HP Outships All Other Server Vendors Worldwide for 15th Consecutive Quarter

HP is No. 1 in Windows, Linux and high-end UNIX revenue and again gains total server revenue share in fourth quarter 2005.

PALO ALTO, Calif., Feb. 22, 2006, For the 15th consecutive quarter, HP has outshipped all other major vendors in the worldwide server market while taking share in total server revenue, according to fourth quarter 2005 figures released today by IDC.(1)

HP continued to be No. 1 in total worldwide revenue and units for Windows®, Linux and the high-end UNIX® server market. HP also led in all three of the major operating systems combined (Windows, Linux and UNIX) - which comprise more than 95 percent of all servers shipped worldwide and 78.7 percent of all server revenue.

Additionally, HP demonstrated strong revenue growth year-over-year in calendar year 2005 for x86 servers (up 16.1 percent) and Intel® Itanium® 2 (EPIC)-based servers (up 75.0 percent).

“These numbers reflect our solid execution in the fourth quarter and the value we deliver to customers across our server portfolio,” said Mark Hudson, vice president of marketing, Enterprise Storage and Servers, HP. “They also demonstrate our continued solid ramping up of the HP Integrity server business, consistent, strong performance in industry-standard servers, including both Intel and AMD platforms, and across-the-board strength in the architectures and operating environments customers choose most.”

Highlights of the analyst firm’s worldwide report include:

* In the rapidly growing x86-64 based server segment, which now accounts for nearly 80 percent of all x86 server spending, HP was No. 1 in revenue and units, outpacing IBM, Dell and Sun and increasing its revenue share to 37 percent for the calendar year;


* HP was again No. 1 in x86 server units and revenue, outpacing the market in revenue growth (16.1 percent) year-over-year in calendar year 2005 and taking market share from IBM. This quarter marks the 38th consecutive quarter of market share leadership for the HP ProLiant server family(2);


* HP grew x86 blade server revenue by 81.0 percent in calendar year 2005 and had a 34.9 percent revenue market share;


* HP Integrity servers, using the Itanium 2 processor, were No. 1 in worldwide revenue and units in the worldwide EPIC server market with revenue growth of 75.0 percent year-over-year in calendar year 2005;


* HP was No. 1 in high-end UNIX(3) server revenue worldwide for the calendar year, showing significant market share gain of 5 percentage points year-over-year;


* HP was No. 1 in total Linux units shipped, growing 25.1 percent year-over-year in calendar year 2005, and held the top position in x86 Linux server revenue and units, growing 27.1 percent in units year-over-year; and


* HP was No. 1 in Windows revenue and units in calendar year 2005, growing faster than the market in revenue.


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, 2006, HP revenue totaled $87.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

(1) Source: IDC’s Worldwide Quarterly Server Tracker, February 2006.

(2) Includes Compaq ProLiant from Q196 through Q202 and HP ProLiant from Q302 through Q405.

(3) Systems priced at US$500,000 and more; IDC’s Worldwide Quarterly Server Tracker, February 2006.

Windows is a U.S. registered trademark of Microsoft Corp. UNIX is a registered trademark of The Open Group. AMD is a trademark of Advanced Micro Devices, Inc. Intel and Itanium are registered trademarks of Intel Corp. or its subsidiaries in the United States and other countries.

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 Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2005 and other reports filed after such report. HP assumes no obligation and does not intend to update these forward-looking statements.

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