Double-digit Ethernet switch port shipment and revenue growth continues for ProCurve Networking

DUBAI, UAE, August 31, 2004 - ProCurve Networking by HP led the worldwide Ethernet switch market in revenue and port shipment growth among top tier enterprise vendors year-over-year for the second quarter of calendar year 2004, according to the latest report by Dell'Oro Group.(1) ProCurve Networking secured the No. 2 position in terms of total Layer 2 through 7 switch port shipments worldwide.

Results from the analyst firm's recent report examining the worldwide Layer 2 through Layer 7 Ethernet switch market revealed ProCurve's market leading revenue growth was 25.3 percent year-over-year while the market grew at 19.4 percent. ProCurve Networking port shipments grew 42.7 percent year-over-year while outpacing the overall Ethernet switch market, which grew 29.5 percent. The business saw consistent and comparable growth around the world.

"We credit our absolute growth to our customers recognising the unique value they get from ProCurve," said Ivan Kraemer, Sales and Marketing Director, ProCurve Networking Business for Mediterranean, Middle East and Africa. "Enterprises are demanding a business-driven network, which we deliver with our Adaptive EDGE Architecture. Our customers get more from their networks, enabling increased security, reliability and flexibility. This makes ProCurve Networking the best choice in the market."

ProCurve also led the market in Layer 2 through Layer 7 Gigabit switch growth with 354.5 percent growth year-over-year. In addition, ProCurve's total Layer 3 switch port shipment market share was No. 2 worldwide with 84.5 percent port shipment growth year-over-year.

-Ends-

About ProCurve Networking by HP
The ProCurve Networking business unit of HP is a supplier of enterprise networking solutions comprising wired and wireless enterprise networking products, services and solutions - including Ethernet switches, routing switches, wireless access points and network-management applications - which allow customers to build networks based on open standards that meet current and future needs for security, performance and reliability.

More information about ProCurve networking solutions and products is available at www.hp.com/go/hpprocurve.

About HP
HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the four fiscal quarters ended July 31, 2004, HP revenue totalled $78.4 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at www.hp.com.

About HP Middle East
HP is the largest IT company in the Middle East employing about 500 professionals in the region. HP has been present in the Middle East since 1968, and opened its first regional office in 1994 and has offices in Dubai, Abu Dhabi, Riyadh, Jeddah and Khobar, Cairo and Ramallah servicing the GCC, the Levant and Egypt. For more information about HP in the Middle East, please visit www.hp.com/me.

Editorial contacts:
Riwa Dabbagh, HP
+ 9714 3916000
riwa.dabbagh@hp.com

Briony Peters
Hill & Knowlton for HP
+ 971 4 334 4930
briony.peters@hillandknowlton.com

Hewlett‑Packard Middle East
P O Box 17295
Dubai Internet City
Dubai
www.hp.com/me

(1) Dell'Oro Group, Q2'04 Ethernet Switch Report, August 2004.

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 the risks described in HP's Quarterly Report on Form 10-Q for the period ended April 30, 2004 and 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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© Press Release 2004