HP Dramatically Simplifies Network Storage for Small and Medium Businesses

NEW YORK, Sept. 18, 2006 - HP today announced the industry’s first easy-to-use storage systems that drive down cost and complexity for small and medium businesses (SMBs) grappling with the exponential growth of data.

The new HP StorageWorks All-in-One (AiO) Storage Systems deliver simple, application-centric storage management, reliable data protection and affordable data storage. Using the systems, SMBs with limited or no storage expertise are able to store, share, manage, back up and protect their rapidly growing application and file data in a flexible network storage environment.

More than 60 percent of SMBs have not deployed networked storage,(1) and the HP All-in-One Storage Systems address what industry analyst firm IDC predicts will be a $5.7 billion market opportunity by 2010.(2)

“With these systems, HP is now the benchmark for storage solutions for SMBs,” said Bob Schultz, senior vice president and general manager, StorageWorks Division, HP. “Developed from the ground up to address the specific problems SMBs face, the HP All-in-One Storage Systems deliver functionality without the complexity of competing offerings.”

The HP AiO Storage Systems handle all storage tasks and are accessed via an easy-to-use graphical interface, saving administrators time and providing newfound levels of control.

“It’s clear the HP All-in-One Storage Systems were designed with the needs of small businesses like St. John’s in mind,” said Charles Love, director of IT for St. John’s Episcopal School in Tampa, Fla. “From the intuitive set-up wizards to the easy-to-use interface, the system has proven to be an extremely simple, complete and low-cost solution to help us manage our growing storage needs.”

The systems are specifically designed for managing storage in Microsoft® environments, including point-and-click tools for working with Microsoft Exchange and SQL Server. In fewer than 10 clicks, for example, customers can fully set up shared storage for an Exchange mailstore.

“We’re excited to work with HP, a strategic partner with deep expertise in Windows and networked storage technology, to deliver a breakthrough storage innovation,” said Gabriel Broner, general manager, Storage, Microsoft Corp. “HP All-in-One Storage Systems bring together HP’s unique design with Microsoft’s Storage Server software to provide an extremely compelling offering for SMBs. Microsoft is committed to making universal distributed storage a reality, by reducing storage costs and providing customers with high-end functionality on industry-standard hardware.”

A full version of HP StorageWorks Data Protector Express Software is integrated into HP All-in-One Storage Systems to enable data back up and recovery from tape, virtual tape, optical or external disk on the network. The HP AiO Storage Systems also run Windows® Storage Server 2003 R2, which enables replication from one system to another and rapid recovery in the event of a disaster.

“The HP All-in-One is filling a hole in the market that no one else is addressing by taking the complexity out of storage,” said Don Zurbrick, sales manager, Big Sur Technologies, a Florida-based solutions and services provider. ”We are confident that the simplicity of the AiO will help drive incremental business and strengthen our position as a trusted advisor to our customers.”

The HP StorageWorks All-in-One Storage Systems are available now and will be sold primarily through HP’s extensive network of more than 145,000 channel resellers worldwide.

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 July 31, 2006, HP revenue totaled $90.0 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

1 IDC, “U.S. SMB Storage 2006: The Move to More Advanced Storage Features,” March 2006.

2 IDC, “Worldwide Disk Storage Systems 2006-2010 Forecast and Analysis: Expansion, Efficiency, and Economics Driving Growth,” May 2006.

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

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 July 31, 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.

© 2006 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

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