TECH SPENDING DEPENDS ON ECONOMY Y-Y Change in S&P 500 Earnings, Technology Spending (1996-2008E) 30% 20% 10% 0% -10% -20% -30% 5 6 7 8 9 0 1 2 3 4 5 6 7 9 9 9 9 9 0 0 0 0 0 0 0 0 - - - - - - - - - - - - - c c c c c c c c c c c c c Jun-95DeJun-96DeJun-97DeJun-98DeJun-99DeJun-00DeJun-01DeJun-02DeJun-03DeJun-04DeJun-05DeJun-06DeJun-07DeJun 08E S&P 500 EPS Growth Tech Spending Growth Source: Bernstein Strategy Group; First Call Drop in earnings in Dec 07 was partly due to financial services industry write offs