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Sendmail, Inc. and HP Demonstrate Demand for Linux-Based Email Systems on HP ProLiant Servers

Emeryville and Palo Alto, Calif. - August 13, 2002

Sendmail, Inc, a leading provider of email systems, and HP (NYSE: HPQ) today announced significant sales momentum for their combined Linux-based email solution running on HP ProLiant servers, further demonstrating the increase in the adoption of Linux for commercial applications in the enterprise. Since the beginning of the companies' sales and marketing relationship in January 2002, Sendmail, Inc. and HP have signed several deals yielding sales in excess of $5 million, spanning three continents and several vertical industries, including service providers, financial services firms, universities, healthcare providers and government agencies.

The relationship between Sendmail, Inc. and the former Compaq began with the packaging of Sendmail's Mailstream Manager and Integrated Mail Suite with Compaq's industry-standard ProLiant server and SuSE Linux enterprise server. Sendmail, Inc. signed a similar agreement with HP in February 2002. Sendmail's relationship with the new HP continues its focus on the development and marketing of tested and proven Linux-based enterprise email solutions.

"Organizations are revamping their email systems to deal with the increase in demand for value added email services," said Greg Olson, co-founder and chairman of Sendmail, Inc. "The HP and Sendmail package is ideal for organizations standardizing on the Linux platform and in need of a scalable email system with a low cost of ownership and strong content management capabilities."

New customers of the Sendmail and HP solution include a wireless GSM-cell phone provider in Jordan - which has already launched a new service with the HP and Sendmail solution; the American University in Cairo; a Romanian service provider; BAX Global Logistics; HealthNET - a major healthcare provider; Shanghai National Bank; a large Chicago-based law firm; and a US government agency.

"Operating under strict budgetary constraints, we were tasked with finding a cost-effective email system that could easily scale. The HP and Sendmail Linux package not only met our cost and scalability needs but also included features that are necessary for our end-users such as end-user mail box control and anytime, anywhere access to email," said Dr. Sami Akabawi, associate vice president for computing & professor of Information Systems, at the American University in Cairo.

"The success of this relationship further solidifies the HP ProLiant server as the preferred platform for running Linux-based enterprise email solutions," said Judy Chavis, director worldwide Linux marketing, HP Industry Standard Servers. "The solution's scalability and competitive pricing is significantly better than RISC-based solutions - and the performance of our industry-standard ProLiant servers coupled with the expertise of the Sendmail and HP service teams makes this package the most compelling in its class for organizations who consider email a critical business application."

The Sendmail, Inc. and HP packages are available immediately. For more information visit: www.sendmail.com or www.compaq.com/solutions/showroom/sendmail.html.

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 Corp. on May 3, 2002. The company would have had combined revenue on a pro forma basis with the Compaq transaction of approximately $81.1 billion in fiscal 2001 and has operations in more than 160 countries. More information about HP is available at http://www.hp.com.

About Sendmail, Inc.

Sendmail, Inc. builds the most powerful and secure email systems for large enterprises and service providers who depend on email to run their business. With proven technology and unmatched expertise, Sendmail works with customers to address their most complex messaging challenges. The result is dependable email infrastructure that is easy to manage and built to grow. The company is headquartered in Emeryville, Calif., with offices and distributors in Europe, Asia Pacific and North America. For more information on Sendmail, Inc., visit its Web site at www.sendmail.com or call 1-87-SENDMAIL or 1-877-363-6245.


© Sendmail, Inc. 2002. All rights reserved. Sendmail is a registered trademark of Sendmail, Inc. All other trademarks or registered trademarks are the property of their respective owners.


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 products, 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 products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; 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 annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001, HP's quarterly report on Form 10-Q for the quarter ended January 31, 2002 (as filed with the SEC on March 12, 2002) and subsequently filed reports. 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.