HP Owns No. 1 Rank in Worldwide Total Disk Storage Systems Revenue for 14th Consecutive Quarter

PALO ALTO, Calif., Dec. 2, 2005, IDC released market data today showing that HP maintained the No. 1 position in worldwide total disk storage factory revenue for the 14th consecutive quarter, with 23.5 percent market share and revenue growth of 14.4 percent year over year in the third quarter of 2005. (1)

During the period, HP grew twice as fast as EMC in worldwide external disk storage systems revenue, growing revenue by 14.7 percent year over year.

HP revenue growth in the network-attached storage (NAS) market surpassed EMC and Network Appliance revenue growth, with 10.7 percent quarter-over-quarter and 27.5 percent year-over-year growth. HP also took the No. 1 position in NAS units shipped from Dell.

HP tied for the No. 1 position in revenue in the open storage area network (SAN) and iSCSI market with 25 percent market share. HP also held the No. 1 market position in total open SAN unit shipments.

“We continue to execute decisively in the storage marketplace,” said Bob Schultz, senior vice president and general manager, StorageWorks Division, HP. “Over the past several months, we’ve taken a number of steps to strengthen the business, which has shown improvement as evidenced by strong growth in our EVA and XP revenues.”

During the quarter, HP acquired AppIQ and began shipping HP Storage Essentials 5.0 - both serving to further the company’s strategy to unify server and storage management. Other recent highlights include the introduction or enhancement of:

* HP ProLiant Data Protection Storage Servers - easy-to-deploy, disk-based backup solutions powered by Microsoft® DPM for near continuous protection of Windows® file servers;


* HP StorageWorks 6840 Virtual Library System - which improves the performance and reliability of the data protection process with backup and recovery that is up to 10 times faster than existing tape solutions;(2)


* HP Electronic Vaulting Service for Enterprises - which provides highly secure, scalable and automated remote backup for heterogeneous environments; and


* HP StorageWorks File Migration Agent - which reduces online storage requirements by providing flexible migration and archiving.


More information about HP StorageWorks offerings is available at http://www.hp.com/go/storageworks.

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 Oct. 31, 2005, HP revenue totaled $86.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

(1) Source: IDC Worldwide Quarterly Disk Storage Systems Tracker, Q3 2005

(2) Figure based on comparison of 10 servers backing up Microsoft Windows file systems to a two-drive StorageTek DLT 8000 library.

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

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.

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