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Table 5				HP Software						Aug-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			1%			1%			1%
Business Segments (est)
	OpenView		$690	65.1%	16.9%	$590	64.0%	18.0%	$500	64.0%
	OpenCall & Other		$370	34.9%	11.4%	$332	36.0%	18.1%	$281	36.0%
Total Revenue			$1,060	100.0%	15.0%	$922	100.0%	18.1%	$781	100.0%
	3Q05 Actual		$249		10.7%	$225
Costs
Cost of Revenue			$560	53.0%	9.8%	$510	55.0%	41.7%	$360	46.0%
One-time Charges
Total Costs			$560	52.8%	9.8%	$510	55.3%	41.7%	$360	46.1%
Gross Profit/Margin			$500	47.2%	21.4%	$412	44.7%	-2.1%	$421	53.9%
Expenses
Sales, General & Marketing			$370	35.0%	-2.6%	$380	41.0%	40.7%	$270	34.0%
Restructuring Charges (apportioned to Softw)						$1			$9
Research & Development			$180	17.0%	0.0%	$180	20.0%	50.0%	$120	15.0%
Total Expenses			$550	51.9%	-2.0%	$561	60.9%	40.8%	$399	51.0%
Operating Profit (Loss)			($50)	-4.7%	-66.5%	($149)	-16.2%	-765.2%	$22	2.9%
as reported						($145)	-15.7%	-759.1%	$22	2.8%
	3Q05 Actual		($37)	-14.9%	-28.8%	($52)	-23.1%
Other Income (Loss)			($5)	-0.5%	1297.8%	($0)	-0.0%	318.3%	($0)	-0.0%
Income (Loss) Before Tax			($55)	-5.2%	-63.3%	($150)	-16.2%	-769.3%	$22	2.9%
Income Tax (Benefit)				16.7%			16.7%			12.1%
Net Income (Loss)			($55)	-5.2%	-63.3%	($150)	-16.2%	-769.3%	$22	2.9%
Earnings per share (basic)		2.91	(0.02)			(0.05)			0.01
				Pro Forma Valuation
		P/E Ratio	Rev Ratio	Market Cap (est.)			Spin-off	Actual
				P/E	Rev	Combined	Benefit	(8/16/05)
Industry Segment Avg		17.00	6.00	($0.94)	$6.36	$2.71
HP Corporate		19.67	0.83	$96.67	$74.87	$0.84		$68.46
HP Software			3.00		$3.18	$3.18	$2.34
	Source: Annex Research
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