Table 1				HP Services						Nov-06
				(Fiscal year end: Oct 31)
			2006e	% of	Change	2005	% of	Change	2004	% of
			($ Mill)	Rev	06/05	($ Mill)	Rev	05/04	($ Mill)	Rev
Revenue			18%			18%			17%
Business Segments (est)
	Outsourcing		$3,360	21.0%	10.9%	$3,030	19.5%	23.9%	$2,446	17.7%
	Integration		$3,040	19.0%	7.0%	$2,840	18.3%	12.9%	$2,515	18.2%
	Maintenance		$9,610	60.0%	-0.6%	$9,670	62.2%	8.8%	$8,887	64.2%
Total Revenue (w. Maint.)			$16,010	100.0%	3.0%	$15,540	100.0%	12.2%	$13,848	100.0%
(w/o Maint.)			$6,400		9.0%	$5,870		18.3%	$4,961	ERR
	4Q06 Actual		$4,080		4.6%	$3,900
Costs
Cost of Revenue			$12,490	78.0%	3.3%	$12,090	77.8%	13.2%	$10,680	77.1%
One-time Charges						$138
Total Costs			$12,490	78.0%	2.1%	$12,228	78.7%	14.5%	$10,680	77.1%
Gross Profit/Margin			$3,520	22.0%	6.3%	$3,312	21.3%	4.5%	$3,168	22.9%
Expenses
Sales, General & Marketing			$1,920	12.0%	3.2%	$1,860	12.0%	-1.2%	$1,883	13.6%
Restr. Charges (apportioned)						$302			$20
Research & Development
Total Expenses			$1,920	12.0%	-11.2%	$2,162	13.9%	13.6%	$1,903	13.7%
Operating Profit (Loss)			$1,600	10.0%	39.1%	$1,150	7.4%	-9.1%	$1,265	9.1%
as reported w/o charges								-100.0%	$1,263	9.1%
	4Q06 Actual		$345	8.5%	18.2%	$292	7.5%
Other Income (Loss)			($5)	-0.0%	0.0%	($5)	-0.0%	-6.9%	($5)	-0.0%
Income (Loss) Before Tax			$1,595	10.0%	39.3%	$1,145	7.4%	-9.1%	$1,260	9.1%
Income Tax (Benefit)			$324	20.3%	39.3%	$233	20.3%	10.9%	$210	16.7%
Net Income (Loss)			$1,271	7.9%	39.3%	$912	5.9%	-13.1%	$1,050	7.6%
# shares (basic)		2.74	0.46			0.33			0.38
				Pro Forma Valuation
		P/E Ratio	Rev Ratio	Market Cap (est.)			Spin-off	Actual
				P/E	Rev	Combined	Benefit	(11/16/06)
Industry Segment Avg		17.00	0.87	$21.60	$13.93	$17.77
HP Corp Act Prorated		23.46	1.22	$29.81	$19.53	$24.67		$100.69
HP Services		20.00	0.90	$25.42	$14.41	$19.91	($4.76)
	Source: Annex Research