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HP Continues Strong Revenue Growth In Its Integrity Server Business

December 14, 2007

HP has announced strong revenue growth in its Integrity Server Business in Asia Pacific and Japan in FYQ4, 2007. During this period, HP Integrity servers achieved year-on-year revenue growth of 46 percent across the region. The servers support more than 13,500 Independent Software Vendor (ISV) applications globally, with an average of four new applications added daily. In the region, more that 1,400 ISV applications including ERP and Supply Chain have contributed to significant customer adoption of HP Integrity servers.

HP Integrity servers represented the majority of HP's Business Critical Systems (BCS) revenue in Asia Pacific and Japan with 70 percent share in FYQ4, 2007. HP's BCS business includes HP NonStop, HP Integrity, HP 9000, HP Alpha and Open Source and Linux servers. These servers support customers' multi-OS needs including HP-UX (Unix), Windows, Linux, OpenVMS and NonStop operating systems.

"From HP Integrity blade servers to HP Integrity NonStop servers running on standards-based platform with built-in sec urity, virtualization and management, we are delivering mission-critical systems that meet the most demanding requirements of our Asia Pacific customers," said Herbert Zwenger, vice-president and general manager, Business Critical Systems, HP Asia Pacific and Japan . "Our financial results and industry data show that demand for these systems continues to grow significantly and the momentum continues to build as Integrity helps customers reduce operating costs, be more environmentally responsible and make the most of the IT investments."

IDC Asia/Pacific Quarterly Enterprise Server Tracker, CY Q3 2007, November 2007 reports that HP led the Itanium (EPIC) server market in Asia/Pacific (inc. Japan ) region with 77.4 percent revenue market share. In CY Q3 2007, HP's Itanium (EPIC) server revenues in Asia Pacific (inc. Japan ) grew 44.6 percent year-on-year. HP led Itanium (EPIC) Unix server market in Asia/Pacific (inc. Japan ) region with 94.2 percent revenue share in CY Q3 2007. In the overall Itanium (EPIC) high-end enterprise server segment, HP captured revenue market share of 64 percent in CY Q3 2007. In addition, HP's overall Unix server revenues grew 9.7%, Windows revenues increased 12.3% and Linux server revenues increased 31.7% on a year-on-year in CY Q3 2007 in Asia/Pacific (inc. Japan ) region.

Earlier this year, HP has launched its latest version of Unix operating system – HP-UX 11i v3 to help customers easily deliver mission-critical virtualization combined with mainframe-class availability. HP also strengthened its HP Integrity server lineup with the launches of its first Integrity BladeSystem c-Class environment – HP Integrity BL860c server and a rack-optimized unit – HP Integrity rx2660 entry-class server.

Integrity customer momentum in Asia Pacific and Japan

TVS Motors

TVS Motors – a 2-wheeler manufacturer in India and among the top ten in the world managed complex migration from existing servers to higher capacity HP Integrity servers on secure HP-UX operating system. HP Integrity supported migration of database applications which helped the company to smoothly manage IT performance at its new manufacturing plants. The migration to HP Integrity reduced CPU utilization by about 50 percent, improved response time for critical transaction by 35% and ensured investment protection.

Asiana Airlines

Asiana Airlines – a major airline in Korea that has a global network spanning 841 cities in 157 countries worldwide through ‘Star Alliance', the world's largest airlines alliance. To enhance competitive advantage, the airline improved business flexibility and agility with SAP ERP solutions on HP Integrity servers. HP systems helped accelerate decision making, improve customer satisfaction and increase overall business efficiency by reducing security risks, lowering costs and maximizing productivity.

"Asiana Airline took a close look at the flexibility and scalability of the system with the characteristics of aviation in mind," said Kim Hyun-bin, manager, management system team, Asiana IDT. "We selected HP Integrity server because it reduces the risk of the existing systems by supporting multiple operating environments. We have also seen leading companies across industry verticals have trusted to build their IT infrastructure on these systems."

Astellas Pharma

Astellas Pharma Inc was established in April 2005 as a result of a merger between 2 pharmaceutical companies in Japan . HP helped to consolidate the marketing data from old mainframe server to a single HP Integrity Superdome on virtual servers that was divided and split into multiple hardware systems and partitions. HP Integrity servers and virtualization tools helped Astellas Pharma to reduce system operating costs by 50 percent.

Recent Innovations

Key innovations announced recently to offer enterprise customers cost benefits and faster time-to-market on HP servers:

•  Customized HP c-Class BladeSystem for emerging IP-based telecommunications network

•  Refreshed HP Integrity with the latest Intel processor technology and software to help customers reduce costs through enhanced automation and improved energy efficiency

•  Introduced Integrity Reference Architectures for SAP and Oracle environments to help customers modernize and manage their IT infrastructure

•  Enhanced HP Virtual Server Environment for HP-UX 11i to view applications in a virtual server environment and to specify workloads in automatically accessing spare capacity

•  Enhanced HP Serviceguard for HP Integrity with expanded high availability options allowing enterprises to improve quality of service and reduce costs

•  Introduced HP Partner Virtualization Program to allow independent software vendors (ISVs) to build and verify applications in a secure and virtualized environment.

Globally, over 60 percent of Fortune 100 companies run mission critical applications on HP Integrity servers. HP Integrity year-on-year revenue worldwide was up by 59 percent while the

HP BCS business revenue achieved year-on-year growth of 5 percent in FYQ4, 2007 1 . The growth was driven by an increase in HP Integrity Superdome and HP Integrity NonStop server shipments, and supported by strong customer momentum in Asia Pacific and Japan.

More information about HP Integrity servers is available at www.hp.com/go/Integrity.

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