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

	Three months ended
	October 31, 2005			July 31, 2005			October 31, 2004(a)
Net revenue	$	22,913		$	20,759		$	21,389
Costs and expenses:
Cost of sales		17,532			15,942			16,393
Research and development		859			863			873
Selling, general and administrative		2,786			2,761			2,632
Amortization of purchased intangible assets		136			168			165
Pension curtailment gain		(199	)		--			--
Restructuring charges		1,565			112			13
Acquisition-related charges		--			--			24
In-process research and development charges		2			--			--
Total costs and expenses		22,681			19,846			20,100
Earnings from operations		232			913			1,289
Interest and other, net		132			119			2
Gains (losses) on investments		14			(6	)		(1	)
Dispute settlement		3			7			--
Earnings before taxes		381			1,033			1,290
(Benefit from) provision for taxes		(35	)		960			199
Net earnings	$	416		$	73		$	1,091
Net earnings per share:
Basic	$	0.15		$	0.03		$	0.37
Diluted	$	0.14		$	0.03		$	0.37
Cash dividends declared per share	$	--		$	0.16		$	--
Weighted-average shares used to compute net earnings per share:
Basic		2,850			2,873			2,968
Diluted		2,908			2,907			2,991

(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)

	Twelve months ended October 31,
	2005			2004(a)
Net revenue	$	86,696		$	79,905
Costs and expenses:
Cost of sales		66,440			60,811
Research and development		3,490			3,563
Selling, general and administrative		11,184			10,496
Amortization of purchased intangible assets		622			603
Pension curtailment gain		(199	)		--
Restructuring charges		1,684			114
Acquisition-related charges		--			54
In-process research and development charges		2			37
Total costs and expenses		83,223			75,678
Earnings from operations		3,473			4,227
Interest and other, net		189			35
(Losses) gains on investments		(13	)		4
Dispute settlement		(106	)		(70	)
Earnings before taxes		3,543			4,196
Provision for taxes		1,145			699
Net earnings	$	2,398		$	3,497
Net earnings per share:
Basic	$	0.83		$	1.16
Diluted	$	0.82		$	1.15
Cash dividends declared per share	$	0.32		$	0.32
Weighted-average shares used to compute net earnings per share:
Basic		2,879			3,024
Diluted		2,909			3,055

(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)

	October 31, 2005		October 31, 2004
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	13,911	$	12,663
Short-term investments		18		311
Accounts receivable, net		9,903		10,226
Financing receivables, net		2,551		2,945
Inventory		6,877		7,071
Other current assets		10,074		9,685
Total current assets		43,334		42,901
Property, plant and equipment, net		6,451		6,649
Long-term financing receivables and other assets		7,502		6,657
Goodwill and purchased intangibles, net		20,030		19,931
Total assets	$	77,317	$	76,138
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	10,223	$	9,377
Notes payable and short-term borrowings		1,831		2,511
Employee compensation and benefits		2,343		2,208
Taxes on earnings		2,367		1,709
Deferred revenue		3,815		2,958
Accrued restructuring		1,119		193
Other accrued liabilities		9,762		9,632
Total current liabilities		31,460		28,588
Long-term debt		3,392		4,623
Other liabilities		5,289		5,363
Stockholders' equity		37,176		37,564
Total liabilities and stockholders' equity	$	77,317	$	76,138

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

	Three months ended
	October 31, 2005			July 31, 2005			October 31, 2004(a)
Net revenue:
Enterprise Storage and Servers	$	4,471		$	3,999		$	4,080
HP Services		3,900			3,837			3,681
Software		311			249			280
Technology Solutions Group		8,682			8,085			8,041
Imaging and Printing Group		6,785			5,913			6,543
Personal Systems Group		7,113			6,386			6,540
HP Financial Services		514			489			497
Corporate Investments		142			143			119
Total Segments		23,236			21,016			21,740
Eliminations of intersegment net revenue and other		(323	)		(257	)		(351	)
Total HP Consolidated	$	22,913		$	20,759		$	21,389
Earnings from operations:
Enterprise Storage and Servers	$	405		$	150		$	100
HP Services		322			256			375
Software		27			(40	)		(7	)
Technology Solutions Group		754			366			468
Imaging and Printing Group		896			771			1,088
Personal Systems Group		200			163			77
HP Financial Services		52			58			19
Corporate Investments		(35	)		(37	)		(43	)
Total Segments		1,867			1,321			1,609
Corporate and unallocated costs and eliminations		(131	)		(128	)		(118	)
Pension curtailment gain		199			--			--
Restructuring charges		(1,565	)		(112	)		(13	)
Amortization of purchased intangible assets		(136	)		(168	)		(165	)
Acquisition-related charges		--			--			(24	)
In-process research and development charges		(2	)		--			--
Interest and other, net		132			119			2
Gains (losses) on investments		14			(6	)		(1	)
Dispute settlement		3			7			--
Total HP Consolidated Earnings Before Taxes	$	381		$	1,033		$	1,290

(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)

	Twelve months ended October 31,
	2005			2004(a)
Net revenue:
Enterprise Storage and Servers	$	16,701		$	15,074
HP Services		15,536			13,848
Software		1,077			933
Technology Solutions Group		33,314			29,855
Imaging and Printing Group		25,155			24,199
Personal Systems Group		26,741			24,622
HP Financial Services		2,102			1,895
Corporate Investments		523			449
Total Segments		87,835			81,020
Eliminations of intersegment net revenue and other		(1,139	)		(1,115	)
Total HP Consolidated	$	86,696		$	79,905
Earnings from operations:
Enterprise Storage and Servers	$	810		$	161
HP Services		1,151			1,282
Software		(59	)		(156	)
Technology Solutions Group		1,902			1,287
Imaging and Printing Group		3,413			3,843
Personal Systems Group		657			205
HP Financial Services		213			125
Corporate Investments		(174	)		(179	)
Total Segments		6,011			5,281
Corporate and unallocated costs and eliminations		(429	)		(246	)
Pension curtailment gain		199			--
Restructuring charges		(1,684	)		(114	)
Amortization of purchased intangible assets		(622	)		(603	)
Acquisition-related charges		--			(54	)
In-process research and development charges		(2	)		(37	)
Interest and other, net		189			35
(Losses) gains on investments		(13	)		4
Dispute settlement		(106	)		(70	)
Total HP Consolidated Earnings Before Taxes	$	3,543		$	4,196

(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.