HP Extends PC Market Share Lead

PALO ALTO, Calif., Jan. 17, 2007

HP strengthened its lead position in the worldwide PC market, according to results from the fourth calendar quarter of 2006 released today by IDC.⁽¹⁾

Results from the analyst firm for the period mark the sixth consecutive quarter that HP has grown faster worldwide than the global market. HP has continued to extend its market share lead over its closest competitor while maintaining revenue and profit growth for its PC business.

“We are particularly pleased with the momentum HP experienced this holiday season. Our portfolio of award-winning consumer and commercial products continues to resonate with buyers as we deliver the best value, reliability and overall customer experience in the industry,” said Todd Bradley, executive vice president, Personal Systems Group, HP. “Our market-leading growth is further evidence of the sound, well-executed business strategy we’ve put in place.”

According to the IDC Worldwide Quarterly PC Tracker for the fourth calendar quarter of 2006, HP extended its worldwide PC shipment unit share lead to 2.2 percentage points over its nearest competitor for a market share of 18.1 percent. HP worldwide PC shipments grew at a rate of 23.8 percent year-over-year, almost three times faster than the growth rate for the overall worldwide PC market for the period.

HP’s U.S. market share also grew significantly faster than the market in the fourth quarter to increase share by 3.4 percentage points to 24 percent, from 20.6 percent for the same period in 2005.

Last week, HP introduced a new category of consumer touch-screen desktop and tablet PCs, a home media server, nine high-definition televisions, as well as other new digital entertainment products and services at the International Consumer Electronics Show in Las Vegas. More information is available at www.hp.com/go/ces2007.

HP also was recently recognized by Advertising Age magazine, which named the company’s advertising campaign, “The Computer is Personal Again,” as its prestigious “Campaign of the Year.”

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended Oct. 31, 2006, HP revenue totaled $91.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

⁽¹⁾ IDC, Worldwide Quarterly PC Tracker, Jan. 17, 2007.

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