HP Unveils New Products, Solutions, Services and Partners for Small and Medium-size Business via Smart Office Initiative.

Business Editors/High-Tech Writers

HP Americas Partner Conference

LOS ANGELES--(BUSINESS WIRE)--March 22, 2004

Company builds on $750 million investment to become trusted advisors

to SMBs; Also signs memorandums of understanding with

industry leaders Intuit and SAP AG 

At its annual conference for Americas channel partners attended by more than 1,000 partners, HP (NYSE:HPQ)(Nasdaq:HPQ) today announced new products, solutions and services that enable small- and medium-size businesses (SMBs) to get more expertise, reliability and the better ownership experience they want from their technology investments.

Building on its worldwide technology leadership and success in the SMB market -- with annual sales of approximately $21 billion, HP's expanded portfolio delivers on the three pillars of the company's $750 million Smart Office initiative:

-- Access to expertise;

-- Reliable products and solutions; and

-- Technology that is easy to own.

"The Smart Office initiative lays out a vision for how SMBs can productively use IT," said John Brennan, senior vice president of worldwide SMB operations, HP. "Together with our partners we're delivering on the promise now with the strongest set of products, infrastructure solutions and business solutions ever offered to SMBs. HP's mission in this market remains clear: to help SMBs get more business results from their technology investments."

According to IDC fourth quarter 2003 data, HP continues its lead as the No. 1 overall worldwide SMB hardware vendor in PCs, servers, and printers with 25.5 percent market share, and it experienced solid growth in each major region: the Americas, Europe, the Middle East and Africa (EMEA), and Asia Pacific.

HP also is the global market share leader with a 16 percent share in PC clients, 32 percent share in industry-standard (x86) servers and 41 percent share in laser and inkjet printers sold to the SMB market.(1)

Customers get more results, "ease of ownership" from HP

Hobie Cat needed an IT infrastructure to support the design, manufacture and distribution of its signature sailboats, catamarans and kayaks. Bill Baldwin, chief financial officer of Hobie Cat, turned to his trusted advisor, HP authorized partner The Network Company of California (TNCC), to help translate Hobie Cat's technology needs into an environment that would support future growth.

"They bring the technical knowledge that I don't have to the table," said Baldwin. "I need somebody who is very knowledgeable and whose job it is to stay educated on what is a very rapidly changing world of technology. I'm very happy that I have a partner in TNCC. I can always rely on them to come in and be up to speed on what's available in the market, and to watch out for my best interests. That's the key."

Dennis McCarthy, director of information technology for Cummings & Lockwood LLC, a mid-sized law firm with 90 attorneys based in Connecticut agrees. "For us it comes down to service, support and price," he said. "HP won in all areas. The differentiator for HP is its attention to small business and its reliable technology."

McCarthy said his firm is currently piloting the HP IT Helpdesk as it moves into a technology refresh, where they've standardized on HP across product lines. "In this time of tightening budgets, we've found a way to do more with less and absolutely realize savings. Now our IT staff can stop troubleshooting and start inventing," he said.

For more detailed information on the extensive offerings of HP's Smart Office initiative, visit the Smart Office online press kit at www.hp.com/go/smbgetmore2004.

Access to Expertise

HP announced new and enhanced online, telephone and expanded partner resources to provide access to expertise, so customers can make better technology decisions.

HP Expertise Centers help SMBs choose the right solutions for their business with access to a variety of online tools, live chat capabilities, consultative services and educational resources. In North America, the SMB Mobility Solutions Center now offers a live chat feature. In EMEA, the HP Printing and imaging Expertise Center is to be extended to 16 countries and 10 languages by spring 2004 and feature WebChat interactive service capability between HP experts and customers.

The HP European Union (EU) Accession Program helps SMBs prepare for competition in the expanded European Union in 2004 by assessing their technology readiness, delivering information through an EU-focused brochure, dedicated portal and road shows, and by offering special HP EU financing programs.

SMB-ready products and solutions

HP provides reliable, affordable and easy-to-own products that work together seamlessly and fit into existing IT environments. New products include:

Personal Productivity:

-- HP Compaq Business Notebook nx5000

-- HP Compaq Business Desktop dx2000 microtower

-- HP Performance Tuning Framework for Workstations

Business Infrastructure:

-- The HP ProLiant ML110 server

-- HP ProCurve 700wl series switches

-- Extensions to the HP StorageWorks Modular Smart Array family

to include Serial ATA (SATA) drive

-- A low-cost family of SAN infrastructure solutions based on a

new line of Fibre Channel switches from Brocade Communications

Systems Inc.

-- HP StorageWorks DAT 72x6 tape autoloader with exclusive HP

One-Button Disaster Recovery.

Printing and Imaging:

-- HP Officejet 9100 series all-in-ones

-- HP LaserJet 3000 series all-in-ones

-- Smart Printing supplies

In addition, HP has announced a Smart Solutions blueprint and new solutions to deliver the most efficient combination of hardware, software, services and support that address business needs for increased productivity, lower costs and greater asset protection. Smart Solutions training and tools will be delivered to HP channel partners so that they can easily help SMBs solve their business problems.

Designed to integrate easily and securely with existing IT investments, the Smart Solution blueprint consists of HP Smart Infrastructure Solutions, HP Smart Business Application Solutions and local, micro-vertical solutions. Smart Infrastructure Solutions provide the necessary building blocks to realize the full potential of IT. These building blocks include the key elements all SMBs need to reach the Smart Office vision of a fully IT-enabled business.

New Smart Infrastructure Solutions include those for file and print sharing; document management; communication and collaboration; and business protection. HP partners with leading independent software vendors such as Microsoft to deliver these solutions.

"Microsoft's longstanding relationship with HP extends our reach within the small business market, enabling us to offer solutions that more effectively meet the needs of small businesses," said Derek Brown, director of the Small Business Server Group, Microsoft. "Our goal is to enable small businesses to have all the productivity and efficiency advantages of server-based networks at a much lower bar in cost and complexity. With Windows Small Business Server 2003 and HP Smart Infrastructure Solutions we've delivered on that promise."

Smart Business Application Solutions address the needs for SMBs to automate core business processes. HP partners closely with key cross-industry horizontal and vertical business application providers to deliver these offerings. HP announced Smart Business Application Solutions with industry leaders Intuit and SAP:

-- HP and Intuit signed a non-binding Memorandum of Understanding 

to jointly market financial management solutions. The

companies intend to scale Intuit QuickBooks offering from

PC-based to server-based applications across HP PCs and

servers. (See the news release regarding this announcement in

the Smart Office online press kit at

www.hp.com/go/smbgetmore2004.)

-- HP and SAP signed a Memorandum of Understanding to extend

their alliance and jointly engage with value-added resellers

to deliver HP Smart Solutions, SAP Business One and my SAP

All-in-One to SMBs worldwide. The overall intent of the MOU is

to extend the reach of SAP and HP into the SMB market through

the companies' joint reseller channels. Today's announcement

enhances HP and SAP's existing alliance and its success over

the past two years delivering SAP Business One solutions in

countries across EMEA.

"HP and SAP have a long history of bringing industry-leading products, solutions and support to the market and today's announcement extends our mutual success to our joint value-added resellers and channel partners around the world," said Tom Evans, vice president, SMB and mid-market marketing, SAP Global Marketing. "We intend to work closely with HP and our channel partners to ensure they have all the necessary tools and training so that our SMB customers will more quickly and easily enjoy the benefits of mySAP All-in-One, SAP Business One and HP Smart Solutions."

More information about these relationships is available in the "HP Smart Products and Solutions" news advisory in the Smart Office online press kit at www.hp.com/go/smbgetmore2004.

Easy to Own Technology

HP Smart Support is a portfolio of HP-branded services and solutions designed for SMBs to ensure that products and integrated solutions are easy to own and maintain. The PartnerONE Unified Support Network combines HP's wealth of experience, advanced parts logistics capabilities, service delivery methodologies and training and certification programs with partner capabilities to deliver support at the local level.

Four new Smart Support services in North America include:

-- Proactive Plus for SMBs;

-- HP Learning Curve;

-- ProLiant SystemMinder Solution (CBE) for SMB; and

-- IT Professional Help Desk for SMB.

HP Smart Finance offers a suite of financial programs tailored to SMB needs, making it easier for businesses to acquire, manage and retire products and technologies. In North America, new offers include:

-- Advantage Protection Plus for damaged, destroyed, stolen or

lost IT equipment, and

-- 0% Lease Rate Extension for low, easy-to-calculate monthly

payments.

Smart Finance also provides trade-in and trade-up capabilities, along with complete product lifecycle management including recycling. (More information on these offerings is available in the "HP Smart Support and Smart Finance" news advisory in the Smart Office online press kit at www.hp.com/go/smbgetmore2004.)

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the last four fiscal quarters, HP revenue totaled $74.7 billion. More information about HP is available at www.hp.com.

(1) IDC Worldwide Quarterly PC Tracker 4Q03; IDC Worldwide Quarterly Printer Tracker 4Q03.

Microsoft and Windows are U.S. registered trademarks of Microsoft Corp.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development and performance of these products and services may not proceed as planned; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003, and reports filed after the Form 10-K. HP assumes no obligation and does not intend to update these forward-looking statements.

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.