HP Continues Worldwide Server Market Leadership

Retakes No. 1 Position in U.S. Server Market Shipments
PALO ALTO, Calif., Jan. 24, 2003

HP (NYSE:HPQ) leads worldwide server unit market share with 29.7 percent for the fourth calendar quarter of 2002, per preliminary results released today by Gartner Dataquest.(1)HP leads by 10.5 percentage points. In addition, HP regained the No. 1 position in U.S. server shipments, improving its momentum by becoming the fastest growing server vendor from Q302 to Q402 in the United States.

"Clearly HP is continuing to gain customer momentum with our strong range of servers together with our industry-leading HP Adaptive Infrastructure," said Peter Blackmore, executive vice president, HP Enterprise Systems Group. "On a sequential basis, HP is the only vendor to grow share in double digits in the U.S. "

HP attributed its market-share leadership to continued customer loyalty and a powerful lineup of cross-platform offerings that provide customers a choice of Windows®, Linux, UNIX® and specialized operating platforms. This lineup includes a newly released set of industry-standard ProLiant servers, as well as HP's leading portfolio of business critical servers such as HP 9000, the AlphaServer systems and NonStop servers.

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its merger transaction involving Compaq Computer Corporation on May 3, 2002. More information about HP is available at http://www.hp.com.

(1) Gartner Perspective, Q4CY2002, published Jan. 24, 2003.

Windows is a U.S. registered trademark of Microsoft Corp. UNIX is a registered trademark of the Open Group.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development and performance of these products and services may not proceed as planned; 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 annual report on Form 10-K for the year ended October 31, 2002, as filed with the Securities and Exchange Commission on January 21, 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.