Management's Discussion and Analysis of
Financial Condition and Results of Operations

Accounting Standards

On March 4, 1998, the Accounting Standards Executive Committee issued Statement of Position (SOP) 98-1 providing guidance on accounting for the costs of computer software developed or obtained for internal use. The effective date of this pronouncement is for fiscal years beginning after December 15, 1998. The Company has reviewed its current policies of accounting for costs associated with internal software development projects and how they may be affected by SOP 98-1. The Company believes its current policies are materially consistent with the SOP, and will not have a significant impact on the Company's future results of operations.