Culture. HP has long been admired for our culture—a performance meritocracy with an informal environment and a firm belief that every community in which we live and work should benefit by our presence. For decades, the hp Way served as a guiding set of principles in this regard, shaping our actions and differentiating hp as a place to build a meaningful career. In recent years, the intent of the hp Way became clouded and it was used to justify behavior such as conflict avoidance, weak performance management and an excessive focus on consensus. Clearly, this was not what our founders Bill Hewlett and Dave Packard had in mind. We’ve spent a significant amount of energy this year defining what will be required of each of us going forward—what traits, what actions, what new ways of working together. We’ve captured these requirements in something we call The Rules of the Garage, which preserves and builds on the beliefs and core values inherent in the hp Way. These values include: respect for the individual, contribution to customers and the community, uncompromising integrity, teamwork and innovation. We like to think of The Rules of the Garage as the hp Way, recast for the 21st century. We believe quite strongly that our culture, our principles and our way of treating each other create unique advantages for hp—both in serving our customers and in allowing us to recruit and retain the best and brightest employees. These advantages set us apart from the pack—and we intend to cultivate and nurture them. Reinvention is a process—a journey, if you will. And along the way there are signposts that represent tangible  evidence of progress. Here are some of the most significant signposts from fiscal year 2000: Heavy lifting in the computer systems business results in improved performance. Our computer systems business is focused on delivering the next-generation infrastructure—an always-on Internet infrastructure that will help businesses provide services to their customers and employees. During FY00, we did the heavy lifting re- quired to refresh our server product line from low-end to high-end and everywhere in between. While in the midst of one of the more impressive product rollovers in our history, we still managed to deliver 18 percent growth in this critical arena. We nearly doubled our performance in our low-end server business, which is an important indicator of our progress against our competition in this market. Our mid-range server revenue was up 17 per- cent, and we also launched Superdome—our much-anticipated high-end UNIX system that offers not only superi- or performance, but also a truly exceptional customer experience. We also redoubled our efforts in serving our enterprise customers by restructuring and reenergizing our sales force. The combination of our best server line-up ever and a more focused approach to key account coverage paid off with 28 percent revenue growth in our cor- porate accounts business during the second half of the year.  How reinvention is fueling business performance - Storage offers another tremendous growth opportunity for hp. Although we took a short-term hit in storage  revenue when we ended our relationship with EMC, our storage business is now healthy again and growing. As just one example, our storage area network business grew 70 percent year-over-year. - We revamped our software strategy and made significant investments in components of the software stack that will position hp for leadership in services-based computing. In particular, by entering into an agreement to buy Bluestone Software and add its highly acclaimed XML-based Web application server and tools to our portfolio,  we are working to enable customers to develop and deploy applications and services that capitalize on the  XML standard. - Thanks to this heavy lifting in FY00, we entered FY01 with the strongest and broadest line of servers, storage and software solutions in our history. - While we are pleased with the momentum across many segments of our Computing Systems business, we are not yet satisfied with our progress in the Netserver and commercial PC segments, and we have more work to  do to improve profitability overall. 13 letter printed on hp LaserJet paper