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Hewlett- Packard Tops NZ PC Market

Media release
15 May 2000

HEWLETT-PACKARD TOPS NEW ZEALAND PC MARKET

Hewlett-Packard is now the most preferred brand of personal computer in New Zealand. First quarter research completed this week by international research house IDC, who survey trends in the information technology sector, show Hewlett-Packard has jumped ahead of both local and international vendors, based on units sold.

The survey, covering the entire personal computer category - PC servers, notebooks and desktops, both consumer and commercial - is a first for Hewlett-Packard since the merger of Compaq and Digital in 1998.

Barry Hastings, general manager for Hewlett-Packard in New Zealand, said that the company was delighted with the result.

"The team at Hewlett-Packard has worked hard to achieve this. It indicates that we have been getting the right product to market, on time and at the right price. However, we could not have achieved this result without the support of our reseller network. Our relationship with them has helped us keep close to the market and meet its specific needs," said Mr Hastings.

Hewlett-Packard has grown its PC business 23 per cent since the first quarter of 1999 (1 Jan - 30 March).

Already number one in the home PC's, HP has further grown and consolidated this market segment by 26 percent over the first quarter of last year. The corporate desktop PC market, considered by some to be softening, has advanced 17.5 percent during the same period for HP. Much of this growth is attributed to sales of HP's Brio PC range in the small - medium business segment.

Dinesh Kumar, country manager, IDC New Zealand, says he and other analysts believe that despite a good quarter overall, it is the consumer segment that is driving PC sales volume in New Zealand.

"There is no doubt that the consumer or home market is growing. Internet access is a key driver. We have seen double and triple digit growth in Internet uptake rates. People want to be online at work, and later, at home," says Mr Kumar.

"Some years back, local assemblers had this market to themselves - international vendors were busy chasing the big dollar corporates. Hewlett-Packard was one of the first major vendors to identify the potential of the home market and worked to meet its needs with attractive price points, bundling options and reach," added Mr Kumar.

Preliminary research from IDC shows that HP worldwide now holds the number three spot in PC sales.

"It's good to see HP New Zealand leading the drive to reach number one," says Mr Hastings.

About HP

Hewlett-Packard Company - a leading global provider of computing and imaging solutions and services for business and home - is focused on capitalising on the opportunities of the Internet and the proliferation of electronic services.

HP announced that it will spin-off Agilent Technologies and distribute its shares of Agilent on June 2, 2000 to HP shareholders of record as of May 2, 2000. Agilent consists of HP's test and measurement, semiconductor products, chemical analysis and healthcare solutions businesses.

Excluding Agilent figures, HP has 84,500 employees worldwide and had a total revenue from continuing operations of US$42.2 billion in its 1999 fiscal year. Information about HP, its products and the company's Year 2000 programme can be found on the World Wide Web at www.hp.com.

ends

Barry Hastings Penelope Barr
General Manager General Manager
Hewlett-Packard New Zealand Beyond Public Relations
Tel: +64 9 356 6608 Tel: + 64 9 306 1801
Fax: +64 9 356 6620 Fax: + 64 9 302 7169
Mob: 025 991 397 Mob: 025 835 383
Email: barry_hastings@aus.hp.com Email: peneb@beyondpr.co.nz

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