Press Release:
Topics:

The New HP Focuses on Customers, Delivering Complete Solutions

Continued Customer Confidence in HP and Compaq Drives Competitive Wins, Provides Springboard for Newly Merged Company

The new HP (NYSE:HPQ) today announced that over the three-month period prior to its merger with Compaq Computer Corp. the two companies saw continued support from their customers despite current economic challenges and merger-related uncertainty. The HP and Compaq merger legally closed on May 3.

The two independent companies won an array of new contracts from customers with an aggregate value of approximately $5.3 billion over the lives of the contracts -- with particular strength coming from financial services, communications and manufacturing customers throughout the world. The two companies won more than $1.5 billion of new enterprise contracts in their respective IT services businesses, highlighting a major strength and differentiator for the combined HP going forward.

"HP sales, services and support professionals worldwide have an unyielding focus on serving customers and winning in the marketplace," said Carly Fiorina, HP chairman and chief executive officer. "The new HP will remain focused on meeting the needs of our expanded global customer base to bring the broadest and best portfolio of products and solutions to the industry."

"These customer wins, coupled with the merger's completion and our ability to share our product plans with customers, will get the new HP off to a great start," stated Michael Capellas, HP president. "Employees of both companies kept their focus on the customer throughout the contentious merger process. We are proud of their accomplishments."

According to Bob Wayman, HP chief financial officer, "These customer wins provide a strong foundation for the new HP and will begin to contribute financially to the combined company in future quarters as we recognize revenues from these contracts."

Services capabilities proved to be a key differentiator in closing more than 100 new contracts -- each valued at more than $1 million, several valued at more than $100 million -- in just the last three months. These new contracts demonstrate HP's ability to deliver integrated, end-to-end solutions with the services capabilities needed to speed implementation and deliver greater value to customers more quickly, including American Reprographics, Blue Cross Blue Shield of Michigan, European Aeronautic Defense and Space Co., Michelin, the Ministry of Hajj in Saudi Arabia, Reed Elsevier plc, Walt Disney Internet Group and more.

The individual customer wins of HP and Compaq also show that the new HP has strong momentum in industries such as financial services, manufacturing and process, and communications, among others.

In the financial sector, for example, HP and Compaq closed more than 65 new contracts valued at more than $1 million each, including some worth more than $25 million. These new contracts include financial customers from more than 20 countries representing regions around the world, including CRESTCo (U.K.), First American Corp., KorAm Bank (South Korea), Mashreq Bank (United Arab Emirates), the State Bank of Mauritius, Wachovia Corp. and many others.

In the manufacturing and process sectors, recent wins come from customers such as ALSTOM, Amerada Hess, Boehringer Ingelheim, BMW, Ford, General Mills, General Motors, Goodyear, Land Rover, Syncrude Canada and many others. Many of HP's recent wins in the manufacturing and process sectors resulted from the respective leadership in high-performance technical computing on the part of both Compaq and HP.

HP and Compaq also demonstrated momentum with communications, network providers and Internet and technology companies around the world in the face of a difficult industry environment. Significant wins were inked with Bell Canada, Brazil Telecom, China Telecom, Deutsche Telecom AG, Everyones Internet, Nokia, Telecom Egypt, Vodafone UK Limited and others.

Additional details about these customer wins during the months prior to the companies' merger are available at http://www.hp.com/hpinfo/newsroom/press/index.htm#launch. (See related press releases online: "Expanded IT Services Resources and Reach Strengthen HP's Business with More Than 100 Companies Worldwide," "HP Drives Financial Sector Momentum with Integrated Solutions Portfolio," "Momentum in Manufacturing, Energy Results from Focus on Customers by HP, Compaq" and "HP Drives New Business with Communication, Network Provider and Technology Customers Worldwide.")

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. The merged company had combined revenue of approximately $81.7 billion in fiscal 2001 and operations in more than 160 countries. Information about HP and its products can be found at http://www.hp.com.


This document 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. Further, these forward-looking statements do not constitute new or amended overall financial guidance for HP, and any anticipated aggregate contract values referred to in this document do not independently provide a basis for determining the future timing of revenue.

All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues (including where the underlying contract has already been signed), 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 performance of contracts by customers and partners; 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.