HP Teams with VMware to Deliver Enterprise Server Consolidation Solutions for HP ProLiant Servers

Virtual Computing Technology Simplifies Configuration, Deployment, Management for Enterprise Data Centers

PALO ALTO, Calif., June 5, 2002 HP (NYSE:HPQ) today announced that it is working with VMware, Inc., to integrate VMware's virtual machine technology into industry-standard HP ProLiant servers to simplify deployment and management for enterprise data centers. The two companies will provide a solution to address the demand for industry-standard server consolidation to reduce the need for continuous server management and maintenance on underutilized servers.

HP ProLiant servers running VMware's virtual machine technology create secure, fault-resistant partitions with guaranteed performance and reliability and enable the consolidation of heterogeneous versions of Windows(r) and Linux operating systems onto a single server. With this solution, customers can maximize their computing resources by consolidating their hardware footprint, saving money in operational expenses and capital costs.

"To increase efficiency in data center environments, customers require new technologies that build on infrastructure investments and adapt to their constantly changing business needs," said James Mouton, vice president enterprise servers, HP Industry Standard Servers. "With VMware software, HP is adding virtual machine capabilities to complement our HP ProLiant Essentials Workload Management Pack and addressing the growing industry trend toward server consolidation."

"Working with HP enables VMware to drive virtual machine technology into the enterprise on products that have a tried and true reputation for performance and reliability," said Diane Greene, president and chief executive officer, VMware. "The combination of VMware software and HP ProLiant servers enables customers to confidently consolidate their server environments to lower their cost of computing."

The agreement lays the groundwork between HP and VMware for joint marketing and product development activities for products, services and technologies designed to simplify HP customers' configuration, deployment, management and support of HP ProLiant servers in consolidated environments.

HP ProLiant DL760 server configurations running VMware software will help reduce the total cost of ownership of enterprise data centers by running services and applications in virtual machines instead of running on dedicated hardware. Because HP is a member of VMware's Preferred Hardware Partner Program, VMware tests HP ProLiant servers to ensure compatibility for use with VMware software.

The HP ProLiant Essentials Workload Management Pack allows customers to run multiple applications on top of a single instance of the operating system. Now complemented with VMware software, HP ProLiant servers can run different operating systems within partitions by enabling multiple copies of the operating system to run at the same time, allowing additional flexibility when consolidating business applications.

About VMware, Inc.

VMware, Inc. is the leading provider of virtual computing software for industry-standard computers. Through its patent-pending technology, VMware brings virtual computing to distributed systems from the desktop to the data center. Enterprise customers use VMware software for server consolidation, workload management and application development, testing and deployment. With more than one million registered users, VMware products include ESX Server, GSX Server and Workstation. VMware was founded in 1998 and is based in Palo Alto, Calif. For more information, visit www.vmware.com or call 650-475-5000.

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP merged with Compaq Computer Corp. on May 3, 2002. The merged company had combined revenue of approximately $81.7 billion in fiscal 2001 and operations in more than 160 countries. More information about HP is available at www.hp.com.

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Windows is a U.S. registered trademark of Microsoft Corp.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never 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. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; the difficulty of keeping expense growth at modest levels while increasing revenues; 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 annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001, HP's quarterly report on Form 10-Q for the quarter ended January 31, 2002 (as filed with the SEC on March 12, 2002) and subsequently filed reports. HP assumes no obligation and does not intend to update these forward-looking statements.

Editorial Contacts:

Tim Willeford, HP
+1 508 467 4120

Emily Armanetti,
Hill & Knowlton for HP
+1 312 255 3082

Amber Rowland, VMware
+1 650 475 5338