-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 GMrbNIa31daHhM/aP19LtrDkV7mzKI4l6FQhveYvY9AjqmUiwmuDZ7sfDwhF9hfw
 7hR3uGoVb2s9lsT7Ea00fA==

<SEC-DOCUMENT>0000898430-03-001494.txt : 20030214
<SEC-HEADER>0000898430-03-001494.hdr.sgml : 20030214
<ACCEPTANCE-DATETIME>20030213191009
ACCESSION NUMBER:		0000898430-03-001494
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20021231
FILED AS OF DATE:		20030214

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DAILY JOURNAL CORP
		CENTRAL INDEX KEY:			0000783412
		STANDARD INDUSTRIAL CLASSIFICATION:	NEWSPAPERS:  PUBLISHING OR PUBLISHING & PRINTING [2711]
		IRS NUMBER:				954133299
		STATE OF INCORPORATION:			SC
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14665
		FILM NUMBER:		03562033

	BUSINESS ADDRESS:	
		STREET 1:		915 EAST FIRST STREET
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90012
		BUSINESS PHONE:		2132295300

	MAIL ADDRESS:	
		STREET 1:		355 SOUTH GRAND AVENUE 34TH FLOOR
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90071-1560

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DAILY JOURNAL CO
		DATE OF NAME CHANGE:	19870427
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d10q.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<HTML><HEAD>
<TITLE>Form 10-Q</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <hr size=4 width="100%" noshade color=black> <p align=center><font size=5 face="Times New Roman"><b>SECURITIES AND EXCHANGE COMMISSION<br></b></font> <font size=3><b>Washington, D.C. 20549<br></b></font> <font
size=5><b>FORM 10-Q</b></font></p> <p> <font size=2 face="Times New Roman"><b>(Mark One)</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="4%" valign="top"> <p> <font size=3 face="Wingdings">x</font></p> </td>
<td width="95%" valign="top"> <p> <font size=3 face="Times New Roman"><b>QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></p> </td> </tr> </table> <p> <font size=2 face="Times New Roman"><b>For the
quarterly period ended December 31, 2002</b></font></p> <p align=center> <font size=2 face="Times New Roman"><b>OR</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="4%" valign="top"> <p> <font size=3 face="Wingdings">o</font></p> </td>
<td width="95%" valign="top"> <p> <font size=3 face="Times New Roman"><b>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></p> </td> </tr>
<tr>
<td width="4%" valign="top"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="95%" valign="top"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="4%" valign="top"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="95%" valign="top"> <p> <font size=2 face="Times New Roman"><b>For the transition period from _______________ to _____________________</b></font></p> </td> </tr> </table> <p align=center> <font size=2 face="Times New Roman"><b>Commission
File Number 0-14665</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="100%" colspan="3" valign="bottom"> <p align=center><font size=6 face="Times New Roman"><b>DAILY JOURNAL CORPORATION</b></font></p> </td> </tr>
<tr>
<td width="100%" colspan="3" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td> </tr>
<tr>
<td width="100%" colspan="3" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>(Exact name of registrant as specified in its charter)</b></font></p> </td> </tr>
<tr>
<td width="100%" colspan="3" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="49%" valign="bottom"> <p align=center> <font size=2 face="Times New Roman"><b>South Carolina</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign="bottom"> <p align=center> <font size=2 face="Times New Roman"><b>95-4133299</b></font></p> </td> </tr>
<tr>
<td width="49%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td> </tr>
<tr>
<td width="49%" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>(State or other jurisdiction of incorporation or organization)</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>(I.R.S. Employer Identification No.)</b></font></p> </td> </tr>
<tr>
<td width="49%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="49%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"><b>915 East First Street</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="49%" valign="bottom"> <p align=center> <font size=2 face="Times New Roman"><b>Los Angeles, California</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign="bottom"> <p align=center> <font size=2 face="Times New Roman"><b>90012-4050</b></font></p> </td> </tr>
<tr>
<td width="49%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td> </tr>
<tr>
<td width="49%" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>(Address of principal executive office)</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>(Zip code)</b></font></p> </td> </tr>
<tr>
<td width="49%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="100%" colspan="3" valign="bottom"> <p align=center> <font size=2 face="Times New Roman"><b>Registrant&#146;s telephone number, including area code:&nbsp;&nbsp;(213) 229-5300</b></font></p> </td> </tr> </table> <p> <font size=2
face="Times New Roman">Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="13%">
<tr>
<td width="7%" valign="top"> <p align=center><font size=2 face="Times New Roman">Yes&nbsp;&nbsp;</font> <font size=2 face="Wingdings">x</font></p> </td>
<td width="6%" valign="top"> <p align=center> <font size=2 face="Times New Roman">No&nbsp;&nbsp;</font> <font size=2 face="Wingdings">o</font></p> </td> </tr> </table> <p> <font size=2 face="Times New Roman">Indicate the number of shares outstanding
of each of the issuer&#146;s classes of common stock as of the latest practicable date.</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="49%" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>Class</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>Outstanding at January 31, 2003</b></font></p> </td> </tr>
<tr>
<td width="49%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td> </tr>
<tr>
<td width="49%" valign="bottom"> <p align=center> <font size=2 face="Times New Roman">Common Stock, par value $.01 per share</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="49%" valign="bottom"> <p align=center> <font size=2 face="Times New Roman">1,525,618 shares</font></p> </td> </tr> </table> <hr size=4 width="100%" noshade color=black> <font size=2 face="Times New Roman"> </font>
<a name="toc"> </a>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center> <font size=2 face="Times New Roman">DAILY JOURNAL CORPORATION</font></p> <p align=center><font size=2 face="Times New Roman">INDEX</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="7%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="83%" colspan="3" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="9%" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>Page Nos.</b></font></p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="83%" colspan="3" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="9%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td> </tr>
<tr>
<td width="8%" colspan="2" valign="bottom"> <p> <font size=2 face="Times New Roman">PART I</font></p> </td>
<td width="82%" colspan="2" valign="bottom"> <p> <font size=2 face="Times New Roman">
<a href="#tx659_1">Financial Information</a></font></p> </td>
<td width="9%" valign="bottom"> <p align=right>&nbsp;</p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="83%" colspan="3" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="9%" valign="bottom"> <p align=right>&nbsp;</p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="83%" colspan="3" valign="bottom"> <p> <font size=2 face="Times New Roman">
<a href="#tx659_2">Item 1.&nbsp;&nbsp;Financial statements</a></font></p> </td>
<td width="9%" valign="bottom"> <p align=right>&nbsp;</p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="2%" colspan="2" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="80%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="9%" valign="bottom"> <p align=right>&nbsp;</p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="2%" colspan="2" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="80%" valign="bottom"> <p> <font size=2 face="Times New Roman">
<a href="#tx659_3">Consolidated Balance Sheets - December 31, 2002 and September 30, 2002</a></font></p> </td>
<td width="9%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">3</font></p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="83%" colspan="3" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="9%" valign="bottom"> <p align=right>&nbsp;</p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="2%" colspan="2" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="80%" valign="bottom"> <p><font size=2 face="Times New Roman">
<a href="#tx659_4">Consolidated Statements of Operations - Three months ended December 31, 2002 and 2001</a></font></p> </td>
<td width="9%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">4</font></p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="83%" colspan="3" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="9%" valign="bottom"> <p align=right>&nbsp;</p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="2%" colspan="2" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="80%" valign="bottom"> <p> <font size=2 face="Times New Roman">
<a href="#tx659_5">Consolidated Statements of Cash Flows - Three months ended December 31, 2002 and 2001</a></font></p> </td>
<td width="9%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">5</font></p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="2%" colspan="2" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="80%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="9%" valign="bottom"> <p align=right>&nbsp;</p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="2%" colspan="2" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="80%" valign="bottom"> <p> <font size=2 face="Times New Roman">
<a href="#tx659_6">Notes to Consolidated Financial Statements</a></font></p> </td>
<td width="9%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">6</font></p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="2%" colspan="2" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="80%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="9%" valign="bottom"> <p align=right>&nbsp;</p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="83%" colspan="3" valign="bottom"> <p><font size=2 face="Times New Roman">
<a href="#tx659_7">Item 2.&nbsp;&nbsp;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</a></font></p> </td>
<td width="9%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">9</font></p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="83%" colspan="3" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="9%" valign="bottom"> <p align=right>&nbsp;</p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="83%" colspan="3" valign="bottom"> <p> <font size=2 face="Times New Roman">
<a href="#tx659_8">Item 3.&#160; Qualitative and Quantitative Disclosures about Market Risk</a></font></p> </td>
<td width="9%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">12</font></p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="83%" colspan="3" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="9%" valign="bottom"> <p align=right>&nbsp;</p> </td> </tr>
<tr>
<td width="7%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="83%" colspan="3" valign="bottom"> <p> <font size=2 face="Times New Roman">
<a href="#tx659_9">Item 4.&#160; Controls and Procedures</a></font></p> </td>
<td width="9%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">12</font></p> </td> </tr>
<tr >
<td width=46></td>
<td width=4></td>
<td width=2></td>
<td width=572></td>
<td width=97></td> </tr> </table> <p align=center><font size=2 face="Times New Roman">2 of 13</font></p> <font size=2 face="Times New Roman"> </font>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center>
<a name="tx659_1"></a> <font size=2 face="Times New Roman">PART I<br>
<a name="tx659_2"></a>Item 1. Financial Statements<br> DAILY JOURNAL CORPORATION <br>
<a name="tx659_3"></a>CONSOLIDATED BALANCE SHEETS<br> (Unaudited)</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="69%" colspan="3" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>December 31<br> 2002</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>September 30<br> 2002</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman"><b>ASSETS</b></font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Current assets</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Cash and cash equivalents</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">331,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">513,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">U.S. Treasury Bills, at cost plus discount earned</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">4,983,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">4,286,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Accounts receivable, less allowance for doubtful account of $500,000 at December 31, 2002 and
September 30, 2002</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">5,296,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">5,953,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Inventories</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">9,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">18,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Prepaid expenses and other assets</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">220,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">141,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Deferred income taxes</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">918,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">901,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="64%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Total current assets</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">11,757,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">11,812,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Property, plant and equipment, at cost</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Land, buildings and improvements</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">8,937,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">8,538,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Furniture, office equipment and computer software</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">6,136,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">6,118,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Machinery and equipment</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">1,351,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">1,351,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">16,424,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">16,007,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Less accumulated depreciation</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(7,403,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(7,024,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">9,021,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">8,983,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Capitalized software, net</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">483,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">634,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Deferred income taxes</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">6,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">4,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">21,267,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">21,433,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman"><b>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</b></font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Current liabilities</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Accounts payable</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">4,772,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">5,086,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Accrued liabilities</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">2,226,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">2,371,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Notes payable &#150; current portion</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">84,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">92,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Income taxes</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">19,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Deferred subscription revenue and other revenues</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">6,964,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">7,225,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="64%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Total current liabilities</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">14,065,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">14,774,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Notes payable &#150; long-term</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">1,780,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">1,791,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Commitments and contingencies (Note 6)</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Minority interest (7%)</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Shareholders&#146; equity</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Preferred stock, $.01 par value, 5,000,000 shares authorized and no shares issued</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Common stock, $.01 par value, 5,000,000 shares authorized; 1,525,618 shares outstanding</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">15,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">15,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Other paid-in capital</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">1,939,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">1,939,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Retained earnings</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">4,338,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">3,784,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Less 46,271 treasury shares, at cost</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(870,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(870,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="64%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Total shareholders&#146; equity</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">5,422,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">4,868,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">21,267,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">21,433,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr >
<td width=5></td>
<td width=5></td>
<td width=311></td>
<td width=2></td>
<td width=97></td>
<td width=97></td>
<td width=5></td>
<td width=97></td>
<td width=97></td>
<td width=5></td> </tr> </table> <p align=center><font size=2 face="Times New Roman">See accompanying notes to consolidated financial statements.</font></p> <p align=center> <font size=2 face="Times New Roman">3 of 13</font></p> <font size=2
face="Times New Roman"> </font>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center> <font size=2 face="Times New Roman">DAILY JOURNAL CORPORATION<br>
<a name="tx659_4"></a>CONSOLIDATED STATEMENTS OF OPERATIONS<br> (Unaudited)</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="69%" colspan="2" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="27%" colspan="5" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>Three months<br> ended December 31</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="27%" colspan="5" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="12%" colspan="2" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>2002</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>2001</b></font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="12%" colspan="2" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Revenues</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Advertising</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">4,038,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">3,996,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Circulation</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">2,721,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">2,759,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Information systems and services</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">991,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">508,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Advertising service fees and other</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">739,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">739,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right><font size=2 face="Times New Roman">8,489,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">8,002,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Costs and expenses</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Salaries and employee benefits</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">4,123,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">4,331,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Commissions and other outside services</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">1,437,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">1,358,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Newsprint and printing expenses</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">417,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">574,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Postage and delivery expenses</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">524,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">504,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Depreciation and amortization</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">546,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">565,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Other general and administrative expenses</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">882,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">803,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">7,929,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">8,135,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Income (loss) from operations</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">560,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(133,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Other income and expense</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Interest income</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">32,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">19,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Interest expense</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(38,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(40,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Income (loss) before taxes</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">554,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(154,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Benefit from (provision for) income taxes</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Income (loss) before minority interest in net loss of subsidiary</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">554,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(154,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Minority interest in net loss of subsidiary (7%)</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Net income (loss)</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">554,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(154,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Weighted average number of common shares outstanding - basic and diluted</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">1,479,347</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">1,490,250</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Basic and diluted net income (loss) per share</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">.37</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(.10</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="69%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align=center><font size=2 face="Times New Roman">See accompanying notes to consolidated financial statements.</font></p> <p
align=center> <font size=2 face="Times New Roman">4 of 13</font></p> <font size=2 face="Times New Roman"> </font>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center> <font size=2 face="Times New Roman">DAILY JOURNAL CORPORATION<br>
<a name="tx659_5"></a>CONSOLIDATED STATEMENTS OF CASH FLOWS<br> (Unaudited)</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="69%" colspan="7" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="27%" colspan="5" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>Three months<br> ended December 31</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="27%" colspan="5" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>2002</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>2001</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Cash flows from operating activities</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="6" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Net income (loss)</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">554,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(154,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="6" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Adjustments to reconcile net income to net cash provided by operations</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="4%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="64%" colspan="5" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Depreciation and amortization</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">546,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">565,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="4%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="64%" colspan="5" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Deferred income taxes</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(19,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">56,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="4%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="64%" colspan="5" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Discount earned on U.S. Treasury Bills</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(20,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(4,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="4%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="64%" colspan="5" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Changes in assets and liabilities</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" colspan="4" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="64%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;(Increase) decrease in current assets</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="7%" colspan="5" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="61%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Accounts receivable, net</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">657,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">1,067,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="7%" colspan="5" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="61%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Inventories</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">9,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">10,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="7%" colspan="5" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="61%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Prepaid expenses and other assets</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(79,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(3,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="5%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="64%" colspan="4" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;Increase (decrease) in current liabilities</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="7%" colspan="5" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="61%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Accounts payable</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(314,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(454,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="7%" colspan="5" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="61%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Accrued liabilities</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(145,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(594,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="7%" colspan="5" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="61%" colspan="2" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Income taxes payable</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">19,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="7%" colspan="5" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="61%" colspan="2" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Deferred subscription and other revenues</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(261,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">109,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="10%" colspan="6" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="59%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Cash provided by operating activities</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">947,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">598,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Cash flows from investing activities</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="6" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Net (purchases) sales in U.S. Treasury Bills</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(677,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(2,480,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="6" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Capital and capitalized software expenditures</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" colspan="3" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="64%" colspan="4" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Purchases of property, plant and equipment, net</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(433,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(371,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="10%" colspan="6" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="58%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Net cash used for investing activities</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(1,110,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(2,851,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Cash flows from financing activities</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="6" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Payment of loan principle</font></Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(19,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(18,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="11%" colspan="6" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="58%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Cash used for financing activities</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(19,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(18,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">(Decrease) in cash and cash equivalents</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(182,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(2,271,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Cash and cash equivalents</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="6" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Beginning of period</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">513,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">2,901,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="2%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="66%" colspan="6" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">End of period</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">331,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">630,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Interest paid during period</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">38,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">40,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="69%" colspan="7" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="11%" valign="bottom"> <hr size=3 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr >
<td width=2></td>
<td width=2></td>
<td width=0></td>
<td width=0></td>
<td width=3></td>
<td width=3></td>
<td width=309></td>
<td width=2></td>
<td width=97></td>
<td width=97></td>
<td width=5></td>
<td width=97></td>
<td width=97></td>
<td width=5></td> </tr> </table> <p align=center><font size=2 face="Times New Roman">See accompanying notes to consolidated financial statements.</font></p> <p align=center> <font size=2 face="Times New Roman">5 of 13</font></p> <font size=2
face="Times New Roman"> </font>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center> <font size=2 face="Times New Roman">DAILY JOURNAL CORPORATION<br>
<a name="tx659_6"></a>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br> (Unaudited)</font></p> <p> <font size=2 face="Times New Roman">Note 1 - The Corporation and Operations</font></p> <p> <font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Daily Journal Corporation (the &#147;Company&#148;) publishes newspapers and web sites covering California, Arizona and Nevada, as well as the California Lawyer magazine, and produces several
specialized information services. SUSTAIN Technologies, Inc. (&#147;Sustain&#148;), now a 93% owned subsidiary as of December 31, 2002, has been consolidated since it was acquired in January 1999. Sustain supplies case management software systems
and related products to courts and other justice agencies, including district attorney offices and administrative law organizations.&#160; These courts and agencies use the Sustain family of products to help manage cases and information
electronically and to interface with other critical justice partners.&#160; Sustain&#146;s products are designed to help users manage electronic case files from inception to disposition, including all aspects of calendaring and accounting, report
and notice generation, the implementation of standards and business rules and other corollary functions. Essentially all of the Company&#146;s operations are based in California, Arizona, Colorado, Nevada and Virginia.</font></p> <p><font size=2
face="Times New Roman">Note 2 - Basis of Presentation</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the opinion of the Company, the accompanying interim unaudited consolidated financial statements contain all
adjustments (consisting of only normal recurring adjustments) necessary for a fair statement of its financial position as of December 31, 2002, the results of operations for the three-month periods ended December 31, 2002 and 2001 and its cash flows
for the three months ended December 31, 2002 and 2001. The results of operations for the three months ended December 31, 2002 and 2001 are not necessarily indicative of the results to be expected for the full year.</font></p> <p> <font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission.&#160; Certain information
and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the
disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company&#146;s Annual Report on Form 10-K for the
fiscal year ended September 30, 2002.</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain reclassifications of previously reported amounts have been made to conform to the current year&#146;s
presentation.</font></p> <p> <font size=2 face="Times New Roman">Note 3 - Basic and Diluted Income (Loss) Per Share</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company does not have any common stock
equivalents, and therefore the basic and diluted income (loss) per share are the same.</font></p> <p align=center><font size=2 face="Times New Roman">6 of 13</font></p> <font size=2 face="Times New Roman"> </font>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p> <font size=2 face="Times New Roman">Note 4 - Operating Segments</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summarized financial information concerning the Company&#146;s
reportable segments is shown in the following table:</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="55%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="27%" colspan="5" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>Reportable Segments</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" rowspan="3" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>Total Results<br> for both<br> Segments</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="27%" colspan="5" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>Traditional<br> Business</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>Sustain</b></font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td>
<td width="12%" colspan="2" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman"><u>Three months ended December 31, 2002</u></font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Revenues</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">7,498,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">991,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">8,489,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Profit (loss) before taxes, net of minority interest</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">1,048,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(494,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">554,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Total assets</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">18,463,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">2,804,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">21,267,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Capital expenditures</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">404,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">29,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">433,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Depreciation and amortization</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">337,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">209,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">546,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Income tax benefits (expenses)</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(440,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">440,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Total after-tax income (loss)</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">608,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(54,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">554,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman"><u>Three months ended December 31, 2001</u></font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right>&nbsp;</p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Revenues</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">7,494,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">508,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">$</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">8,002,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Profit (loss) before taxes, net of minority interest</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">865,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(1,019,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(154,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Total assets</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">17,580,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">2,543,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">20,123,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Capital expenditures</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">350,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">21,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">371,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Depreciation and amortization</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">364,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">201,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">565,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">Income tax benefits (expenses)</font></Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">(340,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">340,000</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom" bgcolor="#cceeff"> <p align=right> <font size=2 face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign="bottom" bgcolor="#cceeff"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="55%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">Total after-tax income (loss)</font></Div> </td>
<td width="1%" valign="bottom"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">525,000</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(679,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td>
<td width="1%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="11%" valign="bottom"> <p align=right> <font size=2 face="Times New Roman">(154,000</font></p> </td>
<td width="1%" valign="bottom"> <p> <font size=2 face="Times New Roman">)</font></p> </td> </tr> </table> <p><font size=2 face="Times New Roman">Note 5 - Capitalized Software, net and related Income Tax Accounting</font></p> <p> <font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s expenditures in support of the Sustain software are highly significant.&#160; The capitalized Sustain software costs consist of purchased software upon the acquisition of
Sustain of $3,023,000, less accumulated amortization of $2,540,000 and $2,389,000 as of December 31, 2002 and September 30, 2002, respectively. The remaining capitalized software, net, represents software costs accounted for pursuant to Statement of
Financial Accounting Standards No. 86, <i>Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed.</i>&#160;&#160; This software is being amortized over five years.&#160; Amortization expenses for capitalized software
was $151,000 for both comparative quarters ended December 31, 2002 and 2001.&#160; Costs related to the research and development of new Sustain software products are expensed as incurred until technological feasibility of the product has been
established, at which time such costs are capitalized, subject to expected recoverability. </font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December 31, 2002, the Company has a deferred tax asset of $4,204,000
primarily related to fiscal 2001&#146;s net operating loss and research and development credit carry-forwards which expire in years 2015 through 2021.&#160; Due to the uncertainty surrounding the timing of realizing the benefits of its tax
attributes in future tax returns, the Company has provided a valuation allowance against the asset of $3,280,000, resulting in a net deferred tax asset of $924,000.</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is continuing its internal Sustain software development efforts and has teamed with other service providers to seek new business opportunities. If these development and marketing efforts are not successful, there will be a significant and
adverse impact on the Company&#146;s ability to maximize its existing investment in the Sustain software, to service its existing customers, and to compete for new opportunities in the case management software business. These Sustain software
development costs</font></p> <p align=center><font size=2 face="Times New Roman">7 of 13</font></p> <font size=2 face="Times New Roman"> </font>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p> <font size=2 face="Times New Roman">($293,000 and $412,000 for the three months ended December 31, 2002 and 2001, respectively), which are primarily incremental costs, are being expensed as incurred and
accordingly will materially impact earnings at least through fiscal 2003, and very likely much longer.</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management believes that both accounting for capitalized software
costs and related income tax accounting are critical accounting policies.</font></p> <p> <font size=2 face="Times New Roman">Note&#160; 6&#160; - Debt and Other Commitments</font></p> <p> <font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January 2002, the Company renewed its $4 million revolving bank line of credit bearing interest payable monthly at a quarter point under the prime rate, which expires on April 1,
2003.&#160;&#160; Such line of credit is secured by substantially all of the Company&#146;s non-real estate assets.&#160;&#160; As of December 31, 2002, there was no borrowing under this line of credit, and currently the Company does not intend to
renew it.&#160; In addition, the Company has a real estate loan of $1,864,000, which bears interest at approximately 8% and is repayable in equal monthly installments of about $19,000 through 2016.&#160; The real estate loan is secured by the
Company&#146;s existing facilities in Los Angeles.</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company owns office and printing facilities in Los Angeles and leases space for its other offices under operating
leases which expire at various dates through 2006.&#160; The Company is responsible for a portion of maintenance, insurance and property tax expenses relating to certain leased property. </font></p> <p><font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In conjunction with the acquisition of Sustain in January 1999, Sustain entered into five-year employment agreements with each of the three Sustain principals.</font></p> <p align=center> <font
size=2 face="Times New Roman">8 of 13</font></p> <font size=2 face="Times New Roman"> </font>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<a name="tx659_7"></a>Item 2. MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</font></p> <p> <font size=2 face="Times New Roman">Results of Operations</font></p> <p> <font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues were $8,489,000 and $8,002,000 for the three months ended December 31, 2002 and 2001, respectively.&#160; This increase of $487,000 (6%) was primarily attributable to additional
consulting fees of Sustain and revenues from the semi-annual California Directory of Attorneys that were recognized in December 2002 but deferred to January 2002 in the prior fiscal year because of a change in the production process.&#160;
</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Display advertising and conference revenues increased by $93,000, while classified advertising revenues decreased by $131,000. Public notice advertising revenues
increased by $80,000. The Company&#146;s smaller newspapers, those other than the Los Angeles and San Francisco Daily Journals (&#147;The Daily Journals&#148;), accounted for about 92% of the total public notice advertising revenues.&#160; Public
notice advertising revenues and related advertising and other service fees constituted about 28% of the Company&#146;s total revenues. Circulation revenues decreased an aggregate of $38,000 primarily because of the discontinuance of several small
publications, partially offset by subscription revenues from the Directory during the three months ended December 31, 2002.&#160; The Daily Journals accounted for about 71% of the Company&#146;s total circulation revenues, and their circulation
levels decreased slightly. The court rule and judicial profile services generated about 17% of the total circulation revenues, with the other newspapers and services accounting for the balance.&#160; Information system and service revenues increased
by $483,000 primarily because of increased consulting revenues of Sustain for the installation of Sustain software in nine California counties. The Company&#146;s revenues derived from Sustain&#146;s operations constituted about 12% and 6% of the
Company&#146;s total revenues for the three months ended December 31, 2002 and 2001, respectively.&#160; </font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs and expenses decreased by $206,000 (3%), to $7,929,000
from $8,135,000. Total personnel costs were $4,123,000, representing a decrease of $208,000 (5%), primarily because of the closing of several small publications.&#160; Commissions and other outside services increased by $79,000 (6%) primarily
because of the printing of the Directory of Attorneys during the three months ended December 31, 2002. Newsprint and printing expenses decreased by $157,000 (27%) primarily because of the reduction in newsprint usage and prices and the
discontinuance of House Counsel magazine. Depreciation and amortization expenses decreased by $19,000 (3%) primarily due to more fully depreciated assets. Other general and administrative expenses increased by $79,000 (10%) mainly resulting from
more bad debt expenses.</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s expenditures in support of the Sustain software are highly significant and will materially impact overall results at least
through fiscal 2003, and very likely much longer. These Sustain internal development costs, primarily incremental costs, aggregated $293,000 and $412,000 for the three months ended December 31, 2002 and 2001, respectively. If these development
programs are not successful, they will significantly and adversely impact the Company&#146;s ability to maximize its existing investment in the Sustain software, to service its existing customers, and to compete for new opportunities in the case
management software business. </font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s traditional business segment pretax profit increased by $183,000 (21%) to $1,048,000 from $865,000, primarily due to
reduced expenses resulting from the decrease in newsprint and printing expenses and the closing of several small publications. Sustain&#146;s business segment pretax loss decreased by $525,000 (52%) to $494,000 from $1,019,000, primarily due
increased consulting revenues. The consolidated net income was $554,000 for the three months ended December 31, 2002 as compared with</font></p> <p align=center><font size=2 face="Times New Roman">9 of 13</font></p> <font size=2
face="Times New Roman"> </font>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p> <font size=2 face="Times New Roman">a loss of $154,000 for the prior comparable period in 2001.&#160; Tax provisions were not recorded for the three months ended December 31, 2002 and 2001 because the Company was
able to utilize net operating loss carry-forwards to offset taxes which otherwise would have been payable.&#160; Net income per share was $.37 for the three months ended December 31, 2002 as compared with a net loss per share of $.10 in the prior
comparable period in 2001.</font></p> <p> <font size=2 face="Times New Roman">Liquidity and Capital Resources</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the three months ended December 31, 2002, the
Company&#146;s cash and cash equivalents and U.S. Treasury Bill positions increased by $515,000.&#160; Cash and cash equivalents were used for the net purchase of capital assets of $433,000, including $399,000 for the new building now under
construction in Los Angeles. The cash provided by operating activities of $947,000 included a net decrease in prepayments for subscriptions and others of $261,000, primarily related to the discontinuance of several small publications.&#160; Proceeds
from the sale of subscriptions from newspapers, court rule books and other publications and for software maintenance and other services are recorded as deferred revenue and are included in earned revenue only when the services are rendered.&#160;
Cash flows from operating activities increased by $349,000 for the three months ended December 31, 2002 as compared to the prior comparable period primarily due to increased net income. As of December 31, 2002 the Company had working capital of
$4,656,000 before deducting the liability for deferred subscription revenues and other revenues of $6,964,000 which will be earned within one year. </font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During fiscal 2003,
and very likely much longer, the Company expects its total expenditures in support of the development of the Sustain software to continue to be very significant.&#160; In addition, there continue to be outstanding issues between Sustain and the
outside software development service provider which was terminated in April 2001, including the amounts due to each of them from the other.&#160; The terminated outside service provider filed for bankruptcy in December 2001 and stated in its filings
with the U.S. Bankruptcy Court that it was considering bringing a collection action against Sustain.&#160; If it does, Sustain will assert counter-claims that completely offset the terminated outside provider&#146;s claims. Sustain will vigorously
defend any litigation or action brought by the terminated outside service provider, although no assurances can be made as to the ultimate outcome of the dispute.&#160; It is the opinion of management that adequate provision has been made for any
amounts that may become due as a result of the dispute. Nonetheless, the pendency of these issues could have an impact on Sustain&#146;s ability to attract new customers or work with its existing customers. </font></p> <p> <font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has a real estate loan of $1,864,000 secured by its existing Los Angeles facilities. The Company has begun construction of a new building and parking facilities in Los Angeles
estimated to cost approximately $2.5 million, and a bank has expressed interest in lending the Company up to an additional $2 million when the new building is completed.&#160; In January 2002, the Company renewed its $4 million revolving bank line
of credit, which expires on April 1, 2003.&#160; This line of credit is secured by substantially all of the Company&#146;s non-real estate assets. As of December 31, 2002, there was no borrowing under this line of credit, and currently the Company
does not intend to renew it. If the Company requires additional funds, it may, among other things, change Sustain&#146;s development strategy or attempt to secure additional financing, which may or may not be available to the Company on acceptable
terms.&#160; </font></p> <p><font size=2 face="Times New Roman">Critical Accounting Policies</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s financial statements and accompanying notes are prepared
in accordance with generally accepted accounting principles.&#160; Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.</font></p> <p
align=center> <font size=2 face="Times New Roman">10 of 13</font></p> <font size=2 face="Times New Roman"> </font>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p> <font size=2 face="Times New Roman">These estimates and assumptions are affected by management&#146;s application of accounting policies. Management believes that both accounting for capitalized software costs and
income tax accounting are critical accounting policies.</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs related to the research and development of new Sustain software products are expensed as incurred until
technological feasibility of the product has been established, at which time such costs are capitalized, subject to expected recoverability.&#160; For a period of time prior to the second quarter of fiscal 2001, the Company believed that
technological feasibility had been established for Sustain software being developed by the outside service provider referred to above. Upon determining that a significant development issue had arisen, the entire amount of the previously capitalized
costs associated with the software project were written off and expensed. Those events had no effect on the financial information presented in this report. The Company&#146;s expenditures in support of the Sustain software are highly significant and
will grossly impact overall results at least through fiscal 2003, and very likely much longer.</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statement of Financial Accounting Standards No. 109, <i>Accounting for
Income Taxes</i>, establishes financial accounting and reporting standards for the effect of income taxes.&#160; The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and the
deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the financial statements or tax returns.&#160; Judgment is required in assessing the future tax consequences of events that have been
recognized in the Company&#146;s financial statements or tax returns.&#160; Fluctuations in the actual outcome of these future tax consequences could materially impact the Company&#146;s financial position or its results of operations.&#160; In
future years, there may be substantial additional tax benefits, for financial statement purposes, from past Sustain-segment losses.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The above discussion and analysis for
the three months ended December 31, 2002 and 2001 should be read in conjunction with the unaudited consolidated financial statements and the notes thereto included in this report.&#160; (See Note 6 for debt and other commitments.)</font></p> <p>
<font size=2 face="Times New Roman">Disclosure regarding Forward-Looking Statements</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Quarterly Report on Form 10-Q includes &#147;forward-looking statements&#148;
within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this document, including but not limited to those in Items 1 and 2, are
&#147;forward-looking&#148; statements that involve risks and uncertainties that may cause actual future events or results to differ materially from those described in the forward-looking statements.&#160; Words such as &#147;expects,&#148;
&#147;intends,&#148; &#147;anticipates,&#148; &#147;should,&#148; &#147;believes,&#148; &#147;will,&#148; &#147;plans,&#148; &#147;estimates,&#148; &#147;may,&#148; variations of such words and similar expressions are intended to identify such
forward-looking statements.&#160; We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise.&#160; There are many factors that could cause actual
results to differ materially from those contained in the forward-looking statements.&#160; These factors include, among others: risks associated with the functionality and resources required for new and existing case management software projects;
the success or failure of Sustain&#146;s internal software development efforts; the ultimate resolution, if any, of the dispute with Sustain&#146;s terminated outside service provider; material changes in the costs of materials; a potential decline
in subscriber revenue; an inability to continue borrowing on current terms; possible changes in tax laws; collectibility of accounts receivable; potential increases in employee and consultant costs; attraction, training and retention of employees;
changes in accounting guidance; and competitive factors in both the case management software business and the publishing business.&#160; In addition, such statements could be affected by general industry and market conditions and growth rates,
general economic conditions (particularly in California) and other factors. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove
to have been correct. Important factors that could cause actual results to differ materially from those in the forward-looking statements are disclosed in this Form 10-Q, including without limitation in conjunction with the forward-looking
statements themselves. Additional information concerning factors that could cause actual results</font></p> <p align=center><font size=2 face="Times New Roman">11 of 13</font></p> <font size=2 face="Times New Roman"> </font>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p> <font size=2 face="Times New Roman">to differ materially from those in the forward-looking statements is contained from time to time in documents filed by the Company with the Securities and Exchange
Commission.</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<a name="tx659_8"></a>Item 3.&#160; QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company does not use derivative financial instruments.&#160; The
Company does maintain a portfolio of cash equivalents maturing in three months or less as of the date of purchase and of U.S. Treasury Bills maturing within one year.&#160; Given the short-term nature of the investments and borrowings, and the fact
that the Company had no outstanding borrowing except for the real estate loan which bears a fixed interest rate, the Company was not subject to significant interest rate risk during such period.&#160; The real estate loan of $1,864,000 bears
interest at approximately 8% and is repayable in equal monthly installments of about $19,000 through 2016.&#160; The real estate loan is secured by the Company&#146;s existing facilities in Los Angeles.</font></p> <p> <font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<a name="tx659_9"></a>Item 4.&#160; CONTROLS AND PROCEDURES</font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company maintains disclosure controls and procedures designed to ensure that information the Company is
required to disclose in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission&#146;s rules and forms, and
that this information is accumulated and communicated to our management, including Gerald L. Salzman, the Company&#146;s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required
disclosure.</font></p> <p><font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within the 90 days prior to the filing of this quarterly report on Form 10-Q, the Company&#146;s management conducted an evaluation of the effectiveness of
its disclosure controls and procedures.&#160; This evaluation was supervised and reviewed by Mr. Salzman.&#160; Based on this evaluation, Mr. Salzman has concluded that the Company&#146;s disclosure controls and procedures are effective in ensuring
that all material information required to be filed in this quarterly report has been made known to him in a timely fashion. </font></p> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, since Mr. Salzman completed
his most recent evaluation of the Company&#146;s internal controls, there have been no significant changes in the Company&#146;s internal controls or in other factors that could significantly affect those controls subsequent to that evaluation,
including any corrective actions with regard to significant deficiencies or material weaknesses in the internal controls. </font></p> <p align=center> <font size=2 face="Times New Roman">SIGNATURE</font></p> <p> <font size=2
face="Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="61%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="38%" valign="bottom"> <p> <font size=2 face="Times New Roman">D</font><font size=1 face="Times New Roman">AILY</font><font size=2 face="Times New Roman"> J</font><font size=1 face="Times New Roman">OURNAL</font><font size=2
face="Times New Roman"> C</font><font size=1>ORPORATION</font></p> </td> </tr>
<tr>
<td width="61%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="38%" valign="bottom"> <p> <font size=2 face="Times New Roman">(Registrant)</font></p> </td> </tr>
<tr>
<td width="61%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="38%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="61%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="38%" valign="bottom"> <p><font size=2 face="Times New Roman">/s/&nbsp;&nbsp;G</font><font size=1 face="Times New Roman">ERALD</font><font size=2 face="Times New Roman"> L. S</font><font size=1>ALZMAN</font></p> </td> </tr>
<tr>
<td width="61%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="38%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td> </tr>
<tr>
<td width="61%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="38%" valign="bottom"> <p align=left> <font size=1 face="Times New Roman"><b>Gerald L. Salzman<br> Chief Executive Officer<br> President<br> Chief Financial Officer<br> Treasurer</b></font></p> </td> </tr>
<tr>
<td width="61%" valign="bottom"> <p> <font size=2 face="Times New Roman">DATE:&#160; February 14, 2003</font></p> </td>
<td width="38%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align=center> <font size=2 face="Times New Roman">12 of 13</font></p> <font size=2 face="Times New Roman"> </font>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center> <font size=2 face="Times New Roman"><b>CERTIFICATIONS</b></font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="100%" colspan="3" valign="top"> <p> <font size=2 face="Times New Roman">I, Gerald L. Salzman, certify that:</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="94%" colspan="2" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p> <font size=2 face="Times New Roman">1.</font></p> </td>
<td width="94%" colspan="2" valign="top"> <p> <font size=2 face="Times New Roman">I have reviewed this quarterly report on Form 10-Q of the Daily Journal Corporation;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="94%" colspan="2" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">2.</font></p> </td>
<td width="94%" colspan="2" valign="top"> <p> <font size=2 face="Times New Roman">Based on my knowledge, this quarterly 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 quarterly report;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="94%" colspan="2" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p> <font size=2 face="Times New Roman">3.</font></p> </td>
<td width="94%" colspan="2" valign="top"> <p> <font size=2 face="Times New Roman">Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the
financial condition, results of operations and cash flows of registrant as of, and for, the periods presented in this quarterly report;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="94%" colspan="2" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p> <font size=2 face="Times New Roman">4.</font></p> </td>
<td width="94%" colspan="2" valign="top"> <p> <font size=2 face="Times New Roman">I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
have:</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="88%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">a.</font></p> </td>
<td width="88%" valign="top"> <p> <font size=2 face="Times New Roman">designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by
others within those entities, particularly during the period in which this quarterly report is being prepared;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="88%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p> <font size=2 face="Times New Roman">b.</font></p> </td>
<td width="88%" valign="top"> <p> <font size=2 face="Times New Roman">evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the
&#147;Evaluation Date&#148;); and</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="88%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p> <font size=2 face="Times New Roman">c.</font></p> </td>
<td width="88%" valign="top"> <p> <font size=2 face="Times New Roman">presented in this quarterly report my conclusions about the effectiveness of the disclosure controls and procedures based on my evaluation as of the Evaluation Date;</font></p>
</td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="94%" colspan="2" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">5.</font></p> </td>
<td width="94%" colspan="2" valign="top"> <p> <font size=2 face="Times New Roman">I have disclosed, based on my most recent evaluation, to the registrant&#146;s auditors and the audit committee of registrant&#146;s board of directors (or persons
performing the equivalent functions):</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="88%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p> <font size=2 face="Times New Roman">a.</font></p> </td>
<td width="88%" valign="top"> <p> <font size=2 face="Times New Roman">all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant&#146;s ability to record, process, summarize and report
financial data and have identified for the registrant&#146;s auditors any material weakness in internal controls; and</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="88%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p> <font size=2 face="Times New Roman">b.</font></p> </td>
<td width="88%" valign="top"> <p> <font size=2 face="Times New Roman">any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal controls; and</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="94%" colspan="2" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p> <font size=2 face="Times New Roman">6.</font></p> </td>
<td width="94%" colspan="2" valign="top"> <p> <font size=2 face="Times New Roman">I have indicated in this quarterly report whether there were significant changes in internal controls or in other factors that could significantly affect internal
controls subsequent to the date of my most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.</font></p> </td> </tr> </table> <p align=center><font size=2
face="Times New Roman">&nbsp;</font></p>
<table align=center border=0 cellspacing=0 cellpadding=0 width="100%">
<tr>
<td width="43%" valign="bottom"> <p><font size=2 face="Times New Roman">Date:&#160; February 14, 2003</font></p> </td>
<td width="56%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="43%" valign="bottom"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="56%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="43%" valign="bottom"> <p><font size=2 face="Times New Roman">/s/ G</font><font size=1 face="Times New Roman">ERALD</font><font size=2 face="Times New Roman"> L. S</font><font size=1>ALZMAN</font></p> </td>
<td width="56%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="43%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td>
<td width="56%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="43%" valign="bottom"> <p align=left><font size=1 face="Times New Roman"><b>Gerald L. Salzman<br> Chief Executive Officer<br> President<br> Chief Financial Officer<br> Treasurer</b></font></p> </td>
<td width="56%" valign="top"> <p align=center><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align=center><font size=2 face="Times New Roman">13 of 13</font></p> <p align=center><font size=2
face="Times New Roman">&nbsp;</font></p>
</BODY></HTML>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
