HP and SuSE Linux Expand Global Alliance

HP and SuSE Linux Expand Global Alliance

Customers Now Have Price, Performance Advantages of SuSE Linux with Single
Contact Support from HP

PALO ALTO, CALIF., june 26, 2003 - HP (NYSE:HPQ) and SuSE Linux today
announced that HP will resell and support SuSE Linux Enterprise Server 8,
powered by UnitedLinux, on industry-standard HP ProLiant servers and HP's
Itanium®-based servers. This relationship provides customers a single point
of purchase, support and maintenance for SuSE Linux Enterprise Server 8 and
makes SuSE Linux a preferred vendor for HP.

"This partnership between SuSE Linux and HP will advance the cause of Linux
servers running enterprise-class workloads," said Jean S. Bozman, research
vice president, worldwide server group, IDC. "SuSE is the provider of one of
the world's top Linux distributions, and HP is the server vendor that shipped
the largest number of Linux server units worldwide in 2002.(1) This agreement
between the two companies, which have been working together for more than
five years, addresses customers' business requirements to have a single point
of responsibility for enterprise-level Linux server support. It will help
both of the companies to grow Linux server sales in Europe and worldwide."

HP will resell, market and support the new SuSE Linux Enterprise Server 8 on
industry-standard HP ProLiant servers. Preloaded solutions are available as
an option on HP ProLiant servers. Customers utilizing SuSE Linux Enterprise
Server on HP servers will now also receive support from the HP Services and
support organizations backed by SuSE engineering and product maintenance
teams. In addition, HP and SuSE will collaborate on extending this innovative
services offering to Itanium 2-based HP server customers.

"As the world leader in Linux-based solutions, HP offers customers the
freedom to choose and manage the operating platform, hardware and software
that best fits the needs of their business," said Martin Fink, vice president
of Linux, HP Enterprise Servers and Storage . "HP is building upon a
five-year relationship with SuSE, one of the world's most widely used Linux
distributions, to offer customers industry-standard platforms that increase
their return on IT."

SuSE Linux partners with top software and hardware vendors, like HP, to bring
end-to-end Linux solutions to the enterprise.

"SuSE Linux harnesses the innovations, return on investment and quality of
the open source community to bring enterprise-ready products and services to
businesses worldwide," said Richard Seibt, chief executive officer, SuSE
Linux. "This agreement with HP more closely aligns hardware and software -
giving customers more streamlined purchasing, support and services."

More information on HP's Linux offerings is available at
http://www.hp.com/linux. 

About SuSE Linux 

SuSE Linux is one of the world's leading providers of products and services,
based on the Linux operating system. In addition to the operating system and
application software for private customers, SuSE offers software solutions
and complete systems for the use of Linux in the enterprise. SuSE supports
enterprise customers with a comprehensive range of qualified consulting,
training, and support services. Hosting the world's largest development team
for Open Source solutions, SuSE Linux shares its unique project and support
information online, in the largest existing Linux knowledge database. Further
information on SuSE Linux can be found at http://www.suse.de/en/

About HP 

HP delivers vital technology for business and life. The company's solutions
span IT infrastructure, personal computing and access devices, global
services and imaging and printing for consumers, enterprises and small and
medium business. For the last four quarters, HP revenue totaled $70.4
billion. More information about HP is available at http://www.hp.com.

###

(1) IDC Worldwide Quarterly Server Tracker, Q4CY2002, February 2003. IDC uses
price ranges to differentiate servers into entry-level (up to $100,000),
midrange ($100,000-$1 million) and high-end ($1 million and above).

SuSE is a registered trademark of SuSE Linux. Linux is a registered trademark
of Linus Torvalds. Intel and Itanium are registered trademarks of Intel Corp.
or its subsidiaries in the United States and other countries.

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
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 services and t
 heir feature sets; the challenge of managing asset levels, including
inventory; 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 quarterly report on Form 10-Q for the quarter ended January 31, 2003,
and subsequently filed reports. 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.

Editorial contact:

Elizabeth Phillips, HP
+1 650 447 4034 
elizabeth_phillips2@hp.com

Martina Krahmer, SuSE Linux
+49-(0)911-740 53 507
martina.krahmer@suse.de