Hewlett-Packard (HPQ)

Share Repurchases

        HP's share repurchase program authorizes both open market and private repurchase transactions. HP paid $2.3 billion and $860 million in connection with share repurchases of 72 million shares and 37 million shares, respectively, during the three months ended July 31, 2006 and 2005, respectively. HP paid $5.0 billion and $2.1 billion for the repurchase of 160 million shares and 96 million shares, respectively, in the first nine months of fiscal 2006 and 2005, respectively.

        In addition to the above transactions, HP entered into a prepaid variable share purchase program ("PVSPP") with a third-party investment bank during the first quarter of 2006 and prepaid $1.7 billion in exchange for the right to receive a variable number of shares of its common stock weekly over a one year period beginning in the second quarter of fiscal 2006 and ending during the second quarter of fiscal 2007. HP recorded the payment as a prepaid stock repurchase in the stockholders' equity section of its Consolidated Condensed Balance Sheet, and the payment was included in the cash flows from financing activities in the Consolidated Condensed Statement of Cash Flows. In connection with this program, the investment bank has purchased and will continue to trade shares of HP's common stock in the open market over time. The prepaid funds will be expended ratably over the term of the program.

        Under the PVSPP, the prices at which HP purchases the shares are subject to a minimum and maximum price that was determined in advance of any repurchases being completed under the program, thereby effectively hedging HP's repurchase price. The minimum and maximum number of shares HP could receive under the program are 52 million shares and 70 million shares, respectively. The exact number of shares to be repurchased is based upon the volume weighted average market price of HP's shares during each weekly settlement period, subject to the minimum and maximum price as well as regulatory limitations on the number of shares HP is permitted to repurchase. HP decreases its shares outstanding each settlement period as shares are physically received. HP will retire all shares repurchased under the PVSPP, and HP will no longer deem those shares outstanding. For the three and nine months ended July 31, 2006, HP had received approximately 13 million and 20 million shares, respectively for an aggregate price of $430 million and $662 million, respectively under the PVSPP.

        On February 14, 2006, HP's Board of Directors authorized $4.0 billion for future repurchases of HP's outstanding shares of common stock. As of July 31, 2006, HP had remaining authorization of $645 million for future share repurchases. On August 15, 2006, HP's Board of Directors authorized an additional $6.0 billion for future repurchase of its outstanding shares of common stock. Previously

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authorized share repurchases also will be made under the PVSPP until the remaining available balance is exhausted in the second quarter of fiscal 2007.

Share Repurchases

        HP's share repurchase program authorizes repurchases in the open market or in private transactions. HP paid $1.3 billion and $618 million in connection with share repurchases of 40 million shares and 30 million shares, respectively, during the three months ended April 30, 2006 and 2005, respectively. HP paid $2.7 billion and $1.2 billion for the repurchase of 88 million shares and 59 million shares, respectively, in the first half of fiscal 2006 and 2005, respectively.

        In addition to the above transactions, HP entered into a prepaid variable share purchase program ("PVSPP") with a third-party investment bank during the first quarter of 2006 and prepaid $1.7 billion in exchange for the right to receive a variable number of shares of its common stock weekly over a one year period beginning in the second quarter of fiscal 2006 and ending during the second quarter of fiscal 2007. HP recorded the payment as a prepaid stock repurchase in the stockholders' equity section of its Consolidated Condensed Balance Sheet, and the payment was included in the cash flows from

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financing activities in the Consolidated Condensed Statement of Cash Flows. In connection with this program, the investment bank has purchased and will continue to trade shares of HP's common stock in the open market over time. The prepaid funds will be expended ratably over the term of the program.

        Under the PVSPP, the prices at which HP purchases the shares are subject to a minimum and maximum price that was determined in advance of any repurchases being completed under the program, thereby effectively hedging HP's repurchase price. The minimum and maximum number of shares HP could receive under the program are 52 million shares and 70 million shares, respectively. The exact number of shares to be repurchased is based upon the volume weighted average market price of HP's shares during each weekly settlement period, subject to the minimum and maximum price as well as regulatory limitations on the number of shares HP is permitted to repurchase. HP decreases its shares outstanding each settlement period as shares are physically received. HP will retire all shares repurchased under the PVSPP, and HP will no longer deem those shares outstanding. As of April 30, 2006, HP had received approximately 7 million shares for an aggregate price of $232 million under the PVSPP.

        On February 14, 2006, HP's Board of Directors authorized an additional $4.0 billion for future repurchases of HP's outstanding shares of common stock. As of April 30, 2006, HP had remaining authorization of approximately $2.9 billion for future share repurchases. Previously authorized share repurchases also will be made under the PVSPP through the second quarter of fiscal 2007 until the remaining available balance under the PVSPP has been exhausted.

Share Repurchases

        HP's share repurchase program authorizes repurchases in the open market or in private transactions. HP paid $1,401 million and $586 million in connection with share repurchases of 48 million shares and 29 million shares, respectively, during the three months ended January 31, 2006 and 2005, respectively.

        In addition, HP entered into a prepaid variable share purchase program ("PVSPP") with a third party investment bank during the first quarter of 2006 and prepaid $1.7 billion in exchange for the right to receive a variable number of shares of its common stock weekly over a one year period beginning in the second quarter of fiscal 2006 and ending during the second quarter of fiscal 2007. HP recorded the payment as a prepaid stock repurchase in the stockholders' equity section of its Consolidated Condensed Balance Sheet, and the payment is included in the cash flows from financing activities in the Consolidated Condensed Statement of Cash Flows. In connection with this program, the investment

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bank has purchased and they will continue to trade shares of HP's common stock in the open market over time. The prepaid funds will be expended ratably over the term of the program.

        Under the PVSPP, the prices at which HP will purchase the shares are subject to a minimum and maximum price determined in advance of any repurchases being completed under the program, thereby effectively hedging HP's repurchase price. The minimum number and maximum number of shares HP could receive under the program are 52 million and 70 million shares, respectively. The exact number of shares that will be repurchased will be based upon the volume weighted average market price of HP's shares during each weekly settlement period, subject to the minimum and maximum price as well as regulatory limitations on the number of shares HP is permitted to repurchase. HP will decrease its shares outstanding each settlement period as shares are physically received. HP will retire all shares repurchased under the PVSPP, and HP will no longer deem those shares outstanding.

        As of January 31, 2006, HP had authorization for remaining future repurchases of approximately $258 million. On February 14, 2006, HP's Board of Directors authorized an additional $4.0 billion for future repurchases of HP's outstanding shares of common stock.

Share Repurchases

        HP has a systematic share repurchase program. This program authorizes repurchases in the open market or in private transactions. HP paid $860 million and $500 million in connection with share repurchases of 37 million shares and 24 million shares, respectively, during the three months ended July 31, 2005 and 2004, respectively. HP repurchased 96 million shares and 51 million shares for an aggregate price of $2.1 billion and $1.1 billion in the first nine months of fiscal 2005 and 2004, respectively. In addition, HP had an accelerated share repurchase program (the "Program") with an investment bank that began in September 2004 and was completed in November 2004. Under the Program, approximately 72 million shares were purchased for $1.3 billion, plus a final $51 million price adjustment paid in November 2004. As of July 31, 2005, HP had authorization for remaining future repurchases of approximately $780 million. On August 25, 2005, the Board of Directors of HP authorized an additional $4.0 billion for future repurchases of HP's outstanding shares of common stock.

Share Repurchases

        HP has a systematic share repurchase program. This program authorizes repurchases in the open market or in private transactions. HP paid $618 million and $348 million in connection with share repurchases of 30 million shares and 16 million shares, respectively, during the three months ended April 30, 2005 and 2004, respectively. HP repurchased 59 million shares and 27 million shares for an aggregate price of $1.2 billion and $604 million in the first half of fiscal 2005 and 2004, respectively. In addition, HP had an accelerated share repurchase program (the "Program") with an investment bank that began in September 2004 and was completed in November 2004. Under the Program, approximately 72 million shares were purchased for $1.3 billion, including the final $51 million price adjustment paid in November 2004. As of April 30, 2005, HP had authorization for remaining future repurchases of approximately $1.6 billion.

Share Repurchases

        HP has a systematic share repurchase program. This program authorizes repurchases in the open market or in private transactions. HP paid $586 million and $256 million in connection with share repurchases of 29 million shares and 12 million shares, respectively, during the three months ended January 31, 2005 and 2004, respectively. In addition, HP had an accelerated share repurchase program (the "Program") with an investment bank which began in September 2004 and was completed in November 2004. Under the Program, approximately 72 million shares were purchased for $1.3 billion, including the final $51 million price adjustment paid in November 2004. As of January 31, 2005, HP had authorization for remaining future repurchases of approximately $2.3 billion.

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