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Table 4			HP Personal Systems							May-05
				(Fiscal year end: Oct 31)
			2005e	% of	Change	2004	% of	Change	2003	% of
			($ Mill)	Rev	05/04	($ Mill)	Rev	04/03	($ Mill)	Rev
_	_	_	_	_	_	_	_	_	_	_
Revenue			31%			31%			29%
Business Segments (est)
	Desktop		$14,200	54.0%	3.0%	$13,790	56.0%	14.1%	$12,090	57.0%
	Notebook		$9,210	35.0%	11.6%	$8,250	33.5%	76.7%	$4,670	22.0%
	Other		$2,890	11.0%	11.9%	$2,582	10.5%	-42.0%	$4,450	21.0%
Total Revenue			$26,300	100.0%	6.8%	$24,622	100.0%	16.1%	$21,210	100.0%
	2Q05 Actual		$6,369		6.3%	$5,991
Costs
Cost of Revenue			$22,880	87.0%	5.6%	$21,670	88.0%	16.4%	$18,620	87.8%
One-time Charges
Total Costs			$22,880	87.0%	5.6%	$21,670	88.0%	16.4%	$18,620	87.8%
Gross Profit/Margin			$3,420	13.0%	15.9%	$2,952	12.0%	14.0%	$2,590	12.2%
Expenses
Sales, General & Marketing			$2,630	10.0%	6.9%	$2,460	10.0%	16.0%	$2,120	10.0%
Restructuring Charges (apportioned to PC)						$35			$232
Research & Development			$260	1.0%	4.0%	$250	1.0%	19.0%	$210	1.0%
Total Expenses			$2,890	11.0%	5.3%	$2,745	11.1%	7.1%	$2,562	12.1%
Operating Profit (Loss)			$530	2.0%	156.2%	$207	0.8%	645.3%	$28	0.1%
as reported						$210	0.9%	854.5%	$22	0.1%
	2Q05 Actual		$147	2.3%	234.1%	$44	0.7%
Other Income (Loss)			($5)	-0.0%	-47.7%	($10)	-0.0%	311.3%	($2)	-0.0%
Income (Loss) Before Tax			$525	2.0%	166.1%	$197	0.8%	675.8%	$25	0.1%
Income Tax (Benefit)			$87	16.7%	166.1%	$33	16.7%	969.5%	$3	12.1%
Net Income (Loss)			$438	1.7%	166.1%	$164	0.7%	635.5%	$22	0.1%
Earnings per share (basic)		2.91	0.15			0.06			0.01
				Pro Forma Valuation
		P/E Ratio	Rev Ratio	Market Cap (est.)			Spin-off	Actual
			(IBM/Lenovo)	P/E	Rev	Combined	Benefit	(4/4/05)
Industry Segment Avg		12.00	0.18	$5.25	$4.60	$4.93
HP Corporate		12.96	0.69	$63.69	$62.24	$19.40		$63.44
HP PCs		10.00	0.20	$4.38	$5.26	$4.82	($14.58)
	Source: Annex Research
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