1. © 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Foxconn ESS Dec Interlock Partner Management Initiatives Jeff Mason December 11, 2008 Houston, TX

2. 2Hon Hai Dec 2008 Interlock PMI Topics – Foxconn Dec Interlock Capacity – CZ, Hou, & China – Mason EOL Update – DL760 & Ruger – Mason Modified LOHP – Mason Business Continuity Plan – Mason

3. Foxconn Pardubice, Houston, & China Operations Capacity Update

4. 4Hon Hai Dec 2008 Interlock Capacity Models - General Updates We are premiering a 3rd capacity model for the Foxconn China Infrastructure products. Due to delays in obtaining permits in CCA1, the move of the Houston based design team has been impacted. Relevance of the delay to capacity is the installation of the 100 additional run in racks. Dec LCVF data included for BL490c G6 & BL280c G6

5. 5Hon Hai Dec 2008 Interlock CZ Facility Expansion Plan Update HP FYQ4 − Overspill to box process (3k readiness for outbound) – project running − Factory capacity 83k monthly (60k Servers + 3k Blades + 3k C-class) with 3 shifts/20 days per month ON HOLD DUE TO REDUCED BLADE DEMAND −Phase II for increased Blade capacity- from 150 per day to 1,000 per day (DEC 2008) −Believe that currently communicated BL260/BL490 (March ’09) volumes can be accommodated with current resources. Possibilities For Next Expansion −Current lockers area will be used when 2 nd blade program is release to Foxconn CZ. Currently scheduled for March 2009 −Current Outbound area (available in Jan 2009) – potential mfg expansion 600m2 Excess capacity positioned to enable Foxconn CZ to take on additional volumes/programs. Link to Definitions and Parameters

6. 6Hon Hai Dec 2008 Interlock

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9. 9 BL280 & BL490 G6 LCVF incorporated.

10. 10Hon Hai Dec 2008 Interlock Houston Facility Update −Foxconn RD team moving out of 8802 Fallbrook site. Move has been delayed, we are targeting January −One hundred additional run-in bays to be in place 2-4 weeks after RD relocation. (Now expected to be on- line in February.) −LCVF data for BL490 and BL280 will be incorporated in Jan capacity model. Link to Definitions and Parameters

11. 11Hon Hai Dec 2008 Interlock

12. 12Hon Hai Dec 2008 Interlock

13. 13Hon Hai Dec 2008 Interlock Large potential change in 3Q and 4Q BL460 G1 demand- Intel launch dependant. BL260 & BL490 not yet in model.

14. 14Hon Hai Dec 2008 Interlock

15. 15Hon Hai Dec 2008 Interlock Foxconn China Infrastructure Dec is premier of the Foxconn China infrastructure model – C7000, C3000, and Freighter families of products. Tanker – need to confirm with Foxconn China that the Freighter model parameters take into account any differences that may be required by Tanker. Will be in place for Feb capacity model. Link to Definitions and Parameters

16. 16Hon Hai Dec 2008 Interlock

17. 17Hon Hai Dec 2008 Interlock

18. 18Hon Hai Dec 2008 Interlock

19. EOL Update

20. 20Hon Hai Dec 2008 Interlock EOL Update – DL760 and Ruger Original EOL packages were submitted by CM in April. Unfortunately the file’s internal routing deviated from the normal process. New packages were prepared and submitted. Packaged has been sent to Mary G for PO entry.

21. CZ MLOHP Update

22. 22Hon Hai Dec 2008 Interlock Modified LOHP CZ Proposal Modified LOHP meeting was held with Foxconn Nov 18. File with proposed process and first modified LOHP adjustment entailed sent No response or update from Foxconn since.

23. Business Continuity Plan

24. 24Hon Hai Dec 2008 Interlock Business Continuity Plan Meeting set for Wed Jan 7 to review Foxconn Business Continuity Plan Proposal. Houston plan will be presented. Other Foxconn facility BCPs to follow.

25. Technology for better business outcomes

26. Backup

27. © 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Backup Capacity Models

28. 28Hon Hai Dec 2008 Interlock Capacity Model – Definitions “Working Efficiency” – This is the engineering, on paper, or 100% capacity calculation. This is in most all circumstances, not achievable or sustainable. This based on normal operating parameters (eg.7.3 hours per shift x 1 shift per day x 20 days per month). “Effective Efficiency” –This will be based on the standard operating parameters and will be determined by de-rating the Working Efficiency. The percent of de-rating (accounts for part shortages, labor gaps, line changes, etc.) is based on historical throughput data. “Burst Effective Efficiency” – As needed, ODM will gain additional capacity by assuming the same de-rating, but will include a move to more hours per shift, shifts per day, or days per month as needed.

29. 29Hon Hai Dec 2008 Interlock Foxconn Czech Republic Capacity Model Model was created using ISS December Week 1 DSHIP and SWD NAS/NearLine November demand data. 12 Month look forward Based on the product mix transition, capacity resources within the model have been allocated 90/10 between DL/ML respectively. This change was incorporated starting in the Aug model. Foxconn CZ capacity model is based on achieving 88% of the “Working” or engineering capacity. BL495c G5 Capacity Model is based on PRELIMINARY throughput assumptions. CZ Standard or “Effective” Operating Parameters: −7.3 hours per shift −3 shifts per day −20 days per month CZ “Burst” Operating Parameters: −7.3 hours per shift −3 shifts per day −26 days per month

30. 30Hon Hai Dec 2008 Interlock Foxconn Houston Capacity Model Model was created using ISS December Week 1 DSHIP and SWD NAS/NearLine November demand data 12 Month look forward One line dedicated to DL38x. Second line is “DL MultiServer/ML” line. Foxconn Houston capacity model is based on achieving 80% of the “Working” or engineering capacity. Blade model assume a 90/10 operations resource split between BL460/BL495 Houston Standard or “Effective” Operating Parameters: −8.5 hours per shift −1 shifts per day - 2 nd shift added to DL38x and Blade line −21 days per month Houston “Burst” Operating Parameters: −10 hours per shift −1 shifts per day −28 days per month

31. 31Hon Hai Dec 2008 Interlock Foxconn China Infrastructure Capacity Model Model was created using ISS December Week 1 DSHIP demand data 12 Month look forward 3 Lines – C3000, C7000, Freighter Foxconn China capacity model is based on achieving 87% of the “Working” or engineering capacity. China Standard or “Effective” Operating Parameters: −8 hours per shift −1 shifts per day −20 days per month China “Burst” Operating Parameters: −8 hours per shift −2 shifts per day −20 days per month Return to Capacity Presentation