GOVERNMENT

PALO ALTO, CA -- Hewlett-Packard Company (NYSE:HWP) announced today that in the third quarter of calendar year 2001 it grew revenue market share in the entry-level, mid-range, high-end and total UNIX(R) server categories worldwide and is in the lead position in mid-range and high-end server revenue. According to International Data Corporation (IDC), in terms of total UNIX revenue for entry-level, mid-range and high-end servers, HP is in a virtual dead heat with the current leader, Sun, gaining 28.5 percent of total market share to Sun's 28.8 percent, with IBM in third place at 21 percent. During this quarter, HP was the only vendor to grow total UNIX revenue sequentially (4 percent), while the top four UNIX vendors dropped revenue by 15 percent or more. HP grew its share of the total UNIX server market by 6.2 percent sequentially at the expense of Sun and IBM, whose figures declined by 6.5 percent and 0.4 percent, respectively (total UNIX revenue in the third quarter of 2001 versus second quarter of 2001). HP also was the only top four vendor to grow market share sequentially in total UNIX units. "These are great results for HP and we believe that we are positioned even better for the next quarter in all categories," said Mark Hudson, worldwide marketing manager, HP Business Systems and Technology Organization. "Unlike competitors, HP has been growing its high-end revenue and market share since the HP Superdome server started shipping in volume at the beginning of this year. In the entry-level server arena, last week HP became the first vendor to announce a blade server product range and our belief is that this will provide a further boost for our presence in this category." The IDC figures show HP continuing its four years of sustained leadership in the mid-range server market, which is the highest revenue UNIX segment. HP is the clear leader in mid-range UNIX server revenue market share, with 33.7 percent, while IBM and Sun compete for the number two position with 25.3 percent and 25.2 percent, respectively. Again, HP was the only top four vendor to grow market share sequentially, with a 7.3 percent increase and was the only vendor to grow revenue sequentially, while Sun and IBM lost revenue at 25 percent or more. HP took the number one position in high-end UNIX server revenue, surpassing Sun and IBM and demonstrating the strength and success of the HP Superdome server in comparison with Sun's and IBM's high-end server offerings. In a tough economic climate, HP grew its high-end server revenue sequentially by 39.6 percent, while Sun declined 55.0 percent and IBM declined 19.8 percent. HP's market share in the high-end was 27.6 percent in third quarter of 2001, an increase of 12.6 percent, while Sun declined by 15.8 percent. In the entry-level UNIX server category, HP grew its revenue market share by 2.5 percent, narrowing the gap with the current leader, Sun, which saw a decline of 6 percent. In the emerging IA-64 UNIX category, HP leads with 74 percent of the market in revenue and 71.6 percent in units. For more information visit www.hp.com