SAN JOSE, Calif.--May 6, 2003-- In conjunction with its Adaptive Enterprise launch today, HP announced a major services agreement with Alcatel worth US$45 million. Under this contract, HP has agreed to audit and redesign Alcatel's installed printing and copying base, replacing printers and copiers throughout Europe with a complete managed print service designed to give Alcatel a more flexible output production environment and increase operational efficiencies. This managed service uses HP's latest technology including multi-function printers offering scanning, faxing, copying and e-mail file transfer functionalities. It is complemented by integrated management tools enabling daily accounting and tracking of print volumes and jobs. Because these tools make Alcatel's usage of the output environment across offices transparent, Alcatel can easily manage costs on a utility pricing model. "This five year contract will contribute to our fixed cost reduction program and we expect to decrease our current printing and copying costs by 30 percent," said Jean-Jacques Lang, director of corporate purchasing, Alcatel. "We wanted to move from a product approach to an 'all-in-one'/all service approach, which HP has rightly understood and been able to meet." "The project leverages the breadth of experience that we have across HP, combining the expertise in solutions and services that our customers want and value," said Steve Culhane, vice president and general manager, HP Imaging and Printing Services. "With Alcatel, we placed their requirements at the center of the solution development to provide them with a system that ensured their business agility."