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          HP Introduces Most Powerful Generation of AlphaServer Systems

                Also Unveils Alpha RetainTrust Program Providing
         Customers Immediate Benefits, Long-term Operational Continuity


Palo Alto, Calif. -- Jan. 20, 2003 -- HP (NYSE:HPQ) today introduced its  newest
generation of AlphaServer systems including the most powerful  system  to  date,
the HP AlphaServer GS1280. Based on the new EV7  Alpha  processor,  the  servers
represent the most technically advanced AlphaServer family to date, building  on
a decade of  innovation  and  leadership  in  high-performance  server  systems.
Currently shipping, the new systems provide AlphaServer customers with immediate
benefits  through  a   powerful   combination   of   performance,   scalability,
reliability, manageability and availability features.

HP also announced the Alpha  RetainTrust  program,  underscoring  the  company's
commitment to  providing  long-term  operational  business  continuity  for  its
customers. A key element of the program is its focus on  partners  --  the  vast
majority of HP's AlphaServer independent  software  vendors  have  committed  to
support Tru64 UNIX® and OpenVMS environments for the long term.

"Early response from customers and ISV partners to these new  systems  has  been
enthusiastic,"  said  Scott  Stallard,  vice  president,  HP  Business  Critical
Systems. "As part of our customers' adaptive infrastructure,  we  believe  these
systems are critical in meeting their needs for the next two to four  years.  We
are providing them with the  foundation  for  a  long-term  future  with  HP  by
offering immediate benefit today and helping them prepare to evolve  to  Itanium
processor-based HP servers."

"As a long-time  customer,  we  are  very  excited  about  the  new  AlphaServer
technology and the future we have with HP," said Gary Carter,  director  of  ITS
production for Dollar Rent  A  Car  Systems,  the  industry  leader  in  leisure
rentals. "We put great demands on our AlphaServer systems. They handle  some  10
to 20 million transactions or queries a day on our  Oracle  databases.  The  new
AlphaServer systems will give us the increased performance  and  scalability  we
need to grow our business and better serve  our  customers  as  we  develop  new
applications and deliver new functionality."


New AlphaServer Family

The new AlphaServer family includes the high-end GS1280 enterprise  server,  the
ES80 departmental server and the ES47 workgroup systems. Tru64 UNIX and  OpenVMS
are available on all the  new  systems  and  Linux  is  also  available  on  the
AlphaServer ES47 and ES80 systems. The first AlphaServer models,  including  16-
-processor GS1280 systems,  shipped  earlier  this  month,  with  larger  GS1280
systems ranging up to  64  Alpha  processors  to  follow  later  this  year.  In
addition, AlphaServer systems based on enhanced EV79 Alpha processor  technology
are planned for introduction in 2004.

"We are absolutely impressed by the performance that the new AlphaServer  GS1280
delivers for our Wall Street Systems  banking  application.  Timely,  end-of-day
roll up is a challenge for many financial operations.  The  GS1280  dramatically
accelerates this process and cuts the time required in half," said Karin Spevak,
manager IT, Financial Markets Information Service,  WAVE  Solutions  Information
Technology GmbH., a Bank Austria Creditanstalt company.

The new Alpha EV7 processor is specifically  designed  to  dramatically  improve
application performance. The processor contains all the  building  blocks  of  a
symmetric-multiprocessing (SMP) system, including  system  interconnects,  on  a
single chip to substantially provide  improved  performance  and  single  system
scalability and reliability.

In addition, the systems use an industry-first "switch-less"  mesh  architecture
that connects AlphaServer processors directly to one  another,  delivering  true
linear scalability  to  64  processors  and  beyond,  along  with  significantly
increased  system  reliability  in  conjunction  with  hardware   and   software
enhancements.

Enhanced versions of  Tru64 UNIX V5.1B  and  TruCluster  Server  software,  also
introduced today, have been  shipping  since  November.  The  HP  OpenVMS V7.3-1
operating system, which has been shipping since August, also has  been  enhanced
to take full advantage of the  capabilities  of  the  new  AlphaServer  systems.
Enhancements in both environments improve  application  performance  and  system
scalability, availability and manageability. This has been done while preserving
binary compatibility  to  protect  customer  investments  and  ensure  long-term
operational and business continuity.

"With our joint customers' businesses growing and  getting  more  complex,  they
look forward to greater system performance for their  applications,"  said  Doug
Kennedy, vice president, Platform Alliances, System Platforms  Division,  Oracle
Corporation. "The Oracle and HP alliance has an excellent history  of  providing
solutions that excel at addressing these needs.  The  next-generation  EV7-based
AlphaServer systems from HP will enable us to continue to  meet  our  customers'
most demanding Oracle9i Database and application performance requirements."


Alpha RetainTrust Program

The HP Alpha RetainTrust program takes an unprecedented approach  to  satisfying
customers' needs for long-term capacity  and  growth  by  jointly  planning  and
actively supporting their smooth evolution to new Itanium architecture-based  HP
servers.

The program is designed to strengthen HP's position as Alpha customers'  trusted
IT advisor by continuing to deliver business value moving forward with  HP.  The
program  provides  a  comprehensive  set  of  initiatives,  including  products,
infrastructure and industry ISV  business  solutions,  services,  and  industry-
-leading business practices.

"HP recognizes that customers need operational business  continuity  while  they
take advantage of new technologies," said  Rich  Marcello,  vice  president  and
general manager, HP Alpha Systems Division. "HP  is  setting  the  standard  for
customer satisfaction by delivering on its commitment to  AlphaServer  customers
with the Alpha RetainTrust program, offering a smooth evolution to HP systems of
the future."

Dr. Michael Levine, scientific director, Pittsburgh Supercomputing Center, said,
"These new AlphaServer systems deliver what we require. Not only do they deliver
more  usable  bandwidth  than  anything  else,  the  modularity  of  the  system
architecture in conjunction with its manageability  makes  this  an  outstanding
platform for this decade. We continue to be delighted by the decision we made to
use AlphaServer technology."


Solid Benchmark Performance

The new AlphaServer systems have established industry  leadership  in  both  the
SPEC_rate2000 and the STREAM benchmarks, demonstrating their outstanding "whole"
systems performance and ability to scale linearly.

The SPEC_rate2000 results extend the performance of today's AlphaServer systems,
particularly in technical computing where the benefits of the systems' technical
innovations are well demonstrated with nearly  100  percent  linear  scalability
from one to 16 processors. (1)

In the STREAM benchmark, measuring sustainable  memory  bandwidth  for  computer
systems, the AlphaServer GS1280 demonstrated five to  10  times  greater  memory
bandwidth than comparable systems from IBM and Sun. (2)


Pricing and Availability

The high-end HP AlphaServer GS1280 is now shipping in eight- and 16-  (1.15-GHz)
Alpha processor-based systems  with  estimated  U.S.  list  prices  starting  at
$117,000. GS1280 systems with 32 processors are expected to  be  available  mid-
-year and 64-processor  systems  by  the  end  of  the  year.  AlphaServer  ES80
departmental systems with up to eight 1-Ghz Alpha  processors  are  expected  to
start shipping in March with estimated U.S. list prices starting at $81,000. The
ES47 workgroup systems also are available now and come in  two  and  four  1-Ghz
Alpha processor configurations with  estimated  U.S.  list  prices  starting  at
$39,700. (3)

Further  information  on  the  new   AlphaServer   systems   is   available   at
http://h18003.www1.hp.com/hps/announce/jan_03.html


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  completed  its  merger  transaction  involving  Compaq
Computer Corporation on May 3, 2002. More information about HP is  available  at
http://www.hp.com

================================================================================

(1) SPECcpu2000: Competitive  benchmark  scores  reflect  results  published  on
http://www.spec.org as of Jan. 15, 2003.

(2) STREAM:  Sustainable  Memory  Bandwidth  in   High   Performance   Computers
http://www.cs.virginia.edu/stream/

(3) Actual prices may vary.


UNIX is a registered trademark of the Open Group.

Itanium is a registered trademark of Intel Corp.  or  its  subsidiaries  in  the
United States and other countries.

Oracle is a registered U.S. trademark of Oracle Corp., Redwood City, Calif.

================================================================================

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  July  31,  2002  and  reports  filed
subsequent to HP's annual report on Form 10-K, as amended on January  30,  2002,
for the  fiscal  year  ended  October  31,  2001.  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.
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