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Financial Forecast Assumptions
Oracle Corporation (ORCL)
(Dollars and Shares in Millions, Except Per Share Amounts)

 Actual Forecast
  12 Months  
05/31/03  		 12 Months  
05/31/04  		 12 Months  
05/31/05  		   12 Months  
05/31/06  		 12 Months  
05/31/07  		 12 Months  
05/31/08  		 12 Months  
05/31/09  		 12 Months  
05/31/10  
 
Year-to-Year Change in Net Sales NA   7.2%   16.2%    
 
Operating Expenses as % of Net Sales 63.7%   62.0%   65.9%    
 
Other Income (Expense) * $1   $102   $164    
 
Interest Rate on Borrowings * NA   NA   NA    
 
Interest Rate on Subordinated Debt * NA   NA   NA    
 
Income Tax Rate 32.6%   32.0%   28.8%    
 
Cash * $6,519   $8,587   $4,802    
 
Number of Days Sales in Accounts Receivable 85.6   83.9   89.7    
 
Other Current Assets $487   $415   $777    
 
Intangibles * $0   $80   $10,376    
 
Investments $233   $0   $0    
 
Other Assets $445   $279   $390    
 
Current Maturities * $153   $0   $0    
 
Number of Days Operating Expenses in Accounts Payable 13.8   11.1   10.8    
 
Number of Days Operating Expenses in Accrued Expenses 89.3   47.3   50.6    
 
Taxes Payable * $891   $929   $904    
 
Other Current Obligations * $1,409   $1,497   $2,289    
 
Other Current Liabilities * $0   $830   $868    
 
Term Loan * $175   $163   $159    
 
Subordinated Debt * $0   $0   $0    
 
Other Long Term Obligations * $0   $0   $0    
 
Other Liabilities * $314   $333   $1,628    
 
Common Stock * $5,101   $5,456   $6,596    
 
Preferred Stock * $0   $0   $0    
 
Other Equity * $127   $156   $198    
 
Treasury Stock * $0   $0   $0    
 
Capital Expenditures (Net) NA   $97   $370    
 
Dividends as % of Net Earnings * 0.0%   0.0%   0.0%    
 
Depreciation (Net) NA   $91   $(4)    
 
Estimated Borrowing Base as a % of Accounts Receivable 80.0%   80.0%   80.0%    
 
Estimated Borrowing Base as a % of
      Property, Plant and Equipment (Net)		 50.0%   50.0%   50.0%    
 
Common Shares Outstanding (Fully Diluted) 5,418   5,326   5,231    

* Changes to these assumptions will change your Multi-year forecast but will not change the intrinsic valuation model default assumptions.