Hewlett-Packard (HPQ)

(Losses) Gains on Investments

        The net loss for fiscal 2005 resulted primarily from impairment charges on equity investments in our publicly-traded and privately-held investment portfolios. Partially offsetting these losses were gains attributable to the sale of investments. The net gain for fiscal 2004 was attributable mainly to the realization of a contingent gain associated with a prior period divestiture and realized gains from the sale of investments in excess of impairment charges. Net losses in fiscal 2003 resulted mainly from impairment charges in excess of gains realized on our investment portfolio.

(Losses) Gains on Investments

        The net loss for the third quarter and first nine months of fiscal 2005 resulted primarily from impairment charges on our equity investments in publicly-traded and privately-held investment portfolio. The gains in the first nine months of fiscal 2004 were attributable mainly to gains on a prior period divestiture and on the sale of investments, offset in part by impairment charges on our investment portfolio.

(Losses) Gains on Investments

        The net loss for the three months ended January 31, 2005 was attributable to an impairment loss on our equity investments in publicly-traded and privately-held emerging technology companies. The gain in the first quarter of fiscal 2004 was attributable mainly to the sale of an investment.