Released on: September 1, 2008, 5:55 am

Press Release Author: Jills Whalen

Industry: Computers

Press Release Summary: HP closes EDS acquisition – the deal is the second largest
ever in the technology industry. EDS expands HP’s scale in vertical industries and
enhances the global reach of HP\'s oursourcing service delivery capabilities.

Press Release Body: With the necessary regulatory approvals in place and a thumbs-up
from shareholders, HP today announced it has completed its acquisition of EDS, a $22
billion-plus global technology services, outsourcing and consulting leader that
pioneered the IT outsourcing industry.

“EDS will combine powerfully within HP’s overall strategy and business mix,” said
Mark Hurd, chairman and CEO of HP. “Together, HP and EDS deliver one of the most
complete and competitive portfolios in the industry.”

“Our combination makes too much sense not to make it a reality,” said Ron
Rittenmeyer, chairman, president and CEO of EDS. “At EDS, we gain access to the
scale and resources of an industry giant, providing outstanding new opportunities
for our clients, while at the same time delivering excellent value to our
shareholders. HP gains from our best-in-class capabilities, end-to-end global
delivery network and track record of providing great service.”

The deal, priced at $25 a share for a total value of $13.9 billion, is the second
largest ever in the technology industry behind HP’s 2002 acquisition of Compaq. The
two transactions bookend a growth strategy that has taken HP well beyond $100
billion in annual revenues to more than $125 billion in collective 2007 revenue,
with the addition of EDS.

Phase One of HP’s strategy has been about building the world’s best hardware
business. Phase Two has focused on developing a layer of leading software
applications, with a particular emphasis on management automation, to optimize the
performance of HP’s hardware and differentiate it in the marketplace. Phase Three
has addressed the services side with a goal of bringing the business into the
forefront of global providers.

Along the way, HP has successfully acquired 26 companies over the past three and a
half years, developing substantial experience in integrating new businesses.
Following news on May 13 of HP’s intention to acquire EDS, more than three months of
intensive integration planning has taken place, putting the company in a strong
position to better serve our clients quickly.

“Clients look to HP to help them manage and transform their technology environments
to deliver better business outcomes,” said Ann Livermore, executive vice president,
Technology Solutions Group (TSG), HP. “Expanding our service capabilities and
capacity makes our value proposition even stronger.”

She emphasized that both HP and EDS have been built on a commitment to providing
clients with unparalleled quality, service and practical innovation. Additionally,
there is very little overlap among their major customers.

EDS expands HP’s scale in vertical industries such as government and healthcare and
enhances the global reach of HP’s outsourcing service delivery capabilities,
particularly in Europe and the Americas. The combination ensures a more competitive
marketplace in the technology industry by providing customers with a globally scaled
choice for managing their most critical business technology needs.

Under Rittenmeyer, the new EDS business group will maintain its Plano, Texas,
headquarters and lead the company’s outsourcing and applications services
businesses. TSG will be focused on servers, storage, software and technical
services, as well as certain consulting and integration services. Customers and
employees will benefit from more tightly focused businesses that have clear missions
and strategies that will help deliver stronger growth for shareholders and an
unparalleled platform on which to build for the future.

In the words of Mark Hurd, “Together, we have an opportunity to create the greatest
technology company on the planet.”

Web Site: http://h41131.www4.hp.com/uk/en/rss-feeds.html

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