Koehler Paper Adopts Intel® Itanium® 2-Based HP Integrity Servers To Optimize Worldwide Distribution

German Paper Manufacturer Streamlines Business-Critical IT Processes through Migration to 64-Bit Computing

MUNICH, Germany, Nov. 3, 2003 -- Intel Corporation today announced that Koehler Paper, the world's largest manufacturer of fax and specialist paper, has migrated its central IT operations to an Intel® Itanium® 2 processor-based HP Integrity* platform to drive maximum performance from its mission-critical SAP* solutions.

The company annually produces around 369,000 tons of specialist paper, of which 70 percent is distributed internationally from five production sites in Germany and a further five warehouse sites worldwide, making it critical to keep the supply chain running effectively through streamlined IT operations. The migration to Itanium 2-based systems coincides with Koehler Paper upgrading its SAP business solutions in order to minimize downtime, thereby ensuring the company's paper storage facilities do not reach full capacity and disrupt production. SAP for Mill Products* is an industry-specific portfolio that builds upon mySAP* Business Suite solutions and industry-tailored functionality to meet the specific needs of metal, forest products, textile and building materials companies.

"Maintaining production levels by keeping the paper mills running is of vital importance to us, as any interruption could have significant cost implications," said Alex Fischer, team leader of IT Basics at Koehler Paper. "Our storage warehouses reach capacity within four hours due to the huge amount of paper we produce. In light of this, we see the improved power from Itanium 2-based systems as a key component in streamlining IT operations and minimizing downtime. With the introduction of the SAP solution we are assured of increased inventory management and deliveries, ensuring high-performance across the enterprise."

Two HP Integrity rx5670* servers have been deployed at Koehler Paper's German central office in Oberkirch. The platform, powered by two Intel Itanium 2 6M processors, runs a SQL64 database on Microsoft Windows* Server 2003 operating system, which is also the operating system chosen for the mission-critical SAP applications, powered by a further four processors. The new systems integrated effectively with existing Intel architecture systems and initial trials show a 50 percent reduction in completion period of time-consuming tasks.

"The manufacturing industry relies on effectively managing the supply chain and complicated production processes," said Tom Garrison, director of enterprise marketing, Intel EMEA. "For a company such as Koehler Paper it's critically important that the IT infrastructure supporting these processes operates efficiently. Itanium 2 technology delivers this required level of performance and ensures that the company continues to meet or exceed customer requirements."

"HP has worked closely with Intel, Microsoft and SAP, to ensure completed solution stacks for mission critical deployments on Intel Itanium 2-based platforms," said Rudi Schmickl, vice president and general manager, Enterprise Storage and Servers Business Unit, HP EMEA. "HP Integrity servers offer unbeatable performance, as well as a rich choice of scalability, industry-standard manageability and high availability and storage solutions. HP Integrity is clearly the platform of choice for customers looking to migrate to industry standard 64-bit computing."

"Having used Intel-powered servers for a number of years now, we were already convinced of the quality of performance we would experience," commented Fischer. "The upgrade to Itanium 2 technology was the natural choice and is ideal for our organization, in that it will allow our 64-bit central database to run seamlessly in tandem with the 32-bit application server."

About Koehler Paper
The name Koehler stands for high-quality papers in the fields of carbonless papers, thermal papers, fine papers, coloured papers and boards, and decor papers. In 2002 the Koehler Group reached a turnover of Euro 515 millions and sales of 370,000 tons and belongs to one of the last independent German companies in the paper industry. At five locations with headquarters in Oberkirch and mills in Kehl, Ettlingen, Bensheim and Greiz the company produces paper with high-tech machines. More information can be found at www.koehler-ag.de.

About HP
HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing for consumers, enterprises and small and medium businesses. For the last four quarters, HP revenue totalled $71.3 billion. More information about HP is available at www.hp.com.

Intel, Intel logo and Intel Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.

SAP, mySAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world.

* Other names and brands may be claimed as the property of others.