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Table 3		HP Enterprise Servers & Storage								Nov-05
				(Fiscal year end: Oct 31)
			2005	% of	Change	2004	% of	Change	2003	% of
			($ Mill)	Rev	05/04	($ Mill)	Rev	04/03	($ Mill)	Rev
_	_	_	_	_	_	_	_	_	_	_
Revenue			19%			19%			20%
Business Segments (est)
	Industry Standard Servers		$10,040	60.1%	23.7%	$8,118	55.0%	-2.4%	$8,320	57.0%
	Bus Critical Serv		$4,020	24.1%	6.9%	$3,759	21.0%	17.1%	$3,210	22.0%
	Network Storage		$2,640	15.8%	-17.4%	$3,197	21.2%	4.4%	$3,063	21.0%
Total Revenue			$16,700	100.0%	10.8%	$15,074	97.2%	3.3%	$14,593	100.0%
	4Q05 Actual		$4,471		9.6%	$4,080
Costs
Cost of Revenue			$10,050	60.2%	2.6%	$9,800	65.0%	3.3%	$9,490	65.0%
One-time Charges
Total Costs			$10,050	60.2%	2.6%	$9,800	65.0%	3.3%	$9,490	65.0%
Gross Profit/Margin			$6,650	39.8%	26.1%	$5,274	35.0%	3.4%	$5,103	35.0%
Expenses
Sales, General & Marketing			$3,846	23.0%	7.6%	$3,573	23.7%	7.3%	$3,330	22.8%
Restr. Charges (apportioned)			$324			$30			$160
Research & Development			$1,670	10.0%	10.6%	$1,510	10.0%	3.4%	$1,460	10.0%
Total Expenses			$5,840	35.0%	14.2%	$5,113	33.9%	3.3%	$4,950	33.9%
Operating Profit (Loss)			$810	4.8%	402.9%	$161	1.1%	5.1%	$153	1.0%
as reported						$161	1.1%	13.4%	$142	1.0%
	4Q05 Actual		$405	9.1%	305.0%	$100	2.5%
Other Income (Loss)			($5)	-0.0%	-14.5%	($6)	-0.0%	266.0%	($2)	-0.0%
Income (Loss) Before Tax			$805	4.8%	418.6%	$155	1.0%	2.3%	$152	1.0%
Income Tax (Benefit)			$164	20.3%	532.8%	$26	16.7%	41.1%	$18	12.1%
Net Income (Loss)			$641	3.8%	395.8%	$129	0.9%	-3.0%	$133	0.9%
Earnings per share (basic)		2.88	0.22			0.04			0.05
				Pro Forma Valuation
		P/E Ratio	Rev Ratio	Market Cap (est.)			Spin-off	Actual
				P/E	Rev	Combined	Benefit	(11/17/05)
Industry Segment Avg		20.00	2.70	$12.82	$45.09	$28.96
HP Corp Act Prorated		27.72	0.95	$17.77	$15.87	$16.00		$83.08
HP ESS		10.00	1.60	$6.41	$26.72	$16.57	$0.56
	Source: Annex Research
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