HP and Intel Announce Plans to Deliver Intel NetStructure Products to Service Providers

HP First Major OEM to Work With Intel to Meet Customers' Needs for a Cost-effective Always-on Internet Infrastructure

PALO ALTO and SANTA CLARA, Calif., Dec. 21, 2000 -- Hewlett-Packard Company and Intel Corporation today announced that they will immediately work together to offer Intel's NetStructure™ appliances to existing Intel, HP and potential new customers. As early as March 2001, HP also is expected to release a family of HP appliances based on Intel's NetStructure product technology, enhanced by HP's high-quality service and support.

In the Internet economy, servers must be reliable and scalable to maximize productivity and minimize customer downtime. HP's extensive experience in the server marketplace, combined with the high performance and versatility of the Intel® NetStructure™ appliances, helps to support HP's vision of an always-on Internet infrastructure.

According to International Data Corporation, the appliance server marketplace could expand to $11.6 billion by 2004¹ with potential customers ranging from the enterprise, service provider and dot-com sectors to small- to medium-sized businesses.

Server appliances are ideal for a broad range of customers -- from enterprises that require enhanced performance, to service providers that want dedicated products that are easy to install and maintain.

"Being the first major OEM to work with Intel in the server appliance market underscores HP's commitment to moving quickly to address customer needs and gives HP a significant advantage over competitors," said Carly Fiorina, HP chairman, president and chief executive officer. "With this plan, HP extends the line of best-in-class HP Netserver systems and opens the door into a new market space. In the future HP will continue to identify and work with industry leaders to offer customers unrivalled, world-class 'always-on' infrastructure solutions."

"This announcement reflects Intel's commitment to drive the development of Internet infrastructure with standards-based communications building blocks and systems," said Craig R. Barrett, Intel president and chief executive officer. "Together, Intel and HP have the potential to expand dramatically the distribution of these products and enhance customers' ability to build complete Internet solutions."

The Intel technologies to be adopted by HP include Web hosting, e-commerce, management, load-balancing, SSL and XML acceleration, and virtual private networking (VPN) appliance products.

Intel will continue to support existing Intel NetStructure customers as they plan their Internet datacenter build-outs, and provide assistance to help them transition to HP products next year. HP and Intel sales teams also plan to continue to create demand for solutions based on Intel appliance technology.

HP plans to work closely with Intel to help ensure a smooth transition for channel partners, allowing them to continue to build their businesses with the confidence of HP's and Intel's long-term commitment to Intel technology-based appliances.

About HP
Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e?services and an Internet infrastructure that's always on.

HP has 88,500 employees worldwide and had total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

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