-----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,
 ME2MGKc3LKcgNLaO8xvXJ2YC+FUyUvfeVytuDmEOZT1QymYSve4sioP3ECcFDhVc
 uCKzgZBeCEosnC1V+i9d3Q==

<SEC-DOCUMENT>0000898430-03-003047.txt : 20030515
<SEC-HEADER>0000898430-03-003047.hdr.sgml : 20030515
<ACCEPTANCE-DATETIME>20030515134456
ACCESSION NUMBER:		0000898430-03-003047
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20030331
FILED AS OF DATE:		20030515

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:		03703178

	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">
  <hr size="3" width="100%" color="black" noshade> <p align="center"><font style="font-size:18pt"><b>SECURITIES AND EXCHANGE COMMISSION</b></font><br> <font style="font-size:12pt"><b>Washington, D.C.
20549</b></font></p> <hr size="1" width="17%" color="black" noshade> <p align="center"><font style="font-size:18pt"><b>FORM 10-Q</b></font></p> <p><font style="font-size:10pt"><b>(Mark One)</b></font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="5%" valign="top"><font style="font-size:10pt"><b></b></font></td>
<td width="95%" valign="top"><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td valign="top"><font face="wingdings" style="font-size:12pt"><b>&#254;</b></font></td>
<td valign="top"><font style="font-size:12pt"><b>QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt"><b>For the quarterly period ended March 31, 2003</b></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><font style="font-size:10pt"><b>OR</b></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font face="wingdings" style="font-size:12pt"><b>o</b></font></td>
<td valign="top"><font style="font-size:12pt"><b>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt"><b>For the transition period from _______________ to _____________________</b></font></td> </tr> </table> <p align="center"><font style="font-size:10pt"><b>Commission File Number 0-14665</b></font></p>
<hr size="1" width="17%" color="black" noshade> <p align="center"><font style="font-size:24pt"><b>DAILY JOURNAL CORPORATION<br></b></font><font style="font-size:8pt"><b>(Exact name of registrant as specified in its charter)</b></font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="40%" valign="top"><font style="font-size:10pt"></font></td>
<td width="20%" valign="top"><font style="font-size:10pt"></font></td>
<td width="40%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:10pt"><b>South Carolina</b></font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><font style="font-size:10pt"><b>95-4133299</b></font></td> </tr>
<tr>
<td align="center" valign="top"><hr size="1" width="100%" color="black" noshade></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><hr size="1" width="100%" color="black" noshade></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:8pt"><b>(State or other jurisdiction of incorporation or organization)</b></font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>(I.R.S. Employer Identification No.)</b></font></td> </tr> </table>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="40%" valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td width="20%" valign="top"><font style="font-size:10pt"></font></td>
<td width="40%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:10pt"><b>915 East First Street<br>Los Angeles, California</b></font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom"><font style="font-size:10pt"><b>90012-4050</b></font></td> </tr>
<tr>
<td valign="top"><hr size="1" width="100%" color="black" noshade></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><hr size="1" width="100%" color="black" noshade></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:8pt"><b>(Address of principal executive office)</b></font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>(Zip code)</b></font></td> </tr> </table>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="40%" valign="top"><font style="font-size:10pt"></font></td>
<td width="20%" valign="top"><font style="font-size:10pt"></font></td>
<td width="40%" valign="top"><font style="font-size:10pt"></font></td> </tr> </table> <p><font style="font-size:10pt"><b>Registrant&#146;s telephone number, including area code:&nbsp;&nbsp;(213) 229-5300</b></font></p> <hr size="1" width="17%"
color="black" noshade> <p><font style="font-size:10pt">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> <p><font style="font-size:10pt">Yes:</font><font face="wingdings"
style="font-size:10pt"> x</font><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No: </font><font face="wingdings" style="font-size:10pt">o</font></p> <p><font style="font-size:10pt">Indicate by check mark whether the registrant is an
accelerated filer (as defined in Rule 12b-2 of the Exchange Act).</font></p> <p><font style="font-size:10pt"> Yes:</font><font face="wingdings" style="font-size:10pt"> o</font><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font
style="font-size:10pt">No: </font><font face="wingdings" style="font-size:10pt">x</font></p> <p><font style="font-size:10pt">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 border="0" cellspacing="0" width="100%">
<tr>
<td width="40%" align="center" valign="top"><font style="font-size:10pt"><b></b></font></td>
<td width="20%" valign="top"><font style="font-size:10pt"></font></td>
<td width="40%" align="center" valign="top"><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:10pt">Class</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><font style="font-size:10pt">Outstanding at April 30, 2003</font></td> </tr>
<tr>
<td align="center" valign="top"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"> <hr size="1" width="100%" color="black" noshade> </td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:10pt">Common Stock, par value $ .01 per share</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><font style="font-size:10pt">1,519,803 shares</font></td> </tr> </table> <hr size="3" width="100%" color="black" noshade>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"><font style="font-size:10pt">DAILY JOURNAL CORPORATION</font></p> <p align="center"><font style="font-size:10pt">INDEX</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="8%" valign="top"><font style="font-size:10pt"></font></td>
<td width="8%" valign="top"><font style="font-size:10pt"></font></td>
<td width="76%" valign="top"><font style="font-size:10pt"></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom"><font style="font-size:10pt">Page Nos.</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt"> </font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">PART I</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">
<a href="#tx168_1">Financial Information</a></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">Item 1.</font></td>
<td valign="top"><font style="font-size:10pt">
<a href="#tx168_2">Financial statements</a></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">
<a href="#tx168_3">Consolidated Balance Sheets - March 31, 2003 and September 30, 2002</a></font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">3</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">
<a href="#tx168_4">Consolidated Statements of Income -Three months ended March 31, 2003 and 2002</a></font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">4</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">
<a href="#tx168_5">Consolidated Statements of Income -Six months ended March 31, 2003 and 2002</a></font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">5</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">
<a href="#tx168_6">Consolidated Statements of Cash Flows -Six months ended March 31, 2003 and 2002</a></font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">6</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">
<a href="#tx168_6a">Notes to Consolidated Financial Statements</a></font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">7</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">Item 2.</font></td>
<td valign="top"><font style="font-size:10pt">
<a href="#tx168_7">Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</a></font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">10</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt"> </font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">Item 3.</font></td>
<td valign="top"><font style="font-size:10pt">
<a href="#tx168_8">Qualitative and Quantitative Disclosures about Market Risk</a></font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">13</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">Item 4.</font></td>
<td valign="top"><font style="font-size:10pt">
<a href="#tx168_9">Controls and Procedures</a></font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">13</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">PART II</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">
<a href="#tx168_10">Other Information</a></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">Item 4.</font></td>
<td valign="top"><font style="font-size:10pt">
<a href="#tx168_11">Submission of Matters to a Vote of Security Holders </a></font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">14</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">Item 5.</font></td>
<td valign="top"><font style="font-size:10pt">
<a href="#tx168_12">Other Information</a></font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">14</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">Item 6.</font></td>
<td valign="top"><font style="font-size:10pt">
<a href="#tx168_13">Exhibits and Reports on Form 8-K</a></font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">15</font></td> </tr> </table> <p align="center"><font style="font-size:10pt">2 of 17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"><font style="font-size:10pt">
<a name="tx168_1"></a>PART I<br>
<a name="tx168_2"></a>Item 1. FINANCIAL STATEMENTS<br> DAILY JOURNAL CORPORATION <br>
<a name="tx168_3"></a>CONSOLIDATED BALANCE SHEETS<br> (Unaudited)</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="2%" align="center" valign="top"><font style="font-size:10pt"><b></b></font></td>
<td width="2%" valign="top"><font style="font-size:10pt"></font></td>
<td width="73%" valign="top"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="3%" valign="top"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" align="center" valign="bottom"><font style="font-size:10pt"></font><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>March 31<br>2003</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>September 30<br>2002</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b></b></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top" colspan="3"><font style="font-size:10pt"><b>ASSETS</b></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" colspan="3"><font style="font-size:10pt">Current assets</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Cash and cash equivalents</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">522,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">513,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">U.S. Treasury Bills, at cost plus discount earned</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">5,391,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">4,286,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><div style="margin-left:20px; text-indent:-20px"><font style="font-size:10pt">Accounts receivable, less allowance for doubtful account of $500,000 at March 31, 2003 and September 30, 2002</font></div></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">5,043,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">5,953,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Inventories</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">11,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">18,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Prepaid expenses and other assets</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">258,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">141,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Deferred income taxes</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">918,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">901,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">Total current assets</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">12,143,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">11,812,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top" colspan="3"><font style="font-size:10pt">Property, plant and equipment, at cost</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Land, buildings and improvements</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">9,400,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,538,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Furniture, office equipment and computer software</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">6,177,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">6,118,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Machinery and equipment</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,388,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,351,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">16,965,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">16,007,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Less accumulated depreciation</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(7,802,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(7,024,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">9,163,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,983,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" colspan="3"><font style="font-size:10pt">Capitalized software, net</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">332,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">634,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top" colspan="3"><font style="font-size:10pt">Deferred income taxes</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">16,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">4,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">21,654,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">21,433,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top" colspan="3"><font style="font-size:10pt"><b>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</b></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" colspan="3"><font style="font-size:10pt">Current liabilities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Accounts payable</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">4,993,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">5,086,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Accrued liabilities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,311,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,371,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Notes payable &#150; current portion</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">85,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt"> 92,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Deferred subscription revenue and other revenues</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">6,832,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">7,225,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">Total current liabilities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">14,221,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">14,774,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top" colspan="3"><font style="font-size:10pt">Notes payable &#150; long-term </font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,758,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,791,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" colspan="3"><font style="font-size:10pt">Commitments and contingencies (Note 7)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top" colspan="3"><font style="font-size:10pt">Minority interest (7%)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" colspan="3"><font style="font-size:10pt">Shareholders&#146; equity</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Preferred stock, $.01 par value, 5,000,000 shares authorized and no shares issued</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><div style="margin-left:20px; text-indent:-20px"><font style="font-size:10pt">Common stock, $.01 par value, 5,000,000 shares authorized; 1,519,818 and 1,525,618 shares, respectively, outstanding</font></div></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">15,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">15,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Other paid-in capital</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,932,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,939,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Retained earnings</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">4,598,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt"> 3,784,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Less 46,271 treasury shares, at cost</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(870,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(870,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">Total shareholders&#146; equity</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">5,675,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">4,868,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">21,654,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">21,433,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr> </table> <p align="center"><font style="font-size:10pt">See accompanying notes to consolidated financial statements.</font></p> <p align="center"><font
style="font-size:10pt">3 of 17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"><font style="font-size:10pt">DAILY JOURNAL CORPORATION<br>
<a name="tx168_4"></a>CONSOLIDATED STATEMENTS OF INCOME<br> (Unaudited)</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="2%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="75%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="3%" align="center" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="6"><font style="font-size:8pt"><b>Three months ended March 31</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="6"><hr size="1" width="100%" color="black" noshade></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>2003</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>2002</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b></b></font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Revenues</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Advertising</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">4,218,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">4,434,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Circulation</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,564,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,782,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Information systems and services</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">787,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">528,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Advertising service fees and other</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">685,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">842,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,254,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,586,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Costs and expenses</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Salaries and employee benefits</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">4,088,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">4,412,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Commissions and other outside services</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,362,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,183,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Newsprint and printing expenses</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">376,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">540,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Postage and delivery expenses</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">501,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">488,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Depreciation and amortization</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">551,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">613,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Other general and administrative expenses</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">968,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,180,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">7,846,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,416,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Income from operations</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">408,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">170,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Other income and (expense)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Interest income</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">17,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">13,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Interest expense</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(38,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(39,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Income before taxes</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">387,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">144,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Benefit from income taxes </font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&#151; </font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">180,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Income before minority interest in net loss of subsidiary</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">387,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">324,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Minority interest in net loss of subsidiary (7%)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Net income </font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">387,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">324,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="3" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="3" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Weighted average number of common shares outstanding - basic and diluted</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt"> 1,441,660</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt"> 1,490,228</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Basic and diluted net income per share </font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">.27</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt"> .22</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr> </table> <p align="center"><font style="font-size:10pt">See accompanying notes to consolidated financial statements.</font></p> <p align="center"><font
style="font-size:10pt">4 of 17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"><font style="font-size:10pt">DAILY JOURNAL CORPORATION<br>
<a name="tx168_5"></a>CONSOLIDATED STATEMENTS OF INCOME<br> (Unaudited)</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="2%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="75%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="3%" align="center" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="1%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="6"><font style="font-size:8pt"><b>Six months ended March 31</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="6"><hr size="1" width="100%" color="black" noshade></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>2003</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>2002</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b></b></font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Revenues</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Advertising</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,256,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,430,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Circulation</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">5,285,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">5,541,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Information systems and services</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,778,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,036,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Advertising service fees and other</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,424,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,581,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">16,743,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">16,588,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Costs and expenses</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Salaries and employee benefits</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,211,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,692,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Commissions and other outside services</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,799,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,592,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Newsprint and printing expenses</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">793,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,114,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Postage and delivery expenses</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,025,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">992,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Depreciation and amortization</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,097,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,178,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Other general and administrative expenses</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,850,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,983,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">15,775,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">16,551,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Income from operations</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">968,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">37,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Other income and (expense)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Interest income</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">49,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">32,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Interest expense</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(76,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(79,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Income (loss) before taxes</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">941,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(10,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Benefit from income taxes </font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">180,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Income before minority interest in net loss of subsidiary</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">941,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">170,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Minority interest in net loss of subsidiary (7%)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Net income </font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">941,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">170,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="3" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="3" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Weighted average number of common shares outstanding - basic and diluted</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,476,553</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,490,239</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="2"><font style="font-size:10pt">Basic and diluted net income per share </font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">.64</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">.11</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr> </table> <p align="center"><font style="font-size:10pt">See accompanying notes to consolidated financial statements.</font></p> <p align="center"><font
style="font-size:10pt">5 of 17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"><font style="font-size:10pt">DAILY JOURNAL CORPORATION<br>
<a name="tx168_6"></a>CONSOLIDATED STATEMENTS OF CASH FLOWS<br> (Unaudited)</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="2%" align="center" valign="bottom">&nbsp;</td>
<td width="2%" align="right" valign="bottom">&nbsp;</td>
<td width="2%" align="right" valign="bottom">&nbsp;</td>
<td width="2%" align="right" valign="bottom">&nbsp;</td>
<td width="69%" align="right" valign="bottom">&nbsp;</td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="8%" align="right" valign="bottom">&nbsp;</td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="3%" align="center" valign="bottom">&nbsp;</td>
<td width="1%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="8%" align="right" valign="bottom">&nbsp;</td>
<td width="1%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="6"><font style="font-size:8pt"><b> Six months<br> ended March 31</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="6"><hr size="1" width="100%" color="black" noshade></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b> 2003 </b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b> 2002 </b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b></b></font></td> </tr>
<tr>
<td valign="bottom" colspan="5"><font style="font-size:10pt">Cash flows from operating activities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="4"><font style="font-size:10pt">Net income </font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">941,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">170,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="4"><font style="font-size:10pt">Adjustments to reconcile net income to net cash provided by operations</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Depreciation and amortization</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,097,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,178,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Deferred income taxes</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(29,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(13,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Discount earned on U.S. Treasury Bills</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(20,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(15,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="3"><div style="margin-left:20px; text-indent:-20px"><font style="font-size:10pt">Changes in assets and liabilities (Increase) decrease in current assets</font></div></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Accounts receivable, net</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">910,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">560,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Inventories</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">7,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">19,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Prepaid expenses and other assets</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(117,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(7,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="3"><font style="font-size:10pt">Increase (decrease) in current liabilities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Accounts payable</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(93,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(199,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Accrued liabilities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(60,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(464,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="2"><font style="font-size:10pt">Deferred subscription and other revenues</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(393,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(536,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Cash provided by operating activities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,243,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">693,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="5"><font style="font-size:10pt">Cash flows from investing activities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="4"><font style="font-size:10pt">Net purchases in U.S. Treasury Bills</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(1,085,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(2,480,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="4"><font style="font-size:10pt">Purchases of property, plant and equipment, net</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(975,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(713,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Net cash used for investing activities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(2,060,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(3,193,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="5"><font style="font-size:10pt">Cash flows from financing activities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="4"><font style="font-size:10pt">Payment of loan principle</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(40,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(37,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="4"><font style="font-size:10pt">Purchase of common stock</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(134,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(2,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">Cash used for financing activities</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(174,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(39,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="5"><font style="font-size:10pt">Increase (decrease) in cash and cash equivalents</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">9,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(2,539,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr>
<td valign="bottom" colspan="5"><font style="font-size:10pt">Cash and cash equivalents</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="4"><font style="font-size:10pt">Beginning of period</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">513,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,901,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom" colspan="4"><font style="font-size:10pt">End of period</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">522,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">362,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="3" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="3" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" colspan="5"><font style="font-size:10pt">Interest paid during period</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">76,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">79,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="bottom" colspan="2"> <hr size="3" width="100%" color="black" noshade> </td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr> </table> <p align="center"><font style="font-size:10pt">See accompanying notes to consolidated financial statements.</font></p> <p align="center"><font
style="font-size:10pt">6 of 17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"><font style="font-size:10pt">
<a name="tx168_6a"></a>DAILY JOURNAL CORPORATION<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br> (Unaudited)</font></p> <p><font style="font-size:10pt">Note 1 - The Corporation and Operations</font></p> <p><font
style="font-size:10pt">&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 March 31, 2003, 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. 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. 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 style="font-size:10pt">Note 2 - Basis
of Presentation</font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the opinion of the Company, the accompanying interim unaudited consolidated financial statements contain all adjustments necessary for a fair statement of
its financial position as of March 31, 2003, the results of operations for the three- and six-month periods ended March 31, 2003 and 2002 and its cash flows for the six months ended March 31, 2003 and 2002. The results of operations for the three-
and six-months ended March 31, 2003 and 2002 are not necessarily indicative of the results to be expected for the full year.</font></p> <p><font style="font-size:10pt">&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. 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
style="font-size:10pt">&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 style="font-size:10pt">Note 3 - Basic and Diluted
Income Per Share</font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company does not have any common stock equivalents, and therefore the basic and diluted income per share are the same.</font></p> <p align="center"><font
style="font-size:10pt">7 of 17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p><font style="font-size:10pt">Note 4 - Operating Segments</font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summarized financial information concerning the Company&#146;s reportable segments
is shown in the following table:</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="64%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b><u></u></b></font></td>
<td width="3%" align="center" valign="bottom"><font style="font-size:10pt"><b><u></u></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b><u></u></b></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"><b><u></u></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="3%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="8%" align="right" valign="bottom"><font style="font-size:10pt"><b></b></font></td>
<td width="1%" align="center" valign="bottom"><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="6"><font style="font-size:8pt"><b>Reportable Segments</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="6"><hr size="1" width="100%" color="black" noshade></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>Total Results </b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b></b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>Traditional Business</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>Sustain</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><font style="font-size:8pt"><b>for both Segments</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="2"><hr size="1" width="100%" color="black" noshade></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b></b></font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt"><u>Six months ended March 31, 2003</u></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Revenues</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">14,965,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,778,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">16,743,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Profit (loss) before taxes, net of minority interest</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,154,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(1,213,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">941,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Total assets</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">19,287,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,367,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">21,654,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Capital expenditures</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">940,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">35,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">975,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Depreciation and amortization</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">678,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">419,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,097,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Income tax benefits (expenses)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(900,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">900,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Total after-tax income (loss)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,254,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(313,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">941,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt"><u>Six months ended March 31, 2002</u></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Revenues</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">15,552,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,036,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">16,588,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Profit (loss) before taxes, net of minority interest</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,018,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(2,028,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(10,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Total assets</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">18,179,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,920,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">20,099,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Capital expenditures</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">660,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">53,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">713,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Depreciation and amortization</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">772,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">406,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,178,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Income tax benefits (expenses)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(800,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">980,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">180,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Total after-tax income (loss)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,218,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(1,048,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">170,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt"><u>Three months ended March 31, 2003</u></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Revenues</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">7,467,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">787,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,254,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Profit (loss) before taxes, net of minority interest</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,106,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(719,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">387,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Total assets</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">19,287,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">2,367,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">21,654,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Capital expenditures</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">536,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">6,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">542,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Depreciation and amortization</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">341,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">210,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">551,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Income tax benefits (expenses)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(460,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">460,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">&#151;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Total after-tax income (loss)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">646,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(259,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">387,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt"><u>Three months ended March 31, 2002</u></font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Revenues</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,057,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">529,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">$</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,586,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Profit (loss) before taxes, net of minority interest</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,153,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(1,009,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">144,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Total assets</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">18,179,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,920,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">20,099,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Capital expenditures</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">310,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">32,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">342,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Depreciation and amortization</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">408,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">205,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">613,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Income tax benefits (expenses)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(460,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">640,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">180,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Total after-tax income (loss)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">693,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">(369,000</font></td>
<td valign="bottom"><font style="font-size:10pt">)</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">324,000</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td> </tr> </table> <p><font style="font-size:10pt">Note 5 - Capitalized Software, net </font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s
expenditures in support of the Sustain software are highly significant. The capitalized Sustain software costs consist of purchased software upon the acquisition of Sustain of $3,023,000, less accumulated amortization of $2,691,000 and $2,389,000 as
of March 31, 2003 and September 30, 2002, respectively. The remaining capitalized software, net, represents software costs</font></p> <p align="center"><font style="font-size:10pt">8 of 17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
 <p><font style="font-size:10pt">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> This
software is being amortized over five years. The amortization expense for capitalized software was $302,000 for both comparative periods ended March 31, 2003 and 2002. 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 style="font-size:10pt">&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 ($572,000 and $735,000 for the six months ended March 31, 2003 and 2002, 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 style="font-size:10pt">Note 6 - Related Income Tax Accounting</font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At March 31, 2003, the Company has a deferred tax asset of
$3,917,000 primarily related to fiscal 2001&#146;s net operating loss and research and development credit carry-forwards which expire in years 2015 through 2021. 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 $2,983,000, resulting in a net deferred tax asset of $934,000. The net reduction in the valuation allowance for the current fiscal year was
$633,000 primarily due to utilization of net operating loss carry-forwards. In future years, there may be substantial additional tax benefits, for financial statement purposes, from past Sustain-segment losses.</font></p> <p><font
style="font-size:10pt">Note 7 - Debt and Other Commitments</font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March 31, 2003, the Company has a real estate loan of $1,843,000, which bears interest at approximately 8% and
is repayable in equal monthly installments of about $19,000 through 2016. The real estate loan is secured by the Company&#146;s existing office and printing facilities in Los Angeles.</font></p> <p><font
style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company owns its facilities in Los Angeles and leases space for its other offices under operating leases which expire at various dates through 2006. The Company is responsible for a portion of
maintenance, insurance and property tax expenses relating to certain leased property. </font></p> <p><font style="font-size:10pt">&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. Sustain pays an aggregate of $65,000 per month pursuant to the three employment agreements, each of which expires in January 2004.</font></p> <p align="center"><font
style="font-size:10pt">9 of 17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p><font style="font-size:10pt">Item&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<a name="tx168_7"></a>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</font></p> <p><font style="font-size:10pt">Results of Operations</font></p> <p><font
style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues were $16,743,000 and $16,588,000 for the six months ended March 31, 2003 and 2002, respectively. This increase of $155,000 (1%) was primarily attributable to the increased consulting fees
of Sustain, partially offset by the declines in advertising and subscription revenues. (Revenues were $8,254,000 and $8,586,000 for the three months ended March 31, 2003 and 2002, respectively.)</font></p> <p><font
style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Display advertising and conference revenues decreased by $68,000, and classified advertising revenues decreased by $208,000. Public notice advertising revenues increased by $102,000. 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 91% of the total public notice advertising revenues. 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 $256,000 primarily because the Company discontinued several small publications and because the
court rule revenues declined as some courts are now providing their rules online. The Daily Journals accounted for about 72% 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. Information system and service revenues increased by $742,000 primarily because of increased
consulting revenues of Sustain for the installation of Sustain software in several California counties. The Company&#146;s revenues derived from Sustain&#146;s operations constituted about 11% and 6% of the Company&#146;s total revenues for the six
months ended March 31, 2003 and 2002, respectively. </font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs and expenses decreased by $776,000 (5%), to $15,775,000 from $16,551,000. Total personnel costs were $8,211,000,
representing a decrease of $481,000 (6%), primarily because of the closing of several small publications and the consolidation of several activities. Commissions and other outside services increased by $207,000 (8%) primarily because of the
additional implementation consulting expenses for Sustain. Newsprint and printing expenses decreased by $321,000 (29%) primarily because of the reduction in newsprint usage and the discontinuance of several publications. Depreciation and
amortization expenses decreased by $81,000 (7%) primarily due to more fully depreciated assets. Other general and administrative expenses decreased by $133,000 (7%) mainly resulting from reduced general operating expenses. (Costs and expenses were
$7,846,000 and $8,416,000 for the three months ended March 31, 2003 and 2002, respectively.)</font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s expenditures for the development of new Sustain software
products 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 $572,000 and $735,000 for the six
months ended March 31, 2003 and 2002, 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 style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s traditional business segment pretax profit increased by
$136,000 (7%) to $2,154,000 from $2,018,000, 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
$815,000 (40%) to $1,213,000 from $2,028,000, primarily due to increased consulting revenues. The consolidated net income was $941,000 for the six months ended March 31, 2003 compared to $170,000 in the comparable prior year period. (Consolidated
net income was $387,000 for the three months ended March 31, 2003 compared</font></p> <p align="center"><font style="font-size:10pt">10 of 17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p><font style="font-size:10pt">to $170,000 in the comparable prior year period. (Consolidated net income was $387,000 for the three months ended March 31, 2003 compared to $324,000 in the comparable prior year
period.) Tax provisions were not recorded for the six months ended March 31, 2003 because the Company was able to utilize net operating loss carry-forwards to offset taxes which otherwise would have been payable. (The Company recorded income tax
benefits of $180,000 in the prior comparative period ended March 31, 2002 primarily because of the tax law change for the carry-back of net operating losses.) Net income per share increased to $.64 from $.11. </font></p> <p><font
style="font-size:10pt">Liquidity and Capital Resources</font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the six months ended March 31, 2003, the Company&#146;s cash and cash equivalents and U.S. Treasury Bill positions
increased by $1,114,000. Cash and cash equivalents were used for the net purchase of capital assets of $975,000, including $863,000 for the new building now under construction in Los Angeles. The cash provided by operating activities of $2,243,000
included a net decrease in prepayments for subscriptions and others of $393,000, primarily related to the discontinuance of several small publications. 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. Cash flows from operating activities increased by $1,550,000 for the six months ended March 31,
2003 as compared to the prior comparable period primarily due to increased net income. As of March 31, 2003 the Company had working capital of $4,754,000 before deducting the liability for deferred subscription revenues and other revenues of
$6,832,000 which will be earned within one year. </font></p> <p><font style="font-size:10pt">&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. 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. 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. 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. 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 style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As discussed in item 5 of Part II of this quarterly report, on April 2, 2003, Sustain received a letter
from counsel to the Ontario, Canada Ministry of the Solicitor General, Ministry of Public Safety and Security and Ministry of the Attorney General (collectively, the &#147;Ministries&#148;). The Ministries had entered into a contract with Sustain,
dated as of April 22, 1999, pursuant to which the Ministries sought to license the software product that was to be developed by the outside service provider referred to above. That contract was formally terminated on June 7, 2002. The letter from
counsel purports to invoke the dispute resolution process set forth in the terminated contract between the Ministries and Sustain, and claims damages in the amount of $20 million. Counsel for Sustain and counsel for the Ministries are engaged in
informal discussions with respect to this matter, and it is too early to determine whether it will have a material adverse effect on Sustain and the Company. </font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has a
real estate loan of $1,843,000 secured by its existing Los Angeles facilities. The Company has begun construction of a new building and parking facilities in Los Angeles estimated to</font></p> <p align="center"><font style="font-size:10pt">11of
17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p><font style="font-size:10pt">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.</font></p> <p><font
style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. </font></p> <p><font style="font-size:10pt">Critical Accounting Policies</font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s financial statements and accompanying notes are
prepared in accordance with generally accepted accounting principles. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. 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
style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>, costs related to the research and
development of a new software product are to be expensed as incurred until the technological feasibility of the product is established. Accordingly, costs related to the development of new Sustain software products are expensed as incurred until
technological feasibility has been established, at which time such costs are capitalized, subject to expected recoverability. In general, &#147;technological feasibility&#148; is achieved when the developer has established the necessary skills,
hardware and technology to produce a product and a detailed program design has been (a)&nbsp;completed, (b) traced to the product specifications and (c) reviewed for high-risk development issues. 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 quarterly report. </font></p> <p><font
style="font-size:10pt">&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. 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. 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. Fluctuations in the actual outcome of these future tax consequences could
materially impact the Company&#146;s financial position or its results of operations. In future years, there may be substantial additional tax benefits, for financial statement purposes, from past Sustain-segment losses.</font></p> <p><font
style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The above discussion and analysis for the six months ended March 31, 2003 and 2002 should be read in conjunction with the unaudited consolidated financial statements and the notes thereto included
in this report. (See Note 7 for debt and other commitments.)</font></p> <p><font style="font-size:10pt">Disclosure Regarding Forward-Looking Statements</font></p> <p><font style="font-size:10pt">&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</font></p> <p align="center"><font style="font-size:10pt">12 of 17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p><font style="font-size:10pt">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. 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. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise.
There are many factors that could cause actual results to differ materially from those contained in the forward-looking statements. 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. 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 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 style="font-size:10pt">Item 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<a name="tx168_8"></a>QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK</font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company does not use derivative financial instruments. 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. 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. The real estate loan of $1,843,000 bears interest at approximately 8% and is repayable in equal
monthly installments of about $19,000 through 2016. The real estate loan is secured by the Company&#146;s existing facilities in Los Angeles.</font></p> <p><font style="font-size:10pt">Item 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<a name="tx168_9"></a>CONTROLS AND PROCEDURES</font></p> <p><font style="font-size:10pt">&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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</font></p> <p><font style="font-size:10pt">&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. This evaluation was supervised and reviewed by Mr. Salzman. 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 align="center"><font style="font-size:10pt">13 of 17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p><font style="font-size:10pt">&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 style="font-size:10pt">
<a name="tx168_10"></a>PART II</font></p> <p><font style="font-size:10pt">Item 4.&nbsp;&nbsp;&nbsp;&nbsp;
<a name="tx168_11"></a>&nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s annual meeting was held on February 5, 2003. The matters submitted to a vote
of security holders were the election of directors and the ratification of the appointment of Ernst &#38; Young LLP as independent accountants for the Company for the current fiscal year.</font></p> <p><font
style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the nominees to the Board of directors was elected. The following votes were received as to the election of the board of directors:</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="19%" align="center" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="51%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="8%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="3%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="8%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="3%" valign="bottom"><font style="font-size:10pt"></font></td>
<td width="8%" align="center" valign="bottom"><font style="font-size:10pt"></font><font style="font-size:10pt"><b></b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="5"><font style="font-size:8pt"><b>Votes</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom" colspan="5"><hr size="1" width="100%" color="black" noshade></td> </tr>
<tr>
<td align="center" valign="bottom"> <div align="left"><font style="font-size:8pt"><b>Nominee&#146;s Name</b></font></div> </td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>For</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>Withheld Authority</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="bottom"><font style="font-size:8pt"><b>Broker Non-Votes</b></font></td> </tr>
<tr>
<td align="center" valign="bottom"><hr size="1" width="100%" color="black" noshade></td>
<td align="center" valign="bottom"><font style="font-size:8pt"></font></td>
<td align="center" valign="bottom"><hr size="1" width="100%" color="black" noshade></td>
<td align="center" valign="bottom"><font style="font-size:8pt"></font></td>
<td align="center" valign="bottom"><hr size="1" width="100%" color="black" noshade></td>
<td align="center" valign="bottom"><font style="font-size:8pt"></font></td>
<td align="center" valign="bottom"><hr size="1" width="100%" color="black" noshade></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Charles T. Munger</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,376,102</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,763</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">0</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">J. P. Guerin</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,369,916</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,763</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">0</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">Gerald L. Salzman</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,367,866</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,763</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">0</font></td> </tr>
<tr>
<td valign="bottom"><font style="font-size:10pt">Donald W. Killian, Jr.</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,367,132</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,763</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">0</font></td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom"><font style="font-size:10pt">George C. Good</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">1,376,014</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">8,763</font></td>
<td valign="bottom"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="bottom"><font style="font-size:10pt">0</font></td> </tr> </table> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ernst &#38; Young LLP was ratified as the Company&#146;s independent accountants with 1,377,161
votes in favor, 10,079 votes against, 1,395 abstentions and no broker non-votes.</font></p> <p><font style="font-size:10pt">Item 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<a name="tx168_12"></a>OTHER INFORMATION</font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 2, 2003, Sustain received a letter from counsel acting on behalf of the Ontario, Canada Ministry of the Solicitor General,
Ministry of Public Safety and Security and Ministry of the Attorney General (the &#147;Ministries&#148;) purporting to invoke the dispute resolution process set forth in the Integrated Justice Supplier Agreement, dated as of April 22, 1999, between
Sustain and the Ministries (the &#147;Agreement&#148;), and claiming $20 million of damages. </font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agreement had called for the eventual license by the Ministries of the new
Sustain software product that was being developed by the outside service provider referred to in item 2 of Part I of this quarterly report. The Agreement was formally terminated on June 7, 2002.</font></p> <p><font
style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rather than immediately invoking the dispute resolution procedures set forth in the Agreement, counsel for Sustain and counsel for the Ministries are engaged in informal discussions seeking a
resolution to this matter. At this point, it is too early to determine whether this matter will have a material adverse effect on Sustain and the Company.</font></p> <p align="center"><font style="font-size:10pt">14 of 17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p><font style="font-size:10pt">Item 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<a name="tx168_13"></a>EXHIBITS AND REPORTS ON FORM 8-K</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="top"><font style="font-size:10pt"></font></td>
<td width="3%" valign="top"></td>
<td width="94%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">(a)</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Exhibits:</font></td> </tr>
<tr>
<td valign="top">&nbsp;</td>
<td valign="top"><font style="font-size:10pt">99.1</font></td>
<td valign="top"><font style="font-size:10pt">Certification by Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top">&nbsp;</td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">(b)</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">Reports on Form 8-K:</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">None.</font></td> </tr> </table> <p align="center"><font style="font-size:10pt">SIGNATURE</font></p> <p><font style="font-size:10pt">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 border="0" cellspacing="0" width="100%">
<tr>
<td width="50%" valign="top"><font style="font-size:10pt"></font></td>
<td width="2%" align="right" valign="top"><font style="font-size:10pt"></font></td>
<td width="48%" align="center" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">D<small>AILY</small> J<small>OURNAL</small> C<small>ORPORATION</small></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">(Registrant)</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="right" valign="top"><font style="font-size:10pt">By:</font></td>
<td align="center" valign="top"><font style="font-size:10pt">/s/ G<small>ERALD</small> L. S<small>ALZMAN</small></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"><hr size="1" width="100%" color="black" noshade></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="left" valign="top"><font style="font-size:8pt"><b>Chief Executive Officer</b></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="left" valign="top"><font style="font-size:8pt"><b>President</b></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="left" valign="top"><font style="font-size:8pt"><b>Chief Financial Officer</b></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="left" valign="top"><font style="font-size:8pt"><b>Treasurer</b></font></td> </tr> </table> <p><font style="font-size:10pt">DATE: May 15, 2003</font></p> <p align="center"><font style="font-size:10pt">15 of 17</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  <p align="center"><font style="font-size:10pt"><b>CERTIFICATIONS</b></font></p> <p><font style="font-size:10pt">I, Gerald L. Salzman, certify that:</font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="top"><font style="font-size:10pt"></font></td>
<td width="3%" valign="top"><font style="font-size:10pt"></font></td>
<td width="94%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">1.</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">I have reviewed this quarterly report on Form 10-Q of the Daily Journal Corporation;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">2.</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">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></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">3.</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">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></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">4.</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">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></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">a.</font></td>
<td valign="top"><font style="font-size:10pt">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></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">b.</font></td>
<td valign="top"><font style="font-size:10pt">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></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">c.</font></td>
<td valign="top"><font style="font-size:10pt">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></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">5.</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">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></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">a.</font></td>
<td valign="top"><font style="font-size:10pt">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></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">b.</font></td>
<td valign="top"><font style="font-size:10pt">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></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">6.</font></td>
<td valign="top" colspan="2"><font style="font-size:10pt">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></td> </tr> </table> <p></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="top"><font style="font-size:10pt"></font></td>
<td width="25%" valign="top"><font style="font-size:10pt"></font></td>
<td width="67%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">Date: May 15, 2003</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top" height="22">&nbsp;</td>
<td align="center" valign="top" height="22"> <font style="font-size:10pt">/s/ G<small>ERALD</small> L. S<small>ALZMAN</small></font> </td>
<td valign="top" height="22">&nbsp;</td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="center" valign="top"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td align="left" valign="top"><font style="font-size:8pt"><b>Gerald L. Salzman</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="left" valign="top"><font style="font-size:8pt"><b>Chief Executive Officer</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="left" valign="top"><font style="font-size:8pt"><b>President</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="left" valign="top"><font style="font-size:8pt"><b>Chief Financial Officer</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td>
<td align="left" valign="top"><font style="font-size:8pt"><b>Treasurer</b></font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr> </table> <p align="center"><font style="font-size:10pt">16 of 17</font></p>
</BODY></HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>dex991.htm
<DESCRIPTION>CEO/CFO CERTIFICATION PURSUANT TO SARBANES-OXLEY ACT
<TEXT>
<HTML><HEAD>
<TITLE>CEO/CFO Certification pursuant to Sarbanes-Oxley Act</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
  <p align="center"><font style="font-size:10pt"><b>Exhibit 99.1</b></font></p> <p align="center"><font style="font-size:10pt"><b>CERTIFICATION BY CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER<br>PURSUANT TO 18
U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF<br>THE SARBANES-OXLEY ACT OF 2002 </b></font></p> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Quarterly Report on Form&nbsp;10-Q of Daily Journal
Corporation (the &#147;Company&#148;) for the period ended March 31, 2003 as filed with the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), I, Gerald L. Salzman, President, Chief Executive Officer and Chief Financial
Officer of the Company, certify, pursuant 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: </font></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="top"><font style="font-size:10pt"></font></td>
<td width="3%" valign="top"><font style="font-size:10pt"></font></td>
<td width="94%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">(1)</font></td>
<td valign="top"><font style="font-size:10pt">the Report fully complies with the requirements of Section&nbsp;13(a) or 15(d)&nbsp;of the Securities Exchange Act of 1934; and </font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td>
<td valign="top"><font style="font-size:10pt">(2)</font></td>
<td valign="top"><font style="font-size:10pt">the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. </font></td> </tr> </table> <p></p>
<table border="0" cellspacing="0" width="100%">
<tr>
<td width="25%" align="center" valign="top"><font style="font-size:10pt"></font></td>
<td width="75%" valign="top"><font style="font-size:10pt"></font></td> </tr>
<tr>
<td align="center" valign="top"><font style="font-size:10pt">/s/ G<small>ERALD</small> L. S<small>ALZMAN</small></font></td>
<td valign="top">&nbsp;</td> </tr>
<tr>
<td align="center" valign="top"> <hr size="1" width="100%" color="black" noshade> </td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td align="left" valign="top"><font style="font-size:8pt"><b>Gerald L. Salzman</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="left" valign="top"><font style="font-size:8pt"><b>President, Chief Executive Officer</b></font></td>
<td align="center" valign="top"><font style="font-size:8pt"><b>&nbsp;</b></font></td> </tr>
<tr>
<td align="left" valign="top"><font style="font-size:8pt"><b>and Chief Financial Officer</b></font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr>
<tr>
<td align="left" valign="top">&nbsp;</td>
<td valign="top">&nbsp;</td> </tr>
<tr>
<td align="left" valign="top"><font style="font-size:10pt">May 15, 2003</font></td>
<td valign="top"><font style="font-size:10pt">&nbsp;</font></td> </tr> </table> <p><font style="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, and is not being
filed as part of the Report or as a separate disclosure document.</font></p> <p align="center"><font style="font-size:10pt">17 of 17</font></p>
</BODY></HTML>

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