MULTIMEDIA UPDATE: HP and Foxconn Announce Joint Venture Agreement Delivering New Class of Servers for Fast-Growing Service

MULTIMEDIA UPDATE: HP and Foxconn Announce Joint Venture Agreement Delivering 
New Class of Servers for Fast-Growing Service Provider
PALO ALTO, CA and TAIPEI, TAIWAN -- (Marketwired) -- 04/30/14 --  HP
(NYSE: HPQ) and Foxconn today announced a joint venture agreement to
create a new line of cloud-optimized servers specifically targeting
service providers. 
According to IDC, service providers will continue to break new ground
in search of both performance gains and cost reductions as they
expand their cloud architecture implementations. Additionally, the
hosting-as-a-service model will continue to transition away from
traditional models toward cloud-based delivery mechanisms like
infrastructure as a service, spurring hyperscale growth in servers
used for hosting (15 to 20 percent CAGR from 2013 to 2018).(1)  
The changing needs of cloud computing require a new approach to
server design that brings together cloud solutions expertise, quick
customer response and volume manufacturing. Creating innovative
servers and solutions has been a cornerstone of the relationship
between Foxconn and HP for several decades and today's announcement
further strengthens the partnership. Foxconn's ability to deliver
superior value throughout the supply chain, together with HP's
industry compute leadership and industry-recognized service and
support, will deliver new world-class computing platforms by bringing
high-density, easy-to-manage, cost-competitive solutions to market. 
The new product line will specifically address compute requirements
of the world's largest service providers by delivering low total cost
of ownership (TCO), scale, and service and support. The line will
complement HP's existing ProLiant server portfolio, including
"With the relentless demands for compute capabilities, customers and
partners are rapidly moving to a New Style of IT that requires
focused, scalable and high-volume system designs," said Meg Whitman,
president and chief executive officer, HP. "This partnership reflects
business model innovation in our server business, where the
high-volume design and manufacturing expertise of Foxconn, combined
with the compute and service leadership of HP, will enable us to
deliver a game-changing offering in infrastructure economics." 
"Cloud computing is radically changing the entire supply chain for
the server market as customers place new demands on the breadth of
design capability, value-oriented solutions and large-scale and
global manufacturing capabilities," said Terry Gou, founder and
chairman, Foxconn. "In partnership with HP's server leadership, we
are embracing this new opportunity to change the industry, capture
growth in this emerging market, and deliver end-to-end value as we
expand our global leadership in design and manufacturing." 
Pricing and availability 
 The non-equity joint venture, in the form
of a strategic commercial agreement, will take effect on May 1.
Details on pricing and availability will be announced at a later
About Foxconn
 Founded in 1974, Foxconn Technology Group, under the
leadership of founder and Chairman Terry Gou, offers the most
competitive production manufacturing technology in the World. With
forward-looking vision, Foxconn self-created the 3C OEM service
business model eCMMS, incorporating vertical integration of
mechanical, optical and electronic components, as well as the
advantage of one-stop integrated solution. Foxconn Technology Group
has in recent years gradually transformed in the direction of
technology services, providing customers the most comprehensive
solutions. Aside from maximizing value creation for customers,
Foxconn Technology Group is also dedicated in enhancing the concept
of environmental protection in the manufacturing process and aims to
be the trusted partner for customers as well as the model for global
About HP
 HP creates new possibilities for technology to have a
meaningful impact on people, businesses, governments and society.
With the broadest technology portfolio spanning printing, personal
systems, software, services and IT infrastructure, HP delivers
solutions for customers' most complex challenges in every region of
the world. More information about HP is available at 
(1) IDC, "Worldwide Server 2014 Top 10 Predictions: A Time of
Transition," February 2014. 
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
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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, market share or
competitive performance relating to products and services; any
statements regarding 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 need to address the many challenges facing
HP's businesses; the competitive pressures faced by HP's businesses;
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intellectual property assets, including intellectual property
licensed from third parties; risks associated with HP's international
operations; the development and transition of new products and
services and the enhancement of existing products and services to
meet customer needs and respond to emerging technological trends; the
execution and performance of contracts by HP and its suppliers,
customers, clients and partners; the hiring and retention of key
employees; integration and other risks associated with business
combination and investment transactions; the execution, timing and
results of restructuring plans, including estimates and assumptions
related to the cost and the anticipated benefits of implementing
those plans; the resolution of pending investigations, claims and
disputes; and other risks that are described in HP's Annual Report on
Form 10-K for the fiscal year ended October 31, 2013, and that are
otherwise described or updated from time to time in HP's Securities
and Exchange Commission reports. HP assumes no obligation and does
not intend to update these forward-looking statements. 
Copyright 2014 Hewlett-Packard Development Company, L.P. The
information contained herein is subject to change without notice. HP
shall not be liable for technical or editorial errors or omissions
contained herein. 
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Editorial contacts 
Michelle McGlocklin 
+1 650 422 9023 
Wen-Min Chu
+886 2 2268 3466 x3869 
Vanessa Lin
+886 2 2268 3466 x3628 
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