HP Wins Utility Computing Contracts From Federal Government

PALO ALTO, Calif.--()--HP (NYSE:HPQ) (Nasdaq:HPQ) has been awarded two multiyear contracts by the U.S. Defense Information Systems Agency (DISA) to deliver a reliable, responsive and cost-effective computing infrastructure in 17 locations worldwide.

The two contracts are indefinite delivery indefinite quantity (IDIQ) awards. Exclusive to HP, these two contracts have a ceiling of $440 million over an eight-year period. If they realize their full potential, these contracts could be the largest utility computing contracts won by HP to date.

One HP contract to deliver HP-UX operating environments is capped at $250 million. The second HP contract to deliver operating environments in Microsoft Windows®, Red Hat Enterprise Linux and Novell® SUSE® Linux is capped at $190 million. The contracts are for a five-year base period, with three one-year option periods. The DISA awards were based on a best value determination.

HP will provide DISA with a flexible computing infrastructure that will adjust to fluctuating demands. Only paying for the services it uses, the agency will not spend resources on underutilized technology it may never need. Further, DISA will have the flexibility to easily and quickly provision optimal solutions.

HP will deploy a breadth of products and services to deliver an adaptive infrastructure, including HP Integrity and HP ProLiant servers. HP also will deliver software solutions for automated server provisioning, along with HP OpenView commercial-off-the-shelf applications for consolidated service desk, configuration management, patch management and IT asset management. All of the infrastructure will be designed, delivered, installed and maintained by HP Services.

HP is a leader in helping customers transform IT environments to meet the changing needs of business and improving the quality of service delivered, said Tim Sheahan, managing vice president, U.S. Federal Business Organization Americas, HP. HP will be a key partner in delivering on DISAs utility computing strategy, and we will work with them to provide our advanced technology and expertise to support DISAs fluctuating computing needs.

HPs solutions provide DISA with the flexibility to implement hardware provisioning solutions, achieve DISA hardware solution objectives, minimize impact on current environment and government-furnished equipment, and centralize management capability. It also will provide industry-leading and proven operating system software and security. HP will deliver these contracts through its dedicated Federal Organization.

DISA is a U.S. Department of Defense combat support agency that provides real-time information technology and communications support to the U.S. President, Vice President, Secretary of Defense, military services and combatant commands.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The companys 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 is available at www.hp.com.

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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 HPs Securities and Exchange Commission reports, including but not limited to the risks described in HPs Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2006, and other reports filed after HPs 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.

Contacts

HP
Emily Neumann, +1 310-921-3063
emily.neumann@hp.com
HP Media Hotline, +1 866-266-7272
pr@hp.com
www.hp.com/go/newsroom
or
Burson-Marsteller for HP
Ruben Pulido, +1 202-530-4598
ruben.pulido@bm.com

Contacts

HP
Emily Neumann, +1 310-921-3063
emily.neumann@hp.com
HP Media Hotline, +1 866-266-7272
pr@hp.com
www.hp.com/go/newsroom
or
Burson-Marsteller for HP
Ruben Pulido, +1 202-530-4598
ruben.pulido@bm.com