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Momentum in Manufacturing, Energy Results from Focus on Customers by HP, Compaq

Both Companies Drove New Business During Weeks Before Launch of New HP

The new HP (NYSE: HPQ) today announced that manufacturing and energy customers around the world showed strong confidence in HP and Compaq prior to the companies' merger. A relentless focus on customer needs combined with high-performance technical computing leadership drove new business with manufacturing and energy customers, including ALSTOM, Amerada Hess, Boehringer Ingelheim, BMW, Ford, General Mills, General Motors, Goodyear and more.

HP provides innovative solutions to the energy and discreet and process manufacturing industries as a mainstay of its customer-focused strategy. The results can be seen in the rapidly growing new business HP is winning with existing and new customers.

"In just three months, we closed multi-year contracts valued at more than $500 million in new business," said Peter Blackmore, executive vice president, HP Enterprise Systems Group. "Using its experience and expertise in manufacturing, HP enables the transformation of manufacturing companies to customer-centric collaboration in order to invent the right products at the right time to capture markets. HP does this by delivering solutions that rely on collaboration, innovation and value creation."

Leading-edge access technology, excellence in high-performance technical computing and the infrastructure needed to deliver services worldwide are essential elements in helping the world's leading manufacturing and energy companies drive to greater efficiency and business success.

Energy Customers Rely on HP to Fuel IT Infrastructure

ALSTOM, with headquarters in Paris, is a global specialist in energy and transport infrastructure with more than 120,000 employees in more than 70 countries. ALSTOM sought a global partner for hardware delivery and service for its centralized IT center in Paris that supports 15 national service centers. As part if its $10 million, multi-year contract, ALSTOM purchased HP industry-standard servers and software as well as services. HP also will provide a fully outsourced SAP Business Warehouse solution.

Amerada Hess Corp., an integrated oil and gas company based in New York City, is one of the world's largest corporations and a major force in the international petroleum industry. In a three-year global agreement, Amerada Hess recently selected HP to provide approximately 6,000 desktop and notebook PCs and workstations for the company's corporate operations in 18 countries. In addition, IT services provide service support for more than 750 Hess gasoline stations in the United States.

Syncrude Canada, Ltd., is the world's largest producer of crude oil from oil sands and the largest single-source producer in Canada. Syncrude recently signed a contract to deploy 10 AlphaServers running Tru64 UNIX within a 7.2 terabyte StorageWorks storage area network as well as a number of industry-standard servers. HP Services will migrate applications and databases as well as install and maintain the new equipment.

Keeping the Automotive Business Running

Ford Motor Company, based in Dearborn, Mich., signed a $16 million contract for HP to provide UNIX workstations for its operations in North America and Europe. HP was selected for the project due to its competitive price and performance capabilities.

Land Rover, part of Ford Motor Company's Premier Automotive Group, recently selected 18 AlphaServer ES40 systems and two ES45 systems running Tru64 UNIX to provide ongoing project management, systems administration and maintenance support. The servers will run applications in key areas of the vehicle design process: crash analysis; computational fluid dynamics; structures analysis; and noise, vibration, and harshness analysis.

This is the first time that Land Rover has contracted one vendor to address all its super-computing requirements to enable delivery of the next generation of Land Rover products. Compaq AlphaServer systems were selected across the board after being benchmarked against systems from other major vendors. The outright performance of the system was the key factor, with AlphaServer machines an average 20 percent faster than its nearest competitor.

In the second quarter of 2002, BMW became the biggest single HP Superdome server installation in the world with more than 20 servers. BMW also has purchased nearly $8 million worth of HP desktop and notebook PCs. In March, BMW Europe purchased 7,000 PCs and BMW North America purchased 3,500 PCs (desktops and notebooks).

In addition, HP is now responsible for critical storage for BMW's headquarters. Called Storage on Demand, HP provides consulting, outsourcing, software and HP Surestore storage and bills BMW on a pay-per-use basis. To meet BMW's rapidly expanding information storage requirements, HP delivers additional storage capacity on demand.

Another worldwide auto manufacturer is deploying HP technology to leverage its product development cycle, cut period of amortization, yield better return on investment and reduce costs. The company is using high-performance solutions for design analysis and testing -- including crash simulation -- with a solution based on more than 60 UNIX high-performance servers. This same manufacturer is adding two 64 CPU HP Superdome servers to its existing installed base.

Also, Detroit-based General Motors competitively awarded a three-year agreement for notebook and desktop PCs and related services in November. GM will deploy integrated, standardized IT systems from HP that reduce the complexity and business risk of its global infrastructure.

Goodyear, based in Akron, Ohio, trusts its mission-critical, high-availability infrastructure for SAP to HP and is finalizing a common global SAP infrastructure. This contract complements other large HP installation for e-commerce and UNIX proprietary plant automation applications deployed worldwide.

Comprehensive Solutions

Samsung Austin Semiconductor L.P. is one of the most advanced semiconductor fabrication plants in the world. Using state-of-the-art equipment and processes, Samsung Austin produces dynamic random access memory (DRAM) chips most commonly used in PCs, workstations and servers. Samsung Austin turned to HP to develop a mission-critical system to run its manufacturing executing system applications.

Deploying high-performance servers configured into quad building blocks and connected by Fibre Channel to existing storage, Samsung was able to get the scalability and flexibility for future growth. "As the leader in semiconductor fabrication, Samsung selected the AlphaServer technology as the building blocks for delivering high levels of performance with proven reliability and scalability," said Michael Raiford, director of information technology, Samsung Austin Semiconductor. The contract, which includes support from HP reseller Pioneer-Standard, also calls for two AlphaServers for its data collection and analysis applications to ensure quality control of the fabrication process.

Boehringer Ingelheim, one of the world's leading pharmaceutical companies, recently signed a deal with HP valued at $40 million over two years. The deal spans Boehringer Ingelheim's environment and includes HP Omnibook notebook PCs, HP Vectra desktop PCs, technical workstations as well as printers.

General Mills, a leading global manufacturer and marketer of consumer foods, signed a three-year, multi-million dollar agreement making HP its preferred IT vendor. The worldwide agreement covers General Mills divisions in all 70 countries in which the company operates.

Bunge Alimentos' Ceval Division, Brazil, selected HP to provide a secure, highly available data storage infrastructure. Bunge, a global agribusiness and food company, is South America's largest soy producer. Since implementing the HP Surestore Disk Array XP512, the company has achieved a drastic reduction of total cost of ownership and extended the storage subsystem's lifecycle. The HP solution meets the company's need for high-volume information storage while ensuring total data security and high availability.

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.


UNIX is a registered trademark of the Open Group.


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.