Hewlett-Packard (HPQ)

Opsware Acquisition

        On September 17, 2007, HP completed its tender offer for Opsware Inc. ("Opsware"), a leader in data center automation, and acquired more than 90% of Opsware's common shares for cash consideration of $14.25 per share. On September 21, 2007, HP acquired all remaining outstanding Opsware shares. Opsware has been integrated into the HP Software segment.

        The aggregate purchase price of approximately $1.7 billion consisted of cash paid for outstanding stock, the fair value of stock options assumed and direct transaction costs. In connection with this acquisition, HP recorded approximately $1.3 billion of goodwill and $249 million of amortizable intangible assets. HP is amortizing the purchased intangibles on a straight-line basis over a weighted-average estimated life of 5.0 years. HP did not record any IPR&D in connection with the Opsware acquisition.

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Table of Contents

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 6: Acquisitions (Continued)

Opsware Acquisition

        On September 17, 2007, HP completed its tender offer for Opsware Inc. ("Opsware"), a leader in data center automation,
and acquired more than 90% of Opsware's common shares for cash consideration of $14.25 per share. On September 21, 2007, HP acquired all remaining outstanding Opsware shares. Opsware has been
integrated into the HP Software segment.

        The
aggregate purchase price of approximately $1.7 billion consisted of cash paid for outstanding stock, the fair value of stock options assumed and direct transaction costs. In
connection with this acquisition, HP recorded approximately $1.3 billion of goodwill and $249 million of amortizable intangible assets. HP is amortizing the purchased intangibles on a
straight-line basis over a weighted-average estimated life of 5.0 years. HP did not record any IPR&D in connection with the Opsware acquisition.

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HREF="#bg72001a_main_toc">Table of Contents

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 6: Acquisitions (Continued)

Opsware Acquisition

        On September 17, 2007, HP completed its tender offer for Opsware Inc. ("Opsware"), a leader in data center automation, and acquired more than 90% of Opsware's common shares for cash consideration of $14.25 per share. On September 21, 2007, HP acquired all remaining outstanding Opsware shares and Opsware became a wholly owned subsidiary of HP which will be included in the HP Software segment.

        The aggregate purchase price of approximately $1.7 billion consisted of cash paid for outstanding stock, vested in-the-money stock options and direct transaction costs. In addition, the purchase price also included the estimated fair value of earned unvested stock options and out-of-the-money vested stock options assumed by HP. In connection with this acquisition, HP recorded approximately

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$1.3 billion of goodwill and $249 million of amortizable intangible assets. HP is amortizing the purchased intangibles on a straight-line basis over their estimated lives ranging from five to six years. HP did not record any IPR&D in connection with the Opsware acquisition.