HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENT OF EARNINGS
(Unaudited)
(In millions except per share amounts)

	Three months ended
	January 31, 2004		October 31, 2003(a)			January 31, 2003(a)
Net revenue	$	19,514	$	19,853		$	17,877
Costs and expenses:
Cost of sales		14,564		14,805			13,141
Research and development		875		907			908
Selling, general and administrative		2,719		2,706			2,725
Amortization of purchased intangible assets		144		143			138
Restructuring charges		54		190			--
Acquisition-related charges		15		28			86
In-process research and development		--		1			--
Total costs and expenses		18,371		18,780			16,998
Earnings from operations		1,143		1,073			879
Interest and other, net		11		(20	)		51
Net investment gains (losses) and other, net		9		12			(5	)
Earnings before taxes		1,163		1,065			925
Provision for taxes		227		203			204
Net earnings	$	936	$	862		$	721
Net earnings per share:
Basic	$	0.31	$	0.28		$	0.24
Diluted	$	0.30	$	0.28		$	0.24
Cash dividends declared per share	$	0.16	$	--		$	0.16
Weighted-average shares used to compute net
earnings per share:
Basic		3,050		3,046			3,048
Diluted		3,088		3,075			3,065

^(a)     Certain reclassifications have been made to prior period amounts in order to conform to the current year presentation.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
(In millions)

	January 31, 2004		October 31, 2003 (a)
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	13,576	$	14,188
Short-term investments		364		403
Accounts receivable, net		8,321		8,921
Financing receivables, net		3,094		3,026
Inventory		6,487		6,065
Other current assets		7,701		8,351
Total current assets		39,543		40,954
Property, plant and equipment, net		6,339		6,482
Long-term financing receivables and other
assets		8,112		8,030
Goodwill and purchased intangibles, net		19,314		19,250
Total assets	$	73,308	$	74,716
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings	$	837	$	1,080
Accounts payable		6,970		9,285
Employee compensation and benefits		1,656		1,755
Taxes on earnings		1,561		1,599
Deferred revenues		3,956		3,665
Accrued restructuring		495		709
Other accrued liabilities		9,235		8,545
Total current liabilities		24,710		26,638
Long-term debt		6,544		6,494
Other liabilities		3,786		3,838
Stockholders' equity		38,268		37,746
Total liabilities and stockholders' equity	$	73,308	$	74,716

^(a)     Certain reclassifications have been made to prior year balances in order to conform to the current year presentation.

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)

Net revenue (which includes intersegment revenue) and earnings from operations for each segment are provided in the tables below, which includes a reconciliation to our consolidated condensed statement of earnings:

	Three months ended
	January 31, 2004			October 31, 2003(a)			January 31, 2003(a)
Net revenue:
Enterprise Servers and Storage	$	3,717		$	3,846		$	3,552
Software		200			221			183
Enterprise Systems Group		3,917			4,067			3,735
Imaging and Printing Group		5,910			6,233			5,598
Personal Systems Group		6,187			5,986			5,142
HP Services		3,161			3,245			2,972
Financing		441			461			517
Corporate Investments		102			96			76
Total segments		19,718			20,088			18,040
Eliminations of intersegment
net revenue and other		(204	)		(235	)		(163	)
Total HP Consolidated	$	19,514		$	19,853		$	17,877
Earnings from operations:
Enterprise Storage and Servers	$	154		$	131		$	(27	)
Software		(46	)		(22	)		(55	)
Enterprise Systems Group		108			109			(82	)
Imaging and Printing Group		968			1,015			911
Personal Systems Group		62			22			33
HP Services		258			391			339
Financing		29			26			14
Corporate Investments		(35	)		(33	)		(47	)
Total segments		1,390			1,530			1,168
Corporate and unallocated costs,
and eliminations		(34	)		(95	)		(65	)
Restructuring charges		(54	)		(190	)		--
Amortization of purchased intangible assets		(144	)		(143	)		(138	)
Acquisition-related charges		(15	)		(28	)		(86	)
In-process research and development charges		--			(1	)		--
Interest and other, net		11			(20	)		51
Net Investment gains (losses) and other, net		9			12			(5	)
Total HP Consolidated Earnings Before Taxes	$	1,163		$	1,065		$	925

(a) Certain reclassifications have been made to prior year amounts in order to conform to the current year presentation.

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