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HP and America Online Broaden Relationship Through Three-year Technology Services Management Contract


PALO ALTO, Calif., March 10, 2005,

HP today announced that America Online, Inc. has selected HP in a competitive bid to be its provider of integrated support services for the company’s server and storage technology.

As part of a three-year agreement, HP will provide maintenance and support services for equipment from HP and other vendors in AOL data centers across multiple U.S. locations.

Building on the companies’ more than 10--year relationship, AOL is expanding its existing one-year services contract with HP to include support of its multi-vendor environment over three years. HP offered a flexible pricing structure that would allow AOL to adapt its support services with changing needs, predict the impact on its overall support costs, and continue to more effectively and efficiently manage server support costs.

AOL also preferred to have a single point of contact for the support services of the majority of its servers in its multi-vendor environment so it could achieve better alignment between IT service levels and business needs, driving efficiency and reducing AOL’s costs. As an online services company, AOL prides itself on 24x7 “up-time” and HP’s consistent delivery and proven track record was critical to AOL’s decision.

HP’s integrated support services are part of AOL’s ongoing efforts to improve business agility and enable it to standardize, rationalize and simplify the management of its technology environment, a critical step to capitalizing on change.

The services HP provides across AOL’s environment include: Speeding time to change with a single point of contact and standardized support services and processes, and reducing AOL’s IT workload by simplifying support services management as well as helping to reduce costs by freeing up resources.

“HP has been a long-time partner in helping America Online operate world-class services for AOL’s customers,” said David L. Cole, senior vice president of Systems Operations, America Online, Inc. “HP’s flexible and collaborative approach and its ability to provide a single point of management for our multi-vendor environment will positively impact not just our infrastructure, but the speed with which we can respond to the needs of America Online’s customers.”

HP will manage support for more than 15,000 servers from multiple vendors, which includes support for 9,000 HP servers - including HP Integrity servers with Intel® Itanium® 2 processors and HP 9000, HP ProLiant and HP NonStop servers - as well as HP workstations.

Specifically, HP will provide mission-critical onsite support services in addition to call management services, which will be provided 24 hours a day, 365 days a year. HP will also provide proactive support tools and processes, a dedicated onsite support team and dedicated onsite HP parts inventory. The existing technology is located across a number of AOL’s Northern Virginia, Ohio and California sites.

“AOL already had a sophisticated technology infrastructure in place, but it wanted to consolidate support contracts from different vendors to manage its server environment at strict service levels, under one service agreement,” said Mike Rigodanzo, senior vice president, Technology Services, HP. “This relationship with HP will give AOL more streamlined service delivery, while providing clear savings and achieving simplification, standardization and modularity in its IT environment. These are the building blocks of an Adaptive Enterprise.”

About America Online, Inc.

America Online, Inc. is a wholly owned subsidiary of Time Warner Inc. Based in Dulles, Va., America Online is the world’s leader in interactive services, Web brands, Internet technologies and e-commerce services.

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 Jan. 31, 2005, HP revenue totaled $81.8 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at


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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 period ended July 31, 2004 and other reports filed after HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003. HP assumes no obligation and does not intend to update these forward-looking statements.


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