Mitel Selects HP Canada for Multimillion Dollar IT Infrastructure Renewal Project; Transatlantic Project Aimed at Improving Business Agility at Leading IP Solutions Provider.

MISSISSAUGA, Ont. -- Hewlett-Packard (Canada) Co. (NYSE:HPQ)(Nasdaq:HPQ) today announced it has completed a multimillion dollar enterprise-wide IT infrastructure renewal project with Mitel(R), a leading provider of IP communications solutions based in Ottawa, Ont.

The goal of this integration and consolidation project - which spans from Canada to the United Kingdom - is to increase Mitel's business agility in response to aggressive growth expectations in the rapidly changing global telecommunications marketplace.

Mitel has already achieved a CDN$300,000 annual reduction in operating expenses, significant performance increases and physical space savings from a smaller infrastructure footprint.

"We are a solutions provider enviably positioned in a high-growth, dynamic marketplace, but we're also facing increasing customer demands. To achieve greater responsiveness and capitalize on change, we knew that a more scalable and flexible infrastructure to which new capabilities could be added on demand was critical," said Simon Thompson, vice president, Information Systems, Mitel. "And, with our distributed IT environment, intuitive, streamlined and cost-effective management was essential to maintain our competitive edge."

Mitel requires uncompromising levels of IT performance to service its global client base. Through its relationship with HP, Mitel benefits from a single point-of-contact for technology and support services, which helps drive efficiency and ensure consistent delivery.

HP recommended that Mitel consolidate its existing UNIX infrastructure, which powers many of the company's mission-critical applications, including SAP(R) solutions. This infrastructure layer, encompassing more than 12 legacy systems, was ported onto two fully partitioned HP 9000 servers to lower Mitel's total cost of ownership, reduce IT complexity and handle intense workloads.

Mitel experienced an immediate five-fold performance and scalability increase, as well as high service levels via automatic resource allocation. Mitel is also well-positioned to take future advantage of the advanced manageability and reliability offered by HP Integrity servers.

Mitel's Intel environment, responsible for its business and office productivity applications, has been consolidated onto more than 50 new HP ProLiant BL blade servers, which deliver virtualization capabilities to automate and simplify a wide range of manual IT management tasks while further decreasing the total cost of ownership.

Storage was another critical component of the project. Mitel's powerful, new storage environment gives it the ability to seamlessly expand capacity and it provides for instantaneous replication and simplified administration.

Mitel was able to expand its capacity more than seven times through the consolidation of network-attached file storage (NAS) to two clustered NAS devices with HP StorageWorks 3000 and 5000 Enterprise Virtual Arrays on the backend. HP OpenView Data Protector software now provides a single enterprise business continuity solution for all corporate data, which is centralized on two HP StorageWorks MSL tape libraries with fibre channel switching capabilities.

By sharing, integrating and consolidating IT resources across the enterprise, utilization is better optimized and supply automatically flexes to meets demand. In addition, Mitel is able to simultaneously reduce IT costs while increasing its ability to respond to changing business conditions within the market or with customers.

"HP is pleased to be working with Mitel to provide the technology environment and infrastructure services it needs to support the delivery of innovative IP solutions," said Lloyd Bryant, vice president and general manager, Customer Solutions Group, HP Canada. "With a consolidated, simplified and virtualized IT environment, Mitel is adopting the foundational elements to synchronize its business processes with IT to capitalize on change. We're thrilled to be a part of Mitel's journey towards becoming an Adaptive Enterprise."

HP was selected for this project after a competitive search and based on its strong 20-year relationship with Mitel.

About Mitel

Mitel is a market leader for voice, video, and data convergence over broadband networks. With a focus on the user experience, the company delivers advanced communications solutions that are easily customized for individual business needs. Mitel solutions extend from intuitive desktop appliances and applications through to Applications and Services Gateways that enable business process integration and enhancement. Customers are provided with innovative ways to leverage their resources and migrate to the benefits of IP communications at their own pace. Mitel is headquartered in Ottawa, Canada, with offices, partners, and resellers worldwide. For more information please visit www.mitel.com.

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 April 30, 2005, HP revenue totaled $83.3 billion. More information about HP is available at www.hp.com.

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 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 Jan. 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. HP shall not be liable for technical or editorial errors or omissions contained herein.