News release

SAG GmbH Selects HP for Technology Services Management

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HP today announced it has signed a five-year technology services agreement with SAG GmbH to help the energy-related infrastructure services firm reduce costs and scale technology services based on business needs.

The agreement includes the management of:

• Centralized operation of SAP, email, active directory, archiving, application and file servers, web and terminal servers
• Decentralized operation of the infrastructure in SAG GmbH’s facilities throughout Germany, including databases, application and file servers, imaging and printing environment, and local area networks
• End-user workplace environment, including desktop management, service desk and on-site services

“HP’s services will enable SAG GmbH to reduce costs and increase flexibility,” said Andreas Klenz, chief information officer, SAG GmbH. “This also means we can maintain our focus on the core business.”

SAG GmbH ll use the following modules of the HP USS portfolio, delivered from virtualized systems in redundant HP data centers in Germany: Enterprise Resource Planning (SAP hosting), Messaging, Computing, Data Management, Database, and End-User Workplace Services. For each of these services there is a specific usage-dependent billing model in place. SAG GmbH can scale volumes and costs up and down within short timeframes.

“To enable SAG to adapt more quickly to changing business requirements, HP will deliver to them comprehensive, secure and cost-effective operation services billed according to usage,” said Hans-Ulrich Holdenried, chairman of the Management Board, HP Germany.

About SAG GmbH

Since its founding 90 years ago, SAG has been significantly involved in the construction and extension of electrical transmission and distribution networks in Germany and internationally. Today SAG is one of the leading manufacturer-independent service and system suppliers for electricity, gas, water and telecommunication networks as well as for systems all about the generation, provision and application of energy and media.

SAG is present throughout Germany with over 80 locations. About 7,900 employees produce yearly revenue of around one billion Euros. Apart from Germany, the core market is Europe.

About HP

HP, the world’s largest technology company, simplifies the technology experience for consumers and businesses with a portfolio that spans printing, personal computing, software, services and IT infrastructure. More information about HP (NYSE: HPQ) is available at http://www.hp.com.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected results; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2008 and HP’s other filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2007. HP assumes no obligation and does not intend to update these forward-looking statements.

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