press release

HP Drives Open Architecture Technology Into Telecom Networks with New Rack Mount Server Based on Intel Processors and Linux

High-performance, Low-cost HP cc3310 Delivers Advantages of Modular, Standards-based Components to Network Equipment and Service Providers

HP (NYSE:HPQ) today announced the availability of the HP cc3310, a powerful addition to the company's line of servers for the telecommunications and service provider industry.

Extending HP's leadership in carrier-grade servers, the HP cc3310 represents a significant step forward in the industry's migration away from custom, proprietary systems to those based on modular, industry-standard components. Standards-based platforms such as the HP cc3310 give service providers the flexibility they need to adapt quickly to changing customer demands.

Targeted specifically at the world's network equipment providers (NEPs) and independent software vendors (ISVs) that supply fixed and mobile operators, the HP cc3310 delivers carrier-grade reliability and performance at a significantly lower price than competitor's products.

The HP cc3310 is a NEBS Level 3-certified Intel®-based platform running Linux in a dense, space-saving rack-mountable configuration for the telecommunications central office or data centers. The HP cc3310 is based on the Intel TIGPR2U carrier-grade server platform, which includes dual 2.4-GHz Intel Xeon™ processors running the Linux operating system.

Designed to meet a variety of needs in the network, such as media gateways, signal gateways, media servers and soft switches, the HP cc3310 is optimized to support both existing services and the migration to next-generation services.

"The telco server industry is really seeing a shift away from some of the proprietary systems that were for so long the staple upon which carriers relied," said Eric Mantion, senior analyst, In-Stat/MDR. "As both the processors and operating systems found in enterprise markets have risen to the reliability standards the service providers have come to expect -- specifically for x86-based CPUs and Linux -- the significant cost saving that these architectures bring are being looked at very favorably by today's cost-sensitive telecommunications companies."

"Our customers need to reduce server costs significantly - even as they demand more performance. The cc3310 uses standards-based technologies to deliver the price performance that NEPs and telecom ISVs need," said Sebastiano Tevarotto, vice president and general manager, HP Network and Service Provider Business Unit. "The cc3310 joins HP's unmatched portfolio of diverse carrier-grade platforms that gives NEPs and service providers a real choice."

HP's portfolio of carrier-grade systems includes:

• Servers based on Linux and Intel Xeon processors;
• The HP NonStop server, one of the industry's first intelligent network platforms and now the leading platform for network service control points;
• HP PA-RISC platforms running HP-UX, which are deployed in fixed and wireless networks around the world; and
• Industry-standard HP ProLiant servers, based on Intel processors running Linux and Windows. Both Intel Xeon and Itanium® processors are becoming the basis for all HP carrier-grade platforms.

HP's server platforms are frequently combined with HP telecommunications software and professional services to build complete solutions for network and service providers.

HP cc3310 Meets Industry Standards for Central Office

The HP cc3310 is engineered to meet the demanding standards for deployment in a service provider's central office, as well as data centers. These carrier-grade requirements include: NEBS Level 3 certification; AC/DC power; 20-inch depth; and extended sales life (three years) and support life (eight years).

Physical space is typically at a premium, so the rack-mountable HP cc3310 is designed to be very compact -- yet expandable. Within a 2U configuration, the cc3310 provides up to six PCI slots, which is needed to handle the typically heavy input/output volume in a central office environment.

Other features include single or dual Intel Xeon processors running at 2.4 GHz; 12 gigabytes of DDR266 SDRAM DIMM memory; support for up to two redundant, hot swappable disk drives and 292 gigabytes of disk storage; and Red Hat Enterprise Linux AS 2.1.

HP's portfolio of Linux-based carrier-grade platforms are available in both rack-mount and blade server configurations. Built for central office and enterprise environments, the platforms are designed to comply with industry standards as defined by the Open Source Development Labs Carrier-Grade working group and the Service Availability Forum.

Further information on HP's carrier-grade offerings is available at http://www.hp.com/products1/servers/carrier_grade/index.html.

About HP

HP delivers vital technology for business and life. The company's solutions span IT infrastructure, personal computing and access devices, global services and imaging and printing for consumers, enterprises and small and medium business. For the last four quarters, HP revenue totaled $70.4 billion. More information about HP is available at http://www.hp.com.

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, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development and performance of these products and services may not proceed as planned; 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 quarterly report on Form 10-Q for the quarter ended January 31, 2003, and subsequently filed reports. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP assumes no obligation to update these forward-looking statements.