HP Delivers Most Powerful HP Integrity Systems to Date.

PALO ALTO, Calif. -- HP (NYSE:HPQ) (Nasdaq:HPQ) today announced that it has refreshed its entire line of HP Integrity servers -- adding the most powerful models to date -- to drive down the cost of business-critical computing for customers.

With more than twice the performance of the previous generation of HP Integrity servers(1) and less than half the price-to-performance ratio of competitive offerings,(2) these new servers reinforce HP's long-held, IDC-reported position as the No. 1 high-end UNIX system vendor.(3)

Additionally, HP has extended the multi-operating system capabilities of the HP Virtual Server Environment for Integrity servers to help customers grow and shrink virtual servers in response to changing business needs. Customers such as Bovespa, Brazil's stock exchange, and Lucent Technologies are among those that have chosen the Integrity line for simplified management, secured availability and flexible capacity.

The new HP Integrity rx6600 and rx3600 servers offer mainframe-caliber high availability at entry-level server prices. Available with HP-UX 11i, Microsoft Windows(R), Linux or OpenVMS operating environments, the servers provide the most flexibility and capacity in their class.

The HP Integrity rx6600 and rx3600 servers also now include the HP zx2 chipset, which delivers up to two times the energy efficiency of previous generations and slashes power and cooling costs by up to 50 percent. In addition, the Integrity line has doubled its capacity with the new dual-core Intel(R) Itanium(R) 2 "Montecito" processor.

"This new server lineup is a key example of HP's Adaptive Infrastructure offerings, which help customers stay ahead of changing business and IT demands and enable them to build cost-effective, next-generation data centers," said Rich Marcello, senior vice president and general manager, Business Critical Servers, HP.

Multi-operating system capabilities offer a flexible IT environment

Leading the software industry in embracing the Integrity line is Microsoft, which is committed to Integrity as a key component of its business strategy of RISC replacement with the Windows platform.

"We are pleased to participate in the launch of HP's next-generation Integrity servers," said Bob Muglia, senior vice president, Server and Tools Business, Microsoft. "Today, customers are using HP Integrity servers, the Windows platform and SQL Server 2005 for the highest-end mission-critical business applications, providing solutions never before available on the Windows platform. Microsoft will continue our investment in the Itanium platform and the HP Integrity server line along with Windows Server 'Longhorn,' which will optimize for workloads focused on mission-critical high-end applications."

Later this year, HP plans to add support for Windows to HP Integrity Virtual Machines and allow multiple operating system instances to share a single processor. At that time, HP plans to extend support for HP Integrity Essentials Capacity Advisor and Virtualization Manager to Windows and Linux. In addition to current support for HP-UX 11i, this extends the industry's first integrated software family for planning, managing and automating virtual servers.

Many other independent software vendors also have embraced the Integrity platform, which now offers customers more than 9,000 applications across industries such as financial services, manufacturing, communications, media and entertainment, and the public sector.

Integrity servers running the HP Virtual Server Environment and a choice of operating systems enable customers to dynamically optimize IT investments across business intelligence, enterprise resource planning, J2EE application services, transactional database, and high-performance technical workloads.

Recently announced HP Information Technology Service Management Assessment and Improvement Services process enhancements further increase uptime and productivity. The HP Data Center Portfolio of Services also increases data center efficiencies for space and power usage. These services help drive down the cost of computing.

"We have been pleased with the performance and support we have received from HP for its Integrity servers and look forward to similar results with this newest offering," said John Nichols, product manager, Lucent Technologies. "Lucent is committed to working closely with suppliers like HP to ensure we are delivering our customers the highest performance, most cost-effective solutions on the market."

"The platform change is already beginning to have a positive impact on Bovespa. As we migrate our mainframe system to the HP, Intel and Microsoft platform, we have noticed higher performance stability and fewer problems," said Luiz Gonzaga de Oliveira Simoes, chief information officer, Bovespa. "In terms of transaction volume, if you compare us with large banks, Bovespa is small, but the criticality of its services is very high, which proves that our new platform is already mature enough to support mission-critical applications."

The Integrity offerings include HP's latest OpenVMS v8.3 operating system, currently delivering additional security, disaster tolerance and scalable performance for more than 600 applications, with additional ones added on an ongoing basis.

Benchmarks

HP Integrity servers running Montecito processors and the HP-UX 11i v2 operating environment and Windows recently set world records in industry-standard benchmarks, including:

--Leadership performance for J2EE with HP-UX 11i JVM versus IBM Power 5+ and Sun UltraSPARC for single-node and multi-node Java workloads;(4)

--Leadership performance for JVM with HP-UX 11i HotSpot VM versus IBM Power 5+ and Sun UltraSPARC for Java business workloads;(4)

--Leadership online transaction processing performance for HP-UX 11i and Windows;(5)

--Leadership business intelligence performance for HP-UX 11i and Windows.(6)

More information about HP Integrity systems is available at www.hp.com/go/integrityserversolutions. Details regarding independent software vendor support of these systems are available at www.hp.com/go/integritypartners.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended July 31, 2006, HP revenue totaled $90.0 billion. More information about HP is available at www.hp.com.

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1    Two times increase in speed as demonstrated by the following
TPC-C results: HP rx4640 4p/4c with Oracle 10g Enterprise Edition,
161,217 tpmC @ $3.94/tpmC, available now; HP rx6600 4p/8c with
Microsoft SQL Server 2005 (SP1), 344,928 tpmC @ $2.24/tpmC, available
12/1/06. All results and comparisons as of Aug. 29, 2006. See
www.tpc.org for details.

2    More than two times price/performance improvements over
competitive offerings as demonstrated by the following TPC-C results:
HP rx6600 4p/8c with Microsoft SQL Server 2005 (SP1), 344,928 tpmC @
$2.24/tpmC, available 12/1/06; IBM eServer xSeries 460 8p/16c with
Microsoft SQL Server 2005, 340,243 tpmC @ $5.24/tpmC, available now.
All results and comparisons as of Aug. 24, 2006. See www.tpc.org for
details.

3    IDC, Q206 Worldwide Quarterly Server Tracker, August 2006.

4    SPECjAppServer2004 results: BEA WebLogic 9.0 on HP rx3600 2p/4c,
618 JOPs; BEA WebLogic 9.0 on HP rx6600 4p/8c, 1266 JOPs; BEA WebLogic
9.0 on 4 HP rx6600 16p/32c, 4915 JOPs; SPECjbb2005 results: HP Hotspot
1.5.0.05 Server VM on HP rx6600 4p/8c, 138,382 BOPs. HP Hotspot
1.5.0.05 Server VM on HP Superdome 64p/128c, 2,054,864 BOPS. All
results and comparisons as of Aug. 29, 2006. See www.spec.org for
details.

5    TPC-C results: HP rx6600 2p/4c with Oracle 10g Enterprise
Edition, 230,569 tpmC @ $2.63/tpmC, available 12/1/06. HP rx6600 4p/8c
with Microsoft SQL Server 2005 (SP1), 344,928 tpmC @ $2.24/tpmC,
available 12/1/06. All results and comparisons as of Aug. 24, 2006.
See www.tpc.org for details.

6    TPC-C results: HP rx8640 8p/16c with Oracle 10g Enterprise
Edition, 27,143 QphH (1 TB) @ $36.00/QphH (1 TB), available 1/1/2007;
HP rx8640 16p/32c with Microsoft SQL Server 2005 (SP1), 33,488 QphH (1
TB) @ $27.00/QphH (1 TB), available 10/1/2006. All results and
comparisons as of Aug. 24, 2006. See www.tpc.org for details.

Intel and Itanium are registered trademarks of Intel Corp. or its subsidiaries in the United States and other countries. Windows is a U.S. registered trademark of Microsoft Corp. Oracle is a registered trademark of Oracle Corporation and/or its affiliates.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the achievement of expected results and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the risks described in HP's Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2006, and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2005. HP assumes no obligation and does not intend to update these forward-looking statements.

(C) 2006 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.