PALO ALTO, Calif.--(BUSINESS WIRE)--Dec. 20, 2006--HP (NYSE:HPQ)(Nasdaq:HPQ) today announced that it has signed a definitive agreement to purchase Bitfone Corp., a privately held global software and services company that develops software solutions for mobile device management for the wireless industry.

The acquisition is part of HP's strategy to grow its mobile enterprise business. Acquiring Bitfone will strengthen HP's ability to provide customers with a flexible, modular approach to building a mobile infrastructure by allowing them to choose what they need to meet their business needs.

"Mobile device management is a key component to driving widespread mobile IT deployments," said Dave Rothschild, vice president, Handheld Business Unit, Personal Systems Group, HP. "With the acquisition of Bitfone, HP adds mobile device management to a comprehensive management suite that already includes servers, desktops and notebooks."

The acquisition adds a strategic component to HP's device management software portfolio that is designed to accelerate customers' ability to manage their mobility infrastructure in a reliable, secure and cost-effective way.

Mobile devices are increasingly becoming part of the core IT infrastructure and there is a growing requirement that they need to fit into existing management systems and frameworks. This acquisition provides HP the software tools to help business customers reduce device support costs and smooth device deployments, migration and replacement.

"As a leading technology innovator in the mobile device management and wireless space, Bitfone has built a world-class software platform over the past six years," said Gene Wang, chairman and chief executive officer, Bitfone Corp. "We are proud to be joining HP, where we can continue to innovate and provide software solutions that deliver a more compelling mobile experience."

Financial terms of the transaction were not disclosed. The transaction is subject to certain closing conditions and is expected to be completed by February 2007.

Following completion, Bitfone will be integrated into the Handheld Business Unit of HP's Personal Systems Group.

About Bitfone Corporation

Bitfone Corporation is an innovative global software and services company focused on maximizing the mobile experience for subscribers, enterprises, operators and OEMs. Bitfone's innovative solutions provide the essential mobile foundation enabling valuable real-time access to the mobile device to enhance wireless services and promote widespread adoption. Bitfone is a private company headquartered in Laguna Niguel, Calif., with offices in Canada, China, Korea and the U.K. and approximately 134 employees. For more information, visit www.Bitfone.com.

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 is available at www.hp.com.

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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 expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected benefits and costs of the transaction; management plans relating to the transaction; the expected timing of the completion of the transaction; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits may not materialize as expected; risks related to the timing or ultimate completion of the transaction; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the risks described in HP's Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2006, and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2005. HP assumes no obligation and does not intend to update these forward-looking statements.

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SOURCE: Hewlett-Packard Company