribute a bundled communications solution. In addition, Avaya has certified and recommends the HP ProLiant ML310, ML330 and DL320 servers as preferred platforms to run Avaya IP Office software.

"Avaya and HP plan to simplify the process of moving to IP telephony for smaller firms by helping them minimize risks and control costs," said Dave Johnson, group vice president of Avaya's Small and Medium Business Solutions Group. "By selecting a fully integrated solution, businesses can make the move to IP telephony with the confidence that they are buying a highly reliable system that is ready to go-complete with the hardware and applications they need to build more profitable relationships with their customers."

Avaya's BusinessPartners and value-added resellers (VARs) who have become partners in the Avaya Accelerated Sales Authorized Program will be able to bundle Avaya's industry-leading IP Office solution and communication applications with HP ProLiant servers, resulting in an all-in-one solution designed specifically for SMBs. Avaya IP Office supports from two to 256 users and provides small businesses with the same secure IP networking capabilities and management tools typical of much larger enterprises. HP ProLiant servers will be bundled with IP Office to host the robust range of applications available for the Avaya system, from voice mail to contact center software.

"Customers will benefit from this total communications solution with proven and reliable components," said Robyn West, vice president of small and medium business, Americas, HP. "The solution leverages the advantages of HP's leading ProLiant servers with Avaya's leading IP telephony software, enabling SMBs to get more from their technology investments."

Avaya IP Office is a high performance telephony and data server, designed and built specifically for SMBs. Built on Avaya's latest advancements in converged voice and data technology, Avaya IP Office can function as an IP or circuit-switched PBX and can support integrated contact centers and a host of other communication applications. HP ProLiant servers are a recommended platform for IP Office due to their high reliability and performance, making them one of the most cost-effective servers for the SMB market.

"This integrated IP telephony solution gives SMB customers a value-priced way to adopt IP and gain the bottom-line benefits that it offers," said Laurie McCabe, vice president, Summit Strategies. "It also provides value-added resellers an excellent opportunity to enter and drive growth in the SMB market."

The IP Office is packaged with customized installation and maintenance services targeted to IP solutions provided by Avaya Global Services and Avaya's BusinessPartners. Avaya Global Services and Avaya's BusinessPartners will ensure customer networks are ready for IP functionality by offering comprehensive professional services using tools designed for IP telephony.

The bundled communications solution will be made available through distributors and VARs to enable SMBs to experience the benefits of IP telephony-from simplified network management and increased productivity to reducing overall telephony costs. Later this year, Avaya and HP intend to expand the common channel to make this solution available worldwide.

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.

About Avaya

Avaya Inc. designs, builds and manages communications networks for more than 1 million businesses worldwide, including 90 percent of the FORTUNE 500®. Focused on businesses large to small, Avaya is a world leader in secure and reliable Internet Protocol (IP) telephony systems and communications software applications and services.

Driving the convergence of voice and data communications with business applications - and distinguished by comprehensive worldwide services - Avaya helps customers leverage existing and new networks to achieve superior business results. For more information visit the Avaya Web site: http://www.avaya.com


This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never 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. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of services and their feature sets; the challenge of managing asset levels, including inventory; the difficulty of keeping expense growth at modest levels while increasing revenues; 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.

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.