Table 5				HP Software						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			1%			1%			1%
Business Segments (est)
	OpenView		$910	72.0%	30.0%	$700	64.5%	19.7%	$585	62.7%
	Mercury
	OpenCall & Other		$360	28.3%	-5.3%	$380	35.2%	9.2%	$348	37.3%
Total Revenue			$1,270	100.3%	17.6%	$1,080	99.7%	15.8%	$933	100.0%
	4Q06 Actual		$349		14.1%	$306
Costs
Cost of Revenue			$700	55.0%	25.0%	$560	52.0%	9.8%	$510	55.0%
One-time Charges
Total Costs			$700	55.1%	25.0%	$560	51.9%	9.8%	$510	54.7%
Gross Profit/Margin			$570	44.9%	9.6%	$520	48.1%	22.9%	$423	45.3%
Expenses
Sales, General & Marketing			$250	20.0%	-21.9%	$320	30.0%	-15.8%	$380	41.0%
Restr. Charges (apportioned)			$24			$21			$9
Research & Development			$220	17.0%	22.2%	$180	17.0%	-5.3%	$190	20.0%
Total Expenses			$494	38.9%	-5.3%	$521	48.2%	-10.0%	$579	62.1%
Operating Profit (Loss)			$76	6.0%	-7920.8%	($1)	-0.1%	-99.4%	($156)	-16.7%
as reported								-100.0%	($156)	-16.7%
	4Q06 Actual		$3	0.9%	-250.0%	($2)	-0.7%
Other Income (Loss)			($5)	-0.4%	0.0%	($5)	-0.5%	1281.3%	($0)	-0.0%
Income (Loss) Before Tax			$71	5.6%	-1296.0%	($6)	-0.6%	-96.2%	($156)	-16.8%
Income Tax (Benefit)				20.3%			20.3%			16.7%
Net Income (Loss)			$71	5.6%	-1296.0%	($6)	-0.6%	-96.2%	($156)	-16.8%
Earnings per share (basic)		2.74	0.03			(0.00)			(0.06)
				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		18.00	6.00	$1.29	$7.62	$4.45
HP Corp Act Prorated		23.46	1.22	$1.68	$1.55	$1.41		$100.69
HP Software		15.00	5.00	$1.07	$6.35	$3.71	$2.31
	Source: Annex Research