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<ACCESSION-NUMBER>0001047469-08-002947
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<PERIOD>20071231
<FILING-DATE>20080317
<DATE-OF-FILING-DATE-CHANGE>20080317
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ON ASSIGNMENT INC
<CIK>0000890564
<ASSIGNED-SIC>7363
<IRS-NUMBER>954023433
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
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<ACT>34
<FILE-NUMBER>000-20540
<FILM-NUMBER>08693570
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<BUSINESS-ADDRESS>
<STREET1>26651 WEST AGOURA ROAD
<CITY>CALABASAS
<STATE>CA
<ZIP>91302
<PHONE>8188787900
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<DESCRIPTION>FORM 10-K
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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=5><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>  </B></FONT><FONT SIZE=2><B>Washington, DC 20549  </B></FONT></P>

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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=5><B>FORM 10-K  </B></FONT></P>

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<TD WIDTH="11%" ALIGN="CENTER" style="font-family:arial;"><BR><FONT SIZE=3><B><FONT FACE="WINGDINGS">&#253;</FONT></B></FONT></TD>
<TD WIDTH="89%" style="font-family:arial;"><FONT SIZE=3><B><BR>
ANNUAL REPORT PURSUANT TO SECTION&nbsp;13 OR 15(d) OF&nbsp;THE SECURITIES&nbsp;EXCHANGE ACT OF&nbsp;1934</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><BR><FONT SIZE=2><B>For the fiscal year ended December&nbsp;31, 2007</B></FONT></TD>
</TR>
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<TD WIDTH="11%" ALIGN="CENTER" style="font-family:arial;"><BR><FONT SIZE=3><B><FONT FACE="WINGDINGS">&#111;</FONT></B></FONT></TD>
<TD WIDTH="89%" style="font-family:arial;"><FONT SIZE=3><B><BR>
TRANSITION REPORT PURSUANT TO SECTION&nbsp;13 OR 15(d) OF&nbsp;THE SECURITIES&nbsp;EXCHANGE ACT OF&nbsp;1934</B></FONT></TD>
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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><B> Commission File Number&nbsp;0-20540  </B></FONT></P>

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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=5><B>ON ASSIGNMENT,&nbsp;INC.<BR>  </B></FONT><FONT SIZE=2>(Exact name of registrant as specified in its charter) </FONT></P>

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<TD WIDTH="49%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><B>Delaware</B></FONT><FONT SIZE=2><BR>
(State or other jurisdiction of<BR>
incorporation or organization)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><B>95-4023433</B></FONT><FONT SIZE=2><BR>
(I.R.S. Employer<BR>
Identification No.)</FONT></TD>
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<TD COLSPAN=3 ALIGN="CENTER" VALIGN="TOP" style="font-family:arial;"><BR><FONT SIZE=2><B>26651 West Agoura Road<BR>
Calabasas, California 91302<BR> </B></FONT><FONT SIZE=2>(Address of Principal Executive Offices)</FONT></TD>
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<TD COLSPAN=3 ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
Registrant's telephone number, including area code: </FONT><FONT SIZE=2><B>(818)&nbsp;878-7900</B></FONT></TD>
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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>Securities registered pursuant to Section&nbsp;12(b) of the Act: </FONT></P>

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<TH WIDTH="49%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Title of each class</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="49%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Name of each exchange on which registered</B></FONT><HR NOSHADE></TH>
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<TD WIDTH="49%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>Common Stock, $0.01 par value</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>The NASDAQ Stock Market,&nbsp;LLC</FONT></TD>
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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>Securities
registered pursuant to Section&nbsp;12(g) of the Act: </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><B>None</B></FONT><FONT SIZE=2><BR>
(Title of Class) </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule&nbsp;405 of the Securities
Act.&nbsp;Yes&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;No&nbsp;<FONT FACE="WINGDINGS">&#253;</FONT> </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark if the registrant is not required to file reports pursuant to Section&nbsp;13 or Section&nbsp;15(d) of the
Act.&nbsp;Yes&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;No&nbsp;<FONT FACE="WINGDINGS">&#253;</FONT> </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant (1)&nbsp;has filed all reports required to be filed by Section&nbsp;13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12&nbsp;months (or for such shorter period that the registrant was required to file such reports), and (2)&nbsp;has been subject to such filing requirements of the past
90&nbsp;days.&nbsp;Yes&nbsp;<FONT FACE="WINGDINGS">&#253;</FONT>&nbsp;No&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT> </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark if disclosure of delinquent filers pursuant to Item&nbsp;405 of Regulation&nbsp;S-K is not contained herein, and will not be
contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part&nbsp;III of this Form&nbsp;10-K or any amendment to
this Form&nbsp;10-K.&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT> </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting
company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule&nbsp;12b-2 of the Exchange Act. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>Large
accelerated filer&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT> Accelerated filer&nbsp;<FONT FACE="WINGDINGS">&#253;</FONT> Non-accelerated
filer&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT> Smaller reporting company&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT> </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant is a shell company (as defined in Rule&nbsp;12b-2 of the Exchange
Act).&nbsp;Yes&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;No&nbsp;<FONT FACE="WINGDINGS">&#253;</FONT> </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June&nbsp;30, 2007, the aggregate market value of the voting stock held by non-affiliates of the registrant was approximately $370,551,251. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of March&nbsp;10, 2008, the registrant had outstanding 35,388,148 shares of Common Stock, $0.01 par value. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>DOCUMENTS INCORPORATED BY REFERENCE</B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portions
of the registrant's proxy statement for the 2008 Annual Meeting of Stockholders, to be filed within 120&nbsp;days of the close of the registrant's fiscal year 2007, are
incorporated by reference into Part&nbsp;III of this Annual Report on Form&nbsp;10-K. </FONT></P>

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<BR></FONT><FONT SIZE=2><B>SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Annual Report on Form&nbsp;10-K contains forward-looking statements within the meaning of Section&nbsp;27A of the Securities Act of 1933, as
amended, and Section&nbsp;21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon current expectations, as well as management's beliefs and assumptions, and involve a
high degree of risk and uncertainty. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Statements that include the words
"believes," "anticipates," "plans," "expects," "intends," and similar expressions that convey uncertainly of future events or outcomes are forward-looking statements. Forward-looking statements
include statements regarding our anticipated financial and operating performance for future periods. Our actual results could differ materially from those discussed or suggested in the forward-looking
statements herein. Factors that could cause or contribute to these differences or prove our forward-looking statements, by hindsight, to be overly optimistic or unachievable include, but are not
limited to the factors described in Item&nbsp;1A of this Annual Report on Form&nbsp;10-K under the Section titled "Risk Factors." Other factors also may contribute to the differences
between our forward-looking statements and our actual results. In addition, as a result of these and other factors, our past financial performance should not be relied on as an indication of future
performance. All forward-looking statements in this document are based on information available to us as of the date we file this Annual Report on Form&nbsp;10-K, and we assume no
obligation to update any forward-looking statement or the reasons why our actual results may differ. </FONT></P>

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<BR></FONT><FONT SIZE=2><B>PART I    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="da10801_item_1._business"> </A>
<A NAME="toc_da10801_2"> </A>
Item&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Business    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Overview and History  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On Assignment,&nbsp;Inc. is a diversified professional staffing firm providing flexible and permanent staffing solutions in specialty skills including
Laboratory/Scientific, Healthcare/Nursing/Physician, Medical Financial, Information Technology and Engineering. We provide clients in these markets with short-term or long-term
assignments of contract professionals, contract-to-permanent placement and direct placement of these professionals. As of December&nbsp;31, 2007, our business consists of
four operating segments: Life Sciences, Healthcare, Physician and IT and Engineering. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Life Sciences (formerly Lab Support) segment includes our domestic and international life science staffing businesses. Life Sciences segment revenues for 2007 were $134,622,000 and
represented 23.7&nbsp;percent of our total revenues. We provide locally based contract life science professionals to clients in the biotechnology, pharmaceutical, food and beverage, medical device,
personal care, chemical, automotive, educational and environmental industries. Our contract professionals include chemists, clinical research associates, clinical lab assistants, engineers,
biologists, biochemists, microbiologists, molecular biologists, food scientists, regulatory affairs specialists, lab assistants and other skilled scientific professionals. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Healthcare segment includes our Nurse Travel and Allied Healthcare (formerly Medical Financial and Allied, or MF&amp;A) lines of business. Healthcare segment revenues for 2007 were
$175,079,000 and represented 30.9&nbsp;percent of our total revenues. We offer our healthcare clients contract professionals, both locally-based and traveling, from more than ten healthcare and
medical financial and allied occupations. Our contract professionals include nurses, specialty nurses, health information management professionals, dialysis technicians, surgical technicians, imaging
technicians, x-ray technicians, medical technologists, phlebotomists, coders, billers, claims processors and collections staff. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Physician segment consists of VISTA Staffing Solutions,&nbsp;Inc. (VISTA), which we acquired on January&nbsp;3, 2007.The Physician segment revenues for 2007 were $74,599,000 and
represented 13.2&nbsp;percent of our total revenues. VISTA is a leading provider of physician staffing, known as locum tenens, and permanent physician search services based in Salt Lake City, Utah.
We provide short and long-term locum tenens services and full-service physician search and consulting services, primarily in the United States, with some locum tenens
placements in Australia and New Zealand. We work with physicians in a wide range of specialties, placing them in hospitals, community-based practices and federal, state and local facilities. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
IT and Engineering segment consists of Oxford Global resources,&nbsp;Inc. (Oxford) which we acquired on January&nbsp;31, 2007. The IT and Engineering segment revenues for 2007
were $182,880,000, which only included 11&nbsp;months of activity due to the acquisition date, and represented 32.2&nbsp;percent of our total revenues. Oxford, based in Beverly, Massachusetts,
delivers high-end consultants with expertise in specialized information technology, hardware and software engineering and mechanical, electrical, validation and telecommunications
engineering fields. We combine international reach with local depth, serving clients through a network of Oxford International recruiting centers in the United States and Europe, and Oxford&nbsp;&amp;
Associates branch offices in major metropolitan markets across the United States. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
were incorporated on December&nbsp;30, 1985, and commenced operation of Lab Support (now known as Life Sciences), our first contract staffing line of business. Utilizing our
experience and unique approach in servicing our clients and contract professionals, we expanded our operations into other industries requiring specialty staffing. In 1994, through our acquisition of
1<SUP>st</SUP>&nbsp;Choice Personnel,&nbsp;Inc. and Sklar Resource Group,&nbsp;Inc., we established our Healthcare Financial Staffing </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>3</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>service
line (now a part of our Healthcare segment). Originally named Finance Support, this service line changed its name in 1997 along with a shift in its business development focus to medical
billing and collections for hospitals, HMO's and physician groups. In 1996, through our acquisition of Enviro </FONT><FONT SIZE=2><I>Staff</I></FONT><FONT SIZE=2>, we began providing contract
professionals to the environmental services industry. LabStaffers,&nbsp;Inc. was acquired in 1998 to enhance our domestic Life Sciences business. In 1999, we expanded our Life Sciences operations
into Europe. Also in 1999, we formed our Clinical Lab Staff service line, and in 2001, we formed our Diagnostic Imaging Staff service line. Both of these service lines provide scientific and medical
professionals to hospitals, physicians' offices, clinics, reference laboratories and HMO's and are currently included as a part of our Healthcare segment. In 2002, through our acquisition of Health
Personnel Options Corporation, we established our Nurse Travel line of business, which provides registered nurses to hospitals and managed healthcare organizations. In 2003, we expanded our service
offerings for the Life Sciences segment to include clinical research and engineering. Clinical research provides life science professionals in medical and clinical trial research, and engineering
provides contract professionals in manufacturing, packaging, research and development and quality control positions. For the Healthcare segment, our expanded service offerings in 2004 included local
nursing and health information management (HIM). HIM provides health information professionals to healthcare clients to process insurance claims and manage patient data. On January&nbsp;3, 2007, we
acquired VISTA, a company that provides short and long-term physician staffing (locum tenens) solutions to healthcare providers. VISTA was founded in 1990 and its headquarters are located
in Salt Lake City, Utah. On January&nbsp;31, 2007 we acquired Oxford, a company that provides high-end consultants with expertise in specialized information technology (IT); software and
hardware engineering; and mechanical, electrical, validation and telecommunications engineering fields. Oxford was founded in 1984 and is headquartered in Beverly, Massachusetts. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
information regarding our operating segments and our domestic and international revenues are included under "Financial Statements and Supplementary Data" in Part&nbsp;II,
Item&nbsp;8 of this Annual Report. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
principal executive office is located at 26651 West Agoura Road, Calabasas, California 91302, and our telephone number is (818)&nbsp;878-7900. We have approximately 85
branch offices in 24 states within the United States and in 4 foreign countries. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Industry and Market Dynamics  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The U.S. Bureau of Labor Statistics estimates that total employment will grow by 15.6&nbsp;million jobs, or 10&nbsp;percent, between 2006 and 2016. By
comparison, there were 15.9&nbsp;million new jobs created in the prior ten-year period. Employment growth will continue to be concentrated in the service sector with healthcare and
social assistance, and professional and business services providing the strongest employment growth. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
</FONT><FONT SIZE=2><I>Staffing Industry Analysts Insight: 2008-2009 Staffing Industry Forecast</I></FONT><FONT SIZE=2> (February&nbsp;28, 2008), an independent
staffing industry publication, estimated that total staffing industry revenues would be $135&nbsp;billion in 2008 and $144&nbsp;billion in 2009, up from $133&nbsp;billion in 2007. The biggest
industry segment, contract help, is forecasted to grow at an annual rate of 0.9&nbsp;percent in 2008 with revenues of $98&nbsp;billion in 2008 while permanent placement is expected to grow
4.3&nbsp;percent. Within the contract help segment, professional staffing is expected to grow at an annual rate of 6.3&nbsp;percent in 2008 to revenues of $58&nbsp;billion. We believe that by
outsourcing their labor needs to professional staffing firms, management at healthcare, scientific and IT facilities are realizing the cost advantages, improved flexibility to meet unexpected
increases in business and access to greater expertise. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>4</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December&nbsp;31, 2007, our staffing service offerings were grouped under four operating segments: Life Sciences, Healthcare, Physician and IT and Engineering. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Life Sciences  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The </FONT><FONT SIZE=2><I>Staffing Industry Analysts Insight: 2008-2009 Staffing Industry Forecast</I></FONT><FONT SIZE=2> (February&nbsp;28,
2008) states that professional staffing will increase 6.3&nbsp;percent in 2008. We believe that the Life Sciences business will mirror the growth of the professional staffing industry as a whole,
which includes the engineering industry. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Life Sciences segment includes our domestic and international life science staffing businesses. We provide locally based, contract life science professionals to clients in the
biotechnology, pharmaceutical, food and beverage, personal care, chemical, medical device, automotive, education
and environmental industries. Our Life Sciences segment operates from local branch offices in the United States, United Kingdom, Netherlands and Belgium. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Healthcare  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The </FONT><FONT SIZE=2><I>Staffing Industry Analysts Insight: 2008-2009 Staffing Industry Forecast</I></FONT><FONT SIZE=2> (February&nbsp;28,
2008) estimates that the healthcare staffing industry will grow 7&nbsp;percent in 2008. The healthcare staffing industry grew by 6&nbsp;percent in 2006 and 2007. Within the healthcare staffing
industry, allied health and locum tenens continue to be the strongest areas, with each generating greater than 10&nbsp;percent growth. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
prior years, nursing employment levels were affected by cutbacks in the use of agency workers by hospitals and medical groups and their reluctance to pay market rates. Looking
forward, nursing contract employment growth should be stimulated by various factors including a limited supply of nurses, more favorable nurse-patient ratios and an aging population. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
combination of increased demand for health services and advances in life science and medical technology is expected to create significant demand for workers with specialized science
and medical skills. Also influencing the demand for these workers is the departure of mature professionals from the ranks of full-time employment as they retire, reduce hours worked and
pursue other career opportunities. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Healthcare segment provides locally-based and traveling contract professionals to healthcare clients, including hospitals, integrated delivery systems, imaging centers, clinics,
physician offices, reference laboratories, universities, managed care organizations and third-party administrators. These healthcare clients face shortages of operations-critical staff that limit
their ability to generate revenues. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Physician  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The </FONT><FONT SIZE=2><I>Staffing Industry Analysts Briefing Report</I></FONT><FONT SIZE=2> (February&nbsp;27, 2008) states that the physician staffing
market will increase 17&nbsp;percent in 2008. This is one of the fastest growing sectors of the staffing markets. An ongoing shortage of physicians is fueling this growth. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Physician staffing business places physicians in a wide range of specialties throughout the United States, as well as Australia and New Zealand, under the brand VISTA. The physician
staffing market requires a high degree of specialized knowledge about credentialing and qualifications as well as unique insurance requirements that make it more difficult to replicate than certain
other types of staffing. Our Physician segment operates out of one primary recruitment center with several branches. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> IT and Engineering  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The </FONT><FONT SIZE=2><I>Staffing Industry Analysts Insight: 2008-2009 Staffing Industry Forecast</I></FONT><FONT SIZE=2> (February, 28, 2008)
estimates that the IT staffing market will grow 6&nbsp;percent in 2008 to $21.8&nbsp;billion. Ongoing advances in the area of software development continue to fuel the shortage of IT professionals
with relevant experience. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
IT and Engineering segment places only very highly qualified professionals across a wide range of disciplines. The segment operates out of several large sales and recruitment centers
including one in Cork, Ireland under the brand Oxford International, and a number of domestic branch offices under the brand Oxford &amp; Associates. Placements are highly diversified in that we average
less than two contract placements per client. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Sales and Fulfillment  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our strategy is to serve the needs of our targeted industries by effectively understanding and matching client staffing needs with qualified contract
professionals. In contrast to the mass market approach generally used for contract office/clerical and light industrial personnel, we believe effective assignments of contract healthcare, life
science, physician and IT and engineering professionals require the people involved in making assignments to have significant knowledge of the client's industry and the ability to assess the specific
needs of the client as well as the contract professionals' qualifications. We believe that face-to-face selling is significantly more effective than the telephonic solicitation
of clients, a tactic favored by many of our competitors. We believe our strategy of using industry professionals to develop personal relationships provides us with a competitive advantage recognized
by our clients. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
corporate offices are organized to perform many functions that allow staffing consultants and recruiters to focus more effectively on business development and the assignment of
contract professionals. These functions include the recruiting and hiring of staffing consultants, recruiters and support staff, as well as ongoing training, coaching and administrative support. Our
corporate offices also select, open and maintain branch offices. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Life Sciences  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have developed a tailored approach to the assignment-making process that utilizes staffing consultants. Unlike traditional approaches that tend to be focused
on telephonic solicitation, our Life Sciences staffing consultants are experienced professionals who work in our branch office network in the United States, United Kingdom, Netherlands and Belgium to
enable face-to-face meetings with clients and contract professionals. At December&nbsp;31, 2007, we had 44 Life Sciences segment branch offices. Most of our staffing
consultants are either focused on sales and business development or on fulfillment. Sales staffing consultants meet with clients' managers to understand client needs, formulate position descriptions
and assess workplace environments. Fulfillment staffing consultants meet with candidates to assess their qualifications and interests and place these contract professionals on quality assignments with
clients. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract
professionals assigned to clients are generally our employees, although clients provide on-the-job supervisors for these professionals. Therefore,
clients control and direct the work of contract professionals and approve hours worked, while we are responsible for many of the activities typically handled by the client's human resources
department. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Healthcare  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sales and fulfillment functions of our Nurse Travel line of business are aligned with more traditional nurse travel companies. We employ regional sales
directors and account managers to </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<P style="font-family:arial;"><FONT SIZE=2>identify
and sell services to healthcare clients who need nurses. We employ recruiters to find nurses and place them on assignment as contract professionals with healthcare providers for periods
ranging from three weeks to thirteen weeks and longer. We serve a diverse collection of healthcare clients, including hospitals, integrated delivery systems and managed care organizations on a
national basis. We seek to address occupations that represent "high demand and highly-skilled" staff such as operating room nurses, which are essential to maintaining the hospital's ability to care
for patients and maintain business and revenues. The critical nature of these occupations to drive revenue motivates clients to respond to our ability to rapidly fill open positions with experienced
nurses. We recruit and place on travel assignments is primarily managed at our locations in Cincinnati, Ohio and San Diego, California. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
nurses we assign to clients are our employees, although clients provide on-the-job supervisors for the nurses. Therefore, clients control and direct the work
of nurses and approve hours worked, while we are responsible for many of the activities typically handled by the client's human resources department. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
December&nbsp;31, 2007, we had 30 Allied Healthcare branch offices in the United States, of which 15 share office space with the Life Sciences division. We have developed a tailored
approach to the assignment-making process that utilizes staffing consultants. Staffing consultants are experienced professionals who work in our branch offices and personally meet with clients and
contract professionals. Our staffing consultants are typically either focused primarily on sales and business development or on fulfillment. Sales staffing consultants meet with clients to understand
their staffing needs, formulate position descriptions and assess workplace environments. Fulfillment staffing consultants meet with candidates to assess their qualifications and interests and place
these contract professionals on quality assignments with clients. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
contract professionals assigned to our Allied Healthcare clients are usually our employees, although clients provide on-the-job supervisors for these
professionals. Therefore, clients control and direct the work of contract professionals and approve hours worked, while we are responsible for many of the activities typically handled by the client's
human resources department. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Physician  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sales and fulfillment functions at our Physician segment are similar to those of our competitors. Our staffing specialists are organized by geographic
territories so that a single individual can handle a client's locum tenens needs for all disciplines. Our recruiters and staffing specialists have the clinical expertise to identify physician
candidates with the skills, experience and availability to meet our clients' needs. Our Physician business is headquartered in Salt Lake City, Utah, where the majority of our recruiters and all back
office functions are located. In addition we have three branch locations that also carry out recruiting functions. We supply doctors in a wide range of specialties throughout the United States and in
Australia and New Zealand. Assignments are typically booked up to three months in advance and last six weeks. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
physicians we place at clients are independent contractors. Clients assign shifts and approve hours worked, while we are responsible for issuing payments to the physicians for
services rendered to our clients. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> IT and Engineering  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our IT and Engineering segment is headquartered outside of Boston, Massachusetts, where all of the back-office activities are located along with
several large recruiting centers. The segment operates in two separate formats. One consists of 11 sales and recruiting hubs that manage client orders submitted from anywhere in the country and
fulfill those orders with appropriate candidates identified from a nationwide database of skilled IT and engineering professionals. The right </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>7</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<P style="font-family:arial;"><FONT SIZE=2>candidates
for these assignments often reside in locations that are remote from the client worksite and will travel away from their homes to perform the assignments. The other operating format
consists of 11 branch offices that typically receive orders from clients in their local market and fulfill those orders with people from the local market. In each of these formats, we employ both
client-oriented sales people and recruiters. Because our IT and Engineering segment addresses a wide range of disciplines within the IT and engineering markets, our sales people and recruiters
generally specialize in a given discipline. We also have a sales and recruiting hub in Cork, Ireland to service the European market. Our competitive advantage in this segment comes from our effort to
respond very quickly to a client's request. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract
professionals assigned to clients are generally our employees, although clients provide on-the-job supervisors for these professionals. Therefore,
clients
control and direct the work of contract professionals and approve hours worked, while we are responsible for many of the activities typically handled by the client's human resources department. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Clients  </B></FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Life Sciences  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our clients in the Life Sciences segment include biotechnology and pharmaceutical companies, along with a broad range of clients in food and beverage, medical
device, personal care, chemical, automotive, education and environmental industries. Our primary contacts with our clients are a mix of end users and process facilitators. End users consist of lab
directors and managers and department heads. Facilitators consist of human resource managers, procurement departments and administrators and are more price sensitive than end users who typically are
more focused on technical capabilities. Assignments in our Life Sciences segment typically have a term of three to six months. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Healthcare  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In our Healthcare segment, we serve a diverse collection of healthcare clients, including hospitals, integrated delivery systems, imaging centers, clinics,
physician offices, reference laboratories, universities, managed care organizations and third-party administrators. In doing so, we address occupations that are "high demand and highly-skilled" staff,
such as operating room nurses and health information professionals that are essential to the hospital's ability to care for patients and maintain business and revenues. Today, many clients in our
Healthcare segment face shortages of these operations-critical staff. Assignments in our Healthcare segment typically have a term of three to thirteen weeks. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Physician  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Clients in our Physician segment include hospitals, doctors' practice groups, large healthcare systems and government agencies. We are called on to supply
temporary and permanent doctors because of the difficulty that healthcare providers have finding qualified practitioners. Assignments in our Physician segment typically have a term of six weeks. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> IT and Engineering  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In our IT and Engineering segment, we supply a very wide range of clients. Our clients range from very large companies that may, for example, be installing new
enterprise wide computer systems and have a need for a project manager with a certain type of experience to a system integrator who is looking for a similar person. We can also provide a person with a
specific type of embedded software expertise to a smaller company finishing up the development of a new product. The disciplines in our IT and Engineering segment are quite varied in the information
technology, </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>8</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<P style="font-family:arial;"><FONT SIZE=2>hardware/software,
engineering and telecom markets. Assignments in our IT and Engineering segment typically have a term of approximately five months. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the year ended December&nbsp;31, 2007, we provided contract professionals to approximately 6,747 clients. In 2007, we earned 2.9&nbsp;percent of our consolidated revenues from
several clients operating under a single contract with Los Angeles County versus 13.1&nbsp;percent in 2006. The revenues from this contract are included in Healthcare segment revenues. No other
single client or contract accounted for 2.9&nbsp;percent or more of total revenues during the 2007 period. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
contract assignments, regardless of their planned length, may be terminated with limited notice by the client or the contract professional. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>The Contract Professional  </B></FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Life Sciences  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Life Sciences segment's life science professionals include chemists, clinical research associates, clinical lab assistants, engineers, biologists,
biochemists, microbiologists, molecular biologists, food scientists, regulatory affairs specialists, lab assistants and other skilled scientific professionals. These contract professionals range from
individuals with bachelor's and/or master's degrees and considerable experience, to technicians with limited chemistry or biology backgrounds and lab experience. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Healthcare  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Healthcare segment's contract professionals include nurses, specialty nurses, health information management professionals, dialysis technicians, surgical
technicians, imaging technicians, x-ray technicians, medical technologists, phlebotomists, coders, billers, claims processors and collections staff. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Physician  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In our Physician segment, the doctors come from 33 different specialties including; emergency medicine, psychiatry, anesthesiology, radiology, family practice,
surgical specialties, internal medicine, pediatrics, obstetrics and gynecology. All of these professionals are independent contractors as we do not practice medicine. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> IT and Engineering  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our IT and Engineering segment's professionals come from various information technology, hardware/software, telecom and engineering disciplines. Typically they
have a great deal of knowledge and experience in a fairly narrow field which makes them uniquely qualified to fill a given assignment. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hourly
wage or contract rates for our contract professionals are established according to local market conditions. Generally, (but specifically excluding our locum tenens physicians), we
pay the related costs of employment including social security taxes, federal and state unemployment taxes, workers' compensation insurance and other similar costs. After minimum service periods and
hours worked, we also provide our contract professional employees with paid holidays, allow participation in our 401(k) Retirement Savings Plan, create eligibility for bonuses and facilitate access to
and supplement the cost of health insurance for our contract professionals. For travel assignments, we pay for all travel-related costs including airfare, car rentals, mileage and housing, or
alternatively, we provide per diem allowances. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>9</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract
professionals often work with a number of staffing companies and develop relationships or loyalty based on a variety of factors, including competitive salaries and benefits,
availability and diversity of assignments, quality and duration of assignments and responsiveness to requests for placement. Contract professionals seeking traveling positions are also interested in
the quality of travel and housing accommodations as well as the quality of the clinical experience while on assignment. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Growth Strategy  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We remain committed to growing our operations in the life science, healthcare, physician and IT and engineering markets that we currently serve, primarily through
supporting our core service offerings and growing our newer service lines. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2006, our strategy continued to focus on optimizing our income generating capabilities by growing revenues, maintaining or expanding margins and leveraging selling, general and
administrative expenses. Another key initiative for us in 2006 was to focus on increasing our staffing consultant productivity, which we define as quarterly gross profit per staffing consultant, for
both the Life Sciences and Healthcare segments. Our growth strategy in 2006 also included potential acquisitions, and to that end we completed a public stock offering in November which netted
$71.7&nbsp;million and in January we completed the acquisitions of VISTA and Oxford. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
January 2007, we completed the acquisitions of VISTA and Oxford. Throughout the balance of 2007, our strategy was in great part focused on assisting the newly acquired Physician and
IT and Engineering segments to continue to perform while integrating with and operating as a part of On Assignment. In doing this we focused on increasing the number of staffing consultants in each
segment. We also focused on diversifying our client mix in the Healthcare segment though the
expansion of our client base. We were successful in all of our segments in maintaining our pricing while controlling operating costs. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
part of our initiative to improve our sales capabilities, we completed Phase&nbsp;I of the implementation of Vurv Technology (formerly known as RecruitMax), a new front office
system, for our domestic Life Sciences and certain Allied Healthcare service lines in the second quarter of 2006. In 2007, we completed subsequent phases of this software implementation, expanding our
usage of the system in Europe. We have also decided to implement the system in our IT and Engineering segment. Additionally, we continue to make progress on implementing PeopleSoft finance and payroll
modules for our Nurse Travel line of business and certain foreign operations. We believe these improvements should continue to increase the productivity of our staffing consultants and streamline
corporate operations. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will continue to review acquisition opportunities that may enable us to leverage our current infrastructure and capabilities, increase our service offerings and expand our geographic
reach. We periodically engage in discussions with possible acquisition candidates but have no formal commitments at this time. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Competition  </B></FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Life Sciences  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Life Sciences segment competes in the biotechnology, pharmaceutical, food and beverage, medical device, personal care, chemical, automotive, education and
environmental markets. We believe our Life Sciences segment is one of the few nationwide temporary staffing providers specializing exclusively in the placement of life science professionals. Although
other nationwide temporary staffing companies compete with us with respect to scientific, clinical laboratory, medical billing and collection personnel, many of these companies focus on
office/clerical and light and </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>10</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<P style="font-family:arial;"><FONT SIZE=2>heavy
industrial personnel, which account for a significant portion of the overall contract staffing market. These competitors include Manpower,&nbsp;Inc., Kelly Services,&nbsp;Inc.,
Adecco,&nbsp;SA, Kforce&nbsp;Inc. and the scientific division of the Yoh Company. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Healthcare  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Healthcare segment competes in the healthcare market, serving hospitals, integrated delivery systems, imaging centers, clinics, physician offices, reference
laboratories, universities, managed care organizations and third-party administrators. In the Nurse Travel line of business, our competitors include AMN Healthcare Services,&nbsp;Inc., Cross
Country,&nbsp;Inc. and several privately-held companies. In the Allied Healthcare line of business, our competitors include Cross Country,&nbsp;Inc., AMN Healthcare
Services,&nbsp;Inc. and Kforce&nbsp;Inc. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Physician  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Physician segment also competes in the healthcare market, serving hospitals, doctors' practice groups and private healthcare systems and government
administrated healthcare agencies. VISTA's competitors include the locum tenens divisions of CHG Healthcare Services, TeamHealth,&nbsp;Inc. and AMN Healthcare Services,&nbsp;Inc., along with
several other privately-held companies providing locum tenens. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> IT and Engineering  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our IT and Engineering segment competes in the information technology, hardware and software, engineering, and telecommunications markets. Oxford's competition
includes Robert Half International, Accenture, International Business Machines Corporation (IBM) and the Yoh Company. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many
of our competitors are larger and have substantially greater financial and marketing resources than we do. We also compete with privately-owned temporary staffing companies on a
regional and local basis. Frequently, the strongest competition in a particular market is a privately-held local company with established relationships. These companies oftentimes are
extremely competitive on pricing. While their pricing strategies are not necessarily sustainable, they can be problematic in the short term. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
principal competitive factors in attracting qualified candidates for temporary employment or engagements are salaries, contract rates and benefits, availability and variety of
assignments, quality and duration of assignments and responsiveness to requests for placement. We believe that many people seeking temporary employment or engagements through us are also pursuing
employment through other means, including other temporary staffing or locum tenens companies. Therefore, the speed at which we place prospective contract professionals and the availability of
appropriate assignments are important factors in our ability to complete assignments of qualified candidates. In addition to having high quality contract professionals to assign in a timely manner,
the principal competitive factors in obtaining and retaining clients in the temporary staffing industry are properly assessing the clients' specific job requirements, the appropriateness of the
contract professional assigned to the client, the price of services and the monitoring of client satisfaction. Although we believe we compete favorably with respect to these factors, we expect
competition to continue to increase. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Seasonality  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demand for our staffing services historically has been lower during the first and fourth quarters due to fewer business days resulting from client shutdowns and a
decline in the number of contract professionals willing to work during the holidays. This may have particular impact in 2008 because of the number of holidays that occur during the normal work week.
As is common in the staffing </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>11</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<BR>

<P style="font-family:arial;"><FONT SIZE=2>industry,
we run special incentive programs to keep our contract professionals, particularly nurses, working through the holidays. Demand for our staffing services usually increases in the second and
third quarters of the year. In addition, our cost of services typically increases in the first quarter primarily due to the reset of payroll taxes. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Employees  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2007, we employed approximately 1,185 full-time regular employees, including staffing consultants, regional sales directors,
account managers, recruiters and corporate office employees. During the year ended December&nbsp;31, 2007, we employed approximately 18,140 contract professionals and 1,025 traveling physicians. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Government Regulation  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The healthcare industry is subject to extensive and complex federal and state laws and regulations related to professional licensure, conduct of operations,
payment for services and payment for referrals. Our operations are subject to applicable state and local regulations, both domestically and internationally, governing the provision of temporary
staffing that require temporary staffing
companies to be licensed or separately registered. To date, we have not experienced any material difficulties in complying with such regulations. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
states require state licensure for businesses that employ and/or assign healthcare personnel to provide healthcare services on-site at hospitals and other healthcare
facilities. We are currently licensed in the states that require such licenses. Most of the contract healthcare professionals that we employ are required to be individually licensed or certified under
applicable state laws. We take reasonable steps to ensure that our contract professionals possess all necessary licenses and certifications in all material respects. Currently, we provide state
mandated workers' compensation and unemployment insurance for our contract professionals and our regular employees. These expenses have a direct effect on our cost of services, margins and likelihood
of achieving or maintaining profitability. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a further discussion of government regulation associated with our business, see "Risk Factors" within Item&nbsp;1A of Part&nbsp;I of this Annual Report. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Executive Officers of the Company  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The executive officers of On Assignment, Inc. are as follows: </FONT></P>

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<TH WIDTH="30%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Name<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="5%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Age</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="60%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Position<BR> </B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="30%" style="font-family:arial;"><FONT SIZE=2>Peter T. Dameris</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>48</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%" style="font-family:arial;"><FONT SIZE=2>Chief Executive Officer and President</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="30%" style="font-family:arial;"><FONT SIZE=2>James L. Brill</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>56</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%" style="font-family:arial;"><FONT SIZE=2>Senior Vice President, Finance and Chief Financial Officer</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="30%" style="font-family:arial;"><FONT SIZE=2>Emmett B. McGrath</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>46</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%" style="font-family:arial;"><FONT SIZE=2>President, Life Sciences and Allied Divisions</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="30%" style="font-family:arial;"><FONT SIZE=2>Mark S. Brouse</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>54</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%" style="font-family:arial;"><FONT SIZE=2>President, VISTA Staffing Solutions,&nbsp;Inc.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="30%" style="font-family:arial;"><FONT SIZE=2>Michael J. McGowan</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>55</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="60%" style="font-family:arial;"><FONT SIZE=2>President, Oxford Global Resources,&nbsp;Inc.</FONT></TD>
</TR>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Peter T. Dameris</B></FONT><FONT SIZE=2> joined the Company in November 2003 as Executive Vice President, Chief Operating Officer and was promoted to President
and Chief Executive Officer in September 2004. He was appointed to the Board of Directors of the Company in February 2005. From February 2001 through October 2002, Mr.&nbsp;Dameris served as
Executive Vice President and Chief Operating Officer of Quanta Services,&nbsp;Inc. (NYSE: PWR), a leading provider of specialized contracting services for the electric and gas utility, cable and
telecommunications industries. From December 1994 through September 2000, Mr.&nbsp;Dameris served in a number of different positions at Metamor Worldwide,&nbsp;Inc. (formerly, NASDAQ: MMWW), an
international, publicly-traded IT consulting/staffing company, </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>12</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>including
Chairman of the Board, President and Chief Executive Officer, Executive Vice President, General Counsel, Senior Vice President and Secretary. In June 2000, Mr.&nbsp;Dameris successfully
negotiated the sale of Metamor for $1.9&nbsp;billion. From November 2002 to January 2006, Mr.&nbsp;Dameris was a member of the Board of Directors of Bindview Corporation (acquired by Symatec
Corporation in January 2006). Mr.&nbsp;Dameris holds a Juris Doctorate from the University of Texas Law School and a Bachelor's in Business Administration from Southern Methodist University. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>James L. Brill</B></FONT><FONT SIZE=2> joined the Company in January 2007 as Senior Vice President, Finance and Chief Financial Officer. Mr.&nbsp;Brill was Vice
President, Finance and Chief Financial Officer of Diagnostic Products Corporation, a manufacturer of immuno-diagnostic kits, since July 1999, which was acquired by Siemens in July 2006. From August
1998 to June 1999, Mr.&nbsp;Brill served as Chief Financial Officer of Jafra Cosmetics International, a marketing and direct-selling company in the skin care and beauty industry, and as Vice
President of Finance and Administration and Chief Financial Officer of Vertel Corporation, a provider of middleware for the telecommunications industry, from 1996 to 1998. Mr.&nbsp;Brill also served
as Senior Vice President, Finance and Chief Financial Officer of Merisel,&nbsp;Inc., an internet commerce service provider, from 1988 to 1996. Mr.&nbsp;Brill has been a member of the Board of
Directors of Onvia&nbsp;Inc. since March 2004. He holds a Bachelor's of Science degree from the United States Naval Academy and a Master's of Business Administration degree from the University of
California Los Angeles. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Emmett B. McGrath</B></FONT><FONT SIZE=2> joined the Company in September 2004 as President, Life Sciences U.S., and in August 2005, Mr.&nbsp;McGrath was
appointed as President of Life Sciences Europe. Mr.&nbsp;McGrath was appointed as President of Allied Healthcare in November 2007. From February 1985 through August 2004, Mr.&nbsp;McGrath worked
at the Yoh Company, a privately-held technology staffing organization. During his tenure at Yoh, Mr.&nbsp;McGrath held various staffing positions, including Technical Recruiter, Account
Manager, Branch and District Management, Vice President and
Regional President. As Regional President, Mr.&nbsp;McGrath was responsible for core lines of businesses, including Scientific, Information Technology, Engineering, Healthcare, Telecommunications
and Vendor on Premise (VOP) programs. In addition, Mr.&nbsp;McGrath served on Yoh's Executive Committee and the Chairman's Board of the Day&nbsp;&amp; Zimmermann Group, Yoh's parent company.
Mr.&nbsp;McGrath received a Bachelor's of Science degree in Business Administration, with an emphasis in Human Resources, from California State University, Northridge in 1991. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Mark S. Brouse</B></FONT><FONT SIZE=2> is president of VISTA Staffing Solutions,&nbsp;Inc., On Assignment's Physician segment. Mr.&nbsp;Brouse joined On
Assignment as a result of On Assignment's January 2007 acquisition of VISTA, a company he co-founded in 1990. Mr.&nbsp;Brouse began his career in pharmaceutical sales in 1980, and in
1986 joined CompHealth, a locum tenens staffing company, where he led specialty teams serving psychiatry and internal medicine clients before founding VISTA. Mr.&nbsp;Brouse holds a Bachelor's of
Science degree in Chemistry from California State, Dominguez Hills, and is a member of the Boards of Directors of the YMCA of Greater Salt Lake and PEHR Technologies, an electronic medical records
company. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Michael J. McGowan</B></FONT><FONT SIZE=2> is President of Oxford Global Resources,&nbsp;Inc., On Assignment's IT and Engineering division. He has held this
position since 1998. He joined Oxford in May of 1997 as Chief Operating Officer. Formerly, Mr.&nbsp;McGowan was Senior Vice President and General Manager for Kelly Services' Middle Markets Division,
a provider of staffing solutions. Prior to that time he was Vice President&nbsp;&amp; General Manager for The MEDSTAT Group, a healthcare information firm, and held increasingly responsible positions
for Automatic Data Processing (ADP), a provider of human resources, payroll and tax and benefits administration solutions, during a sixteen year tenure. Mr.&nbsp;McGowan holds a Bachelor's of
Science degree in Electrical Engineering from Michigan State University and a Master's of Business Administration degree from the Eli Broad Graduate School of Management, also at Michigan State
University. Mr.&nbsp;McGowan joined On Assignment as a result of the Company's acquisition of Oxford in January 2007. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>13</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2><B>Available Information and Access to Reports  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We electronically file our Annual Report on Form&nbsp;10-K, Quarterly Reports on Form&nbsp;10-Q, Current Reports on
Form&nbsp;8-K, and all amendments to those reports with the Securities and Exchange Commission (SEC). You may read and copy any of our reports that are filed with the SEC in the
following manner: </FONT></P>

<UL>
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>At
the SEC's Public Reference Room at 100&nbsp;F Street NE, Washington, DC 20549. You may obtain information on the operation of the Public Reference Room by calling the
SEC at (800)&nbsp;SEC-0330;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>At
the SEC's website, </FONT><FONT SIZE=2><I>http://www.sec.gov</I></FONT><FONT SIZE=2>;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>At
our website, </FONT><FONT SIZE=2><I>http://www.onassignment.com</I></FONT><FONT SIZE=2>; or
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>By
contacting our Investor Relations Department at (818)&nbsp;878-7900. </FONT></DD></DL>
</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
reports are available through any of the foregoing means and are available free of charge on our website as soon as practicable after such material is electronically filed with or
furnished to the SEC. Also available on our website (</FONT><FONT SIZE=2><I>http://www.onassignment.com)</I></FONT><FONT SIZE=2>, free of charge, are copies of our Code of Ethics for the Principle
Executive Officer and Senior Financial Officers, Code of Business Conduct and Ethics and the charters for the committees of our Board of Directors. We intend to disclose any amendment to, or waiver
from, a provision of our Code of Ethics for Principal Executive Officer and Senior Financial Officers on our website within five business days following the date of the amendment or waiver. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>14</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="dc10801_item_1a._risk_factors"> </A>
<A NAME="toc_dc10801_1"> </A>
Item&nbsp;1A.&nbsp;&nbsp;&nbsp;&nbsp;Risk Factors    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business is subject to a number of risks, including the following: </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>Our results of operations may vary from quarter to quarter as a result of a number of factors, which may make it difficult to evaluate our business and
could cause instability in the trading price of our common stock.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Factors that may cause our quarterly results to fluctuate include: </FONT></P>

<UL>
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>the
level of demand for our temporary staffing services and the efficiency with which we source and assign our contract professionals and support our staffing consultants in
the execution of their duties;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>changes
in our pricing policies or those of our competitors; and
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>our
ability to control costs and manage our accounts receivable balances. </FONT></DD></DL>
</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, most temporary staffing companies experience seasonal declines in demand during the first and fourth quarters as a result of fewer business days and the reduced number of
contract professionals willing to work during the holidays. Historically, we have experienced variability in the duration and depth of these seasonal declines, which in turn have materially affected
our quarterly
results of operations and made period-to-period comparisons of our financial and operating performance difficult. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
our operating results are below the expectations of public market analysts or investors in a given quarter, the trading price of our common stock could decline. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><B><I>If we are unable to attract and retain qualified contract professionals for our Life Sciences, Healthcare, Physician and IT and Engineering segments,
our business could be negatively impacted.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business is substantially dependent upon our ability to attract and retain contract professionals who possess the skills, experience and, as required,
licenses to meet the specified requirements of our clients. We compete for such contract professionals with other temporary staffing companies and with our clients and potential clients. Currently,
there is a shortage of qualified nurses in most areas of the United States. Competition for nursing personnel is increasing and salaries and benefits have risen. Further, there can be no assurance
that qualified healthcare, life science, IT and engineering professionals will be available to us in adequate numbers to staff our operating segments. Moreover, our contract professionals are often
hired to become regular employees of our clients. Attracting and retaining contract professionals depends on several factors, including our ability to provide contract professionals with desirable
assignments and competitive benefits and wages. The cost of attracting and retaining contract professionals may be higher than we anticipate and, as a result, if we are unable to pass these costs on
to our clients, our likelihood of achieving or maintaining profitability could decline. If we are unable to attract and retain a sufficient number of contract professionals to meet client demand, we
may be required to forgo staffing and revenue opportunities, which may hurt the growth of our business. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>We may not successfully make or integrate acquisitions, which could harm our business and growth.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of our growth strategy, we intend to opportunistically pursue selected acquisitions. We compete with other companies in the professional staffing and
consulting industries for acquisition opportunities, and we cannot assure you that we will be able to effect future acquisitions on commercially reasonable terms or at all. In January 2007, we
acquired VISTA and Oxford. With </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>15</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>these
two recent acquisitions or to the extent we enter into acquisition transactions in the future, we may experience: </FONT></P>

<UL>
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>delays
in realizing or a failure to realize the benefits, cost savings and synergies that we anticipate;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>difficulties
or higher-than-anticipated costs associated with integrating any acquired companies into our businesses;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>attrition
of key personnel from acquired businesses;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>diversion
of management's attention from other business concerns;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>inability
to maintain the business relationships and reputation of the acquired companies;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>difficulties
in integrating the acquired companies into our information systems, controls, policies and procedures;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>additional
risks relating to the businesses or industry of the acquired companies that are different from ours;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>unexpected
costs or charges; or
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>unforeseen
operating difficulties that require significant financial and managerial resources that would otherwise be available for the ongoing development or expansion of
our existing operations. </FONT></DD></DL>
</UL>
<BR>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
incurred debt for our recent acquisitions, which increased our interest expense. To undertake more transactions, we may incur additional debt in the future. We may face unexpected
contingent liabilities arising from these or future acquisitions that could harm our business. We may also issue additional equity in connection with these transactions, which would dilute our
existing shareholders. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>If we cannot attract, develop and retain qualified and skilled staffing consultants, our business growth will suffer.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A key component of our ability to grow our lines of business is our ability to attract, develop and retain qualified and skilled staffing consultants,
particularly persons with industry experience. The available pool of qualified staffing consultant candidates is limited, and further constrained by the industry practice of entering into
non-compete agreements with these employees, which may restrict their ability to accept employment with other staffing firms, including us. We cannot assure that we will be able to
recruit, develop and retain qualified staffing consultants in sufficient numbers or that our staffing consultants will achieve productivity levels sufficient to enable growth of our business. Failure
to attract and retain productive staffing consultants could adversely affect our business, financial condition and results of operations. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>Reclassification of our independent contractors by tax authorities could materially and adversely affect our business model and could require us to pay
significant retroactive wages, taxes and penalties.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consider our locum tenens physicians to be independent contractors rather than employees. As such, we do not withhold or pay income or other employment related
taxes or provide workers' compensation insurance for them. Our classification of locum tenens physicians as independent contractors is consistent with general industry standard, but can nonetheless be
challenged by the contractors themselves as well as the relevant taxing authorities. If federal or state taxing authorities determine that locums tenens physicians engaged as independent contractors
are employees, our business model for that segment would be materially and adversely </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>16</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>affected.
Although we believe we would qualify for safe harbor under the provisions of Section&nbsp;530 of the Revenue Act of 1978, Pub. L. No.&nbsp;95-600 ("Section&nbsp;530"), and
any similar applicable state laws, we could incur significant liability for past wages, taxes, penalties and other employment benefits if we could not so qualify. In addition, many states have laws
that prohibit non-physician owned companies from employing physicians. If our independent contractor physicians are classified as employees, we could be found in violation of such state
laws, which could subject us to liability in those states and thereby negatively impact on our profitability. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>If we lose a major client in our Nurse Travel line of business and are not able to replace the lost business quickly, our business could be negatively
impacted.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our top ten clients in the Nurse Travel line of business accounted for 28.6&nbsp;percent of Nurse Travel revenues in 2007. The loss of a major client in Nurse
Travel and the failure to replace the lost business with existing or new clients could adversely affect our business, financial condition and results of operations. In 2007, we earned
2.9&nbsp;percent of our consolidated revenues from several customers operating under a single contract with Los Angeles County. The revenues from this contract are included in Healthcare segment
revenues. No other single customer or contract accounted for 2.9&nbsp;percent or more of total revenues during 2007. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>If our information systems do not function in a cost effective manner, our business will be harmed.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The operation of our business is dependent on the proper functioning of our information systems. In 2006 and 2007, we continued to upgrade our information
technology systems, including PeopleSoft and Vurv Technology, enterprise-wide information systems. Critical information systems used in daily operations identify and match staffing
resources and client assignments, track regulatory credentialing, manage scheduling and also perform billing and accounts receivable functions. If the systems fail to perform reliably or otherwise do
not meet our expectations, or if we fail to successfully complete the implementation of other modules of the systems, we could experience business interruptions that could result in deferred or lost
sales. Our information systems are vulnerable to fire, storm, flood, power loss, telecommunications failures, physical or software break-ins and similar events. Our network infrastructure
is currently co-located at a single facility in Burbank, California. As a result, any system failure or service outage at this primary facility could result in a loss of service for the
duration of the failure of the outage. Our location in Southern California is susceptible to earthquakes and has, in the past, experienced power shortages and outages, any of which could result in
system failures or outages. In 2007, we began the process of relocating our network from Burbank, California to our facility in Salt Lake City, Utah. If we are unable to successfully complete this
migration without interruption, it could impact our business. If our information systems fail or are otherwise unavailable, these functions would have to be accomplished manually, which could impact
our ability to respond to business opportunities quickly, to pay our staff in a timely fashion and to bill for services efficiently. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>If we are not able to remain competitive in obtaining and retaining temporary staffing clients, our future growth will suffer.  </I></B></FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The contract staffing industry is highly competitive and fragmented with limited barriers to entry. We compete in national, regional and local markets with
full-service agencies and in regional and local markets with specialized contract staffing agencies. Some of our competitors in the Nurse Travel line of business include AMN Healthcare
Services,&nbsp;Inc. Cross Country,&nbsp;Inc. and several privately-held companies. Some of our competitors in the Life Sciences segment and Allied Healthcare line of business include
Kelly Services,&nbsp;Inc., Manpower,&nbsp;Inc., Adecco,&nbsp;SA, Kforce&nbsp;Inc. and Yoh Scientific. Competitors for the Physician segment include the locum tenens divisions of </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>17</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>CHG
Healthcare Services, TeamHealth,&nbsp;Inc. and AMN Healthcare Services,&nbsp;Inc., along with several other privately-held companies specializing in locum tenens. Competitors of
our IT and Engineering segment include Robert Half International, Accenture, International Business Machines Corporation (IBM) and the Yoh Company. Several of these companies have significantly
greater marketing and financial resources than we do. Our ability to attract and retain clients is based on the value of the service we deliver, which in turn depends principally on the speed with
which we fill assignments and the appropriateness of the match based on clients' requirements and the skills and experience of our contract professionals. Our ability to attract skilled, experienced
contract professionals is based on our ability to pay competitive wages or contract rates, to provide competitive benefits and to provide multiple, continuous assignments, thereby increasing the
retention rate of these employees or contractors. To the extent that competitors seek to gain or retain market share by reducing prices or increasing marketing expenditures, we could lose revenues and
our gross and operating margins could decline, which could seriously harm our operating results and cause the trading price of our stock to decline. As we expand into new geographic markets, our
success will depend in part on our ability to gain market share from competitors. We expect competition for clients to increase in the future, and the success and growth of our business depend on our
ability to remain competitive. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>Our contract staffing agreements may be terminated by clients and contract professionals at will and the termination of a significant number of such
agreements would adversely affect our revenues and results of operations.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each contract professional's employment with us is terminable at will. A locum tenens physician may generally terminate his or her contract with VISTA for
non-emergency reasons upon 60&nbsp;days notice. The duration of agreements with clients are generally dictated by the contract. Usually, contracts with clients may be terminated with
30&nbsp;days notice by us or by the clients. We cannot assure that existing clients will continue to use our services at historical levels, if at all. If clients terminate a significant number of
our staffing agreements and we are unable to generate new contract staffing orders to replace lost revenues or a significant number of our contract professionals terminate their employment with us and
we are unable to find suitable replacements, our revenues and results of operations could be harmed. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>We are subject to business risks associated with international operations, which could make our international operations significantly more costly.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2007, we had international operations in the United Kingdom, Netherlands, Belgium and Ireland. We have limited experience in marketing,
selling and, particularly, supporting our services outside of North America. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operations
in certain markets are subject to risks inherent in international business activities, including: </FONT></P>

<UL>
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>fluctuations
in currency exchange rates;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>complicated
work permit requirements;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>varying
economic and political conditions;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>seasonal
reductions in business activity during the summer months in Europe and Asia;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>overlapping
or differing tax structures;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>difficulties
collecting accounts receivable; and
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>regulations
concerning pay rates, benefits, vacation, union membership, redundancy payments and the termination of employment. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>18</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
inability to effectively manage our international operations could result in increased costs and adversely affect our results of operations. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>Improper activities of our contract professionals could result in damage to our business reputation, discontinuation of our client relationships and
exposure to liability.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may be subject to possible claims by our clients related to errors and omissions, misuse of proprietary information, discrimination and harassment, theft and
other criminal activity, malpractice and other claims stemming from the improper activities or alleged activities of our contract professionals. We cannot assure that our current liability insurance
coverage will be adequate or will continue to be available in sufficient amounts to cover damages or other costs associated with such claims. Claims raised by clients stemming from the improper
actions of our contract professionals, even if without merit, could cause us to incur significant expense associated with the costs or damages related to such claims. Further, such claims by clients
could damage our business reputation and result in the discontinuation of client relationships. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><B><I>Claims against us by our contract professionals for damages resulting from the negligence or mistreatment by our clients could result in significant
costs and adversely affect our recruitment and retention efforts.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may be subject to possible claims by our contract professionals alleging discrimination, sexual harassment, negligence and other similar activities by our
clients. Our physicians may also be subject to medical malpractice claims. We cannot assure that our current liability insurance coverage will be adequate or will continue to be available in
sufficient amounts to cover damages or other costs associated with such claims. Claims raised by our contract professionals, even if without merit, could cause us to incur significant expense
associated with the costs or damages related to such claims. Further, any associated negative publicity could adversely affect our ability to attract and retain qualified contract professionals in the
future. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>If we are required to further write down goodwill or identifiable intangible assets, the related charge could materially impact our reported net income
or loss for the period in which it occurs.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2004, we recorded a charge of $26.4&nbsp;million related to impairment of goodwill and an impairment charge of $3.9&nbsp;million related to our
identifiable intangible assets. We did not record any such charges in 2005, 2006 or 2007. However, we continue to have approximately $193.6&nbsp;million in goodwill on our balance sheet at
December&nbsp;31, 2007, as well as $41.0&nbsp;million in identifiable intangible assets. As part of the analysis of goodwill impairment, SFAS No.&nbsp;142, "Goodwill and Other Intangible Assets"
(SFAS&nbsp;142), requires the Company's management to estimate the fair value of the reporting units on at least an annual basis. At December&nbsp;31, 2007, we performed our annual goodwill
impairment test and concluded that there was no further impairment of goodwill. In addition, at December&nbsp;31, 2007, we determined that there were no events or changes in circumstances that
indicated that the carrying values of other identifiable intangible assets subject to amortization may not be recoverable. Although a future impairment of the remaining $193.6&nbsp;million in
goodwill and $41.0&nbsp;million in identifiable intangible assets on our balance sheet at December&nbsp;31, 2007 would not affect our cash flow, it would negatively impact our operating results. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>19</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2><B><I>If we are subject to material uninsured liabilities under our partially self-insured workers' compensation program and medical malpractice
coverage, our financial results could be adversely affected.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We maintain a partially self-insured workers' compensation program and medical malpractice coverage. In connection with these programs, we pay a base
premium plus actual losses incurred up to certain levels. We are insured for losses greater than certain levels, both per occurrence and in the aggregate. There can be no assurance that our loss
reserves and insurance coverage will be adequate in amount to cover all workers' compensation or medical malpractice claims. If we become subject to substantial uninsured workers' compensation or
medical malpractice liabilities, our results of operations and financial condition could be adversely affected. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>Our costs of providing travel and housing for nurses and other traveling contract professionals may be higher than we anticipate and, as a result, our
margins could decline.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our travel and housing costs, including the costs of airline tickets, rental cars, apartments and rental furniture for our nurses and other traveling contract
professionals exceed the levels we
anticipate, and we are unable to pass such increases on to our clients, our margins may decline. To the extent the length of our apartment leases exceed the terms of our staffing contracts, we bear
the risk that we will be obligated to pay rent for housing we do not use. If we cannot source a sufficient number of appropriate short-term leases in regional markets, or if, for any
reason, we are unable to efficiently utilize the apartments we do lease, we may be required to pay rent for unutilized or underutilized housing. As we continue to expand our Nurse Travel line of
business, effective management of travel costs will be necessary to prevent a decrease in gross profit and gross and operating margins. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>Demand for our services is significantly impacted by changes in the general level of economic activity and continued periods of reduced economic
activity could negatively impact our business and results of operations.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demand for the contract staffing services that we provide is significantly impacted by changes in the general level of economic activity, particularly any
negative effect on healthcare, research and development and quality control spending. As economic activity slows, many clients or potential clients for our services reduce their usage of and reliance
upon contract professionals before laying off their regular, full-time employees. During periods of reduced economic activity, we may also be subject to increased competition for market
share and pricing pressure. As a result, continued periods of reduced economic activity could harm our business and results of operations. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>We do not have long-term or exclusive agreements with our temporary staffing clients and growth of our business depends upon our ability to
continually secure and fill new orders.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We do not have long-term agreements or exclusive guaranteed order contracts with our temporary staffing clients. Assignments for our Life Sciences
segment typically have a term of three to six months. Assignments for our Healthcare segment typically have a term of two to thirteen weeks. Assignments for our Physician segment typically have a term
of six weeks. Assignments for our IT and Engineering segment typically have a term of approximately five months. The success of our business depends upon our ability to continually secure new orders
from clients and to fill those orders with our contract professionals. Our agreements do not provide for exclusive use of our services, and clients are free to place orders with our competitors. As a
result, it is imperative to our business that we maintain positive relationships with our clients. If we fail to maintain positive relationships with these clients, we may be unable to generate new
contract staffing orders, and the growth of our business could be adversely affected. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>20</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2><B><I>Fluctuation in patient occupancy rates at client facilities could adversely affect demand for services of our Healthcare and Physician segments and our
results of operations.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Client demand for our Healthcare and Physician segment services is significantly impacted by changes in patient occupancy rates at our hospital and healthcare
clients' facilities. Increases in occupancy often result in increased client need for contract professionals before full-time employees can be hired. During periods of decreased occupancy,
however, hospitals and other healthcare facilities typically reduce their use of contract professionals before laying off their regular, full-time employees. During periods of decreased
occupancy, we may experience increased competition to service clients, including pricing pressure. Occupancy at certain healthcare clients' facilities also fluctuates due to the seasonality of some
elective procedures. Periods of decreased occupancy at client healthcare facilities could materially adversely affect our results of operations. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>The loss of key members of our senior management team could adversely affect the execution of our business strategy and our financial results.  </I></B></FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that the successful execution of our business strategy and our ability to build upon the significant recent investments in our business and
acquisitions of new businesses depends on the continued employment of key members of our senior management team. If any members of our senior management team become unable or unwilling to continue in
their present positions, our financial results and our business could be materially adversely affected. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>Future changes in reimbursement trends could hamper our Healthcare and Physician segments clients' ability to pay us, which would harm our financial
results.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many of our Healthcare and Physician segments' clients are reimbursed under the federal Medicare program and state Medicaid programs for the services they
provide. In recent years, federal and state governments have made significant changes in these programs that have reduced reimbursement rates. In addition, insurance companies and managed care
organizations seek to control costs by requiring that healthcare providers, such as hospitals, discount their services in exchange for exclusive or preferred participation in their benefit plans.
Future federal and state legislation or evolving commercial reimbursement trends may further reduce, or change conditions for, our clients' reimbursement. Limitations on reimbursement could reduce our
clients' cash flows, thereby hampering their ability to pay us. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>If our insurance costs increase significantly, these incremental costs could negatively affect our financial results.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The costs related to obtaining and maintaining workers' compensation insurance, medical malpractice insurance, professional and general liability insurance and
health insurance for our contract professionals have been increasing. If the cost of carrying this insurance continues to increase significantly, this may reduce our gross and operating margins and
financial results. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>Healthcare reform could negatively impact our business opportunities, revenues and gross and operating margins.  </I></B></FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The U.S. and state governments have undertaken efforts to control increasing healthcare costs through legislation, regulation and voluntary agreements with
medical care providers and drug companies. In the recent past, the U.S. Congress has considered several comprehensive healthcare reform proposals. The proposals were generally intended to expand
healthcare coverage for the uninsured and reduce the growth of total healthcare expenditures. While the U.S. Congress did not adopt any comprehensive reform proposals, members of Congress may raise
similar proposals in the future. If any of these proposals are approved, hospitals and other healthcare facilities may </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>21</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>react
by spending less on healthcare staffing, including nurses and physicians. If this were to occur, we would have fewer business opportunities, which could seriously harm our business. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furthermore,
third-party payors, such as health maintenance organizations, increasingly challenge the prices charged for medical care. Failure by hospitals and other healthcare
facilities to obtain full reimbursement from those third-party payors could reduce the demand or the price paid for our staffing services. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>We operate in a regulated industry and changes in regulations or violations of regulations may result in increased costs or sanctions that could reduce
our revenues and profitability.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our organization is subject to extensive and complex federal and state laws and regulations including but not limited to: professional licensure, payroll tax
regulations, conduct of operations, payment for services and payment for referrals. If we fail to comply with the laws and regulations that are directly applicable to our business, we could suffer
civil and/or criminal penalties or be subject to injunctions or cease and desist orders. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extensive
and complex laws that apply to our hospital and healthcare facility clients, including laws related to Medicare, Medicaid and other federal and state healthcare programs, could
indirectly affect the demand or the prices paid for our services. For example, our hospital and healthcare facility clients could suffer civil and/or criminal penalties and/or be excluded from
participating in Medicare, Medicaid and other healthcare programs if they fail to comply with the laws and regulations applicable to their businesses. In addition, our hospital and healthcare facility
clients could receive reduced reimbursements or be excluded from coverage because of a change in the rates or conditions set by federal or state governments. In turn, violations of or changes to these
laws and regulations that adversely affect our hospital and healthcare facility clients could also adversely affect the prices that these clients are willing or able to pay for our services. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><B><I>The trading price of our common stock has experienced significant fluctuations, which could make it difficult for us to access the public markets for
financing or use our common stock as consideration in a strategic transaction.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2007, the trading price of our common stock experienced significant fluctuations, from a high of $13.78 to a low of $5.81. The closing price of our common
stock on the NASDAQ Global Market was $5.72 on March&nbsp;10, 2008. Our common stock may continue to fluctuate widely as a result of a large number of factors, many of which are beyond our control,
including: </FONT></P>

<UL>
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>period
to period fluctuations in our financial results or those of our competitors;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>failure
to meet previously announced guidance or analysts' expectations of our quarterly results;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>announcements
by us or our competitors of acquisitions, significant contracts, commercial relationships or capital commitments;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>commencement
of, or involvement in, litigation;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>any
major change in our board or management;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>changes
in government regulations, including those related to Medicare and Medicaid reimbursement policies;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>recommendations
by securities analysts or changes in earnings estimates;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>announcements
about our earnings that are not in line with analyst expectations;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>the
volume of shares of common stock available for public sale; </FONT></DD></DL>
</UL>
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<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>announcements
by our competitors of their earnings that are not in line with analyst expectations;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>sales
of stock by us or by our shareholders;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>short
sales, hedging and other derivative transactions in shares of our common stock; and
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>general
economic conditions, slow or negative growth of unrelated markets and other external factors. </FONT></DD></DL>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
stock market has experienced extreme price and volume fluctuations that have affected the market prices of many companies involved in the temporary staffing industry. As a result of
these
fluctuations, we may encounter difficulty should we determine to access the public markets for financing or use our common stock as consideration in a strategic transaction. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><B><I>Future sales of our common stock and the future exercise of options may cause the market price of our common stock to decline and may result in
substantial dilution.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot predict what effect, if any, future sales of our common stock, or the availability of our common stock for sale will have on the market price of our
common stock. Sales of substantial amounts of our common stock in the public market by management or us, or the perception that such sales could occur, could adversely affect the market price of our
common stock and may make it more difficult for you to sell your common stock at a time and price which you may deem appropriate. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>We have adopted anti-takeover measures that could prevent a change in our control.  </I></B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2003, we adopted a shareholder rights plan that has certain anti-takeover effects and will cause substantial dilution to a person or group
that attempts to acquire us in a manner or on terms that have not been approved by our board of directors. This plan could delay or impede the removal of incumbent directors and could make more
difficult a merger, tender offer or proxy contest involving us, even if such events could be beneficial, in the short term, to the interests of our shareholders. In addition, such provisions could
limit the price that some investors might be wiling to pay in the future for shares of our common stock. Our certificate of incorporation and bylaws contain provisions that limit liability and provide
for indemnification of our directors and officers, and provide that our stockholders can take action only at a duly called annual meeting of stockholders. These provisions and others also may have the
affect of deterring hostile takeovers or delaying changes in control or management. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>Provisions in our corporate documents and Delaware law may delay or prevent a change in control that our stockholders consider favorable.  </I></B></FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions in our certificate of incorporation and bylaws could have the effect of delaying or preventing a change of control or changes in our management. These
provisions include the following: </FONT></P>

<UL>
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Our
board of directors has the right to elect directors to fill a vacancy created by the expansion of the board of directors or the resignation, death or removal of a
director, which prevents stockholders from being able to fill vacancies on our board of directors.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Our
stockholders may not act by written consent. In addition, a holder or holders controlling a majority of our capital stock would not be able to take certain actions
without holding a stockholder's meeting, and only stockholders owning at least 50&nbsp;percent of our entire voting stock must request in writing in order to call a special meeting of stockholders
(which is in </FONT></DD></DL>
</UL>
<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>23</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<A NAME="page_dc10801_1_24"> </A>
<UL>
<UL>

<P style="font-family:arial;"><FONT SIZE=2>addition
to the authority held by our board of directors to call a special stockholder meetings). </FONT></P>

</UL>
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Stockholders
must provide advance notice to nominate individuals for election to the board of directors or to propose matters that can be acted upon at a stockholders'
meeting. These provisions may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or otherwise attempting to obtain
control of our company.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Our
board of directors may issue, without stockholder approval, up to 1,000,000 shares of undesignated or "blank check" preferred stock. The ability to issue undesignated or
"blank check" preferred stock makes it possible for our board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt or make it
more difficult for a third party to acquire us. </FONT></DD></DL>
</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a Delaware corporation, we are also subject to certain Delaware anti-takeover provisions, including Section&nbsp;203 of the Delaware General Corporation Law. Under these
provisions, a corporation may not engage in a business combination with any large stockholders who hold 15&nbsp;percent or more of our outstanding voting capital stock in a merger or business
combination unless the holder has held the stock for 3&nbsp;years, the board of directors has expressly approved the merger or business transaction or at least two-thirds of the
outstanding voting capital stock not owned by such large stockholder approve the merger or the transaction. These provisions of Delaware law may have the effect of delaying, deferring or preventing a
change of control, and may discourage bids for our common stock at a premium over its market price. In addition, our board of directors could rely on these provisions of Delaware law to discourage,
prevent or delay an acquisition of us. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="dc10801_item_1b._unresolved_staff_comments"> </A>
<A NAME="toc_dc10801_2"> </A>
Item&nbsp;1B.&nbsp;&nbsp;&nbsp;&nbsp;Unresolved Staff Comments    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="dc10801_item_2._properties"> </A>
<A NAME="toc_dc10801_3"> </A>
Item&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Properties    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2007, we leased approximately 30,500 square feet of office space through March 2011 for our field support and corporate headquarters in
Calabasas, California, and 15,900 square feet of office space through March 2008 for our field support offices in Cincinnati, Ohio. In March 2008, we vacated the leased office space in Cincinnati,
Ohio and moved to new premises in Blue Ash, Ohio, consisting of 16,500 rentable square feet of office space. Also, as of December&nbsp;31, 2007, we leased approximately 56,000 square feet of office
space through December 2016 at our VISTA headquarters in Salt Lake City, Utah, and 48,000 square feet of office space through December 2009 at our Oxford headquarters in Beverly, Massachusetts. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, we lease approximately 200,000 square feet of office space in approximately 85 branch office locations in the United States, United Kingdom, Netherlands, Belgium and
Ireland. A branch office typically occupies space ranging from approximately 1,000 to 3,000 square feet with lease terms that typically range from six months to six years. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="dc10801_item_3._legal_proceedings"> </A>
<A NAME="toc_dc10801_4"> </A>
Item&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Legal Proceedings    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;20, 2005, Oxford commenced suit in Massachusetts Superior Court against two former Oxford employees, their new employer, Black Diamond
Networks&nbsp;Inc., ("Black Diamond") and its President. Oxford later amended the complaint at various times to add seven other former employees of Oxford (all collectively "Former Employees") and
three other additional defendants. The claims involve breach of the Former Employees' confidentiality, non-solicitation and </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>24</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=10,SEQ=24,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=187208,FOLIO='24',FILE='DISK126:[08ZAF1.08ZAF10801]DC10801A.;5',USER='GKIBBE',CD='17-MAR-2008;12:39' -->
<A NAME="page_dc10801_1_25"> </A>
<BR>

<P style="font-family:arial;"><FONT SIZE=2>non-competition
agreements, misappropriation of proprietary information, as well as tortious interference with such contracts and advantageous relations and unfair competition. Certain of
the defendants have filed counterclaims, which the Company believes to be without legal merit. The court has granted Oxford's six requests for preliminary injunction orders, which have been issued
against eight of the Former Employee defendants and Black Diamond. Discovery is ongoing and is extensive. Factual discovery will conclude by March&nbsp;31, 2008 and trial is scheduled to commence on
October&nbsp;14, 2008. Oxford expects the matter to be tried. Accordingly, legal and expert fees may be significant. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are involved in various other legal proceedings, claims and litigation arising in the ordinary course of business. However, based on the facts currently available, we do not believe
that the disposition of matters that are pending or asserted will have a material adverse effect on our financial position. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="dc10801_item_4._submission_of___dc102373"> </A>
<A NAME="toc_dc10801_5"> </A>
Item&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;Submission of Matters to a Vote of Security Holders    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no matters submitted to a stockholder vote during the fourth quarter of the year ended December&nbsp;31, 2007. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>25</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="page_de10801_1_26"> </A>


<!-- COMMAND=ADD_BASECOLOR,"Black" -->




<!-- COMMAND=ADD_DEFAULTFONT,"font-family:arial;" -->


 </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="de10801_part_ii"> </A>
<A NAME="toc_de10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>PART II    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="de10801_item_5._market_for_registrant___ite03067"> </A>
<A NAME="toc_de10801_2"> </A>
Item&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;Market for Registrant's Common Equity and Related Stockholder Matters    <BR>    </B></FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock trades on the NASDAQ Global Market under the symbol ASGN. The following table sets forth the range of high and low sales prices as reported on
the NASDAQ Global Market for each quarterly period within the two most recent years. At March&nbsp;10, 2008, we had approximately 51 holders of record, approximately 3,800 beneficial owners of our
common stock and 35,388,148 shares outstanding, net of 3,051,719 shares of treasury stock. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="75%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Price Range of<BR>
Common Stock</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>High</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Low</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Year Ended December&nbsp;31, 2006</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="72%" style="font-family:arial;"><FONT SIZE=2>First Quarter</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>12.56</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.00</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="72%" style="font-family:arial;"><FONT SIZE=2>Second Quarter</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>13.60</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9.19</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="72%" style="font-family:arial;"><FONT SIZE=2>Third Quarter</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.31</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8.36</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="72%" style="font-family:arial;"><FONT SIZE=2>Fourth Quarter</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>12.21</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9.49</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2><BR>
Year Ended December&nbsp;31, 2007</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="72%" style="font-family:arial;"><FONT SIZE=2>First Quarter</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>13.78</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11.35</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="72%" style="font-family:arial;"><FONT SIZE=2>Second Quarter</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>12.72</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9.63</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="72%" style="font-family:arial;"><FONT SIZE=2>Third Quarter</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11.63</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9.00</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="72%" style="font-family:arial;"><FONT SIZE=2>Fourth Quarter</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.13</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>5.81</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since
inception, we have not declared or paid any cash dividends on our common stock, and we currently plan to retain all earnings to support the development and expansion of our
business. We have no present intention of paying any dividends on our common stock in the foreseeable future. However, the board of directors periodically reviews our dividend policy to determine
whether the declaration of dividends is appropriate. In addition, the terms of the debt agreement restrict our ability to pay dividends of more than $2,000,000 per year. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June&nbsp;15, 2001, our Board of Directors authorized the repurchase, from time to time, of up to 2,940,939 shares of On Assignment,&nbsp;Inc.'s common stock. As of
December&nbsp;31, 2006, we had repurchased 2,662,500 shares of our common stock at a total cost of $22,970,000. During the fourth quarter of 2007, we purchased the additional 278,439 remaining
authorized shares. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="84%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=11 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Issuer Purchases of Equity Securities<BR> </B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Period<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="13%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Total number<BR>
of shares<BR>
purchased</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Average price<BR>
paid<BR>
per share</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="11%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Total number<BR>
of shares purchased as part of publicly announced plans or programs</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="14%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Maximum number of shares that may yet be purchased under the plans or programs</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>October&nbsp;1&#151;October&nbsp;31, 2007</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>278,439</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>November&nbsp;1&#151;November&nbsp;30, 2007</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>278,439</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>December&nbsp;1&#151;December&nbsp;31, 2007</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>278,439</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>7.17</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>278,439</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="34%" style="font-family:arial;"><FONT SIZE=2>Total</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>278,439</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>7.17</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>278,439</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>26</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=1,SEQ=26,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=3540,FOLIO='26',FILE='DISK126:[08ZAF1.08ZAF10801]DE10801A.;12',USER='KSOLTER',CD='14-MAR-2008;19:45' -->
<A NAME="page_de10801_1_27"> </A>

<P style="font-family:arial;"><FONT SIZE=2><B>Stock Performance Graph  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following graph compares the performance of On Assignment's common stock price during the period from December&nbsp;31, 2002 to December&nbsp;31, 2007
with the composite prices of companies listed on the NASDAQ Stock Market and of companies included in the SIC Code No.&nbsp;736&#151;Personnel Supply Services Companies Index. The companies
listed in the SIC Code No.&nbsp;736 include peer companies in the same industry or line of business as On Assignment. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
graph depicts the results of investing $100 in On Assignment's common stock, the NASDAQ Stock Market composite index and an index of the companies listed in the SIC Code
No.&nbsp;736 on December&nbsp;31, 2002 and assumes that dividends were reinvested during the period. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
comparisons shown in the graph below are based upon historical data, and we caution stockholders that the stock price performance shown in the graph below is not indicative of, nor
intended to forecast, potential future performance. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><B>
<IMG SRC="g399689.jpg" ALT="GRAPHIC" WIDTH="642" HEIGHT="402">
  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="94%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="30%" ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=17 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="30%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2002</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2003</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2004</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="30%" style="font-family:arial;"><FONT SIZE=2>On Assignment,&nbsp;Inc.&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>100.00</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>61.15</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>60.92</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>128.05</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>137.91</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>82.28</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="30%" style="font-family:arial;"><FONT SIZE=2>SIC Code No.&nbsp;736 Index&#151;Personnel Supply Services Company Index</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>100.00</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>155.84</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>152.26</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>157.53</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>198.25</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>146.72</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="30%" style="font-family:arial;"><FONT SIZE=2>NASDAQ Stock Market Index</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>100.00</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>150.36</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>163.00</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>166.58</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>183.68</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>201.91</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="de10801_item_6._selected_financial_data"> </A>
<A NAME="toc_de10801_3"> </A>
Item&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;Selected Financial Data    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents selected financial data of On Assignment as of, and for the years ended December&nbsp;31, 2003, 2004, 2005, 2006 and 2007. This
selected financial data should be read </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>27</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=2,SEQ=27,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=362144,FOLIO='27',FILE='DISK126:[08ZAF1.08ZAF10801]DE10801A.;12',USER='KSOLTER',CD='14-MAR-2008;19:45' -->
<A NAME="page_de10801_1_28"> </A>
<BR>

<P style="font-family:arial;"><FONT SIZE=2>in
conjunction with the consolidated financial statements and notes thereto included under "Financial Statements and Supplementary Data" in Part&nbsp;II, Item&nbsp;8 of this report. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="94%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=14 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2003</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2004</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=14 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>(in thousands, except per share data)<BR> </B></FONT><BR></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2><B>Income Statement Data:</B></FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Revenues</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>209,554</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>193,574</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>237,856</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>287,566</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>567,180</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>Cost of services</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>153,381</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>143,663</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>174,627</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>209,725</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>387,643</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Gross profit</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>56,173</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>49,911</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>63,229</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>77,841</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>179,537</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>Selling, general and administrative expenses</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>59,435</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>66,695</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>64,135</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>67,900</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>151,942</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>Impairment of intangibles</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,907</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>Impairment of goodwill</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>79,897</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>26,421</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Operating (loss) income</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(83,159</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(47,112</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(906</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,941</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>27,595</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>Interest expense</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(8</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(7</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(54</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(10,968</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>Interest income</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>400</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>402</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>681</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,698</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,394</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>Change in fair value of interest rate swap</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,206</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>(Loss) income before income taxes</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(82,767</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(46,717</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(225</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11,585</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>16,815</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>(Benefit) provision for income taxes</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(967</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(4,324</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(129</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>541</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>7,493</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Net (loss) income</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(81,800</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(42,393</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(96</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11,044</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,322</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Basic (loss) earnings per share</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(3.22</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1.68</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(0.00</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.41</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.27</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Weighted average number of shares outstanding</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>25,422</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>25,231</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>25,464</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>27,155</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>35,138</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Diluted (loss) earnings per share</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(3.22</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1.68</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(0.00</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.39</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.26</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Weighted average number of shares and dilutive shares outstanding</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>25,422</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>25,231</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>25,464</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>28,052</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>35,771</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2><B>Balance Sheet Data:</B></FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Cash, cash equivalents, restricted cash and current portion of marketable securities</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>35,134</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>22,787</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>25,365</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>110,161</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>37,764</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Working capital</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>53,258</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>40,957</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>47,629</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>135,501</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>79,009</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Total assets</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>131,981</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>92,382</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>93,705</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>186,995</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>384,680</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Long-term liabilities</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,450</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>222</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>70</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>627</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>140,803</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Stockholders' equity</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>115,885</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>74,471</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>76,637</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>165,944</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>193,034</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
working capital at December&nbsp;31, 2007 was $79,009,000, including $37,764,000 in cash and cash equivalents. On January&nbsp;3, 2007, we acquired VISTA Staffing
Solutions,&nbsp;Inc. (VISTA), and on January&nbsp;31, 2007, we acquired Oxford Global Resources,&nbsp;Inc. (Oxford) The Oxford acquisition was completed by utilizing our existing cash and the
proceeds from a new $165,000,000 senior secured credit facility. For further discussion regarding the new credit facility, see Note&nbsp;4 to our Consolidated Financial Statements appearing in
Part&nbsp;II, Item&nbsp;8 of this report. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2006, there was a reversal of the valuation allowance of $4,928,000 that was recorded against our net deferred income tax assets in 2004 and 2005. Of the $4,928,000 valuation
allowance reversal, $4,345,000 resulted in an income tax benefit and $583,000 was recorded as an increase to additional paid in capital resulting from stock option deductions realized in 2006. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>28</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="de10801_item_7._management_s_discussio__ite03668"> </A>
<A NAME="toc_de10801_4"> </A>
Item&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;Management's Discussion and Analysis of Financial Condition and Results of Operations    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This discussion contains forward-looking statements within the meaning of Section&nbsp;27A of the Securities Act of 1933, as amended, and Section&nbsp;21E of
the Securities Exchange Act of 1934, as amended. Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements. For example, the words "believes," "anticipates," "plans," "expects," "intends" and similar expressions that convey uncertainty of
future events or outcomes are forward-looking statements. Forward-looking statements include statements regarding our anticipated financial and operating performance for future periods. Our actual
results could differ materially from those discussed herein. Factors that could cause or contribute to such differences or prove our forward-looking statements, by hindsight, to be overly optimistic
or unachievable include, but are not limited to, the following: </FONT></P>

<UL>
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>actual
demand for our services;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>our
ability to attract, train, and retain qualified staffing consultants;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>our
ability to remain competitive in obtaining and retaining temporary staffing clients;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>the
availability of qualified temporary nurses and other qualified contract professionals;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>our
ability to manage our growth efficiently and effectively; and
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>continued
performance of our information systems. </FONT></DD></DL>
</UL>
<BR>

<P style="font-family:arial;"><FONT SIZE=2>For
a discussion of these and other factors that may impact our realization of our forward-looking statements, see "Business&#151;Risk Factors" within Item&nbsp;1A of Part&nbsp;I of this
Annual Report on Form&nbsp;10-K. Other factors may also contribute to the differences between our forward-looking statements and our actual results. In addition, as a result of these and
other factors, our past financial performance should not be relied on as an indication of future performance. All forward-looking statements in this document are based on information available to us
as of the date we file this Annual Report on Form&nbsp;10-K, and we assume no obligation to update any forward-looking statement or the reasons why our actual results may differ. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Overview  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2007, our strategy was in large part focused on assisting the newly acquired Physician and IT and Engineering segments to continue to perform while integrating
with and operating as a part of On Assignment. We also concentrated on diversifying our client mix in the Healthcare segment though the expansion of our client base. We continued to focus on growing
revenues, improving gross profit and rationalizing and leveraging our selling, general and administrative expenses, which enabled us to grow our profits in 2007. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
made significant progress in further strengthening the sales force through the hiring of seasoned professionals with staffing industry experience and committing more resources to our
newer services lines; local nursing, health information management, clinical research and our two new segments: Physician and IT and Engineering. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated
revenues were up 97.2&nbsp;percent from $287,566,000 in 2006 to $567,180,000 in 2007. Consolidated gross margin improved 460 basis points from 27.1&nbsp;percent in 2006
to 31.7&nbsp;percent in 2007. For the full year, gross profit increased 130.6&nbsp;percent from $77,841,000 in 2006 to $179,537,000 in 2007. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2007, our results of operations were affected significantly by our acquisition of VISTA and Oxford. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>29</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
January&nbsp;3, 2007, we acquired VSS Holding,&nbsp;Inc. and its subsidiaries, which includes VISTA Staffing Solutions,&nbsp;Inc. (VISTA), a privately-owned leading provider of
physician staffing, known as locum tenens, and permanent physician search services. VISTA is headquartered in Salt Lake City, Utah and works with more than 1,000 physicians covering approximately
thirty medical specialties.
On a daily basis, VISTA has over 200 physicians on assignment. VISTA provides its staffing solutions in all fifty states and international markets for organizations ranging from large urban hospitals
to small practice groups in rural areas. VISTA's CEO and management team have remained with us after the acquisition. The primary reasons for the VISTA acquisition were to diversify our existing
healthcare offerings, to compliment our existing Nurse Travel business line with cross-selling opportunities and to leverage our selling, general and administrative (SG&amp;A) expenses, including housing,
travel and credentialing costs. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
total purchase price of $44,235,000 consisted of (i)&nbsp;an initial price of $41,141,000, paid in cash, (ii)&nbsp;$889,000 in direct acquisition costs and
(iii)&nbsp;$2,205,000 for the estimated payment of the earn-out related to the 2007 operating performance of VISTA. Payment of the earn-out is tentatively scheduled for April
2008, pending the agreement of both parties to all terms and provisions. The estimated earn-out payments have been included in the Consolidated Balance Sheets in other accrued expenses.
There is potential for additional consideration of $5,795,000 that is contingent upon the 2008 financial performance of the physician segment. This earn-out will be recorded as additional
purchase price in the future at such time when the targets are met and the consideration is earned. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
recorded the acquisition using the purchase method of accounting, and thus the results of operations from VISTA are included in our consolidated financial statements (Physician
segment) from the acquisition date. Pursuant to SFAS No.&nbsp;141, "Business Combinations" (SFAS&nbsp;141), the purchase price was allocated to the assets acquired and liabilities assumed based on
their fair values as of the date of the acquisition. Adjustments to the purchase price, such as the earn-out for 2008, will be reflected in subsequent periods if and when conditions are
met. The purchase price was allocated as follows: $1,751,000 to net tangible assets acquired, $3,140,000 to identified intangible assets with definite lives, $6,500,000 to identified intangible assets
with indefinite lives and $32,844,000 to goodwill. The weighted average amortization period for the identifiable intangible assets with definite lives is estimated to be 1.1&nbsp;years. Goodwill is
not expected to be deductible for tax purposes. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
January&nbsp;31, 2007, we acquired Oxford Global Resources,&nbsp;Inc. (Oxford), a leading provider of high-end information technology and engineering staffing
services. The primary reasons for the Oxford acquisition were to enter the markets for information technology and engineering staffing services and to leverage our existing SG&amp;A infrastructure. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
total purchase price of $207,723,000 consisted of (i)&nbsp;an initial price of $200,072,000, comprised of $190,072,000 paid in cash and 795,292 shares of our common stock valued at
$10,000,000, (ii)&nbsp;$1,331,000 in direct acquisition costs and (iii)&nbsp;$6,320,000 for the estimated payment of the earn-out related to the 2007 operating performance of Oxford.
Payment of the earn-out is tentatively scheduled for April 2008, pending the agreement of both parties to all terms and provisions. These costs have been included in the Consolidated
Balance Sheets in other accrued expenses. There is potential for additional consideration of $5,680,000 that is contingent upon the 2008 financial performance of Oxford. This earn-out will
be recorded as additional purchase price in the future at such time when the targets are met and the consideration is earned. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
recorded the acquisition using the purchase method of accounting, and thus the results of operations from Oxford are included in our consolidated financial statements (IT and
Engineering segment) from the acquisition date. Pursuant to SFAS&nbsp;141, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values as of the date
of the acquisition. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>30</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>Adjustments
to the purchase price, such as the earn-out for 2008, will be reflected in subsequent periods if and when conditions are met. The purchase price was allocated as follows:
$17,089,000 to net tangible assets acquired, $30,300,000 to identified intangible assets with definite lives, $15,700,000 to identified intangible assets with indefinite lives and $144,634,000 to
goodwill. The weighted average amortization period for the identifiable intangible assets with definite lives is estimated to be 2.1&nbsp;years. The Company expects to reduce its federal and state
income tax liability by approximately $5,000,000 per year over fifteen years as a result of an election to classify the Oxford acquisition as an asset sale for tax purposes under
section&nbsp;338(h)(10) of the Internal Revenue Code of 1986, as amended. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
utilized our existing cash and proceeds from a new $165,000,000 senior secured credit facility to finance the acquisitions. See Liquidity and Capital Resources for discussion of the
credit facility. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Seasonality  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demand for our staffing services historically has been lower during the first and fourth quarters due to fewer business days resulting from client shutdowns and a
decline in the number of contract professionals willing to work during the holidays. This may have particular impact in 2008 because of the number of holidays that occur during the normal work week.
As is common in the staffing industry, we run special incentive programs to keep our contract professionals, particularly nurses, working through the holidays. Demand for our staffing services usually
increases in the second and third quarters of the year. In addition, our cost of services typically increases in the first quarter primarily due to the reset of payroll taxes. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Critical Accounting Policies  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our accounting policies are described in Note&nbsp;1 of the Notes to Consolidated Financial Statements in Part&nbsp;II, Item&nbsp;8 of this report. We
prepare our financial statements in conformity with accounting principles generally accepted in the United States, which require us to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Actual results
could differ from those estimates. We consider the
following policies to be most critical in understanding the judgments that are involved in preparing our financial statements and the uncertainties that could impact our results of operations,
financial condition and cash flows. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for Doubtful Accounts and Billing Adjustments.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;We estimate an allowance for doubtful accounts as well as an
allowance for billing adjustments related to trade receivables based on our analysis of historical collection and adjustment experience. We apply actual collection and adjustment percentages to the
outstanding accounts receivable balances at the end of the period. If we experience a significant change in collections or billing adjustment experience, our estimates of the recoverability of
accounts receivable could change by a material amount. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Workers' Compensation and Medical Malpractice Loss Reserves.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;We are partially self-insured for our workers'
compensation liability related to the Life Sciences, Healthcare and IT and Engineering segments as well as our medical malpractice liability in relation to the Physician segment. In connection with
these programs, we pay a base premium plus actual losses incurred, not to exceed certain stop-loss limits. We are insured for losses above these limits, both per occurrence and in the
aggregate. The self-insurance claim liability is determined based on claims filed and claims incurred but not reported. We account for claims incurred but not yet reported based on
estimates derived from historical claims experience and current trends of industry data. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>31</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>Changes
in estimates and differences in estimates and actual payments for claims are recognized in the period that the estimates changed or the payments were made. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
conjunction with the $165,000,000 senior secured credit facility entered into on January&nbsp;31, 2007, the restricted cash and cash equivalents of $4,678,000 previously
collateralized in association with three letters of credit related to our workers' compensation program were released. The net self-insurance claim liability was approximately $3,551,000
and $8,921,000 at December&nbsp;31, 2006 and 2007, respectively. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contingencies.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;We account for contingencies in accordance with Statement of Financial Accounting Standards (SFAS)
No.&nbsp;5, "Accounting for Contingencies." SFAS&nbsp;5 requires that we record an estimated loss from a loss contingency when information available prior to issuance of our financial statements
indicates it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements, and the amount of the loss can be reasonably estimated. Accounting
for contingencies, such as legal settlements, workers' compensation matters and medical malpractice insurance matters, requires us to use our judgment. While we believe that our accruals for these
matters are adequate, if the actual loss from a loss contingency is significantly different than the estimated loss, results of operations may be over or understated. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;As part of the process of preparing our consolidated financial statements, we are required to estimate our
income taxes in each of the jurisdictions in which we operate. This process involves estimating our current tax exposures in each jurisdiction including the impact, if any, of additional taxes
resulting from tax examinations. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax bases of assets and liabilities. Such
deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to reverse. If necessary, a valuation allowance
is established to reduce deferred income tax assets in accordance with SFAS No.&nbsp;109, "Accounting for Income Taxes" (SFAS&nbsp;109). Tax exposures can involve complex issues and may require an
extended period to resolve. The estimated effective tax rate is adjusted for the tax related to significant unusual items. Changes in the geographic mix or estimated level of annual
pre-tax income can affect the overall effective tax rate. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the quarter and year ended December&nbsp;31, 2004, we established a valuation allowance against our net deferred income tax assets. The valuation allowance was calculated
pursuant to SFAS&nbsp;109, which requires an assessment of both positive and negative evidence when measuring the need for a valuation allowance. Such evidence includes a company's past and
projected future performance, the market environment in which the company operates, the utilization of past tax credits and the length of carryback and carryforward periods of net operating losses. In
determining that a valuation allowance was required, we placed added weight on the operating results of the past two years and projected operating losses for 2005. At the end of 2006, we evaluated the
need for the valuation allowance in accordance with our valuation allowance reversal methodology and in conjunction with SFAS&nbsp;109. We concluded that as a result of sustained profitability,
which was evidenced by consecutive quarters of net income along with projections of pre-tax income in future years, that the criteria had been met for the full reversal of the valuation
allowance. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
January&nbsp;1, 2007, we began to measure and record tax contingency accruals in accordance with FIN&nbsp;48, "Accounting for Uncertainty in Income Taxes&#151;an
Interpretation of FASB Statement No.&nbsp;109" (FIN&nbsp;48). The expanded disclosure requirements of FIN&nbsp;48 are presented in Note&nbsp;8 to the Consolidated Financial Statements in
Part&nbsp;II, Item&nbsp;8 of this report. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIN&nbsp;48
prescribes a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting
the more-likely-than-not recognition threshold at the effective date may be recognized or continue to be recognized upon adoption of this Interpretation.
FIN&nbsp;48 also provides guidance on accounting for </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>32</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>derecognition,
interest and penalties, and classification and disclosure of matters related to uncertainty in income taxes. As in the past, changes in accruals associated with uncertainties arising
from pre-acquisition years for acquired businesses are charged or credited to goodwill. Adjustments to other tax accruals are generally recorded in earnings in the period they are
determined. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill and Identifiable Intangible Assets.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;As discussed in Note&nbsp;5 to our Consolidated Financial Statements in
Part&nbsp;II, Item&nbsp;8 of this report, SFAS No.&nbsp;142, "Goodwill and Other Intangible Assets" (SFAS&nbsp;142) requires that we review and test goodwill and indefinite lived intangible
assets for impairment on at least an annual basis, rather than amortize them. We may be required to review and test for impairment more frequently if events or changes in circumstances indicate that
the assets may be impaired. In testing for a potential impairment of goodwill, SFAS&nbsp;142 requires us to: (1)&nbsp;allocate goodwill to our various business units to which the acquired goodwill
relates; (2)&nbsp;estimate the fair value of those businesses to which goodwill relates; and (3)&nbsp;determine the carrying value of the businesses. If the estimated fair value is less than the
carrying value for a particular business unit, then we are required to estimate the fair value of all identifiable assets and liabilities of the business unit, in a manner similar to a purchase price
allocation for an acquired business unit. This requires the identification of any previously unrecognized intangible assets. When this process is completed, the amount of goodwill impairment is
determined. We determine the fair value based upon discounted cash flows prepared for each reporting unit. Cash flows were developed for each reporting unit based on assumptions including revenue
growth expectations, gross margins, operating expense projection, working capital and capital expense requirements and tax rates. Rather than computing probabilistic cash flow outcomes to account for
risk in the cash flow forecasts, the impact of risk was used in developing the discount factor. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, SFAS No.&nbsp;144, "Accounting for the Impairment or Disposal of Long-Lived Assets" (SFAS&nbsp;144) requires us to test the recoverability of
long-lived assets, including identifiable intangible assets with definite lives, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In
testing for potential impairment under SFAS&nbsp;144, if the carrying value of the asset group exceeds the expected undiscounted cash flows, we must then determine the amount by which the fair value
of those assets exceeds the carrying value and determine the amount of impairment, if any. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFAS
No.&nbsp;141, "Business Combinations" (SFAS&nbsp;141) requires us to record acquisition transactions in accordance with the purchase method of accounting, and therefore requires
us to use judgment and estimates related to the allocation of the purchase price to the intangibles assets of the acquisition and the remaining amount, net of assets and liabilities assumed, to
goodwill. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-Based Compensation.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;As discussed in Note&nbsp;9 to our Consolidated Financial Statements in Part&nbsp;II,
Item&nbsp;8 of this report, effective January&nbsp;1, 2006, we account for stock-based compensation in accordance with Statement of Financial Accounting Standards (SFAS) No.&nbsp;123 (revised
2004), "Share-Based Payment" (SFAS&nbsp;123R) using the modified-prospective transition method. Under this transition method, compensation expense recognized includes: (a)&nbsp;compensation
expense for all share-based awards granted prior to, but not yet vested as of January&nbsp;1, 2006, based on the grant date fair value estimated in accordance with the original provisions of SFAS
No.&nbsp;123 "Accounting for Stock-Based Compensation" (SFAS&nbsp;123), recognized over the remaining vesting period and (b)&nbsp;compensation expense for all share-based awards granted on or
after January&nbsp;1, 2006, based on the grant date fair value estimated in accordance with the provisions of SFAS&nbsp;123R recognized over the vesting period. In accordance with the
modified-prospective transition method, results for prior periods have not been restated. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to January&nbsp;1, 2006, we applied APB Opinion No.&nbsp;25 "Accounting for Stock Issued to Employees" (APB&nbsp;25) and related interpretations in accounting for its
stock-based compensation </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>33</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>plans.
Since stock options were issued with an exercise price equal to the fair market price on the grant date, no compensation expense was recorded related to stock options. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to the adoption of SFAS&nbsp;123R, we adopted the disclosure only provisions of SFAS&nbsp;123, which recognizes expense based on the fair value on the date of grant. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><B>Results of Operations  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes, for the periods indicated, selected income statement data expressed as a percentage of revenues: </FONT></P>

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<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="8%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="8%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="8%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Revenues</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>100.0</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>100.0</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>100.0</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
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<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="65%" style="font-family:arial;"><FONT SIZE=2>Cost of services</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>73.4</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>72.9</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>68.3</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
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<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
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<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Gross profit</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>26.6</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>27.1</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>31.7</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="65%" style="font-family:arial;"><FONT SIZE=2>Selling, general and administrative expenses</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>27.0</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>23.6</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>26.8</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Operating (loss) income</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(0.4</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3.5</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4.9</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
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<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="65%" style="font-family:arial;"><FONT SIZE=2>Interest expense</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.0</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.0</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1.9</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="65%" style="font-family:arial;"><FONT SIZE=2>Interest income</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.3</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.5</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.2</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="65%" style="font-family:arial;"><FONT SIZE=2>Change in fair value of interest rate swap</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.0</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.0</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(0.2</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Income (loss) before income taxes</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(0.1</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4.0</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3.0</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="65%" style="font-family:arial;"><FONT SIZE=2>Provision (benefit) for income taxes</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(0.1</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.2</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1.4</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Net (loss) income</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(0.0</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)%</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3.8</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1.6</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
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<P style="font-family:arial;"><FONT SIZE=2><B><I>Years Ended December&nbsp;31, 2006 and 2007  </I></B></FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Revenues.  </I></B></FONT></P>
</UL>
<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="85%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=4 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Change</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>$</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="5%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>%</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="31%" style="font-family:arial;"><FONT SIZE=2>Revenues by segment:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Life Sciences</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>134,622,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>117,462,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>17,160,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>14.6</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Healthcare</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>175,079,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>170,104,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,975,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2.9</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Physician (from January&nbsp;3, 2007)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>74,599,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>74,599,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>N/A</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>IT and Engineering (from January&nbsp;31, 2007)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>182,880,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>182,880,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>N/A</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="31%" style="font-family:arial;"><FONT SIZE=2>Total Revenues</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>567,180,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>287,566,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>279,614,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>97.2</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>34</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated year-over-year revenue growth is primarily attributable to the acquisitions of VISTA and Oxford, completed on January&nbsp;3, 2007 and
January&nbsp;31, 2007, respectively, and includes revenues from their respective date of acquisition. We also experienced organic growth in our Life Sciences and Healthcare segments. These organic
results were due to both demand in our end markets as well as an expanded and more experienced sales and fulfillment team. Our Healthcare segment revenues began to slow in the latter half of the year,
driven by slower than expected progress in replacing a large account that closed its acute care facility following its failure to gain government certification, our reduction in placements at another
large customer due to pricing, as well as a generally lackluster Nurse Travel end market. We have made management changes and realigned certain geographic markets to facilitate generating a better
growth rate in the segment on a go-forward basis. We will continue to focus on the growth of our established product lines as well as our newer product lines, including Health Information
Management, Clinical Research, Engineering, Local Nursing, Physician, IT and Engineering, and further development of our direct hire business. We believe the growth of these service offerings will
help support further organic growth and diversify our client base. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
increased $279,614,000, or 97.2&nbsp;percent, from $287,566,000 for the year ended December&nbsp;31, 2006 to $567,180,000 for the year ended December&nbsp;31, 2007. This
increase was due in great part because of the acquisitions of VISTA and Oxford, which accounted for $257,479,000 of the increase. In addition, conversion and direct hire fee revenues increased
$4,943,000, or 75.2&nbsp;percent, from $6,571,000, or 2.3&nbsp;percent of revenue, for the year ended December&nbsp;31, 2006 to $11,514,000, or 2.0&nbsp;percent of revenue, for the year ended
December&nbsp;31, 2007. This was a result of more contract professionals being converted into or hired directly as permanent employees in our legacy businesses, accounting for $1,967,000 of the
increase, as well as from conversion and direct hire fee revenues generated in the newly acquired Physician and IT and Engineering segments, which accounted for $2,976,000 of the increase. Continued
development of the direct hire business had a favorable impact on our operating results and will remain a focus of management. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life
Sciences segment revenues increased $17,160,000, or 14.6&nbsp;percent, from $117,462,000 for the year ended December&nbsp;31, 2006 to $134,622,000 for the year ended
December&nbsp;31, 2007. The increase in revenues was primarily attributable to a 7.6&nbsp;percent increase in average bill rates, or approximately $8,968,000, as well as a 5.0&nbsp;percent
increase in the average number of contract professionals on assignment, or approximately $5,897,000. In addition, conversion and direct hire fee revenues increased $1,219,000, or 22.3&nbsp;percent,
from $5,465,000 for the year ended December&nbsp;31, 2006 to $6,684,000 for the year ended December&nbsp;31, 2007. Our newer service line offerings, Clinical Research and Engineering, continued to
grow by generating a larger number of higher-level, higher-revenue placements during 2007 than 2006, with a 17.7&nbsp;percent increase in contract professionals placed in 2007 than in 2006. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
overall increase in Healthcare segment revenues, which include our Nurse Travel and Allied Healthcare lines of business, resulted from an increase in revenues generated by the Allied
Healthcare line of business while the Nurse Travel line remained relatively flat for the period. Healthcare segment revenues increased $4,975,000, or 2.9&nbsp;percent, from $170,104,000 for the year
ended December&nbsp;31, 2006 to $175,079,000 for the year ended December&nbsp;31, 2007. Allied Healthcare revenues increased $4,743,000, or 9.4&nbsp;percent, from $50,491,000 for the year ended
December&nbsp;31, 2006 to $55,234,000 for the year ended December&nbsp;31, 2007. The increase in revenues was primarily attributable to a 13.0&nbsp;percent increase in the average number of
contract professionals on assignment, or approximately $6,537,000, as well as a 67.6&nbsp;percent increase in conversion and direct hire fee revenues from $1,106,000 for the year ended
December&nbsp;31, 2006 to $1,854,000 for the year ended December&nbsp;31, 2007. The increase was offset by a 6.6&nbsp;percent decrease in hours worked per contract professional, or approximately
$5,037,000. Nurse Travel revenues increased $232,000, or 0.2&nbsp;percent, from $119,613,000 for the year ended December&nbsp;31, </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>35</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>2006
to $119,845,000 for the year ended December&nbsp;31, 2007. The slight increase in Nurse Travel revenues was due to a 1.0&nbsp;percent increase in the average bill rate, offset by a
2.6&nbsp;percent decrease in average hours worked per nurse and a 0.4&nbsp;percent decrease in average contract professionals on assignment. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Physician
segment revenues, which consist of the recently acquired VISTA, were $74,599,000 for the year ended December&nbsp;31, 2007. Physician segment revenue was 13.2&nbsp;percent
of total revenue for the year ended December&nbsp;31, 2007. The Physician segment had fourth quarter 2007 revenues of $19,362,000, an increase of 14.6&nbsp;percent over the pro-forma
fourth quarter revenue of 2006. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IT
and Engineering segment revenues, which consist of the recently acquired Oxford, were $182,880,000 for the year ended December&nbsp;31, 2007. IT and Engineering segment revenue was
32.2&nbsp;percent of total revenue for the year ended December&nbsp;31, 2007. The IT and Engineering segment revenues for the fourth quarter of 2007 were $53,290,000, an increase of
16.1&nbsp;percent over the pro-forma fourth quarter of 2006. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Gross Profit and Gross Margins.  </I></B></FONT></P>
</UL>
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<DIV ALIGN="CENTER"><TABLE WIDTH="84%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=9 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=4 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=4 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Gross Profit</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="8%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Gross<BR>
Margin</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Gross Profit</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="8%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Gross<BR>
Margin</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="38%" style="font-family:arial;"><FONT SIZE=2>Gross Profit by segment:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Life Sciences</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>45,024,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>33.4</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>38,143,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>32.5</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Healthcare</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>44,269,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>25.3</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>39,698,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>23.3</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Physician (from January&nbsp;3, 2007)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>21,808,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>29.2</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>N/A</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>IT and Engineering (from January&nbsp;31, 2007)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>68,436,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>37.4</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>N/A</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="38%" style="font-family:arial;"><FONT SIZE=2>Total Gross Profit</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>179,537,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>31.7</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>77,841,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>27.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross
profit increased $101,696,000 from $77,841,000 for the year ended December&nbsp;31, 2006 to $179,537,000 for the year ended December&nbsp;31, 2007. Gross margins increased 460
basis points from 27.1&nbsp;percent to 31.7&nbsp;percent for the years ended December&nbsp;31, 2006 and 2007, respectively. On a consolidated basis, gross profit and gross margins increased
significantly due the acquisitions of VISTA and Oxford completed on January&nbsp;3, 2007 and January&nbsp;31, 2007, respectively, and includes gross profit from their respective date of
acquisition. The 460 basis point increase in consolidated gross margin year over year is largely attributable to the 37.4&nbsp;percent gross margin earned in the IT and Engineering segment, which
consists entirely of the Oxford acquisition. Additionally, we experienced margin improvement in both of our historical segments, Life Sciences and Healthcare. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life
Sciences segment gross profit increased for the year ended December&nbsp;31, 2007 over the year ended December&nbsp;31, 2006 due to an increase in revenues and improved gross
margin. Gross margins for the segment increased 90 basis points from 32.5&nbsp;percent to 33.4&nbsp;percent for the years ended December&nbsp;31, 2006 and 2007, respectively. The Life Sciences
segment gross margin increase was primarily related to lower workers' compensation expense, an increased bill/pay spread and increased direct hire and conversion fee revenues. Direct hire and
conversion fee revenues increased $1,219,000, or 22.3&nbsp;percent, from $5,465,000 for the year ended December&nbsp;31, 2006 to $6,684,000 for the year ended December&nbsp;31, 2007. Increases
in direct hire and conversion fee revenues have a positive impact on gross margin as there are no associated costs of services. Gross margins in the first quarter of a year tend to be lower than the
fourth quarter of the preceding year due to the reset of certain payroll taxes. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>36</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Healthcare
segment gross profit increased for the year ended December&nbsp;31, 2007 over the year ended December&nbsp;31, 2006 due to an increase in revenues and improved gross
margin. This segment includes gross profit from the Nurse Travel and Allied Healthcare lines of business. Gross margin for the segment increased 200 basis points from 23.3&nbsp;percent to
25.3&nbsp;percent for the years ended December&nbsp;31, 2006 and 2007, respectively. The increase was primarily related to an increase in the bill/pay spread, reduced housing and travel costs,
lower workers' compensation expense and increased direct hire and conversion fee revenues, partially offset by an increase in temporary employee per diem expense. Direct hire and conversion fee
revenues in the Allied Healthcare line of business increased $748,000, or 67.6&nbsp;percent, from $1,106,000 for the year ended December&nbsp;31, 2006 to $1,854,000 for the year ended
December&nbsp;31, 2007. Gross margins in the first quarter of a year tend to be lower than the fourth quarter of the preceding year due to the reset of certain payroll taxes. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross
margins in our Physician and IT and Engineering segments were 29.2&nbsp;percent and 37.4&nbsp;percent, respectively, for the year ended December&nbsp;31, 2007, and as with
our other divisions to the extent we employ contract professionals we may see lower gross margins in the first quarter due to the reset of certain payroll taxes. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, General and Administrative Expenses.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative (SG&amp;A) expenses
include field operating expenses, such as costs associated with our network of staffing consultants and branch offices for our Life Sciences and Allied Healthcare lines of business, including staffing
consultant compensation, rent and other office expenses, as well as marketing and recruiting for our contract professionals. Nurse Travel SG&amp;A expenses include compensation for regional sales
directors, account managers and recruiters, as well as rent and other office expenses and marketing for traveling nurses. SG&amp;A expenses from our Physician and IT and Engineering segments include
compensation for sales personnel associated with VISTA and Oxford, as well as rent and other office expenses and marketing for these segments. SG&amp;A expenses also include our corporate and branch
office support expenses, such as the salaries of corporate operations and support personnel, recruiting and training expenses for field staff, marketing staff
expenses, rent, expenses related to being a publicly-traded company and other general and administrative expenses. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SG&amp;A
expenses increased $84,042,000, or 123.8&nbsp;percent, from $67,900,000 for the year ended December&nbsp;31, 2006 to $151,942,000 for the year ended December&nbsp;31, 2007.
The primary reason for the increase was the acquisitions of VISTA and Oxford in the first quarter of 2007. SG&amp;A expenses for VISTA and Oxford were $19,411,000 and $57,527,000, respectively, for the
year ended December&nbsp;31, 2007. In addition to expenses related to increased sales headcount and corporate support personnel associated with the acquisitions, the amortization of intangible
assets acquired caused an increase in amortization expense from $957,000 for the year ended December&nbsp;31, 2006 to $15,342,000 for the year ended December&nbsp;31, 2007. Amortization expense
for 2008 is expected to decrease to approximately $9,509,000. Additionally, stock-based compensation expense was $2,953,000 for year ended December&nbsp;31, 2006 versus $6,359,000 for the year ended
December&nbsp;31, 2007. We do not expect a significant increase in stock-based compensation expense for 2008. Our integration strategy, which is designed to minimize the disruption to the operations
of VISTA and Oxford, is going as planned. Going forward, we will continue to maximize our SG&amp;A synergies in areas such as infrastructure, field office support and marketing. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
SG&amp;A as a percentage of revenues increased from 23.6&nbsp;percent in the 2006 period to 26.8&nbsp;percent in the 2007 period, primarily due to increased amortization expense
related to the acquisition of VISTA and Oxford. We do not expect a significant increase to SG&amp;A on a go-forward basis. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>37</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<P style="font-family:arial;"><FONT SIZE=2><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, interest income and other expense.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Interest expense was $54,000 and $10,968,000 for
the years ended December&nbsp;31, 2006 and 2007, respectively. The increase in interest expense was due to the new $165,000,000 senior secured credit facility we entered into on January&nbsp;31,
2007. For further discussion regarding the new credit facility, see Note&nbsp;4 to our Consolidated Financial Statements appearing in Part&nbsp;II, Item&nbsp;8 of this report. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
income was $1,698,000 and $1,394,000 for the years ended December&nbsp;31, 2006 and 2007, respectively. Interest income in the current period was lower due to a lower average
cash balance in 2007 versus 2006. Average interest rates were marginally higher in the 2007 period versus the 2006 period. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May&nbsp;2, 2007, we entered into a transaction with a financial institution that fixes the underlying rate on $73,000,000 of our outstanding bank loan for a period of two years
beginning June&nbsp;30, 2007. This transaction, commonly known as a swap, essentially fixes our base borrowing rate at 4.9425&nbsp;percent as opposed to a floating rate, which resets at selected
periods. The current base
rate on the loan balance in excess of $73,000,000, which will be reset on March&nbsp;31, 2008, is 4.83&nbsp;percent. The new base rate for this portion of the debt will depend on the conditions we
choose at the time. The borrowing rate consists of the base rate plus an incremental rate, currently 2.25&nbsp;percent, which is dependent on several factors, including the amount we borrowed and
the amount of earnings before interest, taxes, depreciation and amortization (EBITDA) we are generating. On December&nbsp;31, 2007, the value of the swap was
marked-to-market, and we recorded a loss of $1,206,000 for the year ended December&nbsp;31, 2007. The loss is shown in the Consolidated Statements of Operations in
Part&nbsp;II, Item&nbsp;8 of this report as the change in fair value of interest rate swap, and the related liability of $1,206,000 is shown in the Consolidated Balance Sheets in Part&nbsp;II,
Item&nbsp;8 of this report in other long-term liabilities. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefit/Provision for Income Taxes.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The provision for income taxes increased from $541,000 for the
year ended December&nbsp;31, 2006 to $7,493,000 for the year ended December&nbsp;31, 2007. For the year ended December&nbsp;31, 2007, we recorded a tax provision based on an annual effective tax
rate of approximately 44.6&nbsp;percent while our effective rate was 4.7&nbsp;percent for the year ended December&nbsp;31, 2006. The difference in our effective tax rate for the year ended
December&nbsp;31, 2006 as compared with the corresponding period in 2007 was primarily due to the reversal in 2006 of the valuation allowance of $4,928,000 that was recorded against our net deferred
income tax assets in 2004 and 2005. Of the $4,928,000 valuation allowance reversal, $4,345,000 resulted in an income tax benefit and $583,000 was recorded as an increase to additional paid in capital
resulting from stock option deductions realized in the 2006 period. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>Years Ended December&nbsp;31, 2005 and 2006  </I></B></FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Revenues.  </I></B></FONT></P>
</UL>
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<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=4 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Change</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>$</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="5%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>%</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>Revenues by segment:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Life Sciences</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>117,462,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>98,730,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>18,732,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>19.0</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Healthcare</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>170,104,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>139,126,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>30,978,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>22.3</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>Total Revenues</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>287,566,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>237,856,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>49,710,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>20.9</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
increased $49,710,000, or 20.9&nbsp;percent, from $237,856,000 for the year ended December&nbsp;31, 2005 to $287,566,000 for the year ended December&nbsp;31, 2006. The
most significant revenue driver is the number of contract professionals on assignment. The increase in revenues was primarily attributable to a 15.8&nbsp;percent increase in the average number of
contract </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>38</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=4,SEQ=38,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=197600,FOLIO='38',FILE='DISK126:[08ZAF1.08ZAF10801]DG10801A.;13',USER='GKIBBE',CD='17-MAR-2008;12:43' -->
<A NAME="page_dg10801_1_39"> </A>
<BR>

<P style="font-family:arial;"><FONT SIZE=2>professionals
on assignment and an overall 5.0&nbsp;percent increase in average bill rates. In addition, conversion and direct hire fee revenues increased $2,127,000, or 47.9&nbsp;percent, from
$4,444,000 for the year ended December&nbsp;31, 2005 to $6,571,000 for the year ended December&nbsp;31, 2006 as a result of more contract professionals being converted into or hired directly as
permanent employees. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
year-over-year revenue growth is a result of both improved demand in our end markets as well as an expanded and more experienced sales and fulfillment team.
Specifically, demand in our Nurse Travel line of business strengthened significantly. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life
Sciences segment revenues increased $18,732,000, or 19.0&nbsp;percent, from $98,730,000 for the year ended December&nbsp;31, 2005 to $117,462,000 for the year ended
December&nbsp;31, 2006. The increase in revenues was primarily attributable to an 11.8&nbsp;percent increase in the average number of contract professionals on assignment, as well as a
5.4&nbsp;percent increase in average bill rates. In addition, conversion and direct hire fee revenues increased $1,704,000, or 45.3&nbsp;percent, from $3,761,000 for the year ended
December&nbsp;31, 2005 to $5,465,000 for the year ended December&nbsp;31, 2006. Our conversion and direct hire fee revenues were higher as more contract professionals were converted into or hired
directly as permanent employees. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Healthcare
segment revenues increased $30,978,000, or 22.3&nbsp;percent, from $139,126,000 for the year ended December&nbsp;31, 2005 to $170,104,000 for the year ended
December&nbsp;31, 2006. Nurse Travel revenues increased $20,522,000, or 20.7&nbsp;percent, from $99,091,000 for the year ended December&nbsp;31, 2005 to $119,613,000 for the year ended
December&nbsp;31, 2006. The increase in Nurse Travel revenues was due, in part, to a 23.6&nbsp;percent increase in the average number of nurses on assignment and an increase in bill rates of
2.2&nbsp;percent, offset by a 2.7&nbsp;percent decrease in average hours worked per nurse. The Nurse Travel results include a decrease in revenues derived from hospitals that experienced labor
disruptions for the year ended December&nbsp;31, 2006 of $1,915,000 compared to the year ended December&nbsp;31, 2005. Allied Healthcare revenues increased $10,456,000, or 26.1&nbsp;percent,
from $40,035,000 for the year ended December&nbsp;31, 2005 to $50,491,000 for the year ended December&nbsp;31, 2006. The increase in revenues was primarily attributable to a 18.9&nbsp;percent
increase in the average number of contract professionals on assignment and an increase in bill rates of 4.3&nbsp;percent, as well as a 61.9&nbsp;percent increase in conversion and direct hire fee
revenues from $683,000 for the year ended December&nbsp;31, 2005 to $1,106,000 for the year ended December&nbsp;31, 2006. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Gross Profit and Gross Margins.  </I></B></FONT></P>
</UL>
<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="82%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=9 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=4 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=4 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Gross Profit</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Gross Margin</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Gross Profit</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Gross Margin</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="40%" style="font-family:arial;"><FONT SIZE=2>Gross Profit by segment:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Life Sciences</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>38,143,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>32.5</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>31,736,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>32.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Healthcare</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>39,698,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>23.3</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>31,493,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>22.6</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="40%" style="font-family:arial;"><FONT SIZE=2>Total Gross Profit</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>77,841,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>27.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>63,229,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>26.6</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross
profit increased $14,612,000 from $63,229,000 for the year ended December&nbsp;31, 2005 to $77,841,000 for the year ended December&nbsp;31, 2006 due to an increase in both
revenues and gross margins. Gross margins increased 50 basis points from 26.6&nbsp;percent to 27.1&nbsp;percent for the years ended December&nbsp;31, 2005 and 2006, respectively. Consolidated
gross margins were positively impacted by our decision to focus the sales and fulfillment team on the development of our direct </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>39</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=5,SEQ=39,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=211751,FOLIO='39',FILE='DISK126:[08ZAF1.08ZAF10801]DG10801A.;13',USER='GKIBBE',CD='17-MAR-2008;12:43' -->
<A NAME="page_dg10801_1_40"> </A>
<BR>

<P style="font-family:arial;"><FONT SIZE=2>hire
business. Direct hire revenues have no associated cost of services. Therefore, growth in our direct hire revenues, as well as conversion fee revenues, had a favorable impact on gross margins. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life
Sciences segment gross profit increased $6,407,000 from $31,736,000 for the year ended December&nbsp;31, 2005 to $38,143,000 for the year ended December&nbsp;31, 2006 due to an
increase in both revenues and gross margins. Gross margins for the segment increased 40 basis points from 32.1&nbsp;percent to 32.5&nbsp;percent for the years ended December&nbsp;31, 2005 and
2006, respectively. Life Sciences gross margins were positively impacted by our decision to focus the sales and fulfillment team on the development of the direct hire business. Conversion and direct
hire fee revenues have no associated cost of services. Therefore, growth in our direct hire revenues, as well as conversion fee revenues, had a favorable impact on gross margins. The increases in
gross margins were partially offset by increased payroll taxes and a slight increase to workers' compensation expense and holiday pay. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Healthcare
segment gross profit increased $8,205,000 from $31,493,000 for the year ended December&nbsp;31, 2005 to $39,698,000 for the year ended December&nbsp;31, 2006. Gross
margins for the segment increased 70 basis points from 22.6&nbsp;percent to 23.3&nbsp;percent for the years ended December&nbsp;31, 2005 and 2006, respectively. This segment includes gross
profit from the Nurse Travel and Allied Healthcare lines of business. Gross margins for the segment increased due in part to a change in the segment's service mix towards the higher gross margin lines
of business. Allied Healthcare revenues increased as a percentage of segment revenues from 28.8&nbsp;percent to 29.7&nbsp;percent for the years ended December&nbsp;31, 2005 to 2006,
respectively. Nurse Travel gross margins increased from 20.1&nbsp;percent for the year ended December&nbsp;31, 2005 and to 20.5&nbsp;percent for the year ended December&nbsp;31, 2006. This
slight increase in Nurse Travel gross margin was primarily attributable to the higher bill/pay spreads, offset by increased travel expenses for nurses on assignment. Allied Healthcare gross margins
increased from 29.0&nbsp;percent to 30.0&nbsp;percent for the years ended December&nbsp;31, 2005 and 2006, respectively. Allied Healthcare gross margins increased due to a 9.6&nbsp;percent
increase in bill/pay spreads and additional conversion and direct hire fee revenues, offset by an increase in payroll taxes as well as travel and housing expenses. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, General and Administrative Expenses.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative (SG&amp;A) expenses
include field operating expenses, for Life Sciences and Allied Healthcare, including staffing consultants' compensation, rent, other office expenses and marketing for contract professionals. Nurse
Travel SG&amp;A expenses include compensation for regional sales directors, account managers and recruiters, as well as rent, other office expenses and marketing for traveling nurses. SG&amp;A expenses also
include our corporate and branch support expenses, such as the salaries of corporate operations and support personnel, recruiting and training expenses for field staff, marketing staff expenses, rent,
expenses related to being a publicly-traded company and other general and administrative expenses. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SG&amp;A
expenses increased $3,765,000, or 5.9&nbsp;percent, from $64,135,000 for the year ended December&nbsp;31, 2005 to $67,900,000 for the year ended December&nbsp;31, 2006. This
increase was due to an increase of $2,729,000 in field operating expenses, and an increase of $1,036,000 in corporate expenses. The increase in field operating expenses was primarily the result of
increased staffing consultant salaries, commissions and bonuses in the 2006 period versus the 2005 period due to higher field headcount and increased revenues offset partially by a decrease to
marketing and advertising expenses. The increase in corporate expenses is primarily due to an increase of $2,718,000 in stock-based compensation expense. This increase was partly offset by decreases
in depreciation and amortization expense, Sarbanes-Oxley compliance expense and loss on the disposal of property and equipment. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>40</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
SG&amp;A as a percentage of revenues decreased from 27.0&nbsp;percent in the 2005 period to 23.6&nbsp;percent in the 2006 period, primarily due to a larger percentage increase in
revenues than SG&amp;A expenses. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest Income.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Interest income, net, increased from $681,000 for the year ended December&nbsp;31,
2005 to $1,644,000 for the year ended December&nbsp;31, 2006. This increase was primarily due to higher interest rates resulting from a change in investment strategy from lower yielding
tax-exempt investments to other higher return short-term investments, as well as a higher average cash balance carried in 2006. The net proceeds from the November equity
offering of $71,678,000 were included in the increased cash balance. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefit/Provision for Income Taxes.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;We went from a net loss position in 2005 to a net income position
in 2006. Income taxes increased from a benefit of $129,000 for the year ended December&nbsp;31, 2005, to a provision of $541,000 for the year ended December&nbsp;31, 2006. Our effective rate was
4.7&nbsp;percent for the year ended December&nbsp;31, 2006 compared to 57.3&nbsp;percent for the year ended December&nbsp;31, 2005. The difference in our effective tax rate for the year ended
December&nbsp;31, 2006, as compared with the corresponding period in 2005, was primarily due to the reversal in 2006 of the valuation allowance of $4,928,000 that was recorded against our net
deferred income
tax assets in 2004 and 2005. Of the $4,928,000 valuation allowance reversal, $4,345,000 resulted in an income tax benefit and $583,000 was recorded as an increase to additional paid in capital
resulting from stock option deductions realized in the current year. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><B>Liquidity and Capital Resources  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our working capital at December&nbsp;31, 2007 was $79,009,000, including $37,764,000 in cash and cash equivalents. On January&nbsp;3, 2007, we acquired VISTA
Staffing Solutions,&nbsp;Inc. (VISTA), a privately-owned, leading provider of physician staffing and permanent physician search services. On January&nbsp;31, 2007, we acquired Oxford Global
Resources,&nbsp;Inc. (Oxford), a leading provider of high-end information technology and engineering staffing services. The Oxford acquisition was completed by utilizing our existing
cash and the proceeds from a new $165,000,000 senior secured credit facility. The new facility includes a 5-year $20,000,000 revolving credit facility, which was un-drawn at
closing and as of December&nbsp;31, 2007, and a 7-year $145,000,000 funded term loan facility. The term loan facility is repayable at the minimum rate of $347,000 per quarter. In
addition, we are required to reduce the term loan by up to 50&nbsp;percent of our excess cash flow, as defined by the agreement for each year end over the next seven years. During 2007, we used
$9,087,000 to pay down our bank loan to $135,913,000, including an $8,000,000 payment on December&nbsp;31, 2007 against the principal balance of the term loan. This payment was sufficient to cover
the excess cash flow payment required by the bank as well as all minimum quarterly payments for 2008. As such, no portion of the loan is payable during 2008. Under the credit facility, we are required
to maintain certain financial covenants, including a minimum total leverage ratio and a minimum interest coverage ratio. As of December&nbsp;31, 2007, we were in compliance with all such covenants.
Additionally, the agreement, which is secured by our assets, provides for certain limitations on capital expenditures. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While
capital raised through our stock offering in 2006 and our debt financing in 2007 has enabled us to execute strategic growth objectives, our operating cash flows have been our
primary source of liquidity and historically have been sufficient to fund our working capital and capital expenditure needs. Our working capital requirements consist primarily of the financing of
accounts receivable, payroll expenses and the required periodic payments of principal and interest on the $135,913,000 term loan as of December&nbsp;31, 2007. We do not currently pay cash dividends
on our outstanding common stock and do not intend to pay cash dividends for the foreseeable future. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>41</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash
provided by operations increased $19,356,000 from $14,302,000 in 2006 to $33,658,000 in 2007. Accounts receivable increased in 2007 primarily due to the acquisition of VISTA and
Oxford. We made net tax payments during the year of $9,586,000 to reduce income taxes payable for the legacy businesses and Oxford, which was offset by the provision for the current year. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash
used for investing activities was $234,024,000 for the year ended December&nbsp;31, 2007, an increase of $229,391,000 over the 2006 period. Included in the cash used for investing
activities was $232,273,000 net cash paid for the acquisition of VISTA and Oxford in the current year. Also, there was $5,899,000 in capital expenditures related to information technology projects,
leasehold improvements and various property and equipment purchases in 2007 compared to $4,111,000 in 2006. We expect capital expenditures to be approximately $9,000,000 for 2008. This use of cash was
offset by a decrease in restricted cash of $4,678,000 in conjunction with the credit facility we entered into, as the restricted cash previously collateralized in association with three letters of
credit related to our workers' compensation program was released. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash
provided by financing activities was $132,139,000 for the year ended December&nbsp;31, 2007, which consisted primarily of the proceeds from our debt financing agreement of
$145,000,000 as well as the gross proceeds from our Employee Stock Purchase Plan and the exercise of common stock options of $2,598,000, partially offset by $9,725,000 principal payments of
long-term debt, $4,153,000 of debt issuance costs and $1,997,000 for the repurchase of common stock. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barring
unexpected changes in U.S. labor markets and demand for our services, we believe that our working capital as of December&nbsp;31, 2007, the financing arrangement entered into
on January&nbsp;31, 2007 and positive cash flow from future operating activities will be sufficient to fund future debt obligations, accounts payable and related payroll expenses as well as capital
expenditure initiatives for the next twelve months. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have accrued $2,205,000 and $6,320,000 for the estimated payment of the earn-outs related to the 2007 operating performance of VISTA and Oxford, respectively. Payment of
the earn-outs is tentatively scheduled for April 2008, pending the agreement of applicable parties to all terms and provisions related to such payments. There is potential for additional
consideration of $5,795,000 contingent upon the 2008 financial performance of VISTA and $5,680,000 contingent upon the 2008 financial performance of Oxford. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
continue to make progress on enhancements to our front-office and back-office information systems. These enhancements include the consolidation of back-office
systems across all corporate functions, as well as enhancements to and broader application of our front-office software across all lines of business. We currently do not expect to undertake the full
integration of information systems used by VISTA and Oxford. However, such integration will remain a consideration of management. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June&nbsp;15, 2001, our board of directors authorized the repurchase, from time to time, of up to 2,940,939 shares of On Assignment&nbsp;Inc.'s common stock. As of
December&nbsp;31, 2003, we had repurchased 2,662,500 shares of our common stock at a total cost of $22,970,000. We did not repurchase any shares pursuant to this authorization for the years ended
December&nbsp;31, 2004, 2005 or 2006. In December 2007, we repurchased 278,439 shares of our common stock at a total cost of $1,997,000. As of December&nbsp;31, 2007, we have no remaining
authorization to repurchase shares. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
2007, certain stock-based awards issued under our approved stock option plan vested. Under the provisions of this plan, a portion of the vested shares were withheld by us in order
to satisfy minimum payroll tax obligations of the employee. The vested shares withheld have been recorded as treasury stock, a reduction to stockholder's equity, at the fair market value on the date
that the tax obligation was determined, which was also the vesting date of the awards. As of </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>42</FONT></P>

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<BR>

<P style="font-family:arial;"><FONT SIZE=2>December&nbsp;31,
2007, there were 97,999 shares withheld related to stock-based awards and included in treasury stock at a fair-market value of $1,033,000. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Commitments and Contingencies  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We lease space for our corporate and branch offices. Rent expense for the years ended December&nbsp;31, 2005, 2006, and 2007 was $4,575,000, $5,109,000 and
$8,822,000, respectively. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth, on an aggregate basis, at December&nbsp;31, 2007, the amounts of specified contractual cash obligations required to be paid in the periods shown (in
thousands): </FONT></P>

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<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Contractual Obligations<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2008</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2009</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2010</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2011</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2012</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Thereafter</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Total</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Long-term debt</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,387</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,387</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,387</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,387</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">130,365</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">135,913</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Operating lease obligations</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">6,641</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">6,003</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">4,019</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,088</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">860</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,213</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">21,824</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Accrued earn-out payments</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">8,525</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">8,525</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="36%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Total</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">15,166</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">7,390</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">5,406</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">3,475</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,247</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">132,578</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">166,262</FONT></TD>
</TR>
</TABLE>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For additional information about these contractual cash obligations, see Note&nbsp;7 to our Consolidated Financial Statements appearing in
Part&nbsp;II, Item&nbsp;8 of this report. Interest payments related to our bank debt are not set forth in the table above. We expect interest expense related to the loan to decrease slightly going
forward as the principal balance is paid off. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have accrued $2,205,000 and $6,320,000 for the estimated payment of the earn-outs related to the 2007 operating performance of VISTA and Oxford, respectively. Payment of
the earn-outs is tentatively scheduled for April 2008, pending the agreement of all applicable parties to all terms and provisions related to such payments. These costs have been included
in the Consolidated Balance Sheets in Part&nbsp;II, Item&nbsp;8 of this report in other accrued expenses. There is potential for additional consideration of $5,795,000 that is contingent upon the
2008 financial performance of VISTA. There is also potential for additional consideration of $5,680,000 that is contingent upon the 2008 financial performance of Oxford. These additional potential
earn-outs have been excluded from the table above and will be recorded as additional purchase price in the future at such time when the targets are met and the consideration is earned. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are partially self-insured for our workers' compensation liability related to the Life Sciences and Healthcare segments as well as its medical malpractice liability in
relation to the Physician segment. In connection with this program, we pay a base premium plus actual losses incurred up to certain levels and are insured for losses greater than certain levels per
occurrence and in the aggregate. The self-insurance claim liability is determined based on claims filed and claims incurred but not yet reported. We account for claims incurred but not yet
reported based on estimates derived from historical claims experience and current trends of industry data. Changes in estimates and differences in estimates and actual payments for claims are
recognized in the period that the estimates changed or payments were made. The net
self-insurance claim liability was approximately $3,551,000 and $8,921,000 at December&nbsp;31, 2006 and 2007, respectively. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December&nbsp;31, 2007, we have an income tax reserve in other long-term liabilities related to our uncertain tax positions of $337,000. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
September 2005, Oxford commenced suit in Massachusetts Superior Court against two former Oxford employees, their new employer, Black Diamond Networks&nbsp;Inc., ("Black Diamond")
and its President. Oxford later amended the complaint at various times to add seven other former employees of Oxford (all collectively "Former Employees") and three other additional defendants. The
claims involve breach of the Former Employees' confidentiality, non-solicitation and non-competition agreements, misappropriation of proprietary information, as well as
tortious interference with such contracts and advantageous relations and unfair competition. Certain of the defendants have filed counterclaims, which the Company believes to be without legal merit.
The </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>43</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<BR>

<P style="font-family:arial;"><FONT SIZE=2>court
has granted Oxford's six requests for preliminary injunction orders, which have been issued against eight of the Former Employee defendants and Black Diamond. Discovery is ongoing and is
extensive. Factual discovery will conclude by March&nbsp;31, 2008 and trial is scheduled to commence on October&nbsp;14, 2008. Oxford expects the matter to be tried. Accordingly, legal and expert
fees may be significant. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are involved in various other legal proceedings, claims and litigation arising in the ordinary course of business. However, based on the facts currently available, we do not believe
that the disposition of matters that are pending or asserted will have a material adverse effect on our financial position. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Off-Balance Sheet Arrangements  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2007, the Company had no significant off-balance sheet arrangements other than operating leases. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><B>Recent Accounting Pronouncements  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September 2006, the Financial Accounting Standards Board issued SFAS No.&nbsp;157 "Fair Value Measurements" (SFAS&nbsp;157), which defines fair value,
establishes a framework for consistently measuring fair value under GAAP, and expands disclosures about fair value measurements. SFAS&nbsp;157 was effective beginning January&nbsp;1, 2008, and the
provisions of SFAS&nbsp;157 will be applied prospectively as of that date. We are currently evaluating the effect that adoption of this statement will have on our consolidated financial position and
results of operations when it becomes effective in 2008, but we do not expect it will have a significant impact on the financials at this time. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
February 2007, the Financial Accounting Standards Board issued SFAS No.&nbsp;159 "The Fair Value Option for Financial Assets and Liabilities&#151;Including an amendment of
FASB Statement No.&nbsp;115" (SFAS&nbsp;159), which permits entities to choose to measure many financial instruments and certain other items at fair value. SFAS&nbsp;159 was effective beginning
January&nbsp;1, 2008, and the provisions of SFAS&nbsp;159 will be applied prospectively as of that date. We are currently evaluating the effect that adoption of this statement will have on our
consolidated financial position and results of operations when it becomes effective in 2008, but we do not expect it will have a significant impact on the financials at this time. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
disclosure requirements and cumulative effect of adoption of FASB Interpretation No.&nbsp;48 "Accounting for Uncertainty in Income Taxes&#151;an interpretation of FASB
Statement No.&nbsp;109" are presented in Note&nbsp;8 of the Notes to Consolidated Financial Statements in Part&nbsp;II, Item&nbsp;8 of this report. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
December 2007, the FASB issued SFAS No.&nbsp;141(R), "Business Combinations" (SFAS&nbsp;141R). SFAS&nbsp;141R expands the definition of a business, thus increasing the number of
transactions that will qualify as business combinations. SFAS&nbsp;141R requires the acquirer to recognize 100&nbsp;percent of an acquired business' assets and liabilities, including goodwill and
certain contingent assets and liabilities, at their fair values at the acquisition date. Contingent consideration will be recognized at fair value on the acquisition date, with changes in fair value
recognized in earnings until settled. Likewise, changes in acquired tax contingencies, including those existing at the date of adoption, will be recognized in earnings if outside the maximum
allocation period (generally one year). Transaction-related expenses and restructuring costs will be expensed as incurred, and any adjustments to finalize the purchase accounting allocations, even
within the allocation period, will be shown as revised in the future financial statements to reflect the adjustments as if they had been recorded on the acquisition date. Finally, a gain could result
in the event of a bargain purchase (acquisition of a business below the fair market value of the assets and liabilities), or a gain or loss in the case of a change in the control of an existing
investment. SFAS&nbsp;141R will be applied </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>44</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<A NAME="page_dg10801_1_45"> </A>
<BR>

<P style="font-family:arial;"><FONT SIZE=2>prospectively
to business combinations with acquisition dates on or after January&nbsp;1, 2009. Adoption is not expected to materially impact our consolidated financial position or results of
operations directly when it becomes effective in 2009, as the only impact that the standard will have on recorded amounts at that time is that related to disposition of uncertain tax positions related
to prior acquisitions. Following the date of adoption of the standard, the resolution of such items at values that differ from recorded amounts will be adjusted through earnings, rather than through
goodwill. Adoption of this statement is, however, expected to have a significant effect on how acquisitions completed on or after January&nbsp;1, 2009 are reflected in the financial statements. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="dg10801_item_7a._quantitative_and_qual__ite02669"> </A>
<A NAME="toc_dg10801_1"> </A>
Item&nbsp;7A.&nbsp;&nbsp;&nbsp;&nbsp;Quantitative and Qualitative Disclosures about Market Risk    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are exposed to certain market risks arising from transactions in the normal course of business, principally risks associated with foreign currency fluctuations
and interest rates. We are exposed to foreign currency risk from the translation of foreign operations into U.S. dollars. Based on the relative size and nature of our foreign operations, we do not
believe that a ten percent change in the value of foreign currencies relative to the U.S. dollar would have a material impact on our financial statements. Our primary exposure to market risk is
interest rate risk associated with our debt instruments. On May&nbsp;2, 2007, we entered into a transaction with a financial institution to fix the underlying rate on $73,000,000 of our outstanding
bank loan for a period of two years beginning June&nbsp;30, 2007. This transaction essentially fixes our base borrowing rate at 4.9425&nbsp;percent as opposed to a floating rate, which resets at
selected periods. Excluding the effect of our interest rate swap agreement, a 1&nbsp;percent change in interest rates on variable rate debt would have resulted in interest expense fluctuating
approximately $1,344,000 during year ended December&nbsp;31, 2007. Had our interest rate swap agreement, effective June&nbsp;30, 2007, been in effect for the entire period, a 1&nbsp;percent
change in interest rates on variable debt would have resulted in interest expense fluctuating approximately $664,000 during the year ended December&nbsp;31, 2007. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>45</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="di10801_item_8._financial_statements_and_supplementary_data"> </A>
<A NAME="toc_di10801_1"> </A>
Item&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Supplementary Data    <BR>    </B></FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="di10801_report_of_independent___di102278"> </A>
<A NAME="toc_di10801_2"> </A>
<BR></FONT><FONT SIZE=2><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>To
the Board of Directors and Stockholders of<BR>
On Assignment,&nbsp;Inc.<BR>
Calabasas, California </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have audited the accompanying consolidated balance sheets of On Assignment,&nbsp;Inc. and subsidiaries (the "Company") as of December&nbsp;31, 2007 and 2006, and the related
consolidated statements of operations, comprehensive income (loss), stockholders' equity, and cash flows for each of the three years in the period ended December&nbsp;31, 2007. Our audits also
included the financial statement schedule listed in the Index at Item&nbsp;15. These financial statements and financial statement schedule are the responsibility of the Company's management. Our
responsibility is to express an opinion on the financial statements and financial statement schedule based on our audits. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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 audits provide a reasonable basis for our opinion. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of On Assignment,&nbsp;Inc. and subsidiaries as of
December&nbsp;31, 2007 and 2006, and the results of their operations and their cash flows for each of the three years in the period ended December&nbsp;31, 2007, in conformity with accounting
principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements
taken as a whole, present fairly, in all material respects, the information set forth therein. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
January&nbsp;1, 2007, the Company adopted FASB Interpretation No.&nbsp;48, "Accounting for Uncertainty in Income Taxes&#151;an interpretation of FASB Statement
No.&nbsp;109", as discussed in Note&nbsp;8 to the consolidated financial statements. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
discussed in Notes&nbsp;1 and 9 to the consolidated financial statements, the Company adopted, effective January&nbsp;1, 2006, Statement of Financial Accounting Standards
No.&nbsp;123R, "Share-Based Payment". </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control over financial reporting as of
December&nbsp;31, 2007, based on the criteria established in </FONT><FONT SIZE=2><I>Internal Control&#151;Integrated Framework </I></FONT><FONT SIZE=2>issued by the Committee of Sponsoring
Organizations of the Treadway Commission and our report dated March&nbsp;17, 2008 expressed an unqualified opinion on the Company's internal control over financial reporting. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>/s/ Deloitte&nbsp;&amp; Touche&nbsp;LLP</B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>Los
Angeles, California<BR>
March&nbsp;17, 2008 </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>46</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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 </FONT></P>

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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="fa10801_on_assignment,_inc._consolidated_balance_sheets"> </A>
<A NAME="toc_fa10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>ON ASSIGNMENT,&nbsp;INC.    <BR>    <BR>    CONSOLIDATED BALANCE SHEETS    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2><B>ASSETS</B></FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Current Assets:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Cash and cash equivalents</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>105,483,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>37,764,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Restricted cash</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,678,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Accounts receivable, net of allowance for doubtful accounts and billing adjustments of $1,380,000 (2006) and $2,254,000 (2007)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>39,107,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>78,840,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Advances and deposits</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>343,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>323,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Prepaid expenses</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,630,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,143,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Prepaid income taxes</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>19,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>13,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Deferred income tax assets</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,624,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8,018,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Other current assets</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>41,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>751,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="58%" style="font-family:arial;"><FONT SIZE=2>Total current assets</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>155,925,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>129,852,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Property and Equipment, net</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,116,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>13,898,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Goodwill</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>17,109,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>193,552,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Identifiable intangible assets, net</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>667,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>40,964,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Deferred income tax assets, long-term</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>865,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Other assets</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,313,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>6,414,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="58%" style="font-family:arial;"><FONT SIZE=2>Total Assets</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>186,995,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>384,680,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2><B>LIABILITIES AND STOCKHOLDERS' EQUITY</B></FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Current Liabilities:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Accounts payable</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,867,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>5,718,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Accrued payroll and contract professional pay</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8,426,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>19,108,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Deferred compensation</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,360,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,037,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Income taxes payable</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>876,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>938,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Workers' compensation and medical malpractice loss reserves</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,551,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8,921,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Accrued earn-out payments</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8,525,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Other accrued expenses</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,250,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,951,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Other current liabilities</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>94,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>645,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="58%" style="font-family:arial;"><FONT SIZE=2>Total current liabilities</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>20,424,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>50,843,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Deferred income tax liabilities&#151;long term</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,664,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Long-term debt</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>135,913,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Other long-term liabilities</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>627,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,226,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="58%" style="font-family:arial;"><FONT SIZE=2>Total liabilities</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>21,051,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>191,646,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Commitments and Contingencies (Note&nbsp;7)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Stockholders' Equity:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Preferred Stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding in 2006 and 2007</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Common Stock, $0.01 par value, 75,000,000 shares authorized, 36,769,713 issued and 34,058,147 outstanding in 2006 and 38,216,421 issued and 35,177,483 outstanding in 2007</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>367,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>382,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Paid-in capital</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>199,355,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>219,217,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Accumulated deficit</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(11,860,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(2,755,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Accumulated other comprehensive income</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,562,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,190,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>189,424,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>219,034,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Less: Treasury Stock at cost, 2,711,566 and 3,038,938 shares in 2006 and 2007, respectively</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>23,480,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>26,000,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="58%" style="font-family:arial;"><FONT SIZE=2>Total stockholders' equity</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>165,944,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>193,034,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="58%" style="font-family:arial;"><FONT SIZE=2>Total Liabilities and Stockholders' Equity</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>186,995,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>384,680,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>See notes to consolidated financial statements. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>47</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=1,SEQ=47,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=424459,FOLIO='47',FILE='DISK126:[08ZAF1.08ZAF10801]FA10801A.;8',USER='KSOLTER',CD='14-MAR-2008;19:49' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="page_fc10801_1_48"> </A>


<!-- COMMAND=ADD_BASECOLOR,"Black" -->




<!-- COMMAND=ADD_DEFAULTFONT,"font-family:arial;" -->


 </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="fc10801_on_assignment,_inc._co__fc102271"> </A>
<A NAME="toc_fc10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>ON ASSIGNMENT,&nbsp;INC.<BR>  <BR>    CONSOLIDATED STATEMENTS OF OPERATIONS    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Revenues</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>237,856,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>287,566,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>567,180,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="43%" style="font-family:arial;"><FONT SIZE=2>Cost of services</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>174,627,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>209,725,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>387,643,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Gross profit</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>63,229,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>77,841,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>179,537,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="43%" style="font-family:arial;"><FONT SIZE=2>Selling, general and administrative expenses</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>64,135,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>67,900,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>151,942,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Operating (loss) income</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(906,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,941,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>27,595,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="43%" style="font-family:arial;"><FONT SIZE=2>Interest expense</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(54,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(10,968,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="43%" style="font-family:arial;"><FONT SIZE=2>Interest income</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>681,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,698,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,394,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="43%" style="font-family:arial;"><FONT SIZE=2>Change in fair value of interest rate swap</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,206,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>(Loss) income before income taxes</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(225,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11,585,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>16,815,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="43%" style="font-family:arial;"><FONT SIZE=2>(Benefit) provision for income taxes</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(129,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>541,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>7,493,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Net (loss) income</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(96,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11,044,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,322,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>(Loss) earnings per share:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Basic (loss) earnings per share</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(0.00</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.41</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.27</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Weighted average number of shares outstanding</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>25,464,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>27,155,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>35,138,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Diluted (loss) earnings per share</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(0.00</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.39</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.26</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Weighted average number of shares and dilutive shares outstanding</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>25,464,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>28,052,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>35,771,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="fc10801_consolidated_statement__fc102138"> </A>
<A NAME="toc_fc10801_2"> </A>
<BR></FONT><FONT SIZE=2><B>CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Net (loss) income</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(96,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11,044,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,322,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Other comprehensive income (loss):</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="48%" style="font-family:arial;"><FONT SIZE=2>Foreign currency translation adjustment</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,082,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>569,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>628,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Comprehensive (loss) income</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,178,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11,613,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,950,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>See
notes to consolidated financial statements. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>48</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=1,SEQ=48,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=912359,FOLIO='48',FILE='DISK126:[08ZAF1.08ZAF10801]FC10801A.;5',USER='MANDERS',CD='14-MAR-2008;07:59' -->
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<P style="font-family:arial;"><FONT SIZE=2><A
NAME="page_fe10801_1_49"> </A>


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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><B>ON ASSIGNMENT,&nbsp;INC.<BR>
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="150%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="17%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" ROWSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=4 ROWSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Preferred Stock</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" ROWSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=4 ROWSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Common Stock</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" ROWSPAN=3 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=3 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Accumulated<BR>
Other<BR>
Comprehensive<BR>
(Loss) Income</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" ROWSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=4 ROWSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Treasury Stock</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="17%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" ROWSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Paid-in<BR>
Capital</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" ROWSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Retained<BR>
Earnings</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="17%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="4%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Shares</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Amount</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="6%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Shares</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Amount</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="6%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Shares</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Amount</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Total</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Balance at January&nbsp;1, 2005</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">27,939,457</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">280,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">117,894,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(22,808,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,075,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(2,662,500</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(22,970,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">74,471,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Exercise of common stock options</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">530,513</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">5,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,848,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,853,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Employee Stock Purchase Plan</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">56,593</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">255,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">256,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Stock-based compensation expense</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">235,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">235,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Restricted stock awards that vested during the year</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">22,500</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Translation adjustments</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(1,082,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(1,082,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Net loss</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(96,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(96,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Balance at December&nbsp;31, 2005</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">28,549,063</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">286,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">121,232,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(22,904,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">993,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(2,662,500</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(22,970,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">76,637,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Stock offering proceeds, net</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">7,643,141</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">76,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">71,302,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">71,378,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Exercise of common stock options</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">338,858</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">3,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,066,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,069,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Employee Stock Purchase Plan</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">78,632</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">543,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">544,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Stock issued for acquisition</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">13,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">154,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">154,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Stock-based compensation expense</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,953,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,953,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Restricted stock units and restricted stock awards that vested during the year</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">147,019</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(1,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(49,066</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(510,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(510,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Excess tax benefits from stock-based compensation</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,106,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,106,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Translation adjustments</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">569,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">569,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Net income</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">11,044,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">11,044,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Balance at December&nbsp;31, 2006</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">36,769,713</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">367,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">199,355,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(11,860,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,562,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(2,711,566</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(23,480,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">165,944,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Exercise of common stock options</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">362,394</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">4,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,012,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,016,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Employee Stock Purchase Plan</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">126,484</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,105,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,106,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Stock issued for acquisition</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">795,292</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">8,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">9,992,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">10,000,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Stock repurchase</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(278,439</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(1,997,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(1,997,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Stock-based compensation expense</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">6,092,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">6,092,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Restricted stock units and restricted stock awards that vested during the year</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">162,538</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(48,933</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(523,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(521,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Adjustment for adoption of FIN&nbsp;48</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(217,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(217,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Excess tax benefits from stock-based compensation</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">661,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">661,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Translation adjustments</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">628,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">628,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Net income</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">9,322,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">9,322,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Balance at December&nbsp;31, 2007</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">38,216,421</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="5%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">382,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">219,217,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(2,755,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,190,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(3,038,938</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(26,000,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">193,034,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="17%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>See notes to consolidated financial statements. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>49</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=1,SEQ=49,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=94971,FOLIO='49',FILE='DISK126:[08ZAF1.08ZAF10801]FE10801A.;5',USER='TOSBORNA',CD='14-MAR-2008;15:25' -->
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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="page_fg10801_1_50"> </A>


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 </FONT></P>

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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="fg10801_on_assignment,_inc._co__fg102248"> </A>
<A NAME="toc_fg10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>ON ASSIGNMENT,&nbsp;INC.<BR>  <BR>    CONSOLIDATED STATEMENTS OF CASH FLOWS    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=5 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=5 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2><B>Cash Flows from Operating Activities:</B></FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Net (loss) income</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(96,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11,044,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,322,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Adjustments to reconcile net (loss) income to net cash provided by operating activities:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Depreciation</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>5,138,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,672,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>6,194,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Amortization</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,125,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>957,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>15,342,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Provision for doubtful accounts</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>401,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>60,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>835,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Deferred income tax benefit</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(3,906,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(4,163,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Stock-based compensation</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>235,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,953,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>6,359,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Amortization of deferred loan costs</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>542,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Change in fair value of interest rate swap</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,206,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Gain on officers' life insurance policies</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(8,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(192,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(166,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Gross excess tax benefits from stock-based compensation</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,053,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(860,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Loss on disposal of property and equipment</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>396,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>99,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>317,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Increases/decreases in operating assets and liabilities:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Accounts receivable</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(8,914,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(3,557,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(7,490,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Prepaid expenses</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(315,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>402,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(70,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Prepaid income taxes</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>5,685,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(101,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>358,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Income taxes payable</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(50,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,973,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,743,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Accounts payable</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(667,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(97,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,035,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Accrued payroll and contract professional pay</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,189,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>178,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,074,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Deferred compensation</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>38,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>677,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>677,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Workers' compensation and medical malpractice loss reserves</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(565,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>63,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>774,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Other accrued expenses</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,337,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>130,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>629,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="40%" style="font-family:arial;"><FONT SIZE=2>Net cash provided by operating activities</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,255,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>14,302,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>33,658,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2><B>Cash Flows from Investing Activities:</B></FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Purchase of marketable securities</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(6,000,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Proceeds from the maturity of marketable securities</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8,000,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Acquisition of property and equipment</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(3,825,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(4,111,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(5,899,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Proceeds from sale of property and equipment</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>76,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>(Increase) decrease in advances and deposits</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(65,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(14,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>38,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Decrease (increase) in other assets</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,033,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(280,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(644,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Net cash paid for acquisitions and dispositions</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(430,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(232,273,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>(Increase) decrease in restricted cash</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(4,878,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>200,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,678,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="40%" style="font-family:arial;"><FONT SIZE=2>Net cash used for investing activities</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(5,732,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(4,633,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(234,024,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2><B>Cash Flows from Financing Activities</B></FONT><FONT SIZE=2>:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Capital lease payments</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(144,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Net proceeds from stock transactions</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,109,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,205,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,598,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Gross excess tax benefits from stock-based compensation</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,053,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>860,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Proceeds from shelf offering, net</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>71,678,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(300,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Debt issuance costs</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(4,153,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Repurchase of common stock</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,997,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Proceeds from issuance of long-term debt</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>145,000,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4 style="font-family:arial;"><FONT SIZE=2>Principal payments of long-term debt</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(9,725,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="40%" style="font-family:arial;"><FONT SIZE=2>Net cash provided by financing activities</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,109,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>74,936,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>132,139,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2>Effect of exchange rate changes on cash and cash equivalents</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(932,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>391,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>508,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2>Net (Decrease) Increase in Cash and Cash Equivalents</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(300,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>84,996,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(67,719,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2>Cash and Cash Equivalents at Beginning of Year</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>20,787,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>20,487,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>105,483,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2>Cash and Cash Equivalents at End of Year</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>20,487,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>105,483,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>37,764,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(Continued) </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>See
notes to consolidated financial statements. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>50</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=1,SEQ=50,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=679819,FOLIO='50',FILE='DISK126:[08ZAF1.08ZAF10801]FG10801A.;8',USER='KSOLTER',CD='14-MAR-2008;19:49' -->
<A NAME="page_fg10801_1_51"> </A>
<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="fg10801_on_assignment,_inc._consolidat__on_02583_1"> </A>
<A NAME="toc_fg10801_2"> </A>
<BR></FONT><FONT SIZE=2><B>ON ASSIGNMENT,&nbsp;INC.<BR>  <BR>    CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2><B>Supplemental Disclosure of Cash Flow Information</B></FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Cash (received) paid for:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="45%" style="font-family:arial;"><FONT SIZE=2>Income taxes, net</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(5,187,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,571,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,586,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="45%" style="font-family:arial;"><FONT SIZE=2>Interest</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10,491,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Acquisitions:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="45%" style="font-family:arial;"><FONT SIZE=2>Goodwill</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>513,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>177,478,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="45%" style="font-family:arial;"><FONT SIZE=2>Intangible assets acquired</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>68,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>55,640,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="45%" style="font-family:arial;"><FONT SIZE=2>Net tangible assets acquired</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>18,841,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="45%" style="font-family:arial;"><FONT SIZE=2>Fair value of assets acquired, net of cash received</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>584,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>251,959,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2><B>Supplemental Disclosure of Non-Cash Transactions</B></FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Issuance of common stock for acquisition</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>154,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10,000,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Shelf offering costs in accounts payable and other accrued expenses</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>300,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Deferred acquisition costs in accounts payable and other accrued expenses</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,546,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Accrued earn-out payments</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8,525,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Acquisition of property and equipment through accounts payable</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>150,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>254,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>452,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>See notes to consolidated financial statements. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>51</FONT></P>

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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
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<BR></FONT><FONT SIZE=2><B>ON ASSIGNMENT,&nbsp;INC.<BR>  <BR>    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR>  <BR>    Years Ended December&nbsp;31, 2005, 2006 and 2007    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>1. Organization and Summary of Significant Accounting Policies.  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On Assignment,&nbsp;Inc. (the Company), is a diversified professional staffing firm providing flexible and permanent staffing solutions in specialty skills
including Laboratory/Scientific, Healthcare/Nursing/Physicians, Medical Financial, Information Technology and Engineering. The Company provides clients in these markets with short-term or
long-term assignments of contract professionals, contract-to-permanent placement and direct placement of these professionals. The business consists of four
operating segments: Life Sciences (formerly known as Lab Support), Healthcare, Physician (VISTA acquisition) and IT and Engineering (Oxford acquisition). Significant accounting policies are as
follows: </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principles of Consolidation.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements include the accounts of the Company and its wholly-owned
domestic and foreign subsidiaries. All significant intercompany accounts and transactions have been eliminated. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and Cash Equivalents.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Company considers all highly liquid investments with a maturity of three months or less on the
date of purchase to be cash equivalents. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts Receivable.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Company estimates an allowance for doubtful accounts as well as an allowance for billing adjustments
related to trade receivables based on an analysis of historical collection and billing adjustment experience. The Company applies actual collection and adjustment percentages to the outstanding
accounts receivable balances at the end of the period. If the
Company experiences a significant change in collections or billing adjustment experience, the estimates of the recoverability of accounts receivable could change by a material amount. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and Equipment.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment are stated at cost. Depreciation and amortization are provided using the
straight-line method over the estimated useful lives of the related assets, generally three to five years. Leasehold improvements are amortized over the shorter of the life of the related
asset or the life of the lease. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the provisions of Statement of Position 98-1, "Accounting for the Costs of Computer Software Developed or Obtained for Internal Use," (SOP&nbsp;98-1) the
Company capitalizes costs associated with customized internal-use software systems that have reached the application stage and meet recoverability tests. Such capitalized costs include
external direct costs utilized in developing or obtaining the applications and payroll and payroll-related expenses for employees who are directly associated with the applications. In addition, the
Company capitalizes costs incurred for enhancements or modifications to the software that result in additional functionality to the software's performance. The projects associated with these
capitalized costs are described in Note&nbsp;2. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill and Identifiable Intangibles.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Goodwill represents the excess of the purchase price over the fair value of the net
assets acquired. SFAS No.&nbsp;142, "Goodwill and Other Intangible Assets," (SFAS&nbsp;142) requires that the Company review and test goodwill and indefinite lived intangible assets for impairment
on at least an annual basis, rather than amortize them. The Company may be required to review and test for impairment more frequently if events or changes in circumstances indicate that the assets may
be impaired. In testing for a potential impairment of goodwill, SFAS&nbsp;142 requires the Company to: (1)&nbsp;allocate goodwill to our various business units to which the acquired goodwill
relates; (2)&nbsp;estimate the fair value of those businesses to which goodwill relates; and (3)&nbsp;determine the carrying value of the businesses. If the estimated fair value is less than the
carrying value for a particular business unit, then the Company is required to </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>52</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>estimate
the fair value of all identifiable assets and liabilities of the business unit, in a manner similar to a purchase price allocation for an acquired business unit. This requires the
identification of any previously unrecognized intangible assets. When this process is completed, the amount of goodwill impairment is determined. The Company determines the fair value based upon
discounted cash flows prepared for each reporting unit. Cash flows were developed for each reporting unit based on assumptions including revenue growth expectations, gross margins, operating expense
projection, working capital and capital expense requirements and tax rates. Rather than computing probabilistic cash flow outcomes to account for risk in the cash flow forecasts, the impact of risk
was used in developing the discount factor. Any impairment losses are recognized when identified. Purchased intangible assets, with finite lives, are amortized on a straight-line or
accelerated basis over their estimated lives. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of Long-Lived Assets.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Company evaluates long-lived assets, other than goodwill and
identifiable intangible assets with indefinite lives, for impairment
whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized when the sum of the undiscounted future cash flows is
less than the carrying amount of the asset, in which case a write-down is recorded to reduce the related asset to its estimated fair value. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Workers' Compensation and Medical Malpractice Loss Reserves.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Company is partially self-insured for its
workers' compensation liability related to the Life Sciences, Healthcare and IT and Engineering segments as well as its medical malpractice liability in relation to the Physician segment. In
connection with these programs, the Company pays a base premium plus actual losses incurred, not to exceed certain stop-loss limits. The Company is insured for losses above these limits,
both per occurrence and in the aggregate. The self-insurance claim liability is determined based on claims filed and claims incurred but not reported. The Company accounts for claims
incurred but not yet reported based on estimates derived from historical claims experience and current trends of industry data. Changes in estimates and differences in estimates and actual payments
for claims are recognized in the period that the estimates changed or the payments were made. The Company's net self-insurance claim liability was approximately $3,551,000 and $8,921,000
at December&nbsp;31, 2006 and 2007, respectively. In conjunction with the $165,000,000 senior secured credit facility entered into by the Company on January&nbsp;31, 2007, the restricted cash and
cash equivalents of $4,678,000 previously collateralized in association with three letters of credit related to the Company's workers' compensation program were released. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contingencies.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Company accounts for contingencies in accordance with Statement of Financial Accounting Standards (SFAS)
No.&nbsp;5, "Accounting for Contingencies." SFAS&nbsp;5 requires that the Company records an estimated loss from a loss contingency when information available prior to issuance of its financial
statements indicates it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements, and the amount of the loss can be reasonably estimated.
Accounting for contingencies, such as legal settlements, workers' compensation matters and medical malpractice insurance matters, requires the Company to use judgment. While the Company believes that
the accruals for these matters are adequate, if the actual loss from a loss contingency is significantly different than the estimated loss, results of operations may be over or understated. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;As part of the process of preparing its consolidated financial statements, the Company is required to estimate
its income taxes in each of the jurisdictions in which it operates. This process involves estimating the Company's current tax exposures in each jurisdiction including the impact, if any, of
additional taxes resulting from tax examinations. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax bases of assets and
liabilities. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>53</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>reverse.
If necessary, a valuation allowance is established to reduce deferred income tax assets in accordance with Statement of Financial Accounting Standards (SFAS) No.&nbsp;109, "Accounting for
Income Taxes" (SFAS&nbsp;109). Tax exposures can involve complex issues and may require an extended period to resolve. The estimated effective tax rate is adjusted for the tax related to significant
unusual items. Changes in the geographic mix or estimated level of annual pre-tax income can affect the overall effective tax rate. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the quarter and year ended December&nbsp;31, 2004, the Company established a valuation allowance against its net deferred income tax assets. The valuation allowance was
calculated pursuant to SFAS&nbsp;109, which requires an assessment of both positive and negative evidence when measuring the need for a valuation allowance. Such evidence includes a company's past
and projected future performance, the market environment in which the company operates, the utilization of past tax credits and the length of carryback and carryforward periods of net operating
losses. In determining that a valuation allowance was required, the Company placed added weight on the operating results of the past two years and projected operating losses for 2005. At the end of
2006, the Company evaluated the need for the valuation allowance in accordance with our valuation allowance reversal methodology and in conjunction with SFAS&nbsp;109. The Company concluded that as
a result of sustained profitability, which was evidenced by consecutive quarters of net income along with projections of pre-tax income in future years, that the criteria had been met for
the full reversal of the valuation allowance. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
January&nbsp;1, 2007, the Company began to measure and record tax contingency accruals in accordance with FIN No.&nbsp;48, "Accounting for Uncertainty in Income
Taxes&#151;an Interpretation of FASB Statement No.&nbsp;109," (FIN&nbsp;48). FIN&nbsp;48 prescribes a threshold for the financial statement recognition and measurement of a tax position
taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-not recognition threshold at the effective date may be recognized or
continue to be recognized upon adoption of this Interpretation. FIN&nbsp;48 also provides guidance on accounting for derecognition, interest and penalties, and classification and disclosure of
matters related to uncertainty in income taxes. As in the past, changes in accruals associated with uncertainties arising from pre-acquisition years for acquired businesses are charged or
credited to goodwill. Adjustments to other tax accruals are generally recorded in earnings in the period they are determined. The Company makes a comprehensive review of its portfolio of uncertain tax
positions regularly. In this regard, an uncertain tax position represents the Company's expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return
or claim that has not been reflected in measuring income tax expense for financial reporting purposes. Until these positions are sustained by the taxing authorities, the company has not recognized the
tax benefits resulting from such positions and reports the tax effects as a liability for uncertain tax positions in its consolidated
statements of financial position. See Note&nbsp;8 for the impact of adoption of FIN&nbsp;48 on the financial statements. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders' Equity.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;15, 2001, the Company's Board of Directors authorized the repurchase of up to 2,940,939
shares of common stock. As of December&nbsp;31, 2003, the Company had repurchased 2,662,500 shares of its common stock at a total cost of $22,970,000. The Company did not repurchase any shares
pursuant to this authorization for the years ended December&nbsp;31, 2004, 2005 or 2006. In December 2007, the Company repurchased 278,439 shares of its common stock at a total cost of $1,997,000.
At December&nbsp;31, 2007, the Company has no remaining authorization to repurchase shares. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June&nbsp;4, 2003 the Board of Directors adopted a Stockholders' Rights Plan ("Rights Plan"). In connection with the adoption of the Rights Plan, the Board of Directors declared a
dividend of one right for each outstanding share of common stock, payable to stockholders of record on June&nbsp;16, 2003. Each right, when exercisable, entitles the registered holder to purchase
from the Company one one-thousandth of a share of Series&nbsp;A Junior Participating Preferred Stock at a price of $40.00, </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>54</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>subject
to adjustment. Initially, the rights will be attached to all certificates representing shares of the Company's outstanding common stock. The rights will separate from the common stock and a
distribution of rights certificates will occur upon the earlier to occur of: (i)&nbsp;10&nbsp;days following a public announcement that a person or group has acquired, or obtained the right to
acquire, beneficial ownership of 15&nbsp;percent or more of the outstanding shares of common stock of the Company, or (ii)&nbsp;10 business days following the commencement of, or the first public
announcement of the intention to commence, a tender offer or exchange offer, the consummation of which would result in beneficial ownership by a person of 15&nbsp;percent or more of the outstanding
shares of common stock of the Company. The rights will expire on June&nbsp;4, 2013, unless earlier redeemed or exchanged by the Company pursuant to the terms of the Rights Plan. The rights have
certain anti-takeover effects and will cause substantial dilution to a person or group that attempts to acquire the Company in a manner or on terms not approved by our Board of Directors. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
2006 and 2007, certain stock-based awards issued under the Company's approved stock option plan vested. Under the provisions of this plan, a portion of the vested shares were
withheld by the Company in order to satisfy payroll tax obligations of the employee. The vested shares withheld by the Company have been recorded as Treasury Stock, a reduction to stockholder's
equity, at the fair market value on the date that the tax obligation was determined, which was also the vesting date of the awards. As of December&nbsp;31, 2006 and 2007, there were 49,066 and
97,999 shares withheld and included in Treasury Stock at a fair-market value on the date of purchase of $510,000 and $1,033,000, respectively. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue Recognition.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In accordance with Staff Accounting Bulletin Topic 13, "Revenue Recognition," revenues from contract
assignments, net of sales adjustments and discounts, are recognized when earned, based on hours worked by the Company's contract professionals on a weekly basis.
Conversion and direct hire fees are recognized when earned, upon conversion or direct hire of a contract professional to a client's regular employee. In addition, the Company records a sales allowance
against consolidated revenues, which is an estimate based on historical billing adjustment experience. The sales allowance is recorded as a reduction to revenues and an increase to the allowance for
billing adjustments. The billing adjustment reserve includes an allowance for fallouts. Fallouts are direct hire fees that do not complete the contingency period. The contingency period is typically
90&nbsp;days or less. In accordance with EITF&nbsp;01-14, "Income Statement Characterization of Reimbursements Received for 'Out-of-Pocket' Expenses Incurred,"
the Company includes reimbursed expenses, including those related to travel and out-of-pocket expenses, in revenues and the associated amounts of reimbursable expenses in cost
of services. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of Services.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Cost of services include compensation for contract professionals and the related payroll taxes and benefits
incurred with respect to such compensation. Cost of services are recognized when incurred based on hours worked by the Company's contract professionals. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commissions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Company's revenue generating field personnel make placements and earn commissions based on a percentage of
revenues or gross profit. Accrued commissions is a component of accrued payroll in the Consolidated Balance Sheets and commissions expense is included in selling, general and administrative (SG&amp;A)
expenses in the Consolidated Statements of Operations. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Currency Translation.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The functional currency of the Company's foreign operations is their local currency, and as
such, their assets and liabilities are translated into U.S. dollars at the rate of exchange in effect on the balance sheet date. Revenue and expenses are translated at the average rates of exchange
prevailing during each monthly period. The related translation adjustments are recorded as cumulative foreign currency translation adjustments in accumulated other comprehensive income as a separate
component of stockholders' equity. Gains and losses </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>55</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=4,SEQ=55,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=424588,FOLIO='55',FILE='DISK126:[08ZAF1.08ZAF10801]FI10801A.;14',USER='KSOLTER',CD='14-MAR-2008;19:54' -->
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<BR>

<P style="font-family:arial;"><FONT SIZE=2>resulting
from foreign currency transactions, which are not material, are included in SG&amp;A expenses in the Consolidated Statements of Operations. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings per Share.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Basic earnings per share are computed based upon the weighted average number of shares outstanding and
diluted earnings per share are computed based upon the weighted average number of shares and dilutive share equivalents (consisting of incentive stock options, non-qualified stock options,
restricted stock units and restricted stock awards) outstanding during the periods using the treasury stock method. Due to the Company's net loss in the year ended December&nbsp;31, 2005, the
inclusion of dilutive common share equivalents in the calculation of diluted earnings per share would be anti-dilutive, therefore such common share equivalents have been excluded from the
computation of diluted earnings per share. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a reconciliation of the shares used to compute basic and diluted earnings per share: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="45%" ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="45%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="15%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="15%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="15%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="45%" style="font-family:arial;"><FONT SIZE=2>Weighted average number of shares outstanding used to compute basic earnings per share</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>25,464,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>27,155,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>35,138,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="45%" style="font-family:arial;"><FONT SIZE=2>Dilutive effect of stock-based awards</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>897,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>633,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="45%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="45%" style="font-family:arial;"><FONT SIZE=2>Number of shares used to compute diluted earnings per share</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>25,464,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>28,052,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>35,771,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="45%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table outlines the weighted average share equivalents outstanding during each period that were excluded from the computation of diluted earnings per share as a result of
the Company's net loss position. Had the Company been in a net income position for the respective periods, the following common share equivalents outstanding would have been dilutive: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="77%" ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="20%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31, 2005</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="77%" style="font-family:arial;"><FONT SIZE=2>Share equivalents outstanding</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>620,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="77%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table outlines the weighted average share equivalents outstanding during each period that were excluded from the computation of diluted earnings per share because the
exercise price for these options was greater than the average market price of the Company's shares of common stock during the respective periods. Also excluded from the computation of diluted earnings
per share were other share equivalents that became anti-dilutive when applying the treasury stock method. </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="54%" ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="54%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="12%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="12%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="14%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="54%" style="font-family:arial;"><FONT SIZE=2>Anti-dilutive common share equivalents outstanding</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>819,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>767,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,974,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="54%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
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<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-Based Compensation.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Effective January&nbsp;1, 2006, the Company adopted the provisions of SFAS No.&nbsp;123
(revised 2004) "Share-Based Payment" (SFAS&nbsp;123R) using the modified-prospective transition method. Under this transition method, compensation expense recognized includes:
(a)&nbsp;compensation expense for all share-based awards granted prior to, but not yet vested as of January&nbsp;1, 2006, based on the grant date fair value estimated in accordance with the
original provisions of SFAS No.&nbsp;123 "Accounting for Stock-Based Compensation" (SFAS&nbsp;123), recognized over the remaining vesting period and (b)&nbsp;compensation expense for all
share-based awards </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>56</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=5,SEQ=56,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=855504,FOLIO='56',FILE='DISK126:[08ZAF1.08ZAF10801]FI10801A.;14',USER='KSOLTER',CD='14-MAR-2008;19:54' -->
<A NAME="page_fi10801_1_57"> </A>
<BR>

<P style="font-family:arial;"><FONT SIZE=2>granted
on or after January&nbsp;1, 2006, based on the grant date fair value estimated in accordance with the provisions of SFAS&nbsp;123R recognized over the vesting period. In accordance with
the modified-prospective transition method, results for prior periods have not been restated. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to January&nbsp;1, 2006, the Company applied APB Opinion No.&nbsp;25 "Accounting for Stock Issued to Employees" (APB&nbsp;25) and related interpretations in accounting for
its stock-based compensation plans. Since stock options were issued with an exercise price equal to the fair market price on the grant date, no compensation expense was recorded related to stock
options. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to the adoption of SFAS&nbsp;123R, the Company adopted the disclosure only provisions of SFAS&nbsp;123, which recognizes expense based on the fair value on the date of grant.
The following table displays the assumptions that have been applied to estimate the fair value of stock option awards on the date of grant for the year ended December&nbsp;31, 2005: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="76%" ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31, 2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Dividend yield</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Risk-free interest rate</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Expected volatility</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>57.7</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Expected lives</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4.0&nbsp;years</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table illustrates the effect on the net loss and loss per share as if the Company had applied the fair value recognition provisions of SFAS&nbsp;123 to stock-based
employee compensation: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="76%" ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31, 2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Net loss&#151;as reported</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(96,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Add: Stock-based employee compensation expense recognized during the year</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>235,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards, net of related tax effects</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(2,126,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Net loss&#151;pro forma</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,987,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2><BR>
Loss per share:</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="16%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Basic and Diluted&#151;as reported</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(0.00</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Basic and Diluted&#151;pro forma</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(0.08</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
</TABLE></DIV>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the year of adoption of SFAS&nbsp;123R, the Company is required to disclose the effect of the change from applying the original provisions of APB&nbsp;25. As a result of the
adoption of SFAS&nbsp;123R, income before taxes decreased $1,577,000, net income decreased $1,208,000 and basic and diluted earnings per share decreased $0.04. Additionally, cash flows from
operating activities decreased $1,053,000 and cash flows from financing activities increased $1,053,000. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company adopted the transition method described in FASB Staff Position No. SFAS&nbsp;123(R)-3, "Transition Election related to accounting for the Tax Effect of Share-
Based Payment Awards," (SFAS&nbsp;123R-3) in the quarter ended December&nbsp;31, 2006. The adoption of SFAS&nbsp;123R-3 did not have a significant impact on the Company's
consolidated financial statements. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Use of Estimates.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;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 ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>57</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentration of Credit Risk.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Financial instruments that potentially subject the Company to credit risks consist primarily of
cash, cash equivalents, restricted cash and trade receivables. The Company places its cash, cash equivalents and restricted cash in low risk investments with quality credit institutions and limits the
amount of credit exposure with any single institution. For the Life Sciences, Physician and IT and Engineering segments and the Allied Healthcare line of business, concentration of credit risk with
respect to accounts receivable are limited because of the large number of geographically dispersed customers, thus spreading the trade credit risk. For the Nurse Travel line of business, our top 10
clients accounted for 47.3&nbsp;percent of Nurse Travel revenues in 2006 and 28.6&nbsp;percent in 2007. In 2005 and 2006, the Company earned 13.7&nbsp;percent and 13.1&nbsp;percent of
consolidated revenues from several customers operating under a single contract with Los Angeles County, respectively, compared with only 2.9&nbsp;percent in 2007. The revenues from this contract are
included in Healthcare segment revenues. No other single customer or contract accounted for 10&nbsp;percent or more of total revenues during 2005 and 2006 or more than 2.9&nbsp;percent in 2007.
The Company performs ongoing credit evaluations to identify risks and maintains an allowance to address these risks. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair Value of Financial Instruments.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The recorded values of cash and cash equivalents, restricted cash, accounts receivable,
accounts payable and accrued expenses approximate their fair value based on their short-term nature. The fair value of the long-term debt approximates the recorded value as the
debt has variable interest rates that are based on market conditions. The amount of the interest rate swap reflected on the Consolidated Balance Sheets in other long-term liabilities is
equivalent to fair value as the Company marks the swap to market at the end of each reporting period. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advertising Costs.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Advertising costs, which are expensed as incurred, were $3,158,000, $2,393,000 and $4,303,000 for the
years ended December&nbsp;31, 2005, 2006, and 2007, respectively. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exit or Disposal Activities.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;For the year ended December&nbsp;31, 2005, the Company incurred expenses in connection with
the reduction of personnel and office closures of $60,000 and $98,000 for the Life Sciences and Healthcare segments, respectively. These activities were carried out to execute strategic cost
containment objectives by eliminating less productive branch offices and the associated sales and fulfillment personnel as well as streamlining both field and corporate management teams. These costs
are included in SG&amp;A expenses, as shown on the Company's Consolidated Statements of Operations. No expenses were incurred during the years ended December&nbsp;31, 2006 and 2007, and there is no
liability associated with these activities in the Company's Consolidated Balance Sheets as of December&nbsp;31, 2006 and 2007 as all amounts were paid in 2006. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recent Accounting Pronouncements.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In September 2006, the Financial Accounting Standards Board issued SFAS No.&nbsp;157
"Fair Value Measurements" (SFAS&nbsp;157), which defines fair value, establishes a framework for consistently measuring fair value under GAAP, and expands disclosures about fair value measurements.
SFAS&nbsp;157 was effective for the Company beginning January&nbsp;1, 2008, and the provisions of SFAS&nbsp;157 will be applied prospectively as of that date. Management is currently evaluating
the effect that adoption of this statement will have on the Company's consolidated financial position and results of operations when it becomes effective in 2008, but does not expect it will have a
significant impact on the financials at this time. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
February 2007, the Financial Accounting Standards Board issued SFAS No.&nbsp;159 "The Fair Value Option for Financial Assets and Liabilities&#151;Including an amendment of
FASB Statement No.&nbsp;115" (SFAS&nbsp;159), which permits entities to choose to measure many financial instruments and certain other items at fair value. SFAS&nbsp;159 was effective beginning
January&nbsp;1, 2008, and the provisions of SFAS&nbsp;159 will be applied prospectively as of that date. Management is currently evaluating the effect that adoption of this statement will have on
the Company's consolidated </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>58</FONT></P>

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<P style='font-family:arial;page-break-before:always'></p>
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<BR>

<P style="font-family:arial;"><FONT SIZE=2>financial
position and results of operations when it becomes effective in 2008, but does not expect it will have a significant impact on the financials at this time. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
disclosure requirements and cumulative effect of adoption of FASB Interpretation No.&nbsp;48 "Accounting for Uncertainty in Income Taxes&#151;an interpretation of FASB
Statement No.&nbsp;109" are presented in Note&nbsp;8. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
December 2007, the FASB issued SFAS No.&nbsp;141(R), "Business Combinations" (SFAS&nbsp;141R). SFAS&nbsp;141R expands the definition of a business, thus increasing the number of
transactions that will qualify as business combinations. SFAS&nbsp;141R requires the acquirer to recognize 100&nbsp;percent of an acquired business' assets and liabilities, including goodwill and
certain contingent assets and liabilities, at their fair values at the acquisition date. Contingent consideration will be recognized at fair value on the acquisition date, with changes in fair value
recognized in earnings until settled. Likewise, changes in acquired tax contingencies, including those existing at the date of adoption, will be recognized in earnings if outside the maximum
allocation period (generally one year). Transaction-related expenses and restructuring costs will be expensed as incurred, and any adjustments to finalize the purchase accounting allocations, even
within the allocation period, will be shown as revised in the future financial statements to reflect the adjustments as if they had been recorded on the acquisition date. Finally, a gain could result
in the event of a bargain purchase (acquisition of a business below the fair market value of the assets and liabilities), or a gain or loss in the case of a change in the control of an existing
investment. SFAS&nbsp;141R will be applied prospectively to business combinations with acquisition dates on or after January&nbsp;1, 2009. Adoption is not expected to materially impact the
company's consolidated financial position or results of operations directly when it becomes effective in 2009, as the only impact that the standard will have on recorded amounts at that time is that
related to disposition of uncertain tax positions related to prior acquisitions. Following the date of adoption of the standard, the resolution of such items at values that differ from recorded
amounts will be adjusted through earnings, rather than through goodwill. Adoption of this statement is, however, expected to have a significant effect on how acquisition transactions subsequent to
January&nbsp;1, 2009 are reflected in the financial statements. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>2. Property and Equipment.  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment at December&nbsp;31, 2006 and 2007 consisted of the following: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="72%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Furniture and fixtures</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,903,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,778,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Computers and related equipment</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,238,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,801,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Computer software</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>16,209,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>17,753,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Machinery and equipment</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>896,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>870,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Leasehold improvements</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,075,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,667,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Work in process</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,532,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,684,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>24,853,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>31,553,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Less accumulated depreciation and amortization</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(15,737,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(17,655,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="52%" style="font-family:arial;"><FONT SIZE=2>Total</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,116,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>13,898,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
and amortization expense related to property and equipment for the years ended December&nbsp;31, 2005, 2006 and 2007 was $5,138,000, $4,672,000 and $6,194,000,
respectively. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
discussed in Note&nbsp;1 under </FONT><FONT SIZE=2><I>Property and Equipment</I></FONT><FONT SIZE=2>, the Company capitalizes costs associated with customized
internal-use software systems that have reached the application stage and meet recoverability tests under the provisions of SOP&nbsp;98-1. All software costs capitalized
under SOP&nbsp;98-1 are depreciated over an estimated useful life of three to five years. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>59</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
2005, the Company began implementing an enhanced front-office software application, Vurv Technology. Phase&nbsp;I of the new front office enhancement was completed in the second
quarter of 2006. Phases&nbsp;II and III of this software implementation were substantially completed in the first quarter of 2007. The new application interfaces with the existing
enterprise-wide information system, PeopleSoft, used in the Life Sciences and IT and Engineering segments and Allied Healthcare line of business and provides additional functionality,
including applicant tracking
and search tools, customer and candidate contact management and sales management tools. Phase&nbsp;IV, which will support the Nurse Travel division, is expected to be completed in the second quarter
of 2008. This project will enable a new integrated front-office and back-office system leveraging the Vurv Technology and PeopleSoft applications. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has capitalized costs related to its various technology initiatives, including the implementation of PeopleSoft and Vurv Technology, in accordance with
SOP&nbsp;98-1. The net book value of the property and equipment related to software development was $4,080,000 as of December&nbsp;31, 2007, which includes work in process of
$2,231,000, primarily related to the implementation of PeopleSoft finance and payroll modules for our Nurse Travel line of business and certain foreign operations. In addition, the Company has
capitalized website development costs in accordance with Emerging Issues Task Force Issue No.&nbsp;00-02, "Accounting for Web Site Development Costs." The net book value of capitalized
website development costs was $397,000 as of December&nbsp;31, 2007, of which no costs are currently in work in process. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the second quarter of 2005, the Company successfully relocated the information system and hosting environment from several third-party vendors to a self-managed
hosting center in Burbank, California. Due to the acquisitions of VISTA and Oxford in 2007, the Company decided to consolidate the information system and hosting environments for all domestic entities
to Salt Lake City, Utah, where VISTA's hosting environment is currently located. The Company expects to realize improved quality of service in supporting business operations and substantial cost
reductions by centralizing its computing environments. In conjunction with these activities, the Company has capitalized $3,028,000 for external direct costs including labor, hardware and software
purchases as well as internal development costs, of which $223,000 was included in work in process. The net book value of the fixed assets related to the hosting environment was $1,288,000 and
$1,287,000 as of December&nbsp;31, 2006 and 2007, respectively. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>3. Acquisitions.  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the second quarter of 2006, the Company acquired a small Health Information Management (HIM) business. The acquisition of this specialized team has helped to
enhance the sales efforts of the existing HIM line of business. The total purchase price of the acquisition was $584,000, of which $430,000 was paid in cash and the remainder was paid in stock with a
fair market value at the time of the acquisition of $154,000. The purchase price was allocated on the basis of estimated fair value, $513,000 to goodwill, which includes the primary asset of an
assembled workforce, $68,000 to intangible assets and $3,000 to fixed assets. The weighted-average amortization period for the identifiable intangible assets with definite lives is estimated to be one
year. Goodwill will not be deductible for tax purposes. Pro-forma operating results do not differ materially from those presented in the consolidated financial statements. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
January&nbsp;3, 2007, the Company acquired VSS Holding,&nbsp;Inc. and its subsidiaries, which includes VISTA Staffing Solutions,&nbsp;Inc. (VISTA), a privately-owned leading
provider of physician staffing, known as locum tenens, and permanent physician search services. VISTA is headquartered in Salt Lake City, Utah and works with more than 1,000 physicians covering
approximately thirty medical specialties. On a daily basis, VISTA has over 200 physicians on assignment. VISTA provides its staffing solutions in all fifty states and international markets for
organizations ranging from large urban hospitals to small practice groups in rural areas. VISTA's CEO and management </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>60</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<BR>

<P style="font-family:arial;"><FONT SIZE=2>team
have remained with the Company after the acquisition. The primary reasons for the VISTA acquisition were to diversify the Company's existing healthcare offerings, to compliment its existing Nurse
Travel business line with cross-selling opportunities and to leverage its SG&amp;A expenses, including housing, travel and credentialing costs. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
total purchase price of $44,236,000 consisted of (i)&nbsp;an initial price of $41,141,000, paid in cash, (ii)&nbsp;$890,000 in direct acquisition costs and
(iii)&nbsp;$2,205,000 for the estimated payment of the earn-out related to the 2007 operating performance of VISTA. Payment of the 2007 earn-out is tentatively scheduled for
April 2008, pending the agreement of all parties to all terms and provisions. The estimated earn-out payments have been included in the Consolidated Balance Sheets in other accrued
expenses. The initial price includes a $4,100,000 holdback for potential claims indemnifiable by the VISTA shareholders, which is held in escrow and has been included as part of the purchase price
allocation. There is potential for additional earn-out consideration of $5,795,000 that is contingent upon the 2008 financial performance of VISTA. This earn-out will be
recorded as additional purchase price in the future when and to the extent that the targets are met and the consideration is earned. The holdback, net of the amount of certain claims that may be made
against the selling shareholders, will be released from escrow to the selling shareholders on January&nbsp;3, 2009. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company recorded the acquisition using the purchase method of accounting, and thus the results of operations from VISTA are included in the Company's consolidated financial
statements (Physician segment) from the acquisition date. Pursuant to SFAS No.&nbsp;141, "Business Combinations" (SFAS&nbsp;141), the purchase price was allocated to the assets acquired and
liabilities assumed based on their fair values as of the date of the acquisition. Adjustments to the purchase price, such as the earn-outs for 2007 and 2008, will be reflected in
subsequent periods, if and when conditions are met. The purchase price was allocated as follows: $1,752,000 to net tangible assets acquired, $3,140,000 to identified intangible assets with definite
lives, $6,500,000 (trademarks) to identified intangible assets with indefinite lives and $32,844,000 to goodwill. The weighted average amortization period for the identifiable intangible assets with
definite lives is estimated to be 1.1&nbsp;years. Intangible assets with definite lives include contractor relations of $1,700,000 (1.7&nbsp;year weighted average amortization period), customer
relations of $1,400,000 (3&nbsp;month weighted average amortization period) and non-compete agreements of $40,000 (3.0&nbsp;year weighted average amortization period). Goodwill is not
expected to be deductible for tax purposes. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
January&nbsp;31, 2007, the Company acquired Oxford Global Resources,&nbsp;Inc. (Oxford), a leading provider of high-end information technology and engineering staffing
services. The
primary reasons for the Oxford acquisition were to enter the markets for information technology and engineering staffing services and to leverage the Company's existing SG&amp;A infrastructure. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
total purchase price of $207,723,000 consisted of (i)&nbsp;an initial price of $200,072,000, comprised of $190,072,000 paid in cash and&nbsp;795,292 shares of the Company's
common stock valued at $10,000,000, (ii)&nbsp;$1,331,000 in direct acquisition costs and (iii)&nbsp;$6,320,000 for the estimated payment of the earn-out related to the 2007 operating
performance of Oxford. Payment of the 2007 earn-out is tentatively scheduled for April 2008, pending the agreement of all parties to all terms and provisions. These costs have been
included in the Consolidated Balance Sheets in other accrued expenses. The initial price includes a $20,000,000 holdback for potential claims indemnifiable by the Oxford shareholders, which is held in
escrow and has been included as part of the purchase price allocation. There is potential for additional earn-out consideration of $5,680,000 that is contingent upon the 2008 financial
performance of Oxford. This earn-out will be recorded as additional purchase price in the future when and to the extent that the targets are met and the consideration is earned. The
holdback, net of the amount of certain claims that may be made against the selling shareholders, will be released from escrow to the selling shareholders by August&nbsp;3, 2008. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>61</FONT></P>

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<P style='font-family:arial;page-break-before:always'></p>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company recorded the acquisition using the purchase method of accounting, and thus the results of operations from Oxford are included in the Company's consolidated financial
statements (IT and Engineering segment) from the acquisition date. Pursuant to SFAS&nbsp;141, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair
values as of the date of the acquisition. Adjustments to the purchase price, such as the earn-outs for 2007 and 2008, will be reflected in subsequent periods, if and when conditions are
met. The purchase price was allocated as follows: $17,089,000 to net tangible assets acquired, $30,300,000 to identified intangible assets with definite lives, $15,700,000 to identified intangible
assets with indefinite lives (trademarks) and $144,634,000 to goodwill. The weighted average amortization period for the identifiable intangible assets with definite lives is estimated to be
2.1&nbsp;years. Intangible assets with definite lives include contractor relations of $20,800,000 (1.7&nbsp;year weighted average amortization period), customer relations of $8,700,000
(3.0&nbsp;year weighted average amortization period), in-use software of $500,000 (2.0&nbsp;year weighted average amortization period) and non-compete agreements of
$300,000 (3.0&nbsp;year weighted average amortization period). The Company expects to reduce its federal and state income tax liability by approximately $5,000,000 per year over fifteen years as a
result of an election to classify the Oxford acquisition as an asset sale for tax purposes under section&nbsp;338(h)(10) of the Internal Revenue Code of 1986, as amended. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company utilized its existing cash and proceeds from a new $165,000,000 senior secured credit facility to finance the acquisitions. See Note&nbsp;4 for a discussion of the credit
facility. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
summary below presents the amounts assigned to each major asset and liability caption of VISTA and Oxford as of the acquisition dates and presents pro-forma consolidated
results of operations for the years ended December&nbsp;31, 2006 and 2007 as if the acquisition of VISTA and Oxford described above had occurred at the beginning of each period. The unaudited
pro-forma financial information presented below gives effect to certain adjustments, the amortization of intangible assets and interest expense on acquisition related debt, other
non-recurring expenses related to VISTA and Oxford's former owners and the shares issued as a result of the shelf offering as if they had been issued at the beginning of 2006. The
Pro-Forma Consolidated Statement of Operations for the year ended December&nbsp;31, 2006 included compensation expense of $1,575,000 related to a combined variable award granted to a
VISTA officer. The award was settled prior to the completion of the acquisition and is considered to be a non-recurring charge by management. The pro-forma financial
information is not necessarily indicative of the operating results that would have occurred had the acquisition been consummated as of the date indicated, nor are they necessarily indicative of future
operating results. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="76%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="50%" ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Purchase Price Allocation</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="50%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>VISTA<BR>
January&nbsp;3, 2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Oxford<BR>
January&nbsp;31, 2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>Current assets</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>12,840,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>24,938,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>Property and equipment</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,221,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,433,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>Goodwill</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>32,844,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>144,634,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>Identifiable intangible assets</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,640,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>46,000,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>Long-term deposits and other long-term assets</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>58,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>644,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>Total assets acquired</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>57,603,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>219,649,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>Current liabilities</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,128,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11,073,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>Long-term liabilities</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,239,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>853,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>Total liabilities assumed</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>13,367,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11,926,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>Total purchase price</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="19%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>44,236,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="20%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>207,723,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>62</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<P style="font-family:arial;"><FONT SIZE=2><A
NAME="page_fk10801_1_63"> </A>


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 </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="71%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="55%" ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Unaudited<BR>
Pro-Forma Consolidated<BR>
Statements of Operations</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="55%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="55%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>Revenues</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>527,039,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>582,712,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>Cost of service</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>365,704,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>397,528,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>Gross profit</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>161,335,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>185,184,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>Selling, general and administrative expenses</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>151,216,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>157,098,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>Operating income</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10,119,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>28,086,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>Net income</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,907,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8,951,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>Basic earnings per share</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.11</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.25</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>Weighted average number of shares outstanding</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>34,504,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>35,209,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>Diluted earnings per share</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.11</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>0.25</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>Weighted average number of shares and dilutive shares outstanding</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>35,401,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>35,842,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2><B>4. Long-Term Debt.  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;31, 2007, the Company entered into a $165,000,000 senior secured credit facility. The new facility includes a 5-year $20,000,000
revolving credit facility, which was un-drawn as of December&nbsp;31, 2007, and a 7-year $145,000,000 funded term loan facility. The term loan facility is repayable at the
rate of $347,000 per quarter beginning in the first quarter of 2009. In addition, within ninety days of each of the Company's year ends, the Company is required to reduce the term loan by up to
50&nbsp;percent of its excess cash flow, as defined under the agreement governing the credit facility for each year end over the next seven years. During 2007, the Company used $9,087,000 to pay
down its bank loan to $135,913,000, including an $8,000,000 payment on December&nbsp;31, 2007 against the principal balance of the term loan. This payment was sufficient to cover the excess cash
flow payment required by the bank as well as all minimum quarterly payments for 2008. As such, no portion of the loan is payable until the first quarter of 2009 and therefore no portion is classified
as current in the Consolidated Balance Sheets as of December&nbsp;31, 2007. See note&nbsp;7 for the Company's debt payment schedule related to the outstanding principal balance. Under the terms of
the credit facility, the Company is required to maintain certain financial covenants, including a minimum total leverage ratio, a minimum interest coverage ratio and a limitation on capital
expenditures. In addition, the terms of the debt restrict the Company's ability to pay dividends of more than $2,000,000 per year. As of December&nbsp;31, 2007, the Company was in compliance with
all such covenants. The facility is secured by the assets of the Company. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May&nbsp;2, 2007, the Company entered into a transaction with a financial institution to fix the underlying rate on $73,000,000 of its outstanding bank loan for a period of two
years beginning June&nbsp;30, 2007. This transaction, commonly known as a swap, essentially fixes the Company's base borrowing rate at 4.9425&nbsp;percent as opposed to a floating rate, which
resets at selected periods. The current base rate on the loan balance in excess of $73,000,000, which will be reset on March&nbsp;31, 2008, is 4.83&nbsp;percent. The new base rate for this portion
of the debt will depend on the conditions the Company chooses at the time. The borrowing rate consists of the base rate plus an incremental rate, currently 2.25&nbsp;percent, which is dependent on
several factors, including the amount the Company borrowed and the amount of earnings before interest, taxes, depreciation and amortization (EBITDA), as defined, it is generating. On
December&nbsp;31, 2007, the value of the swap was marked-to-market, and the Company recorded a loss of $1,206,000 for the year ended </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>63</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=1,SEQ=63,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=356354,FOLIO='63',FILE='DISK126:[08ZAF1.08ZAF10801]FK10801A.;25',USER='GKIBBE',CD='17-MAR-2008;12:45' -->
<A NAME="page_fk10801_1_64"> </A>
<BR>

<P style="font-family:arial;"><FONT SIZE=2>December&nbsp;31,
2007. The loss is shown in the Consolidated Statements of Operations as the change in fair value of interest rate swap, and the related liability of $1,206,000 is included in the
Consolidated Balance Sheets in other long-term liabilities. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>5. Goodwill and Other Identifiable Intangible Assets.  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to SFAS No.&nbsp;142, "Goodwill and Other Intangible Assets," (SFAS&nbsp;142) goodwill and indefinite-lived intangible assets are tested for
impairment at least annually and more frequently if an event occurs that indicates the assets may be impaired. The test for impairment is performed at one level below the operating segment level,
which is defined in SFAS&nbsp;142 as the reporting unit. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to SFAS No.&nbsp;144, "Accounting for the Impairment or Disposal of Long-Lived Asset," and SFAS&nbsp;142, the Company determined there were no events or changes
in circumstances that indicated that carrying values of goodwill or other intangible assets subject to amortization may not be recoverable as of December&nbsp;31, 2007. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company acquired a small HIM business in the second quarter of 2006 and two companies, VISTA and Oxford, in the first quarter of 2007. See Note&nbsp;3 for discussion regarding
these acquisitions and the allocation of the purchase price. In December 2007, a small portion of the Oxford business was sold for $1,035,000, reducing the acquired goodwill balance allocated to that
respective portion of the business. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill
was $17,109,000 at December&nbsp;31, 2006 and $193,552,000 at December&nbsp;31, 2007. The balance at December&nbsp;31, 2007 was allocated $1,197,000, $15,912,000,
$32,844,000 and $143,599,000 to the Life Sciences, Healthcare, Physician and IT and Engineering segments, respectively. At December&nbsp;31, 2006, the goodwill balance was allocated $1,197,000 and
$15,912,000 to the Life Sciences and Healthcare segments, respectively. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
changes in the carrying amount of goodwill for the years ended December&nbsp;31, 2006 and 2007 are as follows: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Life Sciences</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Healthcare</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Physician</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>IT and Engineering</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Balance as of January&nbsp;1, 2006</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,197,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>15,399,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>Goodwill related to HIM business acquisition</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>513,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Balance as of December&nbsp;31, 2006</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,197,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>15,912,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>Goodwill related to VISTA acquisition</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>32,844,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>Goodwill related to Oxford acquisition</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>144,634,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="32%" style="font-family:arial;"><FONT SIZE=2>Sale of RMS business</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,035,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Balance as of December&nbsp;31, 2007</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,197,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>15,912,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>32,844,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>143,599,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>64</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=2,SEQ=64,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=126683,FOLIO='64',FILE='DISK126:[08ZAF1.08ZAF10801]FK10801A.;25',USER='GKIBBE',CD='17-MAR-2008;12:45' -->
<A NAME="page_fk10801_1_65"> </A>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December&nbsp;31, 2006 and December&nbsp;31, 2007, the Company had the following acquired identifiable intangible assets: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="12%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="15%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>December&nbsp;31, 2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>December&nbsp;31, 2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="12%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="15%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Estimated<BR>
Useful Life</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Gross Carrying Amount</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Accumulated Amortization</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Net Carrying Amount</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Gross Carrying Amount</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Accumulated Amortization</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Net Carrying Amount</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Intangible assets subject to amortization:</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Customer relations</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">3&nbsp;months&nbsp;-&nbsp;7&nbsp;years</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">7,515,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">7,082,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">433,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">17,615,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">11,315,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">6,300,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Contractor relations</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">3&nbsp;-&nbsp;7&nbsp;years</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">3,596,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">3,397,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">199,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">26,096,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">14,148,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">11,948,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Non-compete agreements</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2&nbsp;-&nbsp;3&nbsp;years</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">50,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">15,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">35,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">390,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">145,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">245,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">In-use software</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2&nbsp;years</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">500,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">229,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">271,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Subtotal</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">11,161,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">10,494,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">667,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">44,601,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">25,837,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">18,764,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Intangible assets not subject to amortization:</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Trademarks</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">22,200,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">22,200,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Goodwill</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">17,109,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">17,109,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">193,552,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">193,552,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Total</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">28,270,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">10,494,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">17,776,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">260,353,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">25,837,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">234,516,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="12%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization expense for intangible assets subject to amortization was $1,125,000, $957,000 and $15,342,000 for the years ended
December&nbsp;31, 2005, 2006 and 2007, respectively. Estimated amortization for each of the years ended December&nbsp;31, 2008 through December&nbsp;31, 2013 is $9,509,000, $6,088,000,
$1,715,000, $730,000, $363,000 and $359,000, respectively. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>6. 401(k) Retirement Savings Plan, Deferred Compensation Plan and Change in Control Severance Plan.  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under its 401(k) Retirement Savings Plans, eligible employees may elect to have a portion of their salary deferred and contributed to the plans. The amount of
salary deferred is not subject to federal and state income tax at the time of deferral, but will be subject to taxation upon distribution, along with any earnings on such amounts. The plans cover all
eligible employees and provide for matching or discretionary contributions at the discretion of the Company's Board of Directors. The Company made matching or discretionary contributions to the plans
of $486,000, $591,000 and $1,140,000 during the years ended December&nbsp;31, 2005, 2006 and 2007, respectively. These amounts are included in SG&amp;A expenses in the Consolidated Statements of
Operations. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
January&nbsp;1, 1998, the Company implemented the On Assignment,&nbsp;Inc. Deferred Compensation Plan. The plan permits a select group of management or highly compensated
employees or directors that contribute materially to the continued growth, development and future business success of the Company to annually elect to defer up to 100&nbsp;percent of their base
salary, annual bonus, stock option gain or fees on a pre-tax basis and earn tax-deferred returns on these amounts. The plan is intended to be a plan that is not qualified
within the meaning of IRS Code Section&nbsp;401(a) and that is "unfunded and maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management
or highly compensated employees" within the meaning of the Employee Retirement Income Security Act of 1974, as amended (ERISA), Sections&nbsp;201(2), 301(a)(3) and 401(a)(1). Distributions from the
plan are commenced within 60&nbsp;days after the participant's retirement, death or termination of employment, in a lump sum, or over five, ten or fifteen years, provided however that payments made
upon </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>65</FONT></P>

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<P style='font-family:arial;page-break-before:always'></p>
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<P style="font-family:arial;"><FONT SIZE=2>termination
shall be paid in a lump sum if the participant's account balance at the time of termination is less than $25,000. Notwithstanding the foregoing, the Company is in administrative compliance
with certain requirements of IRS Code Section&nbsp;409A ("Section&nbsp;409A") which states that plan distributions, upon the termination of service of the Company's Chief Executive Officer, Chief
Financial Officer and the next three most highly compensated officers, may not be made earlier than six months after the date of separation from service. Furthermore, if the Company determines in good
faith prior to a change in control that there is a reasonable likelihood that any compensation paid to a participant for a taxable year of the Company would not be deductible by the Company solely by
reason of the limitation under IRS Code Section&nbsp;162(m), ("Section&nbsp;162(m)") then the Company may defer all or any portion of a distribution and the plan at the earliest possible date, as
determined by the Company in good faith, on which the deductibility of compensation paid or payable to the participant for the taxable year of the Company during which the distribution is made will
not be limited by Section&nbsp;162(m), or if earlier, the effective date of a change in control. At December&nbsp;31, 2006 and 2007, the liability under the plan was approximately $1,360,000 and
$2,037,000, respectively. Life insurance policies are maintained related to the plan, whereby the Company is the sole owner and beneficiary of such insurance. The cash surrender value of these life
insurance policies, which is reflected in other assets in the accompanying Consolidated Balance Sheets, was approximately $1,290,000 and $2,037,000 at December&nbsp;31, 2006 and 2007, respectively. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company adopted the On Assignment,&nbsp;Inc. Change in Control Severance Plan (the CIC Plan) to provide severance benefits for officers and other named employees who are terminated
following an acquisition of the Company. This CIC Plan was adopted on February&nbsp;12, 1998 and amended on August&nbsp;8, 2004 and January&nbsp;23, 2007. Under the CIC Plan, if an eligible
employee is involuntarily terminated within eighteen months of a change in control, as defined in the CIC Plan, then the employee will be entitled to salary plus target bonus payable in a lump sum and
continuation of health and welfare benefits for periods of time ranging from nine months to eighteen months, for named employees with titles of vice president or higher. The amounts payable would
range from one month to eighteen months of salary and target bonus, depending on the employee's length of service and position with the Company. The Company entered into separate Executive Change of
Control Agreements with the Chief Executive Officer and the Chief Financial Officer on December&nbsp;31, 2004 and January&nbsp;1, 2007, respectively, that supersede the CIC Plan in the event of an
involuntary termination occurring within six months and ten days following the change in control (as defined in the Executive Change of Control Agreement). These Executive Change in Control Plans
provide for certain other benefits as outlined in the agreements, including, but not limited to, lump sum
payments of three times the Chief Executive Officer's salary plus target bonus and 2.5 times the Chief Financial Officer's salary plus target bonus, eighteen months continuation of the executive's
then current health and welfare benefits and car allowance, eighteen months continuation of any Company funded contributions to the executive's retirement plans, and payment of up to $15,000 of the
cost of outplacement services selected by the executive. Additionally, under the Executive Change in Control Plans, immediately prior to a change in control, all stock options, unit options,
restricted stock and restricted units grants made to the executive by the Company which are outstanding at the time of such event shall be accelerated and become fully vested. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>7. Commitments and Contingencies.  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company leases its facilities and certain office equipment under operating leases, which expire at various dates through 2016. Certain leases contain rent
escalations and/or renewal options. Rent expense for all significant leases is recognized on a straight-line basis. At December&nbsp;31, 2006 and 2007, the balance of deferred rent
liability was $721,000 and $746,000, </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>66</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>respectively,
and is reflected in other current and long-term liabilities in the accompanying Consolidated Balance Sheets. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a summary of specified contractual cash obligation payments by as of December&nbsp;31, 2007: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="78%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Long-Term Debt</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Operating Leases</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Accrued Earn-Out Payments</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Total</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>2008</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>6,641,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8,525,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>15,166,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>2009</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,387,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>6,003,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>7,390,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>2010</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,387,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,019,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>5,406,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>2011</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,387,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,088,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,475,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>2012</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,387,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>860,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,247,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Thereafter</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>130,365,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,213,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>132,578,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="20%" style="font-family:arial;"><FONT SIZE=2>Total</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>135,913,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>21,824,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8,525,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>166,262,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rent
expense for the years ended December&nbsp;31, 2005, 2006, and 2007 was $4,575,000, $5,109,000, and $8,822,000, respectively. These amounts are included in SG&amp;A expenses in the
Consolidated Statements of Operations. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
discussed in Note&nbsp;3 above, the Company has accrued $2,205,000 and $6,320,000 for the estimated payment of the earn-outs related to the 2007 operating performance of
VISTA and Oxford, respectively. Payment of the earn-outs is tentatively scheduled for April 2008, pending the agreement of all applicable parties to all terms and provisions. These costs
have been included in the Consolidated Balance Sheets in other accrued expenses. There is potential for additional earn-out consideration of $5,795,000 that is contingent upon the 2008
financial performance of VISTA. There is also potential for additional earn-out consideration of $5,680,000 that is contingent upon the 2008 financial performance of Oxford. These
additional potential earn-outs have been excluded from the table above and will be recorded as additional purchase price when and to the extent the targets are met and the consideration is
earned. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
payments related to the Company's bank debt are not set forth in the table above. The Company expects interest expense related to the loan to decrease slightly going forward as
the principal balance is paid off. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is partially self-insured for workers' compensation liability related to the Life Sciences, Healthcare and IT and Engineering segments as well as its medical
malpractice liability in relation to the Physician segment. In connection with these programs, the Company pays a base premium plus actual losses incurred up to certain stop-loss limits
and the Company is insured for losses above these limits, both per occurrence and in the aggregate. The self-insurance claim liability is determined based on claims filed and claims
incurred but not yet reported. The Company accounts for claims incurred but not yet reported based on estimates derived from historical claims experience and current trends of industry data. Changes
in estimates and differences in estimates and actual payments for claims are recognized in the period that the estimates changed or payments were made. The net self-insurance claim
liability was approximately $3,551,000 and $8,921,000 at December&nbsp;31, 2006 and 2007, respectively. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December&nbsp;31, 2007, the Company has an income tax reserve in other long-term liabilities related to our uncertain tax positions of $337,000. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
September 2005, Oxford commenced suit in Massachusetts Superior Court against two former Oxford employees, their new employer, Black Diamond Networks&nbsp;Inc., ("Black Diamond")
and its President. Oxford later amended the complaint at various times to add seven other former </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>67</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=5,SEQ=67,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=21095,FOLIO='67',FILE='DISK126:[08ZAF1.08ZAF10801]FK10801A.;25',USER='GKIBBE',CD='17-MAR-2008;12:45' -->
<A NAME="page_fk10801_1_68"> </A>
<BR>

<P style="font-family:arial;"><FONT SIZE=2>employees
of Oxford (all collectively "Former Employees") and three other additional defendants. The claims involve breach of the Former Employees' confidentiality, non-solicitation and
non-competition agreements, misappropriation of proprietary information, as well as tortious interference with such contracts and advantageous relations and unfair competition. Certain of
the defendants have filed counterclaims, which the Company believes to be without legal merit. The court has granted Oxford's six requests for preliminary injunction orders, which have been issued
against eight of the Former Employee defendants and Black Diamond. Discovery is ongoing and is extensive. Factual discovery will conclude by March&nbsp;31, 2008 and trial is scheduled to commence on
October&nbsp;14, 2008. Oxford expects the matter to be tried. Accordingly, legal and expert fees may be significant. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is involved in various legal proceedings, claims and litigation arising in the ordinary course of business. However, based on the facts currently available, the Company does
not believe that the disposition of matters that are pending or asserted will have a material adverse effect on its financial position. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><B>8. Income Taxes.  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before provision (benefit) for income taxes consists of the following: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="74%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="40%" ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="40%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="40%" style="font-family:arial;"><FONT SIZE=2>United States</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,467,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,858,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>14,435,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="40%" style="font-family:arial;"><FONT SIZE=2>Foreign</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,242,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,727,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,380,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="40%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="40%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(225,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11,585,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>16,815,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="40%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
provision (benefit) for income taxes consists of the following: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="75%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Current:</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="39%" style="font-family:arial;"><FONT SIZE=2>Federal</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(653,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,763,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,804,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="39%" style="font-family:arial;"><FONT SIZE=2>State</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>150,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>216,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,125,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="39%" style="font-family:arial;"><FONT SIZE=2>Foreign</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>374,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>468,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>727,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(129,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,447,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11,656,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Deferred:</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="39%" style="font-family:arial;"><FONT SIZE=2>Federal</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(326,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>82,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(4,536,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="39%" style="font-family:arial;"><FONT SIZE=2>State</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(479,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>367,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>365,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="39%" style="font-family:arial;"><FONT SIZE=2>Foreign</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>82,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(10,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(723,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>439,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(4,163,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Change in valuation Allowance</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>723,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(4,345,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Total</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(129,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>541,000</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>7,493,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December&nbsp;31, 2007, the Company had no federal net operating losses and total combined state net operating losses of $15,723,000. The state net operating losses can be
carried forward for up to 20&nbsp;years and begin expiring in 2013. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the quarter and year ended December&nbsp;31, 2004, the Company established a valuation allowance against its net domestic deferred income tax assets. The valuation allowance was
calculated pursuant to SFAS&nbsp;109, which requires an assessment of both positive and negative </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>68</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=6,SEQ=68,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=395226,FOLIO='68',FILE='DISK126:[08ZAF1.08ZAF10801]FK10801A.;25',USER='GKIBBE',CD='17-MAR-2008;12:45' -->
<A NAME="page_fk10801_1_69"> </A>
<BR>

<P style="font-family:arial;"><FONT SIZE=2>evidence
when measuring the need for a valuation allowance. Such evidence includes a company's past and projected future performance, the market environment in which the company operates, the
utilization of past tax credits and the length of carryback and carryforward periods of net operating losses. At the end of 2006, the Company evaluated the need for the valuation allowance in
accordance with the Company's valuation allowance reversal methodology and in conjunction with SFAS&nbsp;109. The Company concluded that as a result of sustained profitability, which was evidenced
by consecutive quarters of net income along with projections of pre-tax income in future years, that the criteria had been met for the full reversal of the valuation allowance. Of the
$4,928,000 valuation allowance reversal, $4,345,000 resulted in an income tax benefit and $583,000 was recorded as an increase to additional paid in capital resulting from stock option deductions
taken in 2006. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company had gross deferred tax assets of $5,946,000 and $9,348,000 and gross deferred tax liabilities of $1,457,000 and $2,994,000 at December&nbsp;31, 2006 and December&nbsp;31,
2007, respectively. Foreign deferred tax assets and liabilities were not material as of December&nbsp;31, 2006 and 2007 and are included in the Federal balances in the table below. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
components of deferred tax assets (liabilities) are as follows: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="85%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>December&nbsp;31, 2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>December&nbsp;31, 2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Federal</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>State</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Federal</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>State</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Deferred income tax assets (liabilities):</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Current:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="28%" style="font-family:arial;"><FONT SIZE=2>Allowance for doubtful accounts</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>453,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>70,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>770,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>101,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="28%" style="font-family:arial;"><FONT SIZE=2>Employee related accruals</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>614,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>73,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,639,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>188,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="28%" style="font-family:arial;"><FONT SIZE=2>State taxes</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>46,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>386,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="28%" style="font-family:arial;"><FONT SIZE=2>Workers' compensation loss reserve</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,252,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>193,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,191,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>177,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="28%" style="font-family:arial;"><FONT SIZE=2>Medical malpractice loss reserve</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,072,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>76,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="28%" style="font-family:arial;"><FONT SIZE=2>Net operating loss carry-forwards</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>614,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>725,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="28%" style="font-family:arial;"><FONT SIZE=2>Other</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>280,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>29,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>599,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>94,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Total current deferred income tax assets</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,645,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>979,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>6,657,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,361,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><BR><FONT SIZE=2> Non-current:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="28%" style="font-family:arial;"><FONT SIZE=2>Net operating loss carry-forwards</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>846,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="28%" style="font-family:arial;"><FONT SIZE=2>Stock-based compensation</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>211,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>20,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,040,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>110,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="28%" style="font-family:arial;"><FONT SIZE=2>Purchased intangibles, net</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>975,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>151,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,256,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>59,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="28%" style="font-family:arial;"><FONT SIZE=2>Depreciation and amortization expense</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,297,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(160,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,454,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(109,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="28%" style="font-family:arial;"><FONT SIZE=2>Other</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>109,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>111,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(165,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Total non-current deferred income tax (liabilities) assets</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(2,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>867,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(1,559,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(105,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Total deferred income tax assets</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,643,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,846,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>5,098,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,256,000</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>69</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=7,SEQ=69,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=580590,FOLIO='69',FILE='DISK126:[08ZAF1.08ZAF10801]FK10801A.;25',USER='GKIBBE',CD='17-MAR-2008;12:45' -->
<A NAME="page_fk10801_1_70"> </A>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
reconciliation between the amount computed by applying the U.S. federal statutory tax rate of 35&nbsp;percent to income before income taxes and the actual income taxes is as
follows: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="82%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="48%" ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="48%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="48%" style="font-family:arial;"><FONT SIZE=2>Income tax (benefit) provision at the statutory rate</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(77,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,939,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>5,885,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="48%" style="font-family:arial;"><FONT SIZE=2>State income taxes, net of federal income tax</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>139,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>560,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>892,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="48%" style="font-family:arial;"><FONT SIZE=2>Other</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>18,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="48%" style="font-family:arial;"><FONT SIZE=2>Valuation Allowance</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>355,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(4,345,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="48%" style="font-family:arial;"><FONT SIZE=2>2004 Income tax refund received in excess of estimates</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(873,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="48%" style="font-family:arial;"><FONT SIZE=2>Income tax contingency</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>216,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>350,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(53,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="48%" style="font-family:arial;"><FONT SIZE=2>Foreign tax rate</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(19,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(109,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(105,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="48%" style="font-family:arial;"><FONT SIZE=2>Permanent differences</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>130,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>146,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>856,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="48%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="48%" style="font-family:arial;"><FONT SIZE=2>Total</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(129,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>541,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>7,493,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="48%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company receives a tax deduction for stock-based awards upon exercise of a non-qualified stock option or as the result of disqualifying dispositions made by directors,
officers and employees. A disqualifying disposition occurs when stock acquired through the exercise of incentive stock options or the Employee Stock Purchase Plan is disposed of prior to the required
holding period. In addition, the Company receives a tax deduction upon the vesting of restricted stock units or restricted stock awards. No benefit from stock-based awards was realized at
December&nbsp;31, 2005. The Company recorded tax benefits of $523,000 and $802,000 from stock-based awards in 2006 and 2007, respectively. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company adopted the provisions of FASB Interpretation No.&nbsp;48 "Accounting for Uncertainty in Income Taxes&#151;an interpretation of FASB Statement No.&nbsp;109"
(FIN&nbsp;48) on January&nbsp;1, 2007. As a result of the implementation of FIN&nbsp;48, the Company made a comprehensive review of its portfolio of uncertain tax positions in accordance with
recognition standards established by FIN&nbsp;48. In this regard, an uncertain tax position represents the Company's expected tax treatment of a tax position taken in a filed tax return, or planned
to be taken in a future return, that has not been reflected in measuring income tax expense for financial reporting purposes. As a result of this review, the Company adjusted the estimated value of
its uncertain tax positions by recognizing additional liabilities totaling $217,000, including an accrual for interest and penalties of $21,000, through a charge to retained earnings. Upon the
adoption of FIN&nbsp;48, the estimated value of the Company's uncertain tax positions is a liability of $567,000, which includes penalties and interest, of which $196,000 was carried in other
long-term liabilities and $370,000 was carried as a reduction to non-current deferred tax assets in the consolidated condensed statement of financial position as of March&nbsp;31, 2007.
As of December&nbsp;31, 2007, the estimated value of the Company's
uncertain tax positions is a liability of $515,000, which includes penalties and interest, of which $337,000 was carried in other long-term liabilities and $178,000 was carried as a reduction to non-
current deferred tax assets. If the Company's positions are sustained by the taxing authority in favor of the Company, the entire $515,000 would reduce the Company's effective tax rate. The Company
recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
December&nbsp;31, 2007, the Company had accumulated net foreign earnings of $6,000,000. The Company intends to reinvest the undistributed earnings of its foreign subsidiaries and,
therefore, no U.S. income tax has been provided on the foreign earnings. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>70</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=8,SEQ=70,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=888073,FOLIO='70',FILE='DISK126:[08ZAF1.08ZAF10801]FK10801A.;25',USER='GKIBBE',CD='17-MAR-2008;12:45' -->
<A NAME="page_fk10801_1_71"> </A>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a reconciliation of the total amounts of unrecognized tax benefits for the year: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="68%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="79%" style="font-family:arial;"><FONT SIZE=2>Unrecognized Tax Benefit January&nbsp;1, 2007</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>840,755</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="79%" style="font-family:arial;"><FONT SIZE=2>Gross Decreases&#151;tax positions in prior year</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(121,878</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="79%" style="font-family:arial;"><FONT SIZE=2>Gross Decreases&#151;tax positions in current year</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(46,298</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="79%" style="font-family:arial;"><FONT SIZE=2>Gross Increases&#151;tax positions in current year</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>159,023</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="79%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="79%" style="font-family:arial;"><FONT SIZE=2>Unrecognized Tax Benefit December&nbsp;31, 2007</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>831,602</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="79%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
recognized, the entire balance of unrecognized tax benefits at December&nbsp;31, 2007 would affect the effective tax rate. The Company recognizes interest accrued related to
unrecognized tax benefits and penalties as income tax expense. Related to the unrecognized tax benefits noted above, the Company accrued penalties of $6,000 and gross interest of $10,000 during 2007
and in total, as of December&nbsp;31, 2007, had recognized a liability for penalties of $18,000 and gross interest of $23,000. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company believes that there will be no significant increases or decreases to unrecognized tax benefits within the next twelve months. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is subject to taxation in the US and various states and foreign jurisdictions. The Internal Revenue Service (IRS) has examined and substantially concluded all tax matters for
years through 2004. The IRS commenced an examination of the Company's U.S. income tax returns for the 2005 and 2006 tax years. In addition, open tax years related to state and foreign jurisdictions
remain subject to examination but are not considered material. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>9. Stock Option Plan and Employee Stock Purchase Plan.  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2007, the Company maintains a Restated 1987 Stock Option Plan (as amended and restated through April&nbsp;17, 2007) and approved by
shareholders on June&nbsp;1, 2007 (the Plan). The Company issues stock options, restricted stock units (RSU's) and restricted stock awards (RSA's) in accordance with the Plan and records
compensation expense in accordance with SFAS&nbsp;123R. Compensation expense charged against income related to stock-based compensation was $2,953,000 and $6,359,000 for the years ended
December&nbsp;31, 2006 and 2007, respectively, and is included the Consolidated Statements of Operations in SG&amp;A. In 2005, the Company applied APB&nbsp;25 and the disclosure only provisions of
SFAS&nbsp;123 and SFAS No.&nbsp;148, "Accounting for Stock-Based Compensation." For the year ended December&nbsp;31, 2005, the Company recorded $235,000 in stock-based compensation expense in
accordance with APB&nbsp;25 related to RSU's and RSA's. The Company has recognized an income tax benefit of $820,000 and $2,046,000 in the income statement for stock-based compensation arrangements
for the years ended December&nbsp;31, 2006 and 2007, respectively. No income tax benefit was recorded related to stock-based compensation for the year ended December&nbsp;31, 2005 due to the
valuation allowance recorded against net deferred tax assets. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Plan, which is shareholder-approved, permits the grant of awards, including cash, stock options, RSU's, RSA's, stock appreciation rights, unrestricted stock units and dividend
equivalent rights to its employees, officers, members of its Board of Directors, consultants and advisors for up to 13,900,000 shares of common stock, subject to per-recipient, annual and
other periodic caps. The Company believes that stock-based compensation better aligns the interests of its employees and directors with those of its shareholders versus exclusively providing
cash-based compensation. Stock options, RSU's and RSA's are generally granted with an exercise price equal to the closing market price of the Company's stock at the date of grant. Stock
option awards generally vest over four years of continuous service with the Company and generally have 10-year contractual terms while RSU's and RSA's generally vest over a three year
continuous service period, though </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>71</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<BR>

<P style="font-family:arial;"><FONT SIZE=2>individual
award vesting terms vary within these parameters. Certain stock option awards and RSU's and RSA's provide for accelerated vesting in the event of a change in control. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
preceding paragraph describes the general terms of most stock-based incentives awarded by the Company. However, in January 2007, the Company issued a discrete set of stock-based
awards to its Chief Executive Officer that differ from those generally stated terms. The terms were as follows: On January&nbsp;2, 2007, the Chief Executive Officer was granted (1)&nbsp;42,553
RSU's valued at $500,000, which vest on the third anniversary of the date of the grant, (2)&nbsp;42,553 shares of RSA's valued at $500,000, which vest December&nbsp;31, 2009 contingent upon
meeting certain performance objectives approved by the Compensation Committee (based on adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA) and (3)&nbsp;42,553 RSU's
valued at $500,000, which vest December&nbsp;31, 2009 contingent upon the Company meeting certain stock price performance objectives relative to its peers over three years from the date of grant.
All awards are subject to the executive's continued employment through such vesting dates. The grant-date fair-value of these awards, which was determined by applying certain
provisions of SFAS&nbsp;123R relative to performance-based and market-based awards, is generally being expensed over the three-year vesting term. The impact of these awards is reflected
in the Restricted Stock Units and Restricted Stock Awards section below. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
September&nbsp;6, 2007, the Company issued RSU's to certain officers. These awards generally vest over three years and are forty percent contingent upon the Company meeting certain
performance objectives approved by the Compensation Committee and are subject to the respective officer's continued employment through such vesting dates. The remaining sixty percent are subject
solely to the respective officer's continued employment through such vesting dates. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model that incorporates assumptions disclosed in the following table.
Expected volatility is based on historical volatility of the underlying stock for a period consistent with the expected lives of the stock options because the Company believes this is a reasonable
representation of future volatility. Additionally, the stock option valuation model selected by the Company uses historical data and management judgment to estimate stock option exercise behavior and
employee turnover rates to estimate the number of stock option awards that will eventually vest. The Company evaluated the impact of grouping employees with similar historical exercise behavior and
determined that there were no notable differences in exercise behavior across various employee groups and, as a result, all employees are included in a single group for valuation purposes. The
expected life, or term, of options granted is derived from historical exercise behavior and represents the period of time that stock option awards are expected to be outstanding. The Company has
selected a risk-free rate based on the implied yield available on U.S. Treasury Securities with a maturity equivalent to the options' expected term. For RSU's and RSA's, the Company
records compensation expense based on the fair market value of the awards on the grant date. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>72</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Stock Options  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table displays the assumptions that have been applied to estimate the fair value of stock option awards on the date of grant for the years ended
December&nbsp;31, 2006 and 2007: </FONT></P>

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<DIV ALIGN="CENTER"><TABLE WIDTH="69%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="66%" ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=3 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="66%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="13%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="13%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%" style="font-family:arial;"><FONT SIZE=2>Dividend yield</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%" style="font-family:arial;"><FONT SIZE=2>Risk-free interest rate</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4.7</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4.6</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="66%" style="font-family:arial;"><FONT SIZE=2>Expected volatility</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>51.7</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>47.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="66%" style="font-family:arial;"><FONT SIZE=2>Expected lives</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4.0&nbsp;years</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3.4&nbsp;years</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following summarizes pricing and term information for options outstanding as of December&nbsp;31, 2007: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="90%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="6%" ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="3%" ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="6%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=6 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Options Outstanding</B></FONT><HR NOSHADE></TH>
<TH WIDTH="6%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=4 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Options Exercisable</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=6 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Range of Exercise Prices<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="6%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="11%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Number Outstanding at December&nbsp;31, 2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="6%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="10%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Weighted Average Remaining Contractual Life</B></FONT><HR NOSHADE></TH>
<TH WIDTH="6%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Weighted Average Exercise Price</B></FONT><HR NOSHADE></TH>
<TH WIDTH="6%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="11%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Number Exercisable at December&nbsp;31, 2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="6%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Weighted Average Exercise Price</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>$&nbsp;&nbsp;3.97</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>5.11</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>713,034</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>6.5&nbsp;years</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4.89</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>609,247</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4.89</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.14</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9.60</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>629,044</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>6.6&nbsp;years</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>6.13</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>515,194</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>5.93</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.62</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11.39</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>749,149</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8.9&nbsp;years</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11.15</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>226,613</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11.18</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;11.45</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>13.13</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>553,500</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8.1&nbsp;years</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>12.10</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>173,898</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>12.15</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;13.31</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>13.31</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>714,974</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9.2&nbsp;years</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>13.31</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>19,562</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>13.31</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;13.69</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>33.00</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>352,786</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2.9&nbsp;years</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>18.98</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>352,683</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>18.98</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>$&nbsp;&nbsp;3.97</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>33.00</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,712,487</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>7.4&nbsp;years</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.40</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,897,197</FONT></TD>
<TD WIDTH="6%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9.30</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table is a summary of stock option activity under the Plan as of December&nbsp;31, 2007 and changes for the year then ended: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="11%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Incentive Stock Options</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="12%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Non-Qualified Stock Options</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Weighted Average Exercise Price Per Share</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="10%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Weighted Average Remaining Contractual Term (Years)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Aggregate Intrinsic Value</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Outstanding at January&nbsp;1, 2007</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,102,251</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,486,748</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8.66</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="30%" style="font-family:arial;"><FONT SIZE=2>Granted</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,801,074</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>12.27</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="30%" style="font-family:arial;"><FONT SIZE=2>Exercised</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(114,009</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(248,385</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>5.56</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="30%" style="font-family:arial;"><FONT SIZE=2>Canceled</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(136,481</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(178,711</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>12.36</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Outstanding at December&nbsp;31, 2007</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>851,761</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,860,726</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.40</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>7.4</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,174,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Vested or Expected to Vest at December&nbsp;31, 2007</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>805,944</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,018,022</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9.92</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>6.9</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,120,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Exercisable at December&nbsp;31, 2007</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>662,853</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,234,344</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9.30</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>6.0</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,898,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table above includes 273,000 and 195,000 of non-employee director stock options outstanding as of January&nbsp;1, 2007 and December&nbsp;31, 2007, respectively. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
weighted-average grant-date fair value of options granted during the years ended December&nbsp;31, 2005, 2006 and 2007 was $3.68, $5.05 and $4.05 per option,
respectively. The total intrinsic value of options exercised during the years ended December&nbsp;31, 2005, 2006 and 2007 was $1,601,000 $1,416,000 and $2,355,000, respectively. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>73</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=11,SEQ=73,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=49729,FOLIO='73',FILE='DISK126:[08ZAF1.08ZAF10801]FK10801A.;25',USER='GKIBBE',CD='17-MAR-2008;12:45' -->
<A NAME="page_fk10801_1_74"> </A>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December&nbsp;31, 2007, there was unrecognized compensation expense of $3,915,000 related to unvested stock options based on options that are expected to vest. The unrecognized
compensation expense is expected to be recognized over a weighted-average period of 3.1&nbsp;years. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Restricted Stock Units and Restricted Stock Awards  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A summary of the status of the Company's unvested RSU's and RSA's as of December&nbsp;31, 2007 and changes during the year then ended are presented below: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="63%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="17%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Restricted Stock Units/Awards</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Weighted Average Grant-Date Fair Value Per Unit/Award</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Unvested RSU's and RSA's outstanding at December&nbsp;31, 2006</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>380,662</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9.40</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>Granted</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>288,392</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>12.01</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>Vested</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(143,727</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9.78</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="55%" style="font-family:arial;"><FONT SIZE=2>Forfeited</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(53,435</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9.07</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Unvested and expected to vest RSU's and RSA's outstanding at December&nbsp;31, 2007</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>471,892</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.92</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table above excludes 5,337 RSA's that were awarded to non-employee directors. On August&nbsp;8, 2007, 14,232 RSA's were awarded to non-employee directors,
of which 50&nbsp;percent, or 7,116 shares, vested immediately upon issuance and 1,779 were forfeited due to the resignation of a non-employee director. The remaining shares will vest on
August&nbsp;8, 2008. The weighted average grant-date fair value of these awards was $11.24. In accordance with SFAS&nbsp;123R, the Company records compensation expense based on the
fair market value of the awards on the grant date. There was unrecognized compensation of $36,000 as of December&nbsp;31, 2007 related to these RSA's that will be recorded over the remaining term of
approximately seven months. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has approved certain awards in which a variable number of shares are to be granted to the employees based on a fixed monetary amount. As such, the provisions of
SFAS&nbsp;123R and SFAS No.&nbsp;150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity" (SFAS&nbsp;150) require the Company to classify and
account for these awards as liability awards until the number of shares is determined. The expense related to these awards for the year ended December&nbsp;31, 2007 was $267,000, and the associated
liability is included in the Consolidated Balance Sheets in other accrued expenses. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
weighted-average grant-date fair value of RSU's and RSA's granted during the years ended December&nbsp;31, 2005, 2006 and 2007 was $5.42, $11.06 and $11.98 per award, respectively.
The total intrinsic value of RSU's and RSA's released during the years ended December&nbsp;31, 2006 and 2007 was $1,507,000 and $1,700,000, respectively. No RSU's or RSA's were released in 2005. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December&nbsp;31, 2007, there was unrecognized compensation expense of $6,068,000 related to unvested RSU's and RSA's based on awards that are expected to vest. The unrecognized
compensation expense is expected to be recognized over a weighted-average period of 2.7&nbsp;years. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>74</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<P style="font-family:arial;"><FONT SIZE=2><A
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 </FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company approved stock-based awards for its Chief Executive Officer with terms as follows: On January&nbsp;2, 2008 and 2009, the Chief Executive Officer, pending continued
employment through such grant dates, will be granted (1)&nbsp;RSA's valued at $500,000, which vest December&nbsp;31, 2010 and 2011, contingent upon meeting certain performance objectives, which
will be set and approved annually by the Compensation Committee in the first quarter of 2008 and 2009 (based on adjusted EBITDA) and (2)&nbsp;RSU's valued at $500,000, which vest December&nbsp;31,
2010 and 2011, contingent upon the Company meeting certain stock price performance objectives relative to its peers over three years from the date of grant, which will be set within 90&nbsp;days of
the first trading day of the day they are granted. All awards are subject to the executive's continued employment through such vesting dates. These awards are not included in the disclosures above and
there is no related expense in the current period as the conditions for these awards have not been set. </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2><B><I> Employee Stock Purchase Plan  </I></B></FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Employee Stock Purchase Plan (ESPP) allows eligible employees to purchase common stock of the Company, through payroll deductions, at eighty-five
percent of the lower of the market price on the first day or the last day of semi-annual purchase periods. It is the Company's intention that the ESPP qualify as an "employee stock
purchase plan" under IRS Code Section&nbsp;423. Eligible employees may contribute multiples of one percent of their eligible earnings toward the purchase of the stock (subject to certain IRS
limitations). Under this plan, 56,593, 78,632 and 126,484 shares of common stock were issued to employees for the years ended December&nbsp;31, 2005, 2006 and 2007, respectively. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
accordance with the ESPP, shares of common stock are transferred to participating employees at the conclusion of each six month enrollment period, which end on the last business day
of the month in February and August each year. The weighted average fair value of stock purchased under the Company's ESPP was $1.67, $2.58 and $3.02 per share for the years ended December&nbsp;31,
2005, 2006 and 2007, respectively. Compensation expense of shares purchased under the ESPP is measured based on a Black-Scholes option-pricing model. The model accounts for the discount from market
value and applies an expected life in line with each six month purchase period. The amounts recognized as stock-based compensation expense related to the ESPP were $203,000 and $477,000 for the years
ended December&nbsp;31, 2006 and 2007, respectively. The pro forma compensation expense included in Note&nbsp;1 under Stock-Based Compensation was $159,000 for the year ended December&nbsp;31,
2005. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>10. Business Segments.  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has four reportable segments: Life Sciences, Healthcare, Physician and IT and Engineering. The Life Sciences (formerly Lab Support) segment provides
contract, contract-to-permanent and direct placement services of laboratory and scientific professionals to the biotechnology, pharmaceutical, food and beverage, medical
device, personal care, chemical and environmental industries. These contract staffing specialties include chemists, clinical research associates, clinical lab assistants, engineers, biologists,
biochemists, microbiologists, molecular biologists, food scientists, regulatory affairs specialists, lab assistants and other skilled scientific professionals. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Healthcare segment includes the combined results of the Nurse Travel and Allied Healthcare (formerly Medical Financial and Allied, or MF&amp;A) lines of business. The lines of business
have been aggregated into the Healthcare segment based on similar economic characteristics, end-market customers and management personnel. The Healthcare segment provides contract,
contract-to-permanent and direct placement of professionals from more than ten healthcare, medical financial and allied occupations. These contract staffing specialties include
nurses, </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>75</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=1,SEQ=75,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=950168,FOLIO='75',FILE='DISK126:[08ZAF1.08ZAF10801]FM10801A.;11',USER='ABEAULI',CD='14-MAR-2008;15:53' -->
<A NAME="page_fm10801_1_76"> </A>
<BR>

<P style="font-family:arial;"><FONT SIZE=2>specialty
nurses, respiratory therapists, surgical technicians, imaging technicians, x-ray technicians, medical technologists, phlebotomists, coders, billers, claims processors and
collections staff. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Physician segment, comprised of VISTA Staffing Solutions,&nbsp;Inc., provides contract and direct placement physicians to healthcare organizations. The Physician segment works with
nearly all medical specialties, placing them in hospitals, community-based practices, and federal, state and local facilities. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
IT and Engineering segment, comprised of Oxford Global Resources,&nbsp;Inc., provides high-end contract placement services of information technology and engineering
professionals with expertise in specialized information technology; software and hardware engineering; and mechanical, electrical, validation and telecommunications engineering fields. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company's management evaluates the performance of each segment primarily based on revenues, gross profit and operating income. The information in the following table is derived
directly from the segments' internal financial reporting used for corporate management purposes. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
revenues, gross profit and operating income disclosed in the tables below include activity for the Physician and IT and Engineering segments from January&nbsp;3, 2007 and
January&nbsp;31, 2007, respectively. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table represents revenues, gross profit and operating income (loss) by reportable segment: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Revenues:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Life Sciences</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>98,730,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>117,462,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>134,622,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Healthcare</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>139,126,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>170,104,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>175,079,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Physician</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>74,599,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>IT and Engineering</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>182,880,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="36%" style="font-family:arial;"><FONT SIZE=2>Total Revenues</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>237,856,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>287,566,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>567,180,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Gross Profit:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Life Sciences</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>31,736,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>38,143,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>45,024,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Healthcare</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>31,493,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>39,698,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>44,269,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Physician</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>21,808,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>IT and Engineering</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>68,436,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="36%" style="font-family:arial;"><FONT SIZE=2>Total Gross Profit</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>63,229,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>77,841,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>179,537,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Operating Income (Loss):</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Life Sciences</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,610,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>5,206,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>14,731,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Healthcare</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(2,516,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,735,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,099,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Physician</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,447,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>IT and Engineering</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8,318,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="36%" style="font-family:arial;"><FONT SIZE=2>Total Operating Income (Loss)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(906,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>9,941,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>27,595,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>76</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=2,SEQ=76,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=554517,FOLIO='76',FILE='DISK126:[08ZAF1.08ZAF10801]FM10801A.;11',USER='ABEAULI',CD='14-MAR-2008;15:53' -->
<A NAME="page_fm10801_1_77"> </A>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company does not report Life Sciences and Healthcare segments' total assets separately as the operations are largely centralized. The following table represents total assets as
allocated by reportable segment: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Total Assets:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Life Sciences and Healthcare</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>93,705,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>186,995,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>107,253,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Physician</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>59,204,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>IT and Engineering</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>218,223,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="37%" style="font-family:arial;"><FONT SIZE=2>Total Assets</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>93,705,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>186,995,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>384,680,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company does not report all assets by segment for all reportable segments. The following table represents certain identifiable assets by reportable segment: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>.</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Gross Accounts Receivable:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Life Sciences</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>13,780,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>17,576,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>18,380,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Healthcare</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>23,126,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>22,911,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>22,440,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Physician</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>12,427,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>IT and Engineering</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>27,847,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="40%" style="font-family:arial;"><FONT SIZE=2>Total Gross Accounts Receivable</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>36,906,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>40,487,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>81,094,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company operates internationally, with operations in the United States, Europe, Australia and New Zealand. The following table represents revenues by geographic location: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Revenues:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Domestic</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>223,161,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>269,602,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>539,776,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Foreign</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>14,695,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>17,964,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>27,404,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="36%" style="font-family:arial;"><FONT SIZE=2>Total Revenues</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>237,856,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>287,566,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>567,180,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table represents long-lived assets by geographic location: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="88%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Year Ended December&nbsp;31,</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=3 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2005</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>2007</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>Long-Lived Assets:</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Domestic</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10,513,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>11,964,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>19,479,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Foreign</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>413,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>465,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>833,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="45%" style="font-family:arial;"><FONT SIZE=2>Total Long-Lived Assets</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10,926,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>12,429,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>20,312,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3 style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
further information regarding certain risks associated with our foreign operations, see "Risk Factors" within Item&nbsp;1A of this Annual Report on Form&nbsp;10-K. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>77</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=3,SEQ=77,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=722889,FOLIO='77',FILE='DISK126:[08ZAF1.08ZAF10801]FM10801A.;11',USER='ABEAULI',CD='14-MAR-2008;15:53' -->
<A NAME="page_fm10801_1_78"> </A>

<P style="font-family:arial;"><FONT SIZE=2><B>11. Unaudited Quarterly Results.  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents unaudited quarterly financial information for each of the four quarters ended December&nbsp;31, 2006 and December&nbsp;31, 2007.
In the opinion of Management, the quarterly information contains all adjustments, consisting only of normal recurring accruals, necessary for a fair presentation thereof. The operating results for any
quarter are not necessarily indicative of the results for any future period. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=23 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>(Unaudited)<BR>
(in thousands, except per share data)<BR>
Quarter Ended</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Mar.&nbsp;31,<BR>
2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>June&nbsp;30,<BR>
2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Sept.&nbsp;30,<BR>
2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Dec.&nbsp;31,<BR>
2006</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Mar.&nbsp;31,<BR>
2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>June&nbsp;30,<BR>
2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Sept.&nbsp;30,<BR>
2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Dec.&nbsp;31,<BR>
2007</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Revenues</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">66,723</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">68,636</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">75,678</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">76,529</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">122,629</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">143,854</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">148,657</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">152,040</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="20%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Cost of services</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">49,739</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">49,368</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">54,898</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">55,720</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">85,169</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">97,613</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">101,130</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">103,731</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Gross profit</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">16,984</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">19,268</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">20,780</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">20,809</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">37,460</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">46,241</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">47,527</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">48,309</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="20%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Selling, general andadministrative expenses</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">16,786</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">16,644</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">17,266</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">17,204</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">34,261</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">38,992</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">38,326</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">40,363</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Operating income</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">198</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,624</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">3,514</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">3,605</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">3,199</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">7,249</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">9,201</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">7,946</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="20%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Interest expense</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(3</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(51</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(2,136</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(2,988</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(2,940</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(2,904</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="20%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Interest income</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">237</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">256</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">376</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">829</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">418</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">220</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">344</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">412</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="20%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Change in fair value of interest rate swap</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&#151;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">431</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(915</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(722</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Earnings before income taxes</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">432</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,880</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">3,839</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">4,434</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,481</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">4,912</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">5,690</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">4,732</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="20%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Provision (benefit) for income taxes</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">130</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">966</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,140</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">(1,695</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">570</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,974</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,435</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,514</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Net income</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">302</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">1,914</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,699</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">6,129</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">911</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,938</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">3,255</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">2,218</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Basic earnings per share</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.01</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.07</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.10</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.20</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.03</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.08</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.09</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.06</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Weighted average number of shares outstanding</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">25,986</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">26,149</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">26,257</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">30,192</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">34,667</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">35,176</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">35,313</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">35,387</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Diluted earnings per share</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.01</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.07</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.10</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.20</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.03</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.08</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.09</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">0.06</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">Weighted average number of dilutive shares outstanding</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">26,827</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">26,974</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">26,869</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">31,066</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">35,629</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">35,813</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">35,886</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">35,759</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT" style="font-family:arial;"><HR NOSHADE SIZE=4></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;3, 2007, the Company acquired VISTA, a privately-owned, leading provider of physician staffing and permanent physician search
services. On January&nbsp;31, 2007, the Company acquired Oxford, a leading provider of high-end information technology and engineering staffing services. Further discussion related to
the acquisitions can be found in Note&nbsp;3 above. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2006, there was a reversal of the valuation allowance of $4,928,000 that was recorded against the Company's net deferred income tax assets in 2004 and 2005. Of the $4,928,000
valuation allowance reversal, $4,345,000 resulted in an income tax benefit and $583,000 was recorded as an increase to additional paid in capital resulting from stock option deductions realized in
2006. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="fm10801_item_9._changes_in_and_disagre__ite03576"> </A>
<A NAME="toc_fm10801_1"> </A>
Item&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;Changes in and Disagreements with Accountants on Accounting and Financial Disclosure    <BR>    </B></FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>78</FONT></P>

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<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="fm10801_item_9a._controls_and_procedures"> </A>
<A NAME="toc_fm10801_2"> </A>
Item&nbsp;9A.&nbsp;&nbsp;&nbsp;&nbsp;Controls and Procedures    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Evaluation of Disclosure Controls and Procedures  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term "disclosure controls and procedures" means controls and other procedures of a company that are designed to ensure that information required to be
disclosed by the company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within required time periods. We have established disclosure
controls and procedures to ensure that material information relating to the Company is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as
appropriate, to allow timely decisions regarding required disclosure. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive
Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules&nbsp;13a-15(e) and 15d-15(e) of the Securities
Exchange Act of 1934). Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are effective. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Management's Report on Internal Control Over Financial Reporting  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules&nbsp;13a-15(f) and
15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed by, or under the supervision of, our Chief Executive Officer and Chief Financial Officer, and
affected by our Board of Directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that: </FONT></P>

<UL>
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company's assets and transactions;
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>provide
reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and the Company's receipts and expenditures are being made only in accordance with management and director authorizations; and
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>provide
reasonable assurance regarding prevention of timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material
effect on the financial statements. </FONT></DD></DL>
</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management,
under the supervision and participation of our Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of the Company's internal control over
financial reporting as of December&nbsp;31, 2007. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in </FONT> <FONT SIZE=2><I>Internal Control&#151;Integrated
Framework</I></FONT><FONT SIZE=2>. Based on our assessment and those criteria, management believes that the Company maintained effective
internal control over financial reporting as of December&nbsp;31, 2007. Our independent registered public accounting firm, Deloitte&nbsp;&amp; Touche&nbsp;LLP, has included an attestation report on
our internal control over financial reporting, which is included below. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>79</FONT></P>

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<P style='font-family:arial;page-break-before:always'></p>
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<A NAME="page_fm10801_1_80"> </A>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of conducting its 2007 evaluation of the effectiveness of the Company's internal control over financial reporting, management has excluded the acquisitions of VISTA,
completed on January&nbsp;3, 2007, and Oxford, completed on January&nbsp;31, 2007, whose financial statements constitute 22.6&nbsp;percent and 15.4&nbsp;percent and 33.1&nbsp;percent and
56.7&nbsp;percent of net and total assets, respectively, 13.2&nbsp;percent and 32.2&nbsp;percent of revenues, respectively, and 8.7&nbsp;percent and -14.0&nbsp;percent of net income,
respectively, of the consolidated financial statement amounts as of and for the year ended December&nbsp;31, 2007. Refer to Note&nbsp;3 in Part&nbsp;II, Item&nbsp;8 of this report for further
discussion of the acquisitions and their impact on the Company's Consolidated Financial Statements. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B>Changes in Internal Controls  </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no changes in the Company's internal control over financial reporting that occurred during the Company's fourth quarter that have materially affected,
or are reasonably likely to materially affect, the Company's internal control over financial reporting. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>80</FONT></P>

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<P style='font-family:arial;page-break-before:always'></p>
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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="fo10801_report_of_independent___fo102286"> </A>
<A NAME="toc_fo10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>To
the Board of Directors and Stockholders of<BR>
On Assignment,&nbsp;Inc.<BR>
Calabasas, California </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have audited the internal control over financial reporting of On Assignment,&nbsp;Inc. and subsidiaries (the "Company") as of December&nbsp;31, 2007, based on criteria established
in </FONT><FONT SIZE=2><I>Internal Control&#151;Integrated Framework</I></FONT><FONT SIZE=2> issued by the Committee of Sponsoring Organizations of the Treadway Commission. As described in
Management's Report on Internal Control Over Financial Reporting, management excluded from its assessment the internal control over financial reporting at VISTA, which was acquired on
January&nbsp;3, 2007 and Oxford, which was acquired on January&nbsp;31, 2007, whose financial statements constitute 22.6&nbsp;percent and 15.4&nbsp;percent and 33.1&nbsp;percent and
56.7&nbsp;percent of net and total assets, respectively, 13.2&nbsp;percent and 32.2&nbsp;percent of revenues, respectively, and 8.7&nbsp;percent and -14.0&nbsp;percent of net income,
respectively, of the consolidated financial statement amounts as of and for the year ended December&nbsp;31, 2007. Accordingly, our audit did not include the internal control over financial
reporting at VISTA and Oxford. The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal
control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal
control over financial reporting based on our audit. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control
over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and
performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
company's internal control over financial reporting is a process designed by, or under the supervision of, the company's principal executive and principal financial officers, or
persons performing similar functions, and effected by the company's board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those
policies and procedures that (1)&nbsp;pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2)&nbsp;provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3)&nbsp;provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because
of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material
misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to
future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>81</FONT></P>

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<A NAME="page_fo10801_1_82"> </A>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December&nbsp;31, 2007, based on the criteria established in </FONT> <FONT SIZE=2><I>Internal Control&#151;Integrated
Framework</I></FONT><FONT SIZE=2> issued by the Committee of Sponsoring Organizations of the Treadway Commission. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements and financial statement
schedule as of and for the year ended December&nbsp;31, 2007 of the Company and our report dated March&nbsp;17, 2008 expressed an unqualified opinion on those financial statements and financial
statement schedule and included an explanatory paragraph regarding the Company's adoption of FASB Interpretation No.&nbsp;48, Accounting for Uncertainty in Income Taxes&#151;an interpretation
of FASB Statement No.&nbsp;109, effective January&nbsp;1, 2007. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>/s/ </FONT> <FONT SIZE=2><B>Deloitte&nbsp;&amp; Touche&nbsp;LLP</B></FONT><FONT SIZE=2><BR>
Los Angeles, California<BR>
March&nbsp;17, 2008 </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="fo10801_item_9b._other_information"> </A>
<A NAME="toc_fo10801_2"> </A>
Item&nbsp;9B.&nbsp;&nbsp;&nbsp;&nbsp;Other Information    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>82</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>

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<A NAME="page_fo10801_1_83"> </A>
<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="fo10801_part_iii"> </A>
<A NAME="toc_fo10801_3"> </A>
<BR></FONT><FONT SIZE=2><B>PART III    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="fo10801_item_10._directors_and__fo102271"> </A>
<A NAME="toc_fo10801_4"> </A>
Item&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;Directors and Executive Officers of the Registrant    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information responsive to this item will be set forth under the captions "Proposal One</FONT><FONT SIZE=2><B>&#151;</B></FONT><FONT SIZE=2>Election of
Directors," "Continuing Directors," "Section&nbsp;16(a) Beneficial Ownership Reporting Compliance," "Ethics" and "Board Committee Meetings" in the Company's proxy statement for use in connection
with its 2008 Annual Meeting of Stockholders (the "2008 Proxy Statement") and is incorporated herein by reference. The 2008 Proxy Statement will be filed with the SEC within 120&nbsp;days after the
end of the Company's fiscal year. The information under the heading "Executive Officers of the Registrant" in Item&nbsp;1 of this Form&nbsp;10-K is also incorporated by reference in
this section. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="fo10801_item_11._executive_compensation"> </A>
<A NAME="toc_fo10801_5"> </A>
Item&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;Executive Compensation    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information responsive to this item will be set forth under the captions "Compensation Discussion and Analysis," "Summary of Executive Compensation," "Summary of
Grants of Plan Based Awards," "Employment Contracts and Change in Control Arrangements" "Summary of Outstanding Equity Awards," "Summary of Option Exercises and Stock Vested," "Deferred Compensation"
and "Board Committees and Meetings" in the 2008 Proxy Statement to be filed with the SEC within 120&nbsp;days after the end of the Company's fiscal year and is incorporated herein by reference. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="fo10801_item_12._security_ownership_of__ite04004"> </A>
<A NAME="toc_fo10801_6"> </A>
Item&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information responsive to this item will be set forth under the captions "Security Ownership of Certain Beneficial Owners and Management" and "Equity Compensation
Plan Information" in the 2008 Proxy Statement to be filed with the SEC within 120&nbsp;days after the end of the Company's fiscal year and is incorporated herein by reference. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="fo10801_item_13._certain_relat__fo102114"> </A>
<A NAME="toc_fo10801_7"> </A>
Item&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;Certain Relationships and Related Transactions    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information responsive to this Item will be set forth under the caption "Certain Relationships and Related Transactions" and "Independent Directors" in the 2008
Proxy Statement to be filed with the SEC within 120&nbsp;days after the end of the Company's fiscal year and is incorporated herein by reference. </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="fo10801_item_14._principal_accountant_fees_and_services"> </A>
<A NAME="toc_fo10801_8"> </A>
Item&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;Principal Accountant Fees and Services    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information responsive to this Item will be set forth under the caption "Report of the Audit Committee" and "Principal Accountant Fees and Services" in the 2008
Proxy Statement, to be filed
with the SEC within 120&nbsp;days after the end of the Company's fiscal year and is incorporated herein by reference. </FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="fo10801_part_iv"> </A>
<A NAME="toc_fo10801_9"> </A>
<BR></FONT><FONT SIZE=2><B>PART IV    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2><B> <A NAME="fo10801_item_15._exhibits_and_financial_statement_schedule"> </A>
<A NAME="toc_fo10801_10"> </A>
Item&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;Exhibits and Financial Statement Schedule    <BR>    </B></FONT></P>

<UL>
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2><B>(a)</B></FONT></DT><DD style="font-family:arial;"><FONT SIZE=2><B>List of documents filed as part of this report</B></FONT><FONT SIZE=2>
<BR><BR></FONT>
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Financial
Statements: </FONT></DD></DL>
</DD></DL>
<UL>
<UL>

<P style="font-family:arial;"><FONT SIZE=2>Report
of Independent Registered Public Accounting Firm </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>Consolidated
Balance Sheets at December&nbsp;31, 2006 and 2007 </FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>83</FONT></P>

<HR NOSHADE>
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<A NAME="page_fo10801_1_84"> </A>
<UL>
<UL>
<UL>

<P style="font-family:arial;"><FONT SIZE=2>Consolidated
Statements of Operations and Comprehensive Income (Loss) for the Years Ended December&nbsp;31, 2005, 2006 and 2007 </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>Consolidated
Statements of Stockholders' Equity for the Years Ended December&nbsp;31, 2005, 2006 and 2007 </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>Consolidated
Statements of Cash Flows for the Years Ended December&nbsp;31, 2005, 2006 and 2007 </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>Notes
to Consolidated Financial Statements </FONT></P>

</UL>
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Financial
Statement Schedule: </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P style="font-family:arial;"><FONT SIZE=2>Schedule&nbsp;II&#151;Valuation
and Qualifying Accounts </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>Schedules
other than those referred to above have been omitted because they are not applicable or not required under the instructions contained in Regulation&nbsp;S-X or because the
information is included elsewhere in the financial statements or notes thereto. </FONT></P>

</UL>
</UL>
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2><B>(b)</B></FONT></DT><DD style="font-family:arial;"><FONT SIZE=2><B>Exhibits</B></FONT></DD></DL>
</UL>
<UL>
<UL>
<UL>

<P style="font-family:arial;"><FONT SIZE=2><B>See Index to Exhibits.</B></FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>84</FONT></P>

<HR NOSHADE>
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<UL>
<UL>
</UL>
</UL>
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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="jc10801_signatures"> </A>
<A NAME="toc_jc10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>SIGNATURES    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Section&nbsp;13 or 15(d) of the Securities and Exchange Act of 1934, the registrant has duly caused this to report to be
signed on its behalf by the undersigned, thereunto duly authorized, on this 17th&nbsp;day of March 2008. </FONT></P>

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<TR VALIGN="TOP">
<TD WIDTH="53%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%" style="font-family:arial;"><FONT SIZE=2>ON ASSIGNMENT,&nbsp;INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="47%" style="font-family:arial;"><BR><FONT SIZE=2><B>
<IMG SRC="g550480.jpg" ALT="SIGNATURE" WIDTH="52" HEIGHT="63">
 </B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%" style="font-family:arial;"><HR NOSHADE><FONT SIZE=2> Peter T. Dameris<BR></FONT> <FONT SIZE=2><I>Chief Executive Officer and President</I></FONT></TD>
</TR>
</TABLE>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities
indicated and on the dates indicated. </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="33%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Signature</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="46%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Title</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Date</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="33%" ALIGN="CENTER" VALIGN="TOP" style="font-family:arial;"><BR><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" VALIGN="TOP" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="33%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><B>
<IMG SRC="g934815.jpg" ALT="SIGNATURE" WIDTH="45" HEIGHT="54">
 </B></FONT><HR NOSHADE><FONT SIZE=2> Peter T. Dameris</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="46%" style="font-family:arial;"><FONT SIZE=2>Chief Executive Officer, President and Director<BR>
(Principal Executive Officer)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>March&nbsp;17, 2008</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="33%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
<BR></FONT> <FONT SIZE=2><B>
<IMG SRC="g773779.jpg" ALT="SIGNATURE" WIDTH="93" HEIGHT="52">
 </B></FONT><HR NOSHADE><FONT SIZE=2> James L. Brill</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" style="font-family:arial;"><FONT SIZE=2><BR>
Senior Vice President, Finance and Chief Financial Officer<BR>
(Principal Financial and Accounting Officer)</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
March&nbsp;17, 2008</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="33%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
*</FONT><HR NOSHADE><FONT SIZE=2> William E. Brock</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" style="font-family:arial;"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
March&nbsp;17, 2008</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="33%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
*</FONT><HR NOSHADE><FONT SIZE=2> Jonathan S. Holman</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" style="font-family:arial;"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
March&nbsp;17, 2008</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="33%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
*</FONT><HR NOSHADE><FONT SIZE=2> Edward L. Pierce</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" style="font-family:arial;"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
March&nbsp;17, 2008</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="33%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
*</FONT><HR NOSHADE><FONT SIZE=2> Jeremy M. Jones</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" style="font-family:arial;"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="1%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
March&nbsp;17, 2008</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>*</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>By
signature below, the undersigned, pursuant to duly authorized power of attorney filed with the Securities and Exchange Commission, has signed this report on behalf of the persons
indicated. </FONT></DD></DL>
<BR>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TD WIDTH="29%" VALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><B>
<IMG SRC="g550480.jpg" ALT="SIGNATURE" WIDTH="52" HEIGHT="63">
 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="69%" VALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="29%" VALIGN="CENTER" style="font-family:arial;"><HR NOSHADE><FONT SIZE=2> Peter T. Dameris</FONT></TD>
<TD WIDTH="3%" VALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="69%" VALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>85</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
<!-- ZEQ.=1,SEQ=85,EFW="2183772",CP="ON ASSIGNMENT, INC.",DN="1",CHK=521363,FOLIO='85',FILE='DISK126:[08ZAF1.08ZAF10801]JC10801A.;16',USER='ABEAULI',CD='17-MAR-2008;12:37' -->
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NAME="page_je10801_1_86"> </A>


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<!-- COMMAND=ADD_DEFAULTFONT,"font-family:arial;" -->


 </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="je10801_on_assignment,_inc._schedule_i__on_03260"> </A>
<A NAME="toc_je10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>ON ASSIGNMENT,&nbsp;INC.<BR>  <BR>    SCHEDULE II&#151;VALUATION AND QUALIFYING ACCOUNTS<BR>  Years Ended December&nbsp;31, 2005, 2006 and 2007    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=2 ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Description<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Balance at<BR>
beginning of<BR>
year</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="10%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Acquired balances</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="10%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Provisions</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="13%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Deductions<BR>
from reserves</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Balance at<BR>
end of year</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2>Year ended December&nbsp;31, 2005</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="29%" style="font-family:arial;"><FONT SIZE=2>Allowance for doubtful accounts and billing adjustments</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,465,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>401,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(285,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,581,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="29%" style="font-family:arial;"><FONT SIZE=2>Workers' compensation loss reserves</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,053,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,519,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(2,084,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,488,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="29%" style="font-family:arial;"><FONT SIZE=2>Income tax valuation allowance</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,205,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>723,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,928,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2><BR>
Year ended December&nbsp;31, 2006</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="11%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="29%" style="font-family:arial;"><FONT SIZE=2>Allowance for doubtful accounts and billing adjustments</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,581,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>60,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(261,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,380,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="29%" style="font-family:arial;"><FONT SIZE=2>Workers' compensation loss reserves</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,488,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,224,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(2,161,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,551,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="29%" style="font-family:arial;"><FONT SIZE=2>Income tax valuation allowance</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,928,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(4,928,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>&#151;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2 style="font-family:arial;"><FONT SIZE=2><BR>
Year ended December&nbsp;31, 2007</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="10%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="13%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="11%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="29%" style="font-family:arial;"><FONT SIZE=2>Allowance for doubtful accounts and billing adjustments</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>1,380,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>805,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>680,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(611,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2,254,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="29%" style="font-family:arial;"><FONT SIZE=2>Workers' compensation and medical malpractice loss reserves</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3,551,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,596,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4,095,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>(3,321,000</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>8,921,000</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>86</FONT></P>

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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="jg10801_index_to_exhibits"> </A>
<A NAME="toc_jg10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>INDEX TO EXHIBITS    <BR>    </B></FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="10%" ALIGN="LEFT" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Number<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Footnote</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="76%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Description</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(17)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Agreement and Plan of Merger, dated as of January&nbsp;3, 2007, by and among On Assignment,&nbsp;Inc., On Assignment 2007 Acquisition Corp. and Oxford Global Resources,&nbsp;Inc. and Thomas F. Ryan, as Indemnification
Representative.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>2.2</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(21)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Stock Purchase Agreement, dated as of December&nbsp;20, 2006, by and among On Assignment,&nbsp;Inc., VSS Holding,&nbsp;Inc., the stockholders of VSS Holding,&nbsp;Inc. and the optionholders of VSS Holding,
&nbsp;Inc.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(1)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Certificate of Amendment of Restated Certificate of Incorporation of On Assignment, Inc.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3.2</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(2)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Restated Certificate of Incorporation of On Assignment, Inc., as amended.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>3.3</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(3)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Amended and Restated Bylaws of On Assignment, Inc.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(4)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Specimen Common Stock Certificate.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>4.2</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(9)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Rights Agreement, dated June&nbsp;4, 2003, between On Assignment,&nbsp;Inc. and U.S. Stock Transfer Corporation as Rights Agent, which includes the Certificate of Designation, Preferences and Rights of Series&nbsp;A
Junior Participating Preferred Stock as Exhibit&nbsp;A, the Summary of Rights to Purchase Series&nbsp;A Junior Participating Preferred Stock as Exhibit&nbsp;B and the Form of Rights Certificate as Exhibit&nbsp;C.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(16)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Form of Indemnification Agreements. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.2</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(14)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Restated 1987 Stock Option Plan, as amended and restated April&nbsp;7, 2006. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.3</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(16)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>First Amendment to Restated 1987 Stock Option Plan, dated January&nbsp;23, 2007.&nbsp;&#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.4</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(14)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Second Amendment to the Restated 1987 Stock Option Plan, dated April&nbsp;17, 2007. &#134;</FONT></TD>
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<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.5</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(14)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Employee Stock Purchase Plan, as amended and restated June&nbsp;18, 2002. &#134;</FONT></TD>
</TR>
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<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.6</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(14)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>First Amendment to the Employee Stock Purchase Plan, dated January&nbsp;23, 2007. &#134;</FONT></TD>
</TR>
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<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.7</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(5)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Office Lease, dated December&nbsp;7, 1993, by and between On Assignment,&nbsp;Inc. and Malibu Canyon Office Partners,&nbsp;LP.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.8</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(6)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Seventh Amendment to Office Lease, dated August&nbsp;20, 2002.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.9</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(11)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Change in Control Severance Plan and Summary Plan Description, as amended and restated August&nbsp;8, 2004. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.10</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(8)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Deferred Compensation Plan. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.11</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(8)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Master Trust Agreement for Deferred Compensation Plan.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.12</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(10)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Senior Executive Agreement between On Assignment,&nbsp;Inc. and Peter Dameris, dated October&nbsp;27, 2003. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.13</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(16)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>First Amendment to Dameris Senior Executive Agreement between On Assignment,&nbsp;Inc. and Peter Dameris, dated December&nbsp;14, 2006. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.14</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(16)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Employment Agreement between Oxford Global Resources,&nbsp;Inc., On Assignment,&nbsp;Inc. and Michael J. McGowan dated January&nbsp;3, 2007. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.15</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(16)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Employment Agreement between On Assignment,&nbsp;Inc. and James Brill, dated January&nbsp;1, 2007. &#134;</FONT></TD>
</TR>
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<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>87</FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.16</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(16)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Employment Agreement between VISTA Staffing Solutions,&nbsp;Inc., On Assignment,&nbsp;Inc. and Mark S. Brouse, dated December&nbsp;20, 2006. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.17</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(7)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Senior Executive Agreement between On Assignment,&nbsp;Inc. and Emmett McGrath, dated July&nbsp;23, 2004. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.18</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(20)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Amendment to Executive Employment Agreement between On Assignment,&nbsp;Inc. and Emmett McGrath, dated November&nbsp;28, 2007. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.19</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(7)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Executive Change in Control Agreement between On Assignment and Peter T. Dameris, dated December&nbsp;31, 2004. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.20</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(15)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Executive Change in Control Agreement between On Assignment,&nbsp;Inc. and James L. Brill, dated January&nbsp;1, 2007. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.21</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(16)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Separation Agreement between On Assignment,&nbsp;Inc. and Michael J. Holtzman, dated December&nbsp;8, 2006. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.22</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(7)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Form of Option Agreements.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.23</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(12)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Executive Incentive Compensation Plan. &#134;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.24</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(13)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Form of Restricted Stock Unit Agreements.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>10.25</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>(16)</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Credit Agreement among On Assignment,&nbsp;Inc., UBS Securities,&nbsp;LLC, UBS AG, Stamford Branch, UBS Loan Finance,&nbsp;LLC and other parties thereto, dated January&nbsp;31, 2007.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>21.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>*</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Subsidiaries of the Registrant.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>23.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>*</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Consent of Independent Registered Public Accounting Firm.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>24.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>*</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Power of Attorney.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>31.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>*</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Certification of Peter T. Dameris, Chief Executive Officer and President pursuant to Rule&nbsp;13a-14(a) or 15d-14(a).</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>31.2</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>*</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Certification of James L. Brill, Senior Vice President, Finance and Chief Financial Officer pursuant to Rule&nbsp;13a-14(a) or 15d-14(a).</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>32.1</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>*</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%" style="font-family:arial;"><FONT SIZE=2>Certification of Peter T. Dameris, Chief Executive Officer and President, and James L. Brill, Senior Vice President, Finance and Chief Financial Officer pursuant to 18 U.S.C. Section&nbsp;1350.</FONT></TD>
</TR>
</TABLE>
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<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>*</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Filed
herewith.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>&#134;</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>These
exhibits relate to management contracts or compensatory plans, contracts or arrangements in which directors and/or executive officers of the Registrant may
participate.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(1)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Current Report on Form&nbsp;8-K (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on October&nbsp;5, 2000.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(2)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Annual Report on Form&nbsp;10-K (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on March&nbsp;30, 1993.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(3)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Current Report on Form&nbsp;8-K (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on May&nbsp;3, 2002.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(4)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Registration Statement on Form&nbsp;S-1 (File No.&nbsp;33-50646) declared effective by the
Securities and Exchange Commission on September&nbsp;21, 1992. </FONT></DD></DL>
<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>88</FONT></P>

<HR NOSHADE>
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<DL compact>
<DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(5)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Annual Report on Form&nbsp;10-K (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on March&nbsp;24, 1994.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(6)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Quarterly Report on Form&nbsp;10-Q (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on November&nbsp;14, 2002.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(7)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Annual Report on Form&nbsp;10-K (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on March&nbsp;16, 2005.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(8)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Quarterly Report on Form&nbsp;10-Q (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on May&nbsp;15, 1998.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(9)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Current Report on Form&nbsp;8-K (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on June&nbsp;5, 2003.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(10)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Quarterly Report on Form&nbsp;10-Q (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on November&nbsp;14, 2003.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(11)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Quarterly Report on Form&nbsp;10-Q (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on August&nbsp;9, 2004.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(12)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Current Report on Form&nbsp;8-K (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on April&nbsp;1, 2005.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(13)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Current Report on Form&nbsp;8-K (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on August&nbsp;8, 2005.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(14)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Registration Statement on Form&nbsp;S-8 (File No.&nbsp;333-143907) filed with the Securities and
Exchange Commission on June&nbsp;20, 2007.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(15)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Quarterly Report on Form&nbsp;10-Q (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on May&nbsp;10, 2007.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(16)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Annual Report on Form&nbsp;10-K (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on March&nbsp;16, 2007.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(17)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Current Report on Form&nbsp;8-K (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on January&nbsp;9, 2007.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(18)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Current Report on Form&nbsp;8-K/A (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on March&nbsp;21, 2007.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(19)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Current Report on Form&nbsp;8-K/A (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on April&nbsp;18, 2007.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(20)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Current Report on Form&nbsp;8-K (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on November&nbsp;30, 2007.
<BR><BR></FONT></DD><DT style='font-family:arial;margin-bottom:-11pt;'><FONT SIZE=2>(21)</FONT></DT><DD style="font-family:arial;"><FONT SIZE=2>Incorporated
by reference from an exhibit filed with our Current Report on Form&nbsp;8-K (File No.&nbsp;0-20540) filed with the Securities and Exchange
Commission on December&nbsp;22, 2006. </FONT></DD></DL>
<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>89</FONT></P>

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<BR>
<P><br><A NAME="08ZAF10801_1">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_bc10801_1">SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_da10801_1">PART I</A></FONT><BR>
<UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_da10801_2">Item 1. Business</A></FONT><BR>
</UL>
<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_dc10801_1">Item 1A. Risk Factors</A></FONT><BR>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_dc10801_2">Item 1B. Unresolved Staff Comments</A></FONT><BR>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_dc10801_3">Item 2. Properties</A></FONT><BR>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_dc10801_4">Item 3. Legal Proceedings</A></FONT><BR>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_dc10801_5">Item 4. Submission of Matters to a Vote of Security Holders</A></FONT><BR>
</UL>
<!-- TOC_BEGIN -->
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_de10801_1">PART II</A></FONT><BR>
<UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_de10801_2">Item 5. Market for Registrant's Common Equity and Related Stockholder Matters</A></FONT><BR>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_de10801_3">Item 6. Selected Financial Data</A></FONT><BR>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_de10801_4">Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations</A></FONT><BR>
</UL>
<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_dg10801_1">Item 7A. Quantitative and Qualitative Disclosures about Market Risk</A></FONT><BR>
</UL>
<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_di10801_1">Item 8. Financial Statements and Supplementary Data</A></FONT><BR>
</UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_di10801_2">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</A></FONT><BR>

<!-- TOC_BEGIN -->
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fa10801_1">ON ASSIGNMENT, INC. CONSOLIDATED BALANCE SHEETS</A></FONT><BR>

<!-- TOC_BEGIN -->
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fc10801_1">ON ASSIGNMENT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS</A></FONT><BR>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fc10801_2">CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)</A></FONT><BR>

<!-- TOC_BEGIN -->
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fg10801_1">ON ASSIGNMENT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS</A></FONT><BR>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fg10801_2">ON ASSIGNMENT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)</A></FONT><BR>

<!-- TOC_BEGIN -->
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fi10801_1">ON ASSIGNMENT, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2005, 2006 and 2007</A></FONT><BR>
<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fm10801_1">Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</A></FONT><BR>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fm10801_2">Item 9A. Controls and Procedures</A></FONT><BR>
</UL>
<!-- TOC_BEGIN -->
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fo10801_1">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</A></FONT><BR>
<UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fo10801_2">Item 9B. Other Information</A></FONT><BR>
</UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fo10801_3">PART III</A></FONT><BR>
<UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fo10801_4">Item 10. Directors and Executive Officers of the Registrant</A></FONT><BR>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fo10801_5">Item 11. Executive Compensation</A></FONT><BR>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fo10801_6">Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</A></FONT><BR>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fo10801_7">Item 13. Certain Relationships and Related Transactions</A></FONT><BR>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fo10801_8">Item 14. Principal Accountant Fees and Services</A></FONT><BR>
</UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fo10801_9">PART IV</A></FONT><BR>
<UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_fo10801_10">Item 15. Exhibits and Financial Statement Schedule</A></FONT><BR>
</UL>
<!-- TOC_BEGIN -->
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_jc10801_1">SIGNATURES</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_je10801_1">ON ASSIGNMENT, INC. SCHEDULE II&#151;VALUATION AND QUALIFYING ACCOUNTS Years Ended December 31, 2005, 2006 and 2007</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_jg10801_1">INDEX TO EXHIBITS</A></FONT><BR>
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<DOCUMENT>
<TYPE>EX-21.1
<SEQUENCE>2
<FILENAME>a2183772zex-21_1.htm
<DESCRIPTION>EXHIBIT 21.1
<TEXT>
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 </FONT></P>

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<P ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2><A
NAME="ka10801_exhibit_21.1"> </A>
<A NAME="toc_ka10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>EXHIBIT 21.1    <BR>    </B></FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="ka10801_subsidiaries_of_the_registrant"> </A>
<A NAME="toc_ka10801_2"> </A></FONT> <FONT SIZE=2><B>SUBSIDIARIES OF THE REGISTRANT    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>Assignment
Ready,&nbsp;Inc., a Delaware corporation<BR>
On Assignment Staffing Services,&nbsp;Inc., a Delaware corporation<BR>
VSS Holding,&nbsp;Inc., a Nevada corporation<BR>
VISTA Staffing Solutions,&nbsp;Inc., a Utah corporation<BR>
VISTA Physician Search and Consulting,&nbsp;Inc., a Utah corporation<BR>
VISTA Staffing International,&nbsp;Inc., a Nevada corporation<BR>
VISTA Holdings (Hong Kong) Limited, a Hong Kong corporation<BR>
Oxford Global Resources,&nbsp;Inc., a Delaware corporation<BR>
Other subsidiaries of the Registrant are omitted from this exhibit pursuant to Regulation&nbsp;S-K 601(b)(21)(ii) </FONT></P>

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<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_ka10801_2">SUBSIDIARIES OF THE REGISTRANT</A></FONT><BR>

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<TYPE>EX-23.1
<SEQUENCE>3
<FILENAME>a2183772zex-23_1.htm
<DESCRIPTION>EXHIBIT 23.1
<TEXT>
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 </FONT></P>

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<P ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2><A
NAME="kc10801_exhibit_23.1"> </A>
<A NAME="toc_kc10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit&nbsp;23.1    <BR>    </B></FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="kc10801_consent_of_independent__kc102308"> </A>
<A NAME="toc_kc10801_2"> </A></FONT> <FONT SIZE=2><B>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consent to the incorporation by reference in Registration Statement Nos.&nbsp;333-57078, 333-38849, 333-61998,
333-106203, 333-143907 and 333-148000 on Form&nbsp;S-8 and 333-88034, 333-134479 and 333-142382 on
Form&nbsp;S-3 of our reports dated March&nbsp;17, 2008 relating to the financial statements and financial statement schedule of On Assignment,&nbsp;Inc. (the "Company") (which report
expresses an unqualified opinion and includes an explanatory paragraph regarding the Company's adoption of FASB Interpretation No.&nbsp;48, "Accounting for Uncertainty in Income Taxes&#151;an
interpretation of FASB Statement No.&nbsp;109", effective January&nbsp;1, 2007 and Statement of Financial Accounting Standards No.&nbsp;123R, "Share Based Payment", effective January&nbsp;1,
2006) and the effectiveness of the Company's internal control over financial reporting, appearing in this Annual Report on Form&nbsp;10-K of On Assignment,&nbsp;Inc. for the year ended
December&nbsp;31, 2007. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>/s/ </FONT> <FONT SIZE=2><B>Deloitte&nbsp;&amp; Touche&nbsp;LLP</B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>Los
Angeles, California<BR>
March&nbsp;17, 2008 </FONT></P>

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<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_kc10801_1">Exhibit 23.1</A></FONT><BR>
</UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_kc10801_2">CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</A></FONT><BR>

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<TYPE>EX-24.1
<SEQUENCE>4
<FILENAME>a2183772zex-24_1.htm
<DESCRIPTION>EXHIBIT 24.1
<TEXT>
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 </FONT></P>

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<P ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2><A
NAME="ke10801_exhibit_24.1"> </A>
<A NAME="toc_ke10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit&nbsp;24.1    <BR>    </B></FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="ke10801_power_of_attorney"> </A>
<A NAME="toc_ke10801_2"> </A>
<BR></FONT><FONT SIZE=2><B>POWER OF ATTORNEY    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW ALL MEN BY THESE PRESENTS, that the individual whose signature appears below hereby constitutes and appoints Peter T. Dameris and James L. Brill, and each of
them, his or her true and lawful attorney-in-fact and agent, with full power of substitution, to execute and deliver in the undersigned's name and on the undersigned's behalf
the Annual Report on Form&nbsp;10-K for the year ended December&nbsp;31, 2007 for On Assignment,&nbsp;Inc., and any and all amendments thereto, and to file the same, with all
exhibits and other documents in connection therewith, with the Securities and Exchange Commission, and to execute, deliver and file in connection therewith any other documents and instruments in the
undersigned's name or on the undersigned's behalf which said attorneys-in-fact and agents, or either of them, may determine to be necessary or advisable to comply with the
Securities Exchange Act of 1934, as amended, and any rules or regulations promulgated thereunder, granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as the undersigned might or could do in
person; and the undersigned hereby ratifies and confirms all that said attorneys-in-fact and agents, or either of them, or their substitutes, may lawfully do or cause to be
done by virtue of the power of attorney granted hereby. </FONT></P>

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<TH WIDTH="30%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Signature</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="46%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Title</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;">&nbsp;</FONT></TH>
<TH WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT  style="font-size:8pt;line-height:9pt;"><B>Date</B></FONT><HR NOSHADE></TH>
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<TD WIDTH="30%" VALIGN="TOP" style="font-family:arial;"><BR><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" VALIGN="TOP" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="30%" style="font-family:arial;"><FONT SIZE=2><I>/s/ Peter T. Dameris</I></FONT><HR NOSHADE><FONT SIZE=2> Peter T. Dameris</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="46%" style="font-family:arial;"><FONT SIZE=2>Chief Executive Officer, President and Director<BR>
(Principal Executive Officer)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2>March&nbsp;17, 2008</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="30%" style="font-family:arial;"><BR><FONT SIZE=2><I>/s/ James L. Brill</I></FONT><HR NOSHADE><FONT SIZE=2> James L. Brill</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" style="font-family:arial;"><FONT SIZE=2><BR>
Senior Vice President, Finance and Chief Financial Officer<BR>
(Principal Financial and Accounting Officer)</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
March&nbsp;17, 2008</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="30%" style="font-family:arial;"><BR><FONT SIZE=2><I>/s/ William E. Brock</I></FONT><HR NOSHADE><FONT SIZE=2> William E. Brock</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" style="font-family:arial;"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
March&nbsp;17, 2008</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="30%" style="font-family:arial;"><BR><FONT SIZE=2><I>/s/ Jonathan S. Holman</I></FONT><HR NOSHADE><FONT SIZE=2> Jonathan S. Holman</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" style="font-family:arial;"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
March&nbsp;17, 2008</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="30%" style="font-family:arial;"><BR><FONT SIZE=2><I>/s/ Edward L. Pierce</I></FONT><HR NOSHADE><FONT SIZE=2> Edward L. Pierce</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" style="font-family:arial;"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
March&nbsp;17, 2008</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="30%" style="font-family:arial;"><BR><FONT SIZE=2><I>/s/ Jeremy M. Jones</I></FONT><HR NOSHADE><FONT SIZE=2> Jeremy M. Jones</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" style="font-family:arial;"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="3%" style="font-family:arial;"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%" ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><BR>
March&nbsp;17, 2008</FONT></TD>
</TR>
</TABLE>
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<P style='font-family:arial;page-break-before:always'></p>
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<P><br><A NAME="08ZAF10801_4">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_ke10801_1">Exhibit 24.1</A></FONT><BR>
</UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_ke10801_2">POWER OF ATTORNEY</A></FONT><BR>

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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>5
<FILENAME>a2183772zex-31_1.htm
<DESCRIPTION>EXHIBIT 31.1
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#08ZAF10801_5">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<P ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>


<!-- COMMAND=ADD_BASECOLOR,"Black" -->




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 </FONT></P>

<!-- TOC_END -->
<P ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2><A
NAME="kg10801_exhibit_31.1"> </A>
<A NAME="toc_kg10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit&nbsp;31.1    <BR>    </B></FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="kg10801_certification_pursuant_to_rule__cer05207"> </A>
<A NAME="toc_kg10801_2"> </A>
<BR></FONT><FONT SIZE=2><B>CERTIFICATION PURSUANT TO RULES 13a-14(a) AND 15d-14(a)<BR>  UNDER THE SECURITIES EXCHANGE ACT OF&nbsp;1934 AS ADOPTED PURSUANT TO<BR>  SECTION&nbsp;302 OF THE SARBANES-OXLEY ACT OF&nbsp;2002    <BR>    </B></FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>I,
Peter T. Dameris, certify that: </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
have reviewed this annual report on Form&nbsp;10-K of On Assignment,&nbsp;Inc.; </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made,
in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report; </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report; </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules&nbsp;13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules&nbsp;13a-15(f) and 15d-15(f))
for the registrant and have: </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;designed
such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the
registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;designed
such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;evaluated
the effectiveness of the registrant's disclosure controls and procedures and presented in this annual report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this annual report based on such evaluation; and </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;disclosed
in this annual report any change in the registrant's internal control over financial reporting that occurred during the registrant's fourth fiscal quarter that
has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and </FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's
auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;all
significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize and report financial information; and </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;any
fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial
reporting. </FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>Date:
March&nbsp;17, 2008 </FONT></P>

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<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2><B>
<IMG SRC="g861685.jpg" ALT="SIGNATURE" WIDTH="75" HEIGHT="88">
 </B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="50%" style="font-family:arial;"><HR NOSHADE><FONT SIZE=2> Peter T. Dameris<BR></FONT> <FONT SIZE=2><I>Chief Executive Officer and President</I></FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<P><br><A NAME="08ZAF10801_5">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_kg10801_1">Exhibit 31.1</A></FONT><BR>
</UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_kg10801_2">CERTIFICATION PURSUANT TO RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934 AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</A></FONT><BR>

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<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>6
<FILENAME>a2183772zex-31_2.htm
<DESCRIPTION>EXHIBIT 31.2
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#08ZAF10801_6">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<P ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2>


<!-- COMMAND=ADD_BASECOLOR,"Black" -->




<!-- COMMAND=ADD_DEFAULTFONT,"font-family:arial;" -->


 </FONT></P>

<!-- TOC_END -->
<P ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2><A
NAME="ki10801_exhibit_31.2"> </A>
<A NAME="toc_ki10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit&nbsp;31.2    <BR>    </B></FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="ki10801_certification_pursuant_to_rule__cer05207"> </A>
<A NAME="toc_ki10801_2"> </A>
<BR></FONT><FONT SIZE=2><B>CERTIFICATION PURSUANT TO RULES 13a-14(a) AND 15d-14(a)<BR>  UNDER THE SECURITIES EXCHANGE ACT OF&nbsp;1934 AS ADOPTED PURSUANT TO<BR>  SECTION&nbsp;302 OF THE SARBANES-OXLEY ACT OF&nbsp;2002    <BR>    </B></FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>I,
James L. Brill, certify that: </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
have reviewed this annual report on Form&nbsp;10-K of On Assignment,&nbsp;Inc.; </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made,
in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report; </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report; </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules&nbsp;13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules&nbsp;13a-15(f) and 15d-15(f))
for the registrant and have: </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;designed
such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the
registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;designed
such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;evaluated
the effectiveness of the registrant's disclosure controls and procedures and presented in this annual report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this annual report based on such evaluation; and </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;disclosed
in this annual report any change in the registrant's internal control over financial reporting that occurred during the registrant's fourth fiscal quarter that
has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and </FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's
auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;all
significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize and report financial information; and </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;any
fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial
reporting. </FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>Date:
March&nbsp;17, 2008 </FONT></P>

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<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2><B>
<IMG SRC="g235688.jpg" ALT="SIGNATURE" WIDTH="139" HEIGHT="79">
 </B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="50%" style="font-family:arial;"><HR NOSHADE><FONT SIZE=2> James L. Brill,<BR></FONT> <FONT SIZE=2><I>Senior Vice President, Finance and Chief Financial Officer</I></FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<P><br><A NAME="08ZAF10801_6">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_ki10801_1">Exhibit 31.2</A></FONT><BR>
</UL>
<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_ki10801_2">CERTIFICATION PURSUANT TO RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934 AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</A></FONT><BR>

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<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>7
<FILENAME>a2183772zex-32_1.htm
<DESCRIPTION>EXHIBIT 32.1
<TEXT>
<HTML>
<HEAD>
</HEAD>
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<BR>
<FONT SIZE=3 ><A HREF="#08ZAF10801_7">QuickLinks</A></FONT>
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 </FONT></P>

<!-- TOC_END -->
<P ALIGN="RIGHT" style="font-family:arial;"><FONT SIZE=2><A
NAME="kk10801_exhibit_32.1"> </A>
<A NAME="toc_kk10801_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit&nbsp;32.1    <BR>    </B></FONT></P>

<P ALIGN="CENTER" style="font-family:arial;"><FONT SIZE=2><A
NAME="kk10801_written_statement_of_chief_exe__wri05155"> </A>
<A NAME="toc_kk10801_2"> </A>
<BR></FONT><FONT SIZE=2><B>Written Statement of Chief Executive Officer and Chief Financial Officer<BR>  Pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section&nbsp;1350)    <BR>    </B></FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned, the Chief Executive Officer and the Chief Financial Officer of On Assignment,&nbsp;Inc. (the "Company"), each hereby certifies that, to his
knowledge on the date hereof: </FONT></P>

<UL>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;the
Annual Report on Form&nbsp;10-K of the Company for the period ended December&nbsp;31, 2007 filed on the date hereof with the Securities and Exchange
Commission (the Report) fully complies with the requirements of Section&nbsp;13(a) or 15(d) of the Securities Exchange Act of 1934; and </FONT></P>

<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;information
contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. </FONT></P>

</UL>

<P style="font-family:arial;"><FONT SIZE=2>Date:
March&nbsp;17, 2008 </FONT></P>

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<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2><B>
<IMG SRC="g550480.jpg" ALT="SIGNATURE" WIDTH="52" HEIGHT="63">
 </B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="50%" style="font-family:arial;"><HR NOSHADE><FONT SIZE=2> Peter T. Dameris<BR></FONT> <FONT SIZE=2><I>Chief Executive Officer and President</I></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2><BR>
Date: March&nbsp;17, 2008</FONT></TD>
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2><BR>
<BR></FONT> <FONT SIZE=2><B>
<IMG SRC="g235688.jpg" ALT="SIGNATURE" WIDTH="139" HEIGHT="79">
 </B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="50%" style="font-family:arial;"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="50%" style="font-family:arial;"><HR NOSHADE><FONT SIZE=2> James L. Brill<BR></FONT> <FONT SIZE=2><I>Senior Vice President, Finance and Chief Financial&nbsp;Officer</I></FONT></TD>
</TR>
</TABLE>
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<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
signed original of this written statement required by Section&nbsp;906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed
form within the electronic version of this written statement required by Section&nbsp;906, has been provided to the Company and will be retained by the Company and furnished to the Securities and
Exchange Commission or its staff upon request. </FONT></P>


<P style="font-family:arial;"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
foregoing certification is being furnished to the Securities and Exchange Commission as an exhibit to the Annual Report on Form&nbsp;10-K and shall not be deemed to be
considered filed as part of the Annual Report on Form&nbsp;10-K. </FONT></P>

<HR NOSHADE>
<P style='font-family:arial;page-break-before:always'></p>
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<P><br><A NAME="08ZAF10801_7">QuickLinks</A><br></P><!-- TOC_BEGIN -->
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<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_kk10801_1">Exhibit 32.1</A></FONT><BR>
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<FONT SIZE=2 style="font-family:arial;"><A HREF="#toc_kk10801_2">Written Statement of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)</A></FONT><BR>

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