It wipes all service books, user data and settings. It doesn't remove the applications, but any user data from applications is erased. It is effectively putting it back to factory defaults.
One more thing, BBAdmin said is right, you really shouldn't run BES on the same box as Exchange. If you're just experimenting with BES, just grab a regular PC and do the test from there. I ran a full test with over 20 users on a PC dedicated to BES before moving it into a server-class machine and a larger scale deployment.
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Current - 8700g TMO
Previous - 7280 AWS, 7730 TMO, 7290 TMO
Long ago - 950 model (still have it)
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