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

	Three months ended
	July 31, 2005			April 30, 2005			July 31, 2004(a)
Net revenue	$	20,759		$	21,570		$	18,889
Costs and expenses:
Cost of sales		15,942			16,429			14,545
Research and development		863			890			877
Selling, general and administrative		2,761			2,933			2,621
Amortization of purchased intangible assets		168			151			146
Restructuring charges		112			4			9
Acquisition-related charges		--			--			6
In-process research and development charge		--			--			28
Total costs and expenses		19,846			20,407			18,232
Earnings from operations		913			1,163			657
Interest and other, net		119			(87	)		20
(Losses) gains on investments		(6	)		3			1
Dispute settlement		7			--			--
Earnings before taxes		1,033			1,079			678
Provision for taxes		960			113			92
Net earnings	$	73		$	966		$	586
Net earnings per share:
Basic	$	0.03		$	0.33		$	0.19
Diluted	$	0.03		$	0.33		$	0.19
Cash dividends declared per share	$	0.16		$	--		$	0.16
Weighted-average shares used to compute net earnings per share:
Basic		2,873			2,886			3,037
Diluted		2,907			2,917			3,057

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

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

	Nine months ended July 31,
	2005			2004(a)
Net revenue	$	63,783		$	58,516
Costs and expenses:
Cost of sales		48,908			44,418
Research and development		2,631			2,690
Selling, general and administrative		8,398			7,864
Amortization of purchased intangible assets		486			438
Restructuring charges		119			101
Acquisition-related charges		--			30
In-process research and development charge		--			37
Total costs and expenses		60,542			55,578
Earnings from operations		3,241			2,938
Interest and other, net		57			33
(Losses) gains on investments		(27	)		5
Dispute settlement		(109	)		(70	)
Earnings before taxes		3,162			2,906
Provision for taxes		1,180			500
Net earnings	$	1,982		$	2,406
Net earnings per share:
Basic	$	0.69		$	0.79
Diluted	$	0.68		$	0.78
Cash dividends declared per share	$	0.32		$	0.32
Weighted-average shares used to compute net earnings per share:
Basic		2,889			3,043
Diluted		2,919			3,077

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

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

	July 31, 2005		October 31, 2004
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	14,445	$	12,663
Short-term investments		99		311
Accounts receivable, net		8,764		10,226
Financing receivables, net		2,578		2,945
Inventory		6,644		7,071
Other current assets		9,172		9,685
Total current assets		41,702		42,901
Property, plant and equipment, net		6,430		6,649
Long-term financing receivables and other assets		7,431		6,657
Goodwill and purchased intangibles, net		19,853		19,931
Total assets	$	75,416	$	76,138
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	9,070	$	9,377
Notes payable and short-term borrowings		2,375		2,511
Employee compensation and benefits		1,977		2,208
Taxes on earnings		2,600		1,709
Deferred revenue		3,615		2,958
Accrued restructuring		197		193
Other accrued liabilities		9,341		9,632
Total current liabilities		29,175		28,588
Long-term debt		3,397		4,623
Other liabilities		5,458		5,363
Stockholders' equity		37,386		37,564
Total liabilities and stockholders' equity	$	75,416	$	76,138

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

	Three months ended
	July 31, 2005			April 30, 2005			July 31, 2004(a)
Net revenue:
Enterprise Storage and Servers	$	3,999		$	4,184		$	3,333
HP Services		3,837			3,984			3,483
Software		249			277			225
Technology Solutions Group		8,085			8,445			7,041
Imaging and Printing Group		5,913			6,390			5,648
Personal Systems Group		6,386			6,369			5,904
Financing		489			544			488
Corporate Investments		143			123			113
Total segments		21,016			21,871			19,194
Eliminations of intersegment net revenue and other		(257	)		(301	)		(305	)
Total HP Consolidated	$	20,759		$	21,570		$	18,889
Earnings from operations:
Enterprise Storage and Servers	$	150		$	184		$	(211	)
HP Services		256			292			314
Software		(40	)		(6	)		(48	)
Technology Solutions Group		366			470			55
Imaging and Printing Group		771			814			836
Personal Systems Group		163			147			23
Financing		58			58			42
Corporate Investments		(37	)		(51	)		(52	)
Total segments		1,321			1,438			904
Corporate and unallocated costs and eliminations		(128	)		(120	)		(58	)
Restructuring charges		(112	)		(4	)		(9	)
Amortization of purchased intangible assets		(168	)		(151	)		(146	)
Acquisition-related charges		--			--			(6	)
In-process research and development charges		--			--			(28	)
Interest and other, net		119			(87	)		20
(Losses) gains on investments		(6	)		3			1
Dispute settlement		7			--			--
Total HP Consolidated Earnings Before Taxes	$	1,033		$	1,079		$	678

^(a) HP has reflected certain fiscal 2005 organizational realignments on a backward-looking basis to provide improved visibility and comparability. In any given quarter, no segment’s operating profit changed more than $8 million as a result of these realignments, with typical movements ranging from $3 million to $5 million.

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

	Nine months ended July 31,
	2005			2004(a)
Net revenue:
Enterprise Storage and Servers	$	12,230		$	10,994
HP Services		11,636			10,167
Software		766			653
Technology Solutions Group		24,632			21,814
Imaging and Printing Group		18,370			17,656
Personal Systems Group		19,628			18,082
Financing		1,588			1,398
Corporate Investments		381			330
Total segments		64,599			59,280
Eliminations of intersegment net revenue and other		(816	)		(764	)
Total HP Consolidated	$	63,783		$	58,516
Earnings from operations:
Enterprise Storage and Servers	$	405		$	61
HP Services		829			907
Software		(86	)		(149	)
Technology Solutions Group		1,148			819
Imaging and Printing Group		2,517			2,755
Personal Systems Group		457			128
Financing		161			106
Corporate Investments		(139	)		(136	)
Total segments		4,144			3,672
Corporate and unallocated costs and eliminations		(298	)		(128	)
Restructuring charges		(119	)		(101	)
Amortization of purchased intangible assets		(486	)		(438	)
Acquisition-related charges		--			(30	)
In-process research and development charges		--			(37	)
Interest and other, net		57			33
(Losses) gains on investments		(27	)		5
Dispute settlement		(109	)		(70	)
Total HP Consolidated Earnings Before Taxes	$	3,162		$	2,906

^(a) HP has reflected certain fiscal 2005 organizational realignments on a backward-looking basis to provide improved visibility and comparability. In any given quarter, no segment’s operating profit changed more than $8 million as a result of these realignments, with typical movements ranging from $3 million to $5 million.