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Table 1				HP Services						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			18%			17%			17%
Business Segments (est)
	Outsourcing		$3,030	19.5%	23.9%	$2,446	17.7%	32.9%	$1,840	15.0%
	Integration		$2,840	18.3%	12.9%	$2,515	18.2%	-4.4%	$2,630	21.4%
	Maintenance		$9,670	62.2%	8.8%	$8,887	64.2%	13.4%	$7,835	63.7%
Total Revenue (w. Maint.)			$15,540	100.0%	12.2%	$13,848	100.0%	12.5%	$12,305	100.0%
(w/o Maint.)			$5,870		18.3%	$4,961	11.0%	11.0%	$4,470
	4Q05 Actual		$3,900		5.9%	$3,681
Costs
Cost of Revenue			$12,090	77.8%	13.2%	$10,680	77.1%	16.3%	$9,180	74.6%
One-time Charges			$138
Total Costs			$12,228	78.7%	14.5%	$10,680	77.1%	16.3%	$9,180	74.6%
Gross Profit/Margin			$3,312	21.3%	4.5%	$3,168	22.9%	1.4%	$3,125	25.4%
Expenses
Sales, General & Marketing			$1,860	12.0%	-1.2%	$1,883	13.6%	17.7%	$1,600	13.0%
Restr. Charges (apportioned)			$302			$20			$135
Research & Development
Total Expenses			$2,162	13.9%	13.6%	$1,903	13.7%	9.7%	$1,735	14.1%
Operating Profit (Loss)			$1,150	7.4%	-9.1%	$1,265	9.1%	-9.0%	$1,390	11.3%
as reported w/o charges						$1,263	9.1%	-9.2%	$1,391	11.3%
	4Q05 Actual		$322	8.3%	-14.1%	$375	10.2%
Other Income (Loss)			($5)	-0.0%	-6.9%	($5)	-0.0%	298.7%	($1)	-0.0%
Income (Loss) Before Tax			$1,145	7.4%	-9.1%	$1,260	9.1%	-9.3%	$1,389	11.3%
Income Tax (Benefit)			$233	20.3%	10.9%	$210	16.7%	25.0%	$168	12.1%
Net Income (Loss)			$912	5.9%	-13.1%	$1,050	7.6%	-14.0%	$1,221	9.9%
Earnings per share (basic)		2.88	0.32			0.36			0.42
				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		17.80	0.87	$16.24	$13.52	$14.88
HP Corp Act Prorated		27.72	0.95	$25.29	$14.76	$20.03		$83.08
HP Services		18.00	0.88	$16.42	$13.68	$15.05	($4.98)
	Source: Annex Research
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