IT Hardware/Systems: Reducing Ests and Cov View in the Face of Moderate 05 Demand We are reducing our coverage view from Attractive to Neutral and lowering our 2005 (and in a few cases, 2004) rev and EPS est's as we anticipate slower growth for tech in 2005. Looking at our numbers in context of overall tech capital spending and each company's exposure to faster growing product categories and geographic end markets, our new ests are likely more indicative of current market conditions where we look for tech cap spending to be in the 3-5% range in 2005. For the most part, our rev revisions were deeper than the cuts to our EPS. The only two large cap companies we have left unchanged are Dell and IBM. Even amidst what appears to be a decelerating tech environment, 4Q04 seasonality could still prove to be a familiar catalyst for many of the stocks, and we fully expect to see at least some form of rally. For investors looking to incorporate a weaker view on 2005, we would recommend large cap franchise names with both defensive and offensive characteristics and highlight DELL, EMC, and IBM.