HP Deepens Commitment to China

- New investments in cloud computing, research and development, and social media contribute to China’s five-year growth plan
- Expands operations in Beijing, Shanghai and Tianjin; adds investments in Chongqing
- Executive team visits, renews focus on accelerating company’s growth in China

BEIJING - HP today announced a series of new initiatives designed to accelerate growth and investment in China and to deliver seamless, secure, context-aware experiences for a connected world.

HP investments in cloud computing, systems research and development, technology infrastructure transformation projects and social media platforms will expand the company’s presence in China’s largest cities and accelerate its growth in the Chinese market. The programs align with China’s priorities and HP’s growth plans announced earlier this year.

Signaling an increased focus on this important market, HP President and Chief Executive Officer Léo Apotheker and HP’s senior management team were in China this week for meetings with customers, employees and government officials. Apotheker visited Shanghai, Chongqing, Tianjin and Beijing and met with China’s Vice Premier, Li Keqiang, to reaffirm HP’s commitment to the country.

“China’s vibrant economy, explosive growth in social and mobile connectivity, and strong commitment to innovation present tremendous opportunities for HP,” said Apotheker. “We see huge potential in China to deliver on our vision for the connected world spanning cloud and connectivity, from the consumer through to the enterprise. We are more committed than ever to helping our Chinese customers, partners and employees fuel the next wave of innovation that will drive mutual growth and prosperity not only in China, for China, but also for the rest of the world.”

China has the world’s largest internet population, and its need for rapid infrastructure growth requires flexible, fast and seamless technology to support bandwidth-hungry applications and an increased appetite for mobility, security and manageability. China’s recently released five-year plan signifies a new phase of growth through the expansion of domestic consumption, driving a low-carbon economy, fostering innovation and achieving balanced social and economic growth.

At a gathering of Chinese journalists and industry analysts in Beijing, Apotheker discussed the role technology can play in meeting China’s goals and made a series of announcements that underpin HP’s commitment to China:

* HP opened the doors to its first HP Cloud Executive Briefing Center in Tianjin yesterday to provide customers in China and the region with hands-on experience in building, enabling and operating HP-led cloud environments. The center gives customers an opportunity to create a blueprint for a seamless, secure, context-aware cloud environment, whether it is private, public or hybrid, that makes most economic, operational and business sense.
* To tap into the strong engineering talent in Beijing, HP will open a new center dedicated to driving system innovation. The Enterprise Servers Storage and Networking Research and Development Center will serve as a global hub for networking and information analytics research. The center, which is actively recruiting engineers and will open by the end of the year, expands HP’s R&D presence in China, which includes HP Labs Beijing and H3C’s R&D team.
* HP will expand its presence and investments in Shanghai with additional manufacturing facilities, the consolidation of its existing employee sites into one multipurpose, state-of-the-art campus and the establishment of a China regional headquarters for the Personal Systems Group in Shanghai.
* In support of China’s 12th five-year plan, HP will collaborate with major cities, including Shanghai, Tianjin and Chongqing, to tackle complex infrastructure, energy and healthcare issues. HP will use its broad portfolio of solutions and services to transform China’s technology infrastructure into sustainable, energy-efficient, cloud-based systems that are equipped to accommodate the country’s rapid growth.
* In Chongqing, HP announced it would donate 1,000 HP PCs in support of the city’s rural development efforts. The company also committed to donating an additional 10,000 PCs nationwide to rural community projects to help bridge the digital divide. HP PCs will go to schools, hospitals and communities in need of basic technology to communicate, teach, learn and treat.
* As communicated in March, one of HP’s key priorities will be to deliver innovative market-specific solutions to customers in key markets such as China. To achieve this, HP announced in mid-June that Todd Bradley, executive vice president, Personal Systems Group, will lead cross-business initiatives focused on expanding HP’s market share in China. Additionally, Steve Gill was appointed managing director and vice president of Global Sales for HP China on June 20.
* To drive more effective and open, two-way communication with its customers and the media in China, HP launched the HP China Official Blog and a number of HP branded online channels. With more than 450 million people online, 64 percent of whom participate in blogging, China has one of the world’s most vibrant social media communities. The HP China blog and online channels give HP an important platform for engaging in dialogue with people about topics that matter to them. The HP China blog also will be a source of updates on local HP news and activities.

Long history of supporting China’s growth, prosperity and sustainability

HP opened its operation in China in 1985, one of the first international technology companies to do so. Twenty-six years on, HP China now operates nine regional offices, does business in more than 600 cities and has 10,000 channel partners. More than 7,000 retail stores across 689 cities and 2,000 counties carry HP products. Serving the needs of local and global customers, HP has seven global facilities in China and a strong R&D footprint with more than 3,000 pending and granted Chinese patents.

HP continues to invest in its PC customer service in China. The company opened four new “HP Total Care Centers” over the last 12 months in Beijing, Shanghai, Chongqing and Guangzhou. Over the next year, HP plans to open more customer service centers for both its printer and PC customers.

HP is committed to ensuring its operations are sustainable and responsible. HP products are, on average, more than 50 percent more energy efficient than they were five years ago. HP, which operates one of the world’s most extensive IT supply chains, was the first IT company to implement a supplier code of conduct and the first to report the greenhouse gas (GHG) emissions of its suppliers.

HP is taking additional steps in China to meet the government’s goal of reducing carbon dioxide emissions 17 percent over the next five years by collaborating with Business for Social Responsibility to reduce energy use, GHG emissions and costs. Eight of HP’s suppliers with 12 facilities in China have joined the initiative, which aims to develop energy improvement plans, share best practices and learn from energy-efficiency experts.

HP has a longstanding commitment to expand rural China’s access to technology and encourage its next generation of entrepreneurs. The company recently introduced programs such as Rural Harvest, which has broadened access to technology for an estimated 2 million people across 31 rural provinces, and HP LIFE, a learning initiative that has benefited 13,000 Chinese students.

About HP

HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure at the convergence of the cloud and connectivity, creating seamless, secure, context-aware experiences for a connected world. More information about HP (NYSE: HPQ) is available at http://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 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; any statements regarding 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 macroeconomic and geopolitical trends and events; the competitive pressures faced by HP’s businesses; the development and transition of new products and services (and the enhancement of existing products and services) to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected operational and financial results; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2011 and HP’s other filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2010. HP assumes no obligation and does not intend to update these forward-looking statements.