HP Extends Partnership with VMware to Power Server Consolidation and Workload Management

HP Offers Extensive Hardware, Software and Services Portfolio to Customers with IT Consolidation Projects

PALO ALTO, CALIF., MAY 28, 2003 - HP (NYSE:HPQ) today announced its extended partnership with VMware, a global leader in virtual machine software for industry-standard systems. HP now provides a total VMware solution for IT Consolidation Projects including HP Consulting, HP Customer Support & Subscription Services, VMware software, industry-standard HP ProLiant servers, and HP StorageWorks providing customers with one-stop shopping for VMware-based solutions. HP Services offers HP branded services for supported operating systems, including support of Microsoft Windows and Linux operating systems, within VMware virtual machines.

HP ProLiant servers running VMware ESX Server and VMware GSX Serveenable customers to consolidate multiple operating systems and applications in virtual machines on the same server. At the same time, this solution allows for a more efficient use of CPU, memory, bandwidth and other server resources, lowering the overall total cost of ownership, for production, test and development environments. In addition, HP customers will have the ability to set up a single point for support through the HP portfolio of service contracts.

"Within the last year that we have been using VMware ESX Server on HP ProLiant servers, we have been able to implement new ways of supplying more cost-effective production server environments," said Brian Garrison, systems engineer for Volvo IT North America. "We've also been able to explore new methods to ensure a more reliable disaster recovery plan."

The agreement further builds upon HP's comprehensive portfolio foIT consolidation projects and supports the HP Adaptive Enterprise vision. As a charter member of the VMware Preferred Hardware Partner Program, HP offers over a dozen 2-, 4- and 8-way ProLiant platforms certified with VMware ESX Server, currently more than any otheVMware solution partner.

"Enterprise customers need solutions to help them increase server utilization, reduce IT costs and benefit from improved system and application management," said Ron Eller, vice president, Solutions division, HP Industry Standard Servers. "With VMware software complementing our ProLiant Essentials management tools, HP customers can gain more agility, accountability and a better return on IT."

"VMware and HP have a shared vision for support of an agile data center and our partnership supports the HP Adaptive Enterprise strategy," said Diane Greene, president and chief executive officer of VMware. "Together, VMware and HP have great capabilities to address customer needs for IT Consolidation and other solutions that compute virtualization is facilitating."

This agreement builds on a relationship announced in June 2002 that provided the groundwork for HP and VMware to jointly market and develop products and services designed to simplify HP customer's configuration, deployment, management and support of HP ProLiant servers in consolidated environments. Additional information about HP and VMware is available at http://h18004.www1.hp.com/products/servers/consolidation/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.

About VMware, Inc.

VMware, Inc. is the global leader in virtual machine software for industry-standard systems. With more than 5,000 customers worldwide and 80% of the Fortune 100, VMware provides companies with a proven set of enterprise products and solutions to consolidate their server infrastructure, improve software lifecycle management and provide application compatibility in mixed operating system environments. Based on the company's patented technology, VMware's products enable companies to flexibly scale and control their infrastructure to quickly respond to business demands, improve return on investment and dramatically reduce total cost of ownership. VMware is based in Palo Alto, California. For more information, visit www.vmware.com or call 650-475-5000.

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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.