HP Enhances Virtualization Capabilities for HP Integrity Servers

PALO ALTO, Calif., June 28, 2006, HP today announced that it has added capabilities to its Virtual Server Environment for HP Integrity servers to better enable customers to automatically adjust resources within a pooled server environment.

The new HP Virtual Server Environment (VSE) Reference Architecture for Oracle® Real Application Clusters for HP-UX 11i dynamically scales the Integrity server infrastructure when mission-critical Oracle database workloads fluctuate. For example, customers can use the capability to automatically allocate additional server capacity to financial applications during the month-end close.

For customers that are concerned about the availability of their mission-critical UNIX® environments when they consolidate using virtualization, HP has further integrated HP Serviceguard for HP-UX 11i with HP Integrity Virtual Machines. Available now with the latest release of HP Serviceguard, this functionality helps guard against failure by automatically moving the virtual machines between servers in a VSE. HP Integrity Virtual Machines also now enables easy manual migration of virtual machines, accelerating application qualification and deployment.

“No other vendor can offer the level of virtualization capability for Oracle customers that HP now can,” said Nick van der Zweep, director, Virtualization and Integrity Server Software, HP. “HP leads the way in mission-critical server virtualization with HP-UX 11i, now enabling customers to automatically flex, add and move server resources in support of constantly changing business demands.”

Customer demand for virtualization is growing – HP had 70 percent shipment growth for key virtualization technologies in the past year,(1) reinforcing the IDC assessment that spending on virtualization will continue at significant growth rates and reach $15 billion by 2009.(2)

HP customers such as Allgemeine Bausparkasse, Croatian Post Inc., Grupa Kety, Harman Pro Group, Healthways, Hubert Burda Media Group, Laziomatica, Mitel, Orient Overseas Container Line, Osem Investments Ltd., Royal London Group, Taifook Securities Ltd., Telefonica de Espana and University of Magdeburg have benefited from the flexible capacity and superior return on investment provided by the HP VSE.

“By consolidating our HP infrastructure via HP virtualization technologies, we are now able to nimbly respond to changing workloads while saving almost $200,000 in the process,” said Clive Cranshaw, technical administrator, Royal London. “We have benefited enormously from our IT staff being able to focus on adding value to the business, while the HP Integrity Virtual Machines allocate and manage server resources automatically and keep our users productive.”

Available since 2003, the HP VSE is a foundational element in HP’s Adaptive Infrastructure framework, which enables customers to move toward an automated “lights-out” computing environment that can be remotely managed 24 hours a day. HP offers a broad portfolio of services for the HP Virtual Server Environment, from planning and assessment through design and implementation to mission-critical proactive and reactive support.

More information about HP Integrity systems is available at www.hp.com/go/integrityserversolutions. More information about the HP Virtual Server Environment is available at www.hp.com/go/vse.

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, 2006, HP revenue totaled $88.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

(1) HP internal data: first half, fiscal year 2006 vs. first half, fiscal year 2005.

(2) IDC Multiclient Study, Server Virtualization Market Forecast and Analysis, 2004-2009, September 2005.

Oracle is a registered trademark of Oracle Corp. and/or its affiliates.

This news advisory 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; 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 the achievement of expected results and other risks that are described from time to time in HP’s Securities and Exchange Commission reports, including but not limited to the risks described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2006, and other reports filed after HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2005. HP assumes no obligation and does not intend to update these forward-looking statements.

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