HP Creates RFID Technology for Tracking Data Center Assets

Research pilot successfully tested in major Midwest retailer

PALO ALTO, Calif., Oct. 17, 2006 - HP today announced its researchers have created a radio frequency identification (RFID) asset tracking technology for data centers and successfully tested it at a major retailer.

The technology was developed by HP Labs, the company’s central research facility, and tested at Meijer Inc., a retailer with more than 170 grocery and specialty stores in the midwestern United States. The solution could automatically monitor data center assets, providing real-time tracking and auditing of servers, networking equipment, server and storage enclosures and other technology using RFID.

“Physical inventory of IT assets is critical in data centers, especially those with thousands of devices,” said Frank Lanza, worldwide director, RFID Program, HP. “HP RFID technology could enable better accuracy of inventory, increase security and reduce data center operational and auditing costs.”

The technology uses RFID readers and RFID tags to monitor the location of individual components within the data center, including the addition of new devices and device movement to other areas. The sensing infrastructure creates a high-resolution view of devices throughout the data center. The system also can provide historical data related to additions, changes and moves of servers and server-related equipment.

“Meijer’s long-term competitiveness hinges on cost control and efficiency, and the RFID model from HP has potential cost-savings benefits,” said Tim Osbeck, manager, Operations and Technical Support, Meijer, Inc. “This test exceeded our expectations and is invaluable as we explore new possibilities around RFID.”

Meijer Inc., which has grown from a corner grocery store in the midst of the Depression to one of the largest privately held retailers today, is the first HP customer to test the solution.

HP regards RFID as a key technology to help retailers, manufacturers and other users reduce supply chain costs while speeding the flow of merchandise from the factory, through the distribution center and to the retail store, ultimately providing consumers with better product availability. RFID also has evolved to include other uses such as inventory auditing and asset tracking.

Additional information on RFID solutions from HP can be found at h20223.www2.hp.com/enterprise/cache/51817-0-0-225-121.html

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.

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; 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. HP shall not be liable for technical or editorial errors or omissions contained herein.

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