HP Expands Smart Office Portfolio to Simplify Technology for Small and Mid-Size Businesses Worldwide.

PALO ALTO, Calif. -- HP (NYSE:HPQ) (Nasdaq:HPQ) today announced new products and services designed to simplify the technology ownership experience for small and mid-size businesses (SMBs).

The offerings include an expansion of HP's business protection portfolio as well as financing and online resources, and new networking tools that extend its strategic alliance with Cisco Systems.

The products and services are part of HP's Smart Office portfolio to deliver smart technology, smart advice and smart services from HP and its more than 145,000 worldwide reseller and distributors to companies that want to spend less time on technology and more time focused on their businesses.

"Small and mid-size business customers know that when they choose HP, they get easy-to-use products and services designed for their specific needs, along with the local expertise and support they require," said Valerie Taglio, vice president, Small and Medium Business, Personal Systems Group, HP. "Through the HP Smart Office Portfolio, HP delivers value and simplicity so customers can use technology to drive their business growth."

HP Smart Technology

To help protect valuable information and keep businesses up and running in the face of disaster, HP has expanded its business protection portfolio for SMBs with new solutions to address data protection issues such as backup, recovery and compliance. These solutions are affordable, easy to use and minimize downtime.

HP StorageWorks Data Protector Express is the first backup and recovery software from HP specifically designed for the business protection needs of SMBs. HP understands that ease of use is a key requirement for businesses that do not have full-time disaster recovery staff, or even full-time IT staff. Therefore, HP Data Protector Express features an easy-to-use interface with common functionality across Windows(R), Netware and Linux environments, reducing the need for separate software tools for each platform. Tape, disk and CD/DVD are supported as backup media for additional flexibility.

This simplicity extends to the way Data Protector Express is priced, licensed and supported. Licensing is straightforward and avoids complexities like per processor or backup capacity licensing. Pricing is common across all operating systems and includes one year of support during business hours and software update rights. Priced at $779(1), the flexible, three-tier architecture makes Data Protector Express software the highest performing product in its class, as multiple media servers that support multiple data streams can back up and, if necessary, recover data in parallel.

The new HP StorageWorks MSA 1510i provides mid-size businesses with an expandable solution that enables their data storage to keep pace with the rapid growth of business-critical information. A storage area network (SAN) external array with iSCSI interface, the product delivers a simple, efficient solution that allows customers to easily implement and manage a SAN as easily as their existing Ethernet network.

In addition, customers can take their internal disks on HP Smart Array Controllers directly out of existing HP ProLiant servers and move them into the MSA 1510i enclosure, an industry-exclusive feature, which results in lower risk of data loss when a customer is moving from direct-attached storage (DAS) to external storage. U.S. list pricing starts at $7,995(1) for the MSA 1510i base configuration.

"HP understands the needs of smaller companies when it comes to protecting our businesses," said Vallerie Shelton, senior director of IT for Denver-based Kroenke Sports Enterprises LLC. The company deployed the recently announced HP ProLiant DL100 G2 Data Protection Storage Server, a rapid and reliable disk-based backup appliance with end-user file restore functionality. "The solution's support for snapshots, easy restores, retention of native file format and retention of source directory structure provides a simple, reliable, cost-effective data protection solution for our company."

Building on its longstanding strategic alliance with networking market leader Cisco Systems, HP announced a suite of tools that make it easier for U.S.-based customers to define their networking needs, and then put them in touch with joint HP and Cisco resellers to help deploy both HP computing and Cisco networking products.

The tools can simplify the process of network implementation and help customers increase productivity while protecting their most important data, whether adopting their first client-server network or adding new functionality to an existing IT environment.

--The Solutions Designer Tool (found at www.hp.com/go/network/cisco) is an online resource that assists customers in planning the configuration best suited for their networking needs. Customers answer menu-generated questions and at the end of the sequence will receive a recommended network design that includes a customized network reference diagram. The tool also provides an opportunity to contact a Cisco certified reseller for an in-depth consultation on their unique environment.

--HP and Cisco will also provide a single point of contact for online, pre-sales support for U.S. customers and channel partners wanting to learn more about HP and Cisco products for the SMB market via HP's web-based Smart Chat feature. This includes support for existing HP and Cisco SMB products, as well as the new Cisco Catalyst Express 500 and Catalyst 2960 switches and the Cisco 1841 integrated services router.

--The HP Reseller Locator Tool (found at www.hp.com/go/network/cisco) has been enhanced to help customers locate joint certified HP and Cisco reseller partners who can provide expert advice in the development or expansion of their business networks.

"Tools such as those being announced by Cisco and HP are of great value to IT solution providers such as ourselves," said David Baucum, president of Computer Transition Services, Inc., which specializes in network integration, consulting and support services for businesses in the west Texas and eastern New Mexico area. "They assist the user in gaining a general overview of what equipment meets their needs and then enabling the user to contact a qualified partner with a good deal of homework already done. It simplifies the configuration process and shortens the sales cycle."

HP Smart Services

HP also introduced a convenient online resource at www.hp.com/go/smartservices to help businesses plan, use and protect their technology investments. The HP Smart Office Services framework of "plan, use and protect" gives customers smarter, simpler and safer ways to take advantage of technology investments and help their businesses be more successful. The new web tools simplify the process of accessing the robust HP services portfolio and determining what businesses need, including purchasing options that include leasing(2) and asset management to make the most of technology budgets.

HP also launched a global "Payments Take a Holiday"(3) lease promotion so qualified companies can acquire the hardware, software and services they need now without worrying about making payments until 2006. Lease payments can take a three-month holiday while the new leased HP solution is hard at work at the office.

In addition, qualified customers in the United States have the choice of two other limited-time offers as HP has extended its 27-month 0% Lease Rate short-term payment plan(4) and Budget Stretcher(5) longer-term lease offering promotions until Jan. 31, 2006.

By reducing financial barriers and providing smarter, simpler and safer choices to quickly take advantage of business IT, each of these HP Smart Office Financial Services programs can help customers invest in products and services the way that is smartest for their business.

Additional new service offerings in the United States include:

--Total Education One HP Care Pack helps business owners better use and manage their IT resources through convenient access to online classes, with pre-paid options starting in increments of $100.

--HP Security Enhancement Unit of Service enables the convenient purchase of follow-on security consulting and implementation services recommended by the HP Security Vulnerability Assessment service.

--HP Instant Support Professional Edition, a web-based diagnostic tool, helps customers quickly identify, diagnose and resolve questions for any printing, notebook or desktop device.

HP Smart Advice

Access to the expertise of HP and its network of distributors and resellers provides businesses with easily accessible advice and tools to solve business problems and accelerate growth. HP is also extending its free English-language HP Smart Chat capability to over 12 countries worldwide, including Canada, UK, Ireland, South Africa and a host of countries in the Middle East and Asia Pacific including Singapore, Hong Kong, Australia and India.

HP Smart Chat provides web-based, "live" expert guidance to customers worldwide from HP product, service and solution experts. Online support and expertise is available across the entire Smart Office portfolio of products, services and solutions.

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, 2005, HP revenue totaled $85.2 billion. More information about HP is available at www.hp.com.

(1) Estimated U.S. list prices. Actual prices may vary.

(2) Lease products available through Hewlett-Packard Financial Services Company (HPFS) or one of its affiliates to qualified commercial customers in the U.S. and Canada and are subject to credit approval and execution of standard HPFS documentation. Applicable leases must commence on or before Jan. 31, 2006, to qualify for these offers. Other terms, conditions and restrictions may apply. HPFS reserves the right to change or cancel these programs at any time without notice.

(3) Payments Take a Holiday -- Customers make no payments for the first three months of the lease term, followed by 36 monthly payments for the remainder of the term, for a total lease term of 39 months. Offer valid on qualifying lease transactions with a total transaction amount between $10,000 and $150,000.

(4) Implicit lease rate, assuming lessee does not exercise the fair market value purchase option at the end of the lease term and timely returns the leased equipment to HPFS at the end of the lease term and disregarding any charges payable by lessee other than rent payment (such as taxes, fees and shipping charges). Offer valid on qualifying lease transactions with a total transaction amount between $50,000 and $150,000.

(5) Available for lease terms of 27, 39 or 51 months with a fair market value purchase option at the end of the applicable lease term and a total transaction amount between $349 and $150,000.

Microsoft and Windows are U.S. registered trademarks of Microsoft Corp. Linux is a U.S. registered trademark of Linus Torvalds.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever 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 and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected development, performance or rankings of products or services; statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the development, performance and market acceptance of products and services 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 Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2005, and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2004. HP assumes no obligation and does not intend to update these forward-looking statements.

(C) 2005 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.