ELECTRONIC PROCESSING INC, 8-K/A, 2000-05-26

ELECTRONIC PROCESSING INC
8-K/A, 2000-05-26
COMPUTER PROGRAMMING SERVICES
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<P ALIGN="CENTER"><FONT SIZE=5><B>SECURITIES AND EXCHANGE COMMISSION<BR></B></FONT><FONT SIZE=2><B>Washington, D.C. 20549</B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=5><B>Amendment No. 1</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=5><B>FORM 8-K/A</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=5><B>CURRENT REPORT</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>Pursuant to Section 13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>March 30, 2000 (March 17, 2000)<BR></B></FONT><FONT SIZE=2>Date of Report (Date of earliest event reported)</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=5><B>ELECTRONIC PROCESSING, INC.<BR></B></FONT><FONT SIZE=2>(Exact name of Registrant as specified in its charter)</FONT></P>

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<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2> <BR></FONT> <FONT SIZE=2><B>Missouri</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><B> <BR> </B></FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2><B> <BR>
0-22081</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><B> <BR> </B></FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2><B> <BR>
48-1056429</B></FONT></TD>
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<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2>(State or other jurisdiction</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2>(Commission File Number)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2>(IRS Employer</FONT></TD>
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<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2>of incorporation)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2>Identification Number)</FONT></TD>
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<P ALIGN="CENTER"><FONT SIZE=2><B>501 Kansas Avenue<BR>
Kansas City, KS 66105<BR></B></FONT><FONT SIZE=2>(Address of principal executive offices)</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>(913) 621-9500<BR></B></FONT><FONT SIZE=2>(Registrant's telephone number, including area code)</FONT></P>

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<P><FONT SIZE=2><B>Item 7. Financial Statements and Exhibits.</B></FONT></P>

<P><FONT SIZE=2>    </FONT><FONT
SIZE=2><B>(a) and (b)   Financial Statements and Pro Forma Financial Statements.</B></FONT></P>

<P><FONT SIZE=2>    On March 17, 2000, the Registrant acquired certain assets from PHiTECH, Inc. ("PHiTECH") of San Francisco, California. The aggregate purchase
price for PHiTECH was $6,111,585, of which $5,314,356 was paid in cash and $797,229 is deferred and is payable over 49 months, beginning the 13<SUP>th</SUP> month after the date of
acquisition. See Note 3 of the Notes to Financial Statements included with the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2000, for
additional information concerning this acquisition.</FONT></P>

<P><FONT SIZE=2>    The
following financial statements for the acquired business are filed with this Amendment:</FONT></P>

<P><FONT SIZE=2>    1.  PHiTECH, Inc.
Accountants' Report and Financial Statements as of December 31, 1999.</FONT></P>


<P><FONT SIZE=2>    2.  Pro
Forma Condensed Combined Balance Sheet as of December 31, 1999.</FONT></P>

<P><FONT SIZE=2>    3.  Pro
Forma Condensed Combined Income Statement for the year ended December 31, 1999.</FONT></P>

<P><FONT SIZE=2>    4.  Notes
to Pro Forma Condensed Combined Financial Information.</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>


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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de2999_signatures"> </A></FONT> <FONT SIZE=2><B>SIGNATURES  </B></FONT></P>

<P><FONT SIZE=2>    Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</FONT></P>

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<TD WIDTH="51%" COLSPAN=3><FONT SIZE=2><B>ELECTRONIC PROCESSING, INC.</B></FONT></TD>
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<TD WIDTH="47%"><FONT SIZE=2> <BR>
Date: May 26, 2000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2> <BR>
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<TD WIDTH="42%"><FONT SIZE=2> <BR>
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 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2> <BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2> <BR>
/s/ </FONT><FONT SIZE=2>TOM W. OLOFSON</FONT><FONT SIZE=2>   </FONT><HR NOSHADE></TD>
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<TD WIDTH="47%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2>Tom W. Olofson</FONT></TD>
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<TD WIDTH="47%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2><I>Chairman of the Board, Chief Executive<BR>
Officer and Director</I></FONT></TD>
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<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>


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<P ALIGN="CENTER"><FONT SIZE=2><B>PHiTECH, Inc.<BR>
Accountants' Report and Financial Statements<BR>
December 31, 1999</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>[BKD LOGO]</B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><B><A NAME="di2999_phitech,_inc._december_31,_1999_contents"> </A>
PHiTECH, INC.<BR>   DECEMBER 31, 1999<BR>   CONTENTS  </B></FONT></P>

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<TD WIDTH="5%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="6%" ALIGN="CENTER"><FONT SIZE=2>Page</FONT><HR NOSHADE></TD>
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<TD WIDTH="89%"><FONT SIZE=2> <BR></FONT> <FONT SIZE=2><B>INDEPENDENT ACCOUNTANTS' REPORT</B></FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="6%" ALIGN="CENTER"><FONT SIZE=2> <BR>
1</FONT></TD>
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<TD WIDTH="89%"><FONT SIZE=2> <BR></FONT> <FONT SIZE=2><B>FINANCIAL STATEMENTS</B></FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2> <BR>
 </FONT></TD>
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<TD WIDTH="89%"><FONT SIZE=2>Balance Sheet</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="6%" ALIGN="CENTER"><FONT SIZE=2>2</FONT></TD>
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<TD WIDTH="89%"><FONT SIZE=2>Statement of Income</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="6%" ALIGN="CENTER"><FONT SIZE=2>3</FONT></TD>
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<TD WIDTH="89%"><FONT SIZE=2>Statement of Changes in Stockholders' Equity (Deficit)</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="6%" ALIGN="CENTER"><FONT SIZE=2>4</FONT></TD>
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<TD WIDTH="89%"><FONT SIZE=2>Statement of Cash Flows</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="6%" ALIGN="CENTER"><FONT SIZE=2>5</FONT></TD>
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<TD WIDTH="89%"><FONT SIZE=2>Notes to Financial Statements</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="6%" ALIGN="CENTER"><FONT SIZE=2>6</FONT></TD>
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<P ALIGN="CENTER"><FONT SIZE=2><B>Independent Accountants' Report</B></FONT></P>

<P><FONT SIZE=2>Board of Directors<BR>
PHiTECH, INC.<BR>
San Francisco, California</FONT></P>

<P><FONT SIZE=2>    We
have audited the accompanying balance sheet of PHiTECH, INC. as of December 31, 1999, and the related statements of income, changes in stockholders' equity (deficit) and cash flows
for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.</FONT></P>


<P><FONT SIZE=2>    We
conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.</FONT></P>

<P><FONT SIZE=2>    In
our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of PHiTECH, INC. as of December 31, 1999, and the results
of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.</FONT></P>

<P><FONT SIZE=2>Kansas
City, Missouri<BR>
April 27, 2000</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dk2999_phitech,_inc._balance_sheet_december_31,_1999"> </A></FONT> <FONT SIZE=2><B>PHiTECH, INC.<BR>   BALANCE SHEET<BR>   DECEMBER 31, 1999  </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dk2999_assets"> </A></FONT> <FONT SIZE=2><B>ASSETS  </B></FONT></P>

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<TD WIDTH="85%"><FONT SIZE=2><B>CURRENT ASSETS</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2> </FONT></TD>
</TR>
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<TD WIDTH="85%"><FONT SIZE=2>Cash</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>127,754</FONT></TD>
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<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2>Accounts receivable, less allowance for doubtful accounts of $26,010</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>447,420</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2>Prepaid expenses</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>23,800</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
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<TD WIDTH="85%"><FONT SIZE=2>Total Current Assets</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>598,974</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
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<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2><B>PROPERTY AND EQUIPMENT</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2>Computer equipment</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>127,626</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2>Office equipment</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>21,128</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2>Automobiles</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>9,288</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
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<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>158,042</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2>Less accumulated depreciation</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>87,831</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>70,211</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>669,185</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="85%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dk2999_liabilities_and_stockholders__equity_(deficit)"> </A></FONT> <FONT SIZE=2><B>LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)  </B></FONT></P>

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<TD WIDTH="81%"><FONT SIZE=2><B>CURRENT LIABILITIES</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="81%"><FONT SIZE=2>Accounts payable and accrued expenses</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>96,880</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="81%"><FONT SIZE=2>Capital lease obligation</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>16,053</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="81%"><FONT SIZE=2>Customer deposits</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>249,350</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="81%"><FONT SIZE=2>Deferred revenue</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>554,623</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="81%"><FONT SIZE=2>Payable to stockholder</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>1,072,824</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="81%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
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<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="81%"><FONT SIZE=2>Total Current Liabilities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>1,989,730</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="81%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="81%"><FONT SIZE=2><B>DEFERRED REVENUE</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>129,600</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="81%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="81%"><FONT SIZE=2><B>CAPITAL LEASE OBLIGATION,</B></FONT><FONT SIZE=2> Net of current portion</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>24,587</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="81%"><FONT SIZE=2><B>STOCKHOLDERS' EQUITY (DEFICIT)</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="81%"><FONT SIZE=2>Common stock, no par value; 1,000,000 shares authorized, 200,000 issued and outstanding</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>193,010</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="81%"><FONT SIZE=2>Accumulated deficit</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>(1,667,742</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="81%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="81%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>(1,474,732</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="81%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="81%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>669,185</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="81%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->
<P><FONT SIZE=2>See
Notes to Financial Statements</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>


<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

<!-- ZEQ.=1,SEQ=7,EFW="2016236",CP="ELECTRONIC PROCESSING, INC.",DN="1",CHK=205358,FOLIO=2,FILE='DISK018:[00CHI9.00CHI2999]DK2999A.;16',USER='SLYUBOM',CD='26-MAY-2000;12:52 -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dk2999_phitech,_inc._statement_of_inc__phi01931"> </A></FONT> <FONT SIZE=2><B>PHiTECH, INC.<BR>   STATEMENT OF INCOME<BR>   YEAR ENDED DECEMBER 31, 1999  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="81%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>OPERATING REVENUES</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>2,036,926</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>COST OF REVENUES</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Development and support</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>714,500</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Depreciation and amortization</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>25,086</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>739,586</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>GROSS PROFIT</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,297,340</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>OPERATING EXPENSES</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>General and administrative</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>871,711</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Depreciation and amortization</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,439</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>873,150</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>INCOME FROM OPERATIONS</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>424,190</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>INTEREST EXPENSE</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>60,369</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>NET INCOME</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>363,821</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>NET INCOME PER SHARE INFORMATION</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Basic and diluted</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1.82</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->
<P><FONT SIZE=2>See
Notes to Financial Statements</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>


<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

<!-- ZEQ.=2,SEQ=8,EFW="2016236",CP="ELECTRONIC PROCESSING, INC.",DN="1",CHK=388518,FOLIO=3,FILE='DISK018:[00CHI9.00CHI2999]DK2999A.;16',USER='SLYUBOM',CD='26-MAY-2000;12:52 -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dk2999_phitech,_inc._statement_of_cha__phi03223"> </A></FONT> <FONT SIZE=2><B>PHiTECH, INC.<BR>   STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)<BR>   YEAR ENDED DECEMBER 31, 1999  </B></FONT></P>

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<TABLE WIDTH="89%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="53%" ALIGN="LEFT"><FONT SIZE=2> </FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="14%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Total</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="11%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Common<BR>
Stock</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="14%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Accumulated<BR>
Deficit</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1> </FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="9%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2><B>BALANCE (DEFICIT), JANUARY 1, 1999</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(1,838,553</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>193,010</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(2,031,563</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>Net income</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>363,821</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>363,821</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2><B>BALANCE (DEFICIT), DECEMBER 31, 1999</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(1,474,732</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>193,010</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(1,667,742</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->
<P><FONT SIZE=2>See
Notes to Financial Statements</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>


<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

<!-- ZEQ.=3,SEQ=9,EFW="2016236",CP="ELECTRONIC PROCESSING, INC.",DN="1",CHK=721963,FOLIO=4,FILE='DISK018:[00CHI9.00CHI2999]DK2999B.;13',USER='SLYUBOM',CD='26-MAY-2000;12:52 -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dk2999_phitech,_inc._statement_of_cas__phi02101"> </A></FONT> <FONT SIZE=2><B>PHiTECH, INC.<BR>   STATEMENT OF CASH FLOWS<BR>   YEAR ENDED DECEMBER 31, 1999  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="81%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>CASH FLOWS FROM OPERATING ACTIVITIES</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Net income</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>363,821</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Items not requiring (providing) cash:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Depreciation and amortization</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>26,525</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Provision for doubtful accounts</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>26,010</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Capitalized interest on shareholder note payable</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>49,810</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Changes in:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Accounts receivable</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(203,236</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Prepaid expenses</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(16,234</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Accounts payable and accrued expenses</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(64,414</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Customer deposits</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>249,350</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Deferred revenue</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(29,438</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Net cash provided by operating activities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>402,194</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>CASH FLOWS FROM INVESTING ACTIVITIES</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Purchase of property and equipment</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(41,318</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Net cash used in investing activities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(41,318</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>CASH FLOWS FROM FINANCING ACTIVITIES</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Principal payments under capital lease</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(9,693</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Payment under line of credit agreement</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(40,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Payment on loan from stockholder</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(160,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Payment of checks issued in excess of available balance</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(23,429</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Net cash used in financing activities</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(233,122</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>INCREASE IN CASH</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>127,754</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>CASH, BEGINNING OF YEAR</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>CASH, END OF YEAR</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>127,754</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B>ADDITIONAL CASH FLOW INFORMATION</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B><I>Noncash Investing and Financing Activities</I></B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Computer equipment acquired under capital lease</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>50,333</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2><B><I>Additional Cash Payment Information</I></B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Interest paid</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>6,829</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->
<P><FONT SIZE=2>See
Notes to Financial Statements</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>


<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

<!-- ZEQ.=4,SEQ=10,EFW="2016236",CP="ELECTRONIC PROCESSING, INC.",DN="1",CHK=525398,FOLIO=5,FILE='DISK018:[00CHI9.00CHI2999]DK2999B.;13',USER='SLYUBOM',CD='26-MAY-2000;12:52 -->
<!-- Generated by Merrill Corporation (www.merrillcorp.com) -->
<P ALIGN="CENTER"><FONT SIZE=2><B>PHiTECH, INC.</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>NOTES TO FINANCIAL STATEMENTS</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>DECEMBER 31, 1999</B></FONT></P>

<P><FONT SIZE=2><B>NOTE 1:  NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></FONT></P>


<P><FONT SIZE=2><B><I>Nature of Operations</I></B></FONT></P>

<P><FONT SIZE=2>    PHiTECH, Inc. (the "Company") is a middleware and applications software company engaged in developing, marketing, and supporting its products in the
financial, retail, e-commerce and telecommunications markets. The Company operates in a single segment and has concentrated its efforts in the telecommunications marketplace with intelligent switch
and enhanced services technologies and has built a worldwide customer base consisting of major banks, financial institutions, retail payment processors, and telecommunications companies.</FONT></P>

<P><FONT SIZE=2>    The
Company's current DataExpress product is designated to secure, format and automatically route data in a fault tolerant environment over the internet and private networks using a
variety of web-based and legacy communications protocols. The Company also provides value-added services including systems integration, consulting and user education.</FONT></P>

<P><FONT SIZE=2>    On
March 17, 2000, the Company sold substantially all of its assets for cash, a note and assumption of substantially all liabilities including amounts due the principal
stockholder (</FONT><FONT SIZE=2><I>see Note 8</I></FONT><FONT SIZE=2>).</FONT></P>

<P><FONT SIZE=2><B><I>Revenue Recognition</I></B></FONT></P>

<P><FONT SIZE=2>    The Company's revenues are derived nearly exclusively from its principal software product, DataExpress. Licensing fees are recorded as revenue following
delivery, installation and training. Consulting revenue is recognized in the period in which the services are performed. Maintenance fees are collected in advance and recognized as revenue in the
period earned. Enhancement revenue, representing product enhancements for customers under separate contractual arrangements, is recognized using the percentage of completion method of accounting.
These contractual agreements are negotiated individually
and usually include a fixed fee arrangement. The Company periodically evaluates its progress on each contract and provides for losses, if any, at the time estimated costs to complete a project exceed
expected revenues.</FONT></P>

<P><FONT SIZE=2><B><I>Software Development Costs</I></B></FONT></P>

<P><FONT SIZE=2>    Certain internal software development costs incurred in the creation of computer software products are capitalized once technological feasibility has been
established. Prior to the completion of a detail program design or working model, development costs are expensed. Capitalized costs are amortized based on estimated current and future revenue for each
product with an annual minimum equal to the straight-line amortization over the remaining estimated economic life of the product, not to exceed five years.</FONT></P>

<P><FONT SIZE=2>    The
Company's current product, DataExpress, was initially developed and capitalized through 1993. The costs of initial development are fully amortized and were removed from the
records of the Company in prior periods. The Company expenses the cost of annual enhancements and maintenance releases as incurred.</FONT></P>


<P><FONT SIZE=2><B><I>Research and Development Costs</I></B></FONT></P>

<P><FONT SIZE=2>    Research and development costs are charged to operations when incurred and are included in cost of revenues. The Company is currently in the process of
developing a new Java TM based product that will be</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>


<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

<!-- ZEQ.=1,SEQ=11,EFW="2016236",CP="ELECTRONIC PROCESSING, INC.",DN="1",CHK=879398,FOLIO=6,FILE='DISK018:[00CHI9.00CHI2999]DM2999A.;8',USER='SLYUBOM',CD='26-MAY-2000;12:34 -->

<P><FONT SIZE=2>offered
as a library of reusable software components that can be integrated into third-party systems and as a finished application intended to complement DataExpress. Technological feasibility of this
product has not yet been established, so the costs related to this product have been expensed as incurred. The amount of research and development expenses related to this product in 1999 amounted to
approximately $190,000.</FONT></P>

<P><FONT SIZE=2><B><I>Property and Equipment</I></B></FONT></P>

<P><FONT SIZE=2>    Property and equipment are depreciated on an accelerated basis over the estimated useful life of each asset.</FONT></P>

<P><FONT SIZE=2><B><I>Income Taxes</I></B></FONT></P>

<P><FONT SIZE=2>    The Company's stockholders have elected to have the Company's income taxed as an "S" Corporation under provisions of the Internal Revenue Code and a
similar section of the state income tax law; therefore, taxable income or loss is reported to the individual stockholders for inclusion in their respective tax returns. No provision for federal and
state income taxes is included in these statements.</FONT></P>

<P><FONT SIZE=2><B><I>Use of Estimates</I></B></FONT></P>

<P><FONT SIZE=2>    The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.</FONT></P>

<P><FONT SIZE=2><B><I>Net Income Per Share</I></B></FONT></P>

<P><FONT SIZE=2>    The Company had a single class of common stock outstanding during all of 1999. The Company has no dilutive instruments outstanding and there were no purchases
or sales of stock during the year. Net income per share has been computed based on the number of shares of common stock outstanding during the year.</FONT></P>

<P><FONT SIZE=2><B>NOTE 2:  NOTES PAYABLE</B></FONT></P>

<P><FONT SIZE=2>    The Company has a revolving line of credit agreement with a bank with a maturity date of October 2000. The agreement is secured by the personal
guarantee of the Company's principal stockholder and marketable securities owned by the stockholder. There was no balance outstanding under this obligation as of December 31, 1999.</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>


<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

<!-- ZEQ.=2,SEQ=12,EFW="2016236",CP="ELECTRONIC PROCESSING, INC.",DN="1",CHK=663427,FOLIO=7,FILE='DISK018:[00CHI9.00CHI2999]DM2999B.;7',USER='SLYUBOM',CD='26-MAY-2000;12:34 -->

<P><FONT SIZE=2><B>NOTE 3:  CAPITAL LEASES</B></FONT></P>

<P><FONT SIZE=2>    The Company leases certain computer equipment under capital leases expiring in 2002. Aggregate annual payments on capital lease obligations at
December 31, 1999 are as follows:</FONT></P>

<!-- User-specified TAGGED TABLE -->
<CENTER><TABLE WIDTH="64%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="83%" ALIGN="CENTER"><FONT SIZE=1> </FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="14%" COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>2000</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>20,034</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>2001</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>20,034</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>2002</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>6,678</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>46,746</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Less amount representing interest</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>6,106</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Present value of future minimum lease payments</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>40,640</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Less current maturities</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>16,053</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> <BR>
Noncurrent portion</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> <BR>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> <BR>
24,587</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
</TABLE></CENTER>
<!-- end of user-specified TAGGED TABLE -->
<P><FONT SIZE=2>Property
and equipment include the following property acquired under capital leases:</FONT></P>

<!-- User-specified TAGGED TABLE -->
<CENTER><TABLE WIDTH="64%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="83%" ALIGN="CENTER"><FONT SIZE=1> </FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="14%" COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Computer equipment</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>50,333</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2>Less accumulated depreciation</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>11,185</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>39,148</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="83%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></CENTER>
<!-- end of user-specified TAGGED TABLE -->
<P><FONT SIZE=2><B>NOTE 4:  OPERATING LEASE</B></FONT></P>

<P><FONT SIZE=2>    The Company has a noncancellable operating lease for office space, which expires in September 2001. The lease requires the Company to pay all executory
costs including property taxes, utilities, maintenance and insurance. The Company has the right to renew the lease for another five-year term under the same terms and conditions.</FONT></P>

<P><FONT SIZE=2>    Future
minimum lease payments as of December 31, 1999 are as follows:</FONT></P>

<!-- User-specified TAGGED TABLE -->
<CENTER><TABLE WIDTH="65%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="82%" ALIGN="CENTER"><FONT SIZE=1> </FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="15%" COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="82%"><FONT SIZE=2>2000</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>84,189</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="82%"><FONT SIZE=2>2001</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>88,381</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="82%"><FONT SIZE=2>2002</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>84,539</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="82%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="82%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>257,109</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="82%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></CENTER>
<!-- end of user-specified TAGGED TABLE -->
<P><FONT SIZE=2>    Rental
expense under this lease amounted to $79,997 in 1999.</FONT></P>

<P><FONT SIZE=2><B>NOTE 5:  SIGNIFICANT CUSTOMER</B></FONT></P>

<P><FONT SIZE=2>    The Company's revenues are derived principally from the licensing of software and providing services to a relatively small number of customers. During 1999,
revenues derived from one customer aggregated 31% of total revenues. Amounts receivable from this customer at December 31, 1999 totaled $92,295.</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>


<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

<!-- ZEQ.=3,SEQ=13,EFW="2016236",CP="ELECTRONIC PROCESSING, INC.",DN="1",CHK=568627,FOLIO=8,FILE='DISK018:[00CHI9.00CHI2999]DM2999B.;7',USER='SLYUBOM',CD='26-MAY-2000;12:34 -->


<P><FONT SIZE=2><B>NOTE 6:  RELATED PARTY TRANSACTIONS AND PAYABLE TO STOCKHOLDER</B></FONT></P>

<P><FONT SIZE=2>    The Company has various arrangements with the Company's principal stockholder. The following schedule summarizes these arrangements and the amounts due to this
stockholder as of December 31, 1999:</FONT></P>

<!-- User-specified TAGGED TABLE -->
<CENTER><TABLE WIDTH="67%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="80%" ALIGN="CENTER"><FONT SIZE=1> </FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="18%" COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="80%"><FONT SIZE=2>Notes payable</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>335,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="80%"><FONT SIZE=2>Accrued interest</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>319,365</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="80%"><FONT SIZE=2>Accrued compensation</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>418,459</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="80%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="18%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="80%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>1,072,824</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="80%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="18%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></CENTER>
<!-- end of user-specified TAGGED TABLE -->
<P><FONT SIZE=2>    The
notes payable represent a series of revolving lines of credit between the Company and the stockholder. These notes are secured by substantially all of the business assets of the
Company. The notes originated between 1991 and 1993, have current contractual maturity dates through October 2000, and
carry a fixed interest rate of 12%. Interest expense accrued but not paid on these obligations during 1999 amounted to $49,810. The fair value of notes payable to stockholders approximates the
carrying value.</FONT></P>

<P><FONT SIZE=2>    Accrued
compensation due to the stockholder represents compensation earned in periods prior to January 1, 1999. The stockholder has agreed to defer payment until the Company
has available cash resources.</FONT></P>

<P><FONT SIZE=2><B>NOTE 7:  PROFIT SHARING PLAN</B></FONT></P>

<P><FONT SIZE=2>    The Company has a 401(k) plan covering all qualified employees. The Company makes discretionary matches of up to 50% of the first 15% of employee contributions
to a limit of 6% of the employee's compensation. The Company also has the option of making discretionary contributions. Employees are fully vested in employer contributions after six years.
Contributions amounted to $17,653 for the year ended December 31, 1999.</FONT></P>

<P><FONT SIZE=2><B>NOTE 8:  SUBSEQUENT EVENT</B></FONT></P>

<P><FONT SIZE=2>    On March 17, 2000, the Company sold substantially all of its net assets to Electronic Processing Inc. ("EPI") for cash, a note and assumption of
substantially all of the Company's liabilities, including amounts due to the principal stockholder.</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>


<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

<!-- ZEQ.=4,SEQ=14,EFW="2016236",CP="ELECTRONIC PROCESSING, INC.",DN="1",CHK=798878,FOLIO=9,FILE='DISK018:[00CHI9.00CHI2999]DM2999B.;7',USER='SLYUBOM',CD='26-MAY-2000;12:34 -->
<!-- Generated by Merrill Corporation (www.merrillcorp.com) -->
<BR><BR>
<P ALIGN="CENTER"><FONT SIZE=2><B>[BKD LOGO]</B></FONT></P>

<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

<!-- ZEQ.=1,SEQ=15,EFW="2016236",CP="ELECTRONIC PROCESSING, INC.",DN="1",CHK=364720,FOLIO=blank,FILE='DISK018:[00CHI9.00CHI2999]DO2999A.;4',USER='SLYUBOM',CD='26-MAY-2000;12:34 -->
<BR><BR>
<!-- Generated by Merrill Corporation (www.merrillcorp.com) -->
<H2><FONT SIZE=2> </FONT></H2>
<BR>
<P ALIGN="CENTER"><FONT SIZE=2><B>ELECTRONIC PROCESSING, INC.<BR>
PRO FORMA FINANCIAL INFORMATION<BR>
(Unaudited)</B></FONT></P>

<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

<!-- ZEQ.=1,SEQ=16,EFW="2016236",CP="ELECTRONIC PROCESSING, INC.",DN="1",CHK=878635,FOLIO=blank,FILE='DISK018:[00CHI9.00CHI2999]DQ2999A.;13',USER='SLYUBOM',CD='26-MAY-2000;13:28 -->
<BR>
<BR>
<P ALIGN="CENTER"><FONT SIZE=2><B><A NAME="dq2999_electronic_processing,_inc._pr__ele03373"> </A>
ELECTRONIC PROCESSING, INC.<BR> PRO FORMA CONDENSED COMBINING BALANCE SHEET<BR> December 31, 1999<BR> (Unaudited)  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="101%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="26%" ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Electronic<BR>
Processing<BR>
Inc.</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="10%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>PHiTECH<BR>
Inc.</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="11%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Combined</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="13%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Pro forma<BR>
Adjustments</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="5%" ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="13%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Pro forma<BR>
Consolidated</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1><B>CURRENT ASSETS</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=1> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1>Cash and cash equivalents</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>1,642,848</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1>127,754</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>1,770,602</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>(1,546,584</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1>1.a.,c.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>(224,018</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1>1.d.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=1> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1>Short-term investments</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>3,850,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>3,850,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>(3,850,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1>1.a.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1>Accounts receivable, trade, net of</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1>allowance for doubtful accounts</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>1,954,806</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1>447,420</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>2,402,226</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>2,402,226</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1>Other</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>360,753</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1>23,800</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>384,553</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>384,553</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="26%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>7,808,407</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1>598,974</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>8,407,381</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>(5,620,602</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>2,786,779</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> <BR></FONT> <FONT SIZE=1><B>PROPERTY AND EQUIPMENT, net</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
6,309,520</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
70,211</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
6,379,731</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
(5,323</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR>)</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> <BR>
1.a.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
6,374,408</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> <BR></FONT> <FONT SIZE=1><B>SOFTWARE DEVELOPMENT COSTS, net</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
2,252,917</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
2,252,917</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
361,695</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> <BR>
1.a.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
2,614,612</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> <BR></FONT> <FONT SIZE=1><B>OTHER ASSETS</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="10%"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="8%"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="9%"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=1> <BR>
 </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1>Excess of cost over fair value of net assets acquired</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>9,599,893</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>9,599,893</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>5,898,060</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1>1.a.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>15,497,953</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1>Other</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>251,417</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>251,417</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>50,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1>1.a.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>301,417</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="26%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1><B>TOTAL ASSETS</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>26,222,154</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1>669,185</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>26,891,339</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>683,830</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>27,575,169</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="26%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> <BR></FONT> <FONT SIZE=1><B>CURRENT LIABILITIES</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="10%"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="8%"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="9%"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=1> <BR>
 </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1>Current maturities of long-term debt</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>42,406</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1>16,053</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>58,459</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>58,459</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1>Accounts payable and accrued expenses</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>1,351,147</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1>96,880</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>1,448,027</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>(23,013</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1>1.a.,c.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>1,425,014</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1>Other</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>2,067,566</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1>803,973</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>2,871,539</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>2,871,539</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="26%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>3,461,119</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1>916,906</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>4,378,025</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>(23,013</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>4,355,012</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> <BR></FONT> <FONT SIZE=1><B>LONG TERM DEBT</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
66,894</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
1,097,411</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
1,164,305</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
797,229</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> <BR>
1.a.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
984,171</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
95,460</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> <BR>
1.a.,b.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=1> <BR>
 </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>(1,072,823</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1>1.a.,c.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=1> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> <BR></FONT> <FONT SIZE=1><B>DEFERRED REVENUE</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
1,176,458</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
129,600</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
1,306,058</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
1,306,058</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> <BR></FONT> <FONT SIZE=1><B>DEFERRED INCOME TAXES</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
592,700</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
592,700</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
592,700</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> <BR></FONT> <FONT SIZE=1><B>STOCKHOLDERS' EQUITY</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
20,924,983</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
(1,474,732</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
19,450,251</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
1,474,732</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> <BR>
1.a.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> <BR> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1> <BR>
20,337,228</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>(224,018</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1>1.d.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=1> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>(363,737</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1>1.a.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=1> </FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="26%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="26%"><FONT SIZE=1><B>TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>26,222,154</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1>669,185</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>26,891,339</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>683,830</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>27,575,169</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="26%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="10%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="5%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

<!-- ZEQ.=2,SEQ=17,EFW="2016236",CP="ELECTRONIC PROCESSING, INC.",DN="1",CHK=77967,FOLIO=blank,FILE='DISK018:[00CHI9.00CHI2999]DQ2999A.;13',USER='SLYUBOM',CD='26-MAY-2000;13:28 -->
<BR>
<P ALIGN="CENTER"><FONT SIZE=1><A
NAME="dq2999_electronic_processing,_inc._pr__ele04080"> </A></FONT> <FONT SIZE=2><B>ELECTRONIC PROCESSING, INC.<BR>   PRO FORMA CONDENSED COMBINING STATEMENT OF INCOME<BR>   Year ended December 31, 1999<BR> (Unaudited)  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="99%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="23%" ALIGN="LEFT"><FONT SIZE=2> </FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="13%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Electronic<BR>
Processing<BR>
Inc.</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>PHiTECH<BR>
Inc.</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="13%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Combined</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="13%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Pro forma<BR>
Adjustments</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1> </FONT></TH>
<TH WIDTH="4%" ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH>
<TH WIDTH="14%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Pro forma<BR>
Consolidated</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2><B>OPERATING REVENUES</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>14,820,400</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>2,036,926</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>16,857,326</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>16,857,326</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2> <BR></FONT> <FONT SIZE=2><B>OPERATING EXPENSES</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2> <BR>
 </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2>General and administrative</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>9,902,506</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>1,586,211</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>11,488,717</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>11,488,717</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2>Depreciation and amortization</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>2,381,732</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>26,525</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>2,408,257</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>625,132</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>2.c.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>3,033,389</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2>Acquisition-related expenses</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>315,197</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>315,197</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>315,197</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2>Loss on disposal of computer equipment</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>230,069</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>230,069</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>230,069</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>12,829,504</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>1,612,736</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>14,442,240</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>625,132</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>15,067,372</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2><B>INCOME (LOSS) FROM OPERATIONS</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>1,990,896</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>424,190</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>2,415,086</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(625,132</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,789,954</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2><B>OTHER INCOME (EXPENSE)</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>449,094</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(60,369</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>388,725</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(296,458</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>2.e.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>92,267</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2><B>INCOME (LOSS) BEFORE INCOME TAXES</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>2,439,990</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>363,821</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>2,803,811</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(921,590</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,882,221</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2><B>INCOME TAX PROVISION (BENEFIT)</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>944,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>944,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(356,551</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>2.f.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>728,207</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>140,758</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>2.b.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2><B>NET INCOME (LOSS)</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>1,495,990</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>363,821</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>1,859,811</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(705,797</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,154,014</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2> <BR></FONT> <FONT SIZE=2><B>NET INCOME PER COMMON SHARE</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2> <BR>
 </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2>Basic</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>0.32</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>0.25</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2>Diluted</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>0.31</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>0.24</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2> <BR></FONT> <FONT SIZE=2><B>WEIGHTED AVERAGE COMMON SHARES<BR>
OUTSTANDING</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2> <BR>
 </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2>Basic</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>4,636,822</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>4,636,822</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="23%"><FONT SIZE=2>Diluted</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>4,780,810</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>4,780,810</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

<!-- ZEQ.=3,SEQ=18,EFW="2016236",CP="ELECTRONIC PROCESSING, INC.",DN="1",CHK=442472,FOLIO=blank,FILE='DISK018:[00CHI9.00CHI2999]DQ2999A.;13',USER='SLYUBOM',CD='26-MAY-2000;13:28 -->
<!-- Generated by Merrill Corporation (www.merrillcorp.com) -->
<P ALIGN="CENTER"><FONT SIZE=2><B>ELECTRONIC PROCESSING, INC.</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>NOTES TO PRO FORMA CONDENSED COMBINING</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>FINANCIAL STATEMENTS</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>(Unaudited)</B></FONT></P>

<P><FONT SIZE=2>    On
March 3, 2000, the Company entered into an asset purchase agreement with PHiTECH, Inc., ("PHiTECH"), for cash and the issuance of a long-term obligation.
Certain of the cash paid was applied directly to the payment of certain of PHiTECH's liabilities. This transaction was closed on March 17, 2000.</FONT></P>

<DL compact>
<DT><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>The
pro forma condensed combining balance sheet of the Company and PHiTECH as of December 31, 1999 has been prepared as if these transactions occurred on December 31,
1999 in accordance with the following assumptions:
<BR><BR></FONT>
<DL compact>
<DT><FONT SIZE=2>a.</FONT></DT><DD><FONT SIZE=2>The
transaction is accounted for utilizing the purchase method of accounting whereby the net assets acquired and liabilities assumed are adjusted to their fair values. The
components of the transaction assumed in the pro forma condensed combining balance sheet are as follows:</FONT></DD></DL>
</DD></DL>
<BR><BR>
<!-- User-specified TAGGED TABLE -->
<CENTER><TABLE WIDTH="65%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2>Cash paid, including direct costs of $56,074</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>5,492,043</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2>Present value of $1,000,000 obligation, discounted at 9%</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>797,229</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="57%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="18%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2>Present value of consideration given</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>6,289,272</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2> <BR>
Less fair value of net assets acquired</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="16%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2> <BR>
 </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2>Historical negative book value of PHiTECH</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>(1,474,732</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2>Liabilities paid concurrent with acquisition</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>1,095,835</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="57%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="19%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2>Negative historical book value of net assets acquired</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>(378,897</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2> <BR>
Adjustments to reflect fair value of assets acquired</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="16%"><FONT SIZE=2> <BR>
 </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> <BR> </FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2> <BR>
 </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2>In-process research and development</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>363,737</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2>Computer equipment</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>(5,323</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2>Software development costs</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>361,695</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2> </FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2>Noncompete agreement</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>50,000</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>391,212</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="57%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="19%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="18%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="57%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT"><FONT SIZE=2>5,898,060</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="57%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="18%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></CENTER>
<!-- end of user-specified TAGGED TABLE -->

<UL>
<DL compact>
<DT><FONT SIZE=2>b.</FONT></DT><DD><FONT SIZE=2>The
acquisition will be financed from the Company's cash resources with any shortfall being funded with borrowings on the Company's line of credit.
<BR><BR></FONT></DD><DT><FONT SIZE=2>c.</FONT></DT><DD><FONT SIZE=2>As
a part of the purchase agreement, the Company agreed to pay PHiTECH's accrued payroll, vacation, certain accounts payable, and notes payable to a bank and to PHiTECH's principal
shareholder. Payment of these liabilities aggregating $1,095,835 is assumed to have occurred on December 31, 1999.
<BR><BR></FONT></DD><DT><FONT SIZE=2>d.</FONT></DT><DD><FONT SIZE=2>The
Company incurred certain non-direct costs related to the acquisition of PHiTECH. These costs were expensed as incurred, in accordance with generally accepted
accounting principles related to the purchase method of accounting.</FONT></DD></DL>
<BR>
</UL>
<DL compact>
<DT><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>The
pro forma condensed statement of operations have been prepared in accordance with the following assumptions:</FONT> <FONT SIZE=2><BR><BR></FONT>
<DL compact>
<DT><FONT SIZE=2>a.</FONT></DT><DD><FONT SIZE=2>The
acquisition occurs on January 1, 1999 and is accounted for using the purchase method of accounting. Accordingly, the operations of PHiTECH are included in the pro forma
consolidated results of operations from January 1, 1999 forward.</FONT></DD></DL>
</DD></DL>

<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

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<UL>
<UL>
</UL>
<DL compact>
<DT><FONT SIZE=2>b.</FONT></DT><DD><FONT SIZE=2>Income
taxes on the 1999 results of operations for PHiTECH, an S-Corporation, have been calculated using the Company's effective 1999 tax rate of 38.7%.
<BR><BR></FONT></DD><DT><FONT SIZE=2>c.</FONT></DT><DD><FONT SIZE=2>The
net change in amortization expense is comprised of the following:</FONT></DD></DL>
</UL>

<!-- User-specified TAGGED TABLE -->
<CENTER><TABLE WIDTH="60%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="80%"><FONT SIZE=2>Amortization expense of excess of cost over fair value of net assets acquired</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>612,632</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="80%"><FONT SIZE=2>Amortization expense of the non-compete agreement</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>12,500</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="80%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="17%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="80%"><FONT SIZE=2>Increase in amortization expense</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>625,132</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="80%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2> </FONT></TD>
<TD WIDTH="17%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></CENTER>
<!-- end of user-specified TAGGED TABLE -->
<UL>
<UL>
<UL>

<P><FONT SIZE=2>•   The
excess of cost over fair value of net assets acquired is being amortized using the straight-line method over ten years.</FONT></P>

<P><FONT SIZE=2>•   The
non-compete agreement is being amortized using the straight-line method over four years.</FONT></P>

</UL>
</UL>
<DL compact>
<DT><FONT SIZE=2>d.</FONT></DT><DD><FONT SIZE=2>The
Company incurred non-direct costs related to the acquisition of PHiTECH in the amount of $224,018. In addition, $363,737 of the acquisition price was allocated to In-process
Research and Development Costs.
<BR><BR></FONT></DD><DT><FONT SIZE=2>e.</FONT></DT><DD><FONT SIZE=2>Interest
income has been reduced in proportion to the decrease in cash and investments resulting from the purchase. Interest expense has been increased for the accretion of the
discount on the $1,000,000 obligation incurred with the acquisition.</FONT></DD></DL>
<UL>
<BR>

<P><FONT SIZE=2>Interest
expense of PHiTECH has been eliminated due to the notes payable to a bank and PHiTECH's principal shareholder being paid-off by the Company as of the acquisition date.</FONT></P>

</UL>
<DL compact>
<DT><FONT SIZE=2>f.</FONT></DT><DD><FONT SIZE=2>The
income tax effect of these adjustments is calculated using the Company's effective 1999 income tax rate of 38.7%.</FONT></DD></DL>
</UL>

<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

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<UL>
<UL>
</UL>
</UL>

<P><FONT SIZE=2>The
pro forma condensed combining financial statements, which have been prepared by the Company's management based upon the historical financial statements of the Company and PHiTECH, INC.
should be read in conjunction with the accompanying audited financial statements and notes thereto of PHiTECH, Inc. contained elsewhere in this document. The pro forma condensed combining
financial statements are not necessarily indicative of the financial position or the results of operations of the combined entities as they may be in the future or as they might have been if the
proposed transaction had been in effect on the dates indicated.</FONT></P>

<P><FONT SIZE=2><HR
NOSHADE></FONT></P>

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<BR>
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<BR>
<H2><FONT SIZE=2><A NAME="00CHI2999_1">QuickLinks</A></FONT></H2>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#de2999_signatures">SIGNATURES</A></FONT><BR>
<!-- TOC_END -->
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#di2999_phitech,_inc._december_31,_1999_contents">PHiTECH, INC. DECEMBER 31, 1999 CONTENTS</A></FONT><BR>
<!-- TOC_END -->
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#dk2999_phitech,_inc._balance_sheet_december_31,_1999">PHiTECH, INC. BALANCE SHEET DECEMBER 31, 1999</A></FONT><BR>
<FONT SIZE=2><A HREF="#dk2999_assets">ASSETS</A></FONT><BR>
<FONT SIZE=2><A HREF="#dk2999_liabilities_and_stockholders__equity_(deficit)">LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)</A></FONT><BR>
<FONT SIZE=2><A HREF="#dk2999_phitech,_inc._statement_of_inc__phi01931">PHiTECH, INC. STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 1999</A></FONT><BR>
<FONT SIZE=2><A HREF="#dk2999_phitech,_inc._statement_of_cha__phi03223">PHiTECH, INC. STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) YEAR ENDED DECEMBER 31, 1999</A></FONT><BR>
<FONT SIZE=2><A HREF="#dk2999_phitech,_inc._statement_of_cas__phi02101">PHiTECH, INC. STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 1999</A></FONT><BR>
<!-- TOC_END -->
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#dq2999_electronic_processing,_inc._pr__ele03373">ELECTRONIC PROCESSING, INC. PRO FORMA CONDENSED COMBINING BALANCE SHEET December 31, 1999 (Unaudited)</A></FONT><BR>
<FONT SIZE=2><A HREF="#dq2999_electronic_processing,_inc._pr__ele04080">ELECTRONIC PROCESSING, INC. PRO FORMA CONDENSED COMBINING STATEMENT OF INCOME Year ended December 31, 1999 (Unaudited)</A></FONT><BR>

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