Table 2	HP Services - Financial Results/Forecast								May-04
				(Fiscal year end: Oct 31)
			2005e	% of	Change	2004e	% of	2003	% of
			($ Mill)	Rev	05/04	($ Mill)	Rev	($ Mill)	Rev
_	_	_	_	_	_	_	_	_	_
Revenue
Business Segments (est)
	Outsourcing		$3,580	24.0%	31.6%	$2,720	20.3%	$2,120	17.2%
	Consulting & Integration		$2,830	19.0%	8.4%	$2,610	19.5%	$2,480	20.2%
	Maintenance (Cust Support)		$8,490	57.0%	5.2%	$8,070	60.2%	$7,705	62.6%
Total Revenue (w. Maint.)			$14,900	100.0%	11.2%	$13,400	100.0%	$12,305	100.0%
(w/o Maint.)			$6,410		20.3%	$5,330		$4,600
6-month 2004 (actual)						$6,653	10.6%	$6,015
Costs
Cost of Revenue			$11,620	78.0%	12.6%	$10,320	77.0%	$9,230	75.0%
One-time Charges
Total Costs			$11,620	78.0%	12.6%	$10,320	77.0%	$9,230	75.0%
Gross Profit/Margin			$3,280	22.0%	6.5%	$3,080	23.0%	$3,075	25.0%
Expenses
Sales, General & Marketing			$1,940	13.0%	7.2%	$1,810	13.5%	$1,700	13.8%
Restructuring Charges (apportioned to HPS)								$132
Total Expenses			$1,940	13.0%	7.2%	$1,810	13.5%	$1,832	14.9%
Operating Profit (Loss)			$1,340	9.0%	5.5%	$1,270	9.5%	$1,243	10.1%
as reported w/o charges						$1,372	10.2%	$1,372	11.1%
6-month 2004 (actual)						$587	-7.7%	$636	10.6%
Other Income (Loss)			$10	0.1%	0.0%	$10	0.1%	($1)	-0.0%
Income (Loss) Before Tax			$1,350	9.1%	5.5%	$1,280	9.6%	$1,242	10.1%
Income Tax (Benefit)			$247	18.3%	-12.4%	$282	22.0%	$150	12.1%
Net Income (Loss)			$1,103	7.4%	10.5%	$998	7.4%	$1,092	8.9%
	Source: Annex Research			NOTE: Actual results including Compaq services after May 1, 2002
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