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<SEC-DOCUMENT>0001193125-03-037392.txt : 20030814
<SEC-HEADER>0001193125-03-037392.hdr.sgml : 20030814
<ACCEPTANCE-DATETIME>20030814120222
ACCESSION NUMBER:		0001193125-03-037392
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20030630
FILED AS OF DATE:		20030814

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:		03844718

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

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

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DAILY JOURNAL CO
		DATE OF NAME CHANGE:	19870427
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d10q.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<HTML><HEAD>
<TITLE>Form 10-Q</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <hr size="4" width="100%" noshade color=black> <p align="center"><font size="5" face="Times New Roman"><b>SECURITIES AND EXCHANGE COMMISSION<br> </b></font> <font size="3"><b>Washington, D.C. 20549<br> </b></font>
<font size="5"><b>FORM 10-Q</b></font></p> <p> <font size="2" face="Times New Roman"><b>(Mark One)</b></font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="5%" valign="top"> <p> <font size="3" face="Wingdings">x</font></p> </td>
<td width="95%" valign="top"> <p> <font size="3" face="Times New Roman"><b>QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></p> </td> </tr>
<tr>
<td valign="top"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="2" face="Times New Roman"><b>For the quarterly period ended June 30, 2003</b></font></p> </td> </tr>
<tr>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align="center"> <font size="2" face="Times New Roman"><b>OR</b></font></p> </td> </tr>
<tr>
<td valign="top"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p> <font size="3" face="Wingdings">o</font></p> </td>
<td valign="top"> <p> <font size="3" face="Times New Roman"><b>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></p> </td> </tr>
<tr>
<td valign="top"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="2" face="Times New Roman"><b>For the transition period from _______________ to _____________________</b></font></p> </td> </tr> </table> <p align="center"> <font size="2" face="Times New Roman"><b>Commission File
Number 0-14665</b></font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td colspan="3" valign="bottom"> <p align="center"> <font size="6" face="Times New Roman"><b>DAILY JOURNAL CORPORATION</b></font></p> </td> </tr>
<tr>
<td colspan="3" valign="bottom"> <hr size="1" width="80%" noshade color=black> </td> </tr>
<tr>
<td colspan="3" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>(Exact name of registrant as specified in its charter)</b></font></p> </td> </tr>
<tr>
<td colspan="3" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="45%" valign="bottom"> <p align="center"> <font size="2" face="Times New Roman"><b>South Carolina</b></font></p> </td>
<td width="10%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="43%" valign="bottom"> <p align="center"> <font size="2" face="Times New Roman"><b>95-4133299</b></font></p> </td> </tr>
<tr>
<td valign="bottom"> <hr size="1" width="90%" noshade color=black> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="75%" noshade color=black> </td> </tr>
<tr>
<td valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>(State or other jurisdiction of incorporation or organization)</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>(I.R.S. Employer Identification No.)</b></font></p> </td> </tr>
<tr>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p align="center"><font size="2" face="Times New Roman"><b>915 East First Street<br> Los Angeles, California</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"> <font size="2" face="Times New Roman"><b>90012-4050</b></font></p> </td> </tr>
<tr>
<td valign="bottom"> <hr size="1" width="80%" noshade color=black> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="35%" noshade color=black> </td> </tr>
<tr>
<td valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>(Address of principal executive office)</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>(Zip code)</b></font></p> </td> </tr>
<tr>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p align="center"> <font size="2" face="Times New Roman"><b>Registrant&#146;s telephone number, including area code:</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"> <font size="2" face="Times New Roman"><b>(213) 229-5300</b></font></p> </td> </tr> </table> <p> <font size="2" face="Times New Roman">Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="13%">
<tr>
<td width="7%" valign="top"> <p> <font size="2" face="Times New Roman">Yes:&nbsp;&nbsp;</font> <font size="2" face="Wingdings">x</font></p> </td>
<td width="6%" valign="top"> <p> <font size="2" face="Times New Roman">No:&nbsp;&nbsp;</font> <font size="2" face="Wingdings">o</font></p> </td> </tr> </table> <p> <font size="2" face="Times New Roman">Indicate by check mark whether the registrant
is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act.)</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="13%">
<tr>
<td width="7%" valign="top"> <p> <font size="2" face="Times New Roman">Yes:&nbsp;&nbsp;</font> <font size="2" face="Wingdings">o</font></p> </td>
<td width="6%" valign="top" nowrap> <p> <font size="2" face="Times New Roman">No:&nbsp;&nbsp;</font> <font size="2" face="Wingdings">x</font></p> </td> </tr> </table> <p> <font size="2" face="Times New Roman">Indicate the number of shares
outstanding of each of the issuer&#146;s classes of common stock as of the latest practicable date.</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="49%" valign="top"> <p align="center"> <font size="1" face="Times New Roman"><b>Class</b></font></p> </td>
<td width="1%" valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td width="49%" valign="top"> <p align="center"> <font size="1" face="Times New Roman"><b>Outstanding at July 31, 2003</b></font></p> </td> </tr>
<tr>
<td valign="top"> <hr size="1" width="70%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <hr size="1" width="65%" noshade color=black> </td> </tr>
<tr>
<td valign="top"> <p align="center"><font size="2" face="Times New Roman">Common Stock, par value $.01 per share</font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align="center"> <font size="2" face="Times New Roman">1,516,803 shares</font></p> </td> </tr> </table> <hr size="4" width="100%" noshade color=black>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

<a name="toc"> </a> <p align="center"> <font size="2" face="Times New Roman">DAILY JOURNAL CORPORATION</font></p> <p align="center"> <font size="2" face="Times New Roman">INDEX</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="93%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="6%" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>Page Nos.</b></font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">PART I&nbsp;&nbsp;
<a href="#tx70727_1">Financial Information</a></font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Item 1.&nbsp;&nbsp;
<a href="#tx70727_2">Financial statements</a></font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:5em; text-indent:-1em"> <font size="2" face="Times New Roman">
<a href="#tx70727_3">Consolidated Balance Sheets -<br> June 30, 2003 and September 30, 2002</a></font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">3</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:5em; text-indent:-1em"> <font size="2" face="Times New Roman">
<a href="#tx70727_4">Consolidated Statements of Income -<br> Three months ended June 30, 2003 and 2002</a></font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">4</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:5em; text-indent:-1em"> <font size="2" face="Times New Roman">
<a href="#tx70727_5">Consolidated Statements of Income -<br> Nine months ended June 30, 2003 and 2002</a></font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">5</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:5em; text-indent:-1em"> <font size="2" face="Times New Roman">
<a href="#tx70727_6">Consolidated Statements of Cash Flows -<br> Nine months ended June 30, 2003 and 2002</a></font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">6</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:5em; text-indent:-1em"> <font size="2" face="Times New Roman">
<a href="#tx70727_7">Notes to Consolidated Financial Statements</a></font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">7</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:5em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Item 2.&nbsp;&nbsp;
<a href="#tx70727_8">Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</a></font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">10</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Item 3.&nbsp;&nbsp;
<a href="#tx70727_9">Qualitative and Quantitative Disclosures about Market Risk</a></font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">13</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Item 4.&nbsp;&nbsp;
<a href="#tx70727_10">Controls and Procedures</a></font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">13</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">Part II&nbsp;&nbsp;
<a href="#tx70727_11">Other Information</a></font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Item 6.&nbsp;&nbsp;
<a href="#tx70727_12">Exhibits and Reports on Form 8-K</a></font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">14</font></p> </td> </tr> </table> <p align="center"> <font size="2" face="Times New Roman">2 of 16</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align="center">
<a name="tx70727_1"></a> <font size="2" face="Times New Roman">PART I<br>
<a name="tx70727_2"></a>Item 1. FINANCIAL STATEMENTS<br> DAILY JOURNAL CORPORATION<br>
<a name="tx70727_3"></a>CONSOLIDATED BALANCE SHEETS<br> (Unaudited)</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>June 30<br> 2003</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>September 30<br> 2002</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="2%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="10%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="10%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p> <font size="2" face="Times New Roman"><b>ASSETS</b></font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p><font size="2" face="Times New Roman">Current assets</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Cash and cash equivalents</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">774,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">513,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">U.S. Treasury Bills, at cost plus discount earned</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">5,286,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">4,286,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Accounts receivable, less allowance for doubtful account of $500,000 at June 30, 2003 and September 30, 2002</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">6,145,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">5,953,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Inventories</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">10,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">18,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Prepaid expenses and other assets</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">216,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">141,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Deferred income taxes</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">969,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">901,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:5em; text-indent:-1em"> <font size="2" face="Times New Roman">Total current assets</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">13,400,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">11,812,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:5em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p> <font size="2" face="Times New Roman">Property, plant and equipment, at cost</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Land, buildings and improvements</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">10,177,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">8,538,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Furniture, office equipment and computer software</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">6,113,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">6,118,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Machinery and equipment</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,468,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,351,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">17,758,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">16,007,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Less accumulated depreciation</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(7,945,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(7,024,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">9,813,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">8,983,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">Capitalized software, net</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">181,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">634,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p> <font size="2" face="Times New Roman">Deferred income taxes</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">26,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">4,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">23,420,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">21,433,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p><font size="2" face="Times New Roman"><b>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</b></font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">Current liabilities</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Accounts payable</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">5,531,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">5,086,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Accrued liabilities</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,565,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,371,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Notes payable &#150; current portion</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">87,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">92,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Deferred subscription revenue and other revenues</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">7,113,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">7,225,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:5em; text-indent:-1em"> <font size="2" face="Times New Roman">Total current liabilities</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">15,296,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">14,774,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:5em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p><font size="2" face="Times New Roman">Notes payable &#150; long-term</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,735,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,791,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">Commitments and contingencies (Note 7)</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p> <font size="2" face="Times New Roman">Minority interest (7%)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p><font size="2" face="Times New Roman">Shareholders&#146; equity</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Preferred stock, $.01 par value, 5,000,000 shares authorized and no shares issued</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Common stock, $.01 par value, 5,000,000 shares authorized; 1,518,803 and 1,525,618 shares, respectively, outstanding</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">15,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">15,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Other paid-in capital</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,931,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,939,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Retained earnings</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">5,313,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">3,784,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Less 46,271 treasury shares, at cost</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(870,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(870,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:5em; text-indent:-1em"> <font size="2" face="Times New Roman">Total shareholders&#146; equity</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">6,389,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">4,868,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:5em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">23,420,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">21,433,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align="center"> <font size="2" face="Times New Roman">See accompanying notes to consolidated financial statements.</font></p> <p align="center">
<font size="2" face="Times New Roman">3 of 16</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align="center"> <font size="2" face="Times New Roman">DAILY JOURNAL CORPORATION<br>
<a name="tx70727_4"></a>CONSOLIDATED STATEMENTS OF INCOME<br> (Unaudited)</font></p>
<table align="center" border=0 cellspacing="0" cellpadding="0" width="100%">
<tr>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="5" valign="bottom"> <p align="center"><font size="1" face="Times New Roman"><b>Three months ended June 30</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="5" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>2003</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>2002</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="2%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="10%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="10%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p><font size="2" face="Times New Roman">Revenues</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Advertising</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">4,457,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">4,717,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Circulation</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">2,612,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">2,807,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Information systems and services</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">985,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">720,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Advertising service fees and other</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">834,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">776,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">8,888,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">9,020,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p> <font size="2" face="Times New Roman">Costs and expenses</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Salaries and employee benefits</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">4,272,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">4,186,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Commissions and other outside services</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,480,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,478,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Newsprint and printing expenses</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">459,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">484,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Postage and delivery expenses</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">485,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">492,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Depreciation and amortization</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">557,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">679,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Other general and administrative expenses</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">894,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,027,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">8,147,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">8,346,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p><font size="2" face="Times New Roman">Income from operations</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">741,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">674,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">Other income and (expense)</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Interest income</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">36,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">11,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Interest expense</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(37,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(39,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p> <font size="2" face="Times New Roman">Income before taxes</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">740,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">646,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p><font size="2" face="Times New Roman">Benefit from income taxes</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p> <font size="2" face="Times New Roman">Income before minority interest in net loss of subsidiary</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">740,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">646,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p><font size="2" face="Times New Roman">Minority interest in net loss of subsidiary (7%)</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p> <font size="2" face="Times New Roman">Net income</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">740,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">646,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p> <font size="2" face="Times New Roman">Weighted average number of common shares outstanding - basic and diluted</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,473,402</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,489,597</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p><font size="2" face="Times New Roman">Basic and diluted net income per share</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">.50</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">.43</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align="center"> <font size="2" face="Times New Roman">See accompanying notes to consolidated financial statements.</font></p> <p align="center">
<font size="2" face="Times New Roman">4 of 16</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align="center"> <font size="2" face="Times New Roman">DAILY JOURNAL CORPORATION<br>
<a name="tx70727_5"></a>CONSOLIDATED STATEMENTS OF INCOME<br> (Unaudited)</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td valign="bottom" width="73%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="5%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="2%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="5" valign="bottom"> <p align="center"><font size="1" face="Times New Roman"><b>Nine months ended June 30</b></font></p> </td>
<td valign="bottom" width="2%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="5" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="2%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>2003</b></font></p> </td>
<td valign="bottom" width="5%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>2002</b></font></p> </td>
<td valign="bottom" width="2%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="5%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="2%"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p><font size="2" face="Times New Roman">Revenues</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Advertising</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">12,713,000</font></p> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">13,147,000</font></p> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Circulation</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">7,897,000</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">8,348,000</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Information systems and services</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">2,763,000</font></p> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">1,756,000</font></p> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Advertising service fees and other</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">2,258,000</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">2,357,000</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">25,631,000</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">25,608,000</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p> <font size="2" face="Times New Roman">Costs and expenses</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Salaries and employee benefits</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">12,483,000</font></p> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">12,878,000</font></p> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Commissions and other outside services</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">4,279,000</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">4,070,000</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Newsprint and printing expenses</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">1,252,000</font></p> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">1,598,000</font></p> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Postage and delivery expenses</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">1,510,000</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">1,484,000</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Depreciation and amortization</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">1,654,000</font></p> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">1,857,000</font></p> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Other general and administrative expenses</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">2,744,000</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">3,010,000</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">23,922,000</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">24,897,000</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p><font size="2" face="Times New Roman">Income from operations</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">1,709,000</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">711,000</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p> <font size="2" face="Times New Roman">Other income and (expense)</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Interest income</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">85,000</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">43,000</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Interest expense</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">(113,000</font></p> </td>
<td valign="bottom" width="5%"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">(118,000</font></p> </td>
<td valign="bottom" width="2%"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p> <font size="2" face="Times New Roman">Income (loss) before taxes</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">1,681,000</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">636,000</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p><font size="2" face="Times New Roman">Benefit from income taxes</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">180,000</font></p> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p> <font size="2" face="Times New Roman">Income before minority interest in net loss of subsidiary</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">1,681,000</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">816,000</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p><font size="2" face="Times New Roman">Minority interest in net loss of subsidiary (7%)</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%"> <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p> <font size="2" face="Times New Roman">Net income</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">1,681,000</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">816,000</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p> <font size="2" face="Times New Roman">Weighted average number of common shares outstanding - basic and diluted</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">1,476,630</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">1,490,025</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" width="73%" > <p><font size="2" face="Times New Roman">Basic and diluted net income per share</font></p> </td>
<td valign="bottom" width="0%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">1.14</font></p> </td>
<td valign="bottom" width="5%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" width="9%" > <p align=right> <font size="2" face="Times New Roman">.55</font></p> </td>
<td valign="bottom" width="2%" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" width="73%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="0%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="5%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" width="1%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="9%"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" width="2%"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align="center"> <font size="2" face="Times New Roman">See accompanying notes to consolidated financial statements.</font></p> <p
align="center"> <font size="2" face="Times New Roman">5 of 16</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align="center"> <font size="2" face="Times New Roman">DAILY JOURNAL CORPORATION<br>
<a name="tx70727_6"></a>CONSOLIDATED STATEMENTS OF CASH FLOWS<br> (Unaudited)</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="5" valign="bottom"> <p align="center"><font size="1" face="Times New Roman"><b>Nine months ended June 30</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="5" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>2003</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>2002</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="72%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="10%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="10%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Cash flows from operating activities</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Net income</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,681,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">816,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Adjustments to reconcile net income to net cash provided by operations</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:5em; text-indent:-1em"><font size="2" face="Times New Roman">Depreciation and amortization</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,654,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,857,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:5em; text-indent:-1em"> <font size="2" face="Times New Roman">Deferred income taxes</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(90,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(5,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:5em; text-indent:-1em"> <font size="2" face="Times New Roman">Discount earned on U.S. Treasury Bills</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(10,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(8,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:5em; text-indent:-1em"><font size="2" face="Times New Roman">Changes in assets and liabilities</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:7em; text-indent:-1em"> <font size="2" face="Times New Roman">(Increase) decrease in current assets</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:9em; text-indent:-1em"> <font size="2" face="Times New Roman">Accounts receivable, net</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(192,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">311,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:9em; text-indent:-1em"><font size="2" face="Times New Roman">Inventories</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">8,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">7,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:9em; text-indent:-1em"> <font size="2" face="Times New Roman">Prepaid expenses and other assets</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(75,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">31,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:7em; text-indent:-1em"> <font size="2" face="Times New Roman">Increase (decrease) in current liabilities</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:9em; text-indent:-1em"><font size="2" face="Times New Roman">Accounts payable</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">445,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(250,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:9em; text-indent:-1em"> <font size="2" face="Times New Roman">Accrued liabilities</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">194,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(271,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:9em; text-indent:-1em"> <font size="2" face="Times New Roman">Deferred subscription and other revenues</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(112,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(307,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:9em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:11em; text-indent:-1em"> <font size="2" face="Times New Roman">Cash provided by operating activities</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">3,503,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">2,181,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:11em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Cash flows from investing activities</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Net purchases in U.S. Treasury Bills</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(990,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(3,471,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Purchases of property, plant and equipment, net</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(2,031,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(1,080,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:11em; text-indent:-1em"> <font size="2" face="Times New Roman">Net cash used for investing activities</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(3,021,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(4,551,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:11em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Cash flows from financing activities</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Payment of loan principle</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(61,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(57,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Purchase of common stock</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(160,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(72,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:11em; text-indent:-1em"> <font size="2" face="Times New Roman">Cash used for financing activities</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(221,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(129,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:11em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Increase (decrease) in cash and cash equivalents</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">261,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(2,499,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Cash and cash equivalents</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Beginning of period</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">513,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">2,901,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">End of period</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">774,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">402,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Interest paid during period</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">113,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">118,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <hr size="3" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p align="center"> <font size="2" face="Times New Roman">See accompanying notes to consolidated financial
statements.&nbsp;&nbsp;&nbsp;&nbsp;</font></p> <p align="center"> <font size="2" face="Times New Roman">6 of 16</font></p>

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 <p align="center"> <font size="2" face="Times New Roman">DAILY JOURNAL CORPORATION<br>
<a name="tx70727_7"></a>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br> (Unaudited)</font></p> <p><font size="2" face="Times New Roman">Note 1 - The Corporation and Operations</font></p> <p> <font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;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 June 30, 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.&#160; These courts and agencies use the Sustain family of products to help manage cases and information electronically
and to interface with other critical justice partners.&#160; Sustain&#146;s products are designed to help users manage electronic case files from inception to disposition, including all aspects of calendaring and accounting, report and notice
generation, the implementation of standards and business rules and other corollary functions. Essentially all of the Company&#146;s operations are based in California, Arizona, Colorado, Nevada and Virginia.</font></p> <p> <font size="2"
face="Times New Roman">Note 2 - Basis of Presentation</font></p> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;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 June 30, 2003, the results of operations for the three- and nine-month periods ended June 30, 2003 and 2002 and its cash flows for the nine months ended June 30, 2003 and
2002. The results of operations for the three- and nine-months ended June 30, 2003 and 2002 are not necessarily indicative of the results to be expected for the full year.</font></p> <p> <font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission.&#160; Certain information and
footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the
disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company&#146;s Annual Report on Form 10-K for the
fiscal year ended September 30, 2002.</font></p> <p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Certain reclassifications of previously reported amounts have been made to conform to the current year&#146;s presentation.</font></p>
<p> <font size="2" face="Times New Roman">Note 3 - Basic and Diluted Income Per Share</font></p> <p> <font size="2" face="Times New Roman">&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 size="2" face="Times New Roman">7 of 16</font></p>

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 <p> <font size="2" face="Times New Roman">Note 4 - Operating Segments</font></p> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Summarized financial information concerning the Company&#146;s
reportable segments is shown in the following table:</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="5" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>Reportable Segments</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" rowspan="3" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>Total Results<br> for both Segments</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="5" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="bottom"> <p align="center"><font size="1" face="Times New Roman"><b>Traditional Business</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="bottom"> <p align="center"> <font size="1" face="Times New Roman"><b>Sustain</b></font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="59%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="2%" valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="10%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="10%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="2%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td width="1%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="10%" valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td width="1%" valign="bottom"> <p align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman"><u>Nine months ended June 30, 2003</u></font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Revenues</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">22,868,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,763,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">25,631,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Profit (loss) before taxes, net of minority interest</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">3,521,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(1,840,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,681,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Total assets</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">20,247,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">3,173,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">23,420,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Capital expenditures</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,992,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">39,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">2,031,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Depreciation and amortization</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,024,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">630,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,654,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Income tax benefits (expenses)</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(1,400,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,400,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Total after-tax income (loss)</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,121,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(440,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,681,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#FFFFFF">
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman"><u>Nine months ended June 30, 2002</u></font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Revenues</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">23,852,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,756,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">25,608,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Profit (loss) before taxes, net of minority interest</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">3,598,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(2,962,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">636,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Total assets</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">18,390,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,636,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">21,026,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Capital expenditures</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">984,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">96,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,080,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Depreciation and amortization</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,241,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">616,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">1,857,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Income tax benefits (expenses)</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(1,420,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,600,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">180,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Total after-tax income (loss)</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,178,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(1,362,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">816,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#FFFFFF">
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman"><u>Three months ended June 30, 2003</u></font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Revenues</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">7,903,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">985,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">8,888,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Profit (loss) before taxes, net of minority interest</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,367,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(627,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">740,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Total assets</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">20,247,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">3,173,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">23,420,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Capital expenditures</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,052,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">4,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,056,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Depreciation and amortization</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">346,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">211,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">557,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Income tax benefits (expenses)</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(500,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">500,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Total after-tax income (loss)</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">867,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(127,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">740,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#FFFFFF">
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td>
<td valign="bottom" >&nbsp;</td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman"><u>Three months ended June 30, 2002</u></font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Revenues</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">8,300,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">720,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">$</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">9,020,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Profit (loss) before taxes, net of minority interest</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">1,580,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(934,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">646,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Total assets</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">18,390,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">2,636,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">21,026,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Capital expenditures</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">324,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">43,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">367,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Depreciation and amortization</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">469,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">210,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">679,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr bgcolor="#cceeff">
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Income tax benefits (expenses)</font></p> </td>
<td valign="bottom" > <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">(620,000</font></p> </td>
<td valign="bottom" > <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">620,000</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom" > <p align=right> <font size="2" face="Times New Roman">&#151;&nbsp;&nbsp;</font></p> </td>
<td valign="bottom" > <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Total after-tax income (loss)</font></p> </td>
<td valign="bottom"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">960,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">(314,000</font></p> </td>
<td valign="bottom"> <p> <font size="2" face="Times New Roman">)</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align=right> <font size="2" face="Times New Roman">646,000</font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p> <font size="2" face="Times New Roman">Note 5 - Capitalized Software, net </font></p> <p> <font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s expenditures in support of the Sustain software are highly significant.&#160; The capitalized Sustain software costs consist of purchased software upon the acquisition of Sustain of
$3,023,000, less accumulated amortization of $2,842,000 and $2,389,000 as of June 30, 2003 and</font></p> <p align="center"> <font size="2" face="Times New Roman">8 of 16</font></p>

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 <p> <font size="2" face="Times New Roman">September 30, 2002, respectively. The remaining capitalized software, net, represents software costs accounted for pursuant to Statement of Financial Accounting Standards No.
86, <i>Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed.</i>&#160;&#160; This software is being amortized over five years.&#160; The amortization expense for capitalized software was $453,000 for both
comparative periods ended June 30, 2003 and 2002.&#160; Costs related to the research and development of new Sustain software products are expensed as incurred until technological feasibility of the product has been established, at which time such
costs are capitalized, subject to expected recoverability. </font></p> <p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;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 ($865,000 and $1,188,000 for the nine months ended June 30, 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 size="2" face="Times New Roman">Note 6 - Income Tax
Accounting (See Note 5)</font></p> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;At June 30, 2003, the Company has a deferred tax asset of $3,543,000 primarily related to fiscal 2001&#146;s net operating loss and research and
development credit carry-forwards which expire in years 2015 through 2021.&#160; Due to the uncertainty surrounding the timing of realizing the benefits of its tax attributes in future tax returns, the Company has provided a valuation allowance
against the asset of $2,548,000, resulting in a net deferred tax asset of $995,000.&#160; The reduction in the valuation allowance for the current fiscal year was $1,068,000 primarily due to utilization of net operating loss carry-forwards.&#160; In
future years, there may be substantial additional tax benefits, for financial statement purposes, from past Sustain-segment losses.</font></p> <p> <font size="2" face="Times New Roman">Note 7&#160; - Debt and Other Commitments</font></p> <p> <font
size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2003, the Company has a real estate loan of $1,822,000, which bears interest at approximately 8% and is repayable in equal monthly installments of about $19,000 through
2016.&#160; The real estate loan is secured by the Company&#146;s existing office and printing facilities in Los Angeles.</font></p> <p> <font size="2" face="Times New Roman">&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.&#160; The Company is responsible for a portion of maintenance, insurance and property tax expenses relating to certain leased property. </font></p>
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;In conjunction with the acquisition of Sustain in January 1999, Sustain entered into five-year employment agreements with each of the three Sustain principals.&#160;&#160; 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 size="2" face="Times New Roman">9 of 16</font></p>

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 <p>
<a name="tx70727_8"></a> <font size="2" face="Times New Roman">Item 2. MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</font></p> <p> <font size="2" face="Times New Roman">Results of Operations</font></p>
<p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Revenues were $25,631,000 and $25,608,000 for the nine months ended June 30, 2003 and 2002, respectively.&#160; This increase of $23,000 was primarily attributable to the increased
consulting fees of Sustain, partially offset by the declines in advertising and subscription revenues.&#160; (Revenues were $8,888,000 and $9,020,000 for the three months ended June 30, 2003 and 2002, respectively.)</font></p> <p> <font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Display advertising and conference revenues decreased by $98,000, and classified advertising revenues decreased by $394,000. Public notice advertising revenues increased by $58,000. 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.&#160; Public notice advertising revenues and related
advertising and other service fees constituted about 29% of the Company&#146;s total revenues. Circulation revenues decreased an aggregate of $451,000 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 71% of the Company&#146;s total circulation revenues, and their circulation levels decreased slightly. The court rule and judicial profile
services generated about 17% of the total circulation revenues, with the other newspapers and services accounting for the balance. Information system and service revenues increased by $1,007,000 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 7% of the Company&#146;s total revenues for the nine months ended June 30,
2003 and 2002, respectively.&#160; </font></p> <p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Costs and expenses decreased by $975,000 (4%), to $23,922,000 from $24,897,000. Total personnel costs were $12,483,000, representing a
decrease of $395,000 (3%), primarily because of the closing of several small publications and the consolidation of several activities.&#160; Commissions and other outside services increased by $209,000 (5%) primarily because of the additional
implementation consulting expenses for Sustain. Newsprint and printing expenses decreased by $346,000 (22%) primarily because of the reduction in newsprint usage and the discontinuance of several publications.&#160; Depreciation and amortization
expenses decreased by $203,000 (11%) primarily due to more fully depreciated assets. Other general and administrative expenses decreased by $266,000 (9%) mainly resulting from reduced general operating expenses. (Costs and expenses were $8,147,000
and $8,346,000 for the three months ended June 30, 2003 and 2002, respectively.)</font></p> <p> <font size="2" face="Times New Roman">&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 $865,000 and $1,188,000 for the nine months
ended June 30, 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 size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s traditional business segment pretax profit decreased
by $77,000 (2%) to $3,521,000 from $3,598,000, primarily due to the declines in advertising and subscription revenues, partially offset by reduced expenses resulting from the decrease in newsprint and printing expenses and personnel costs because of
the closing of several small publications and the consolidation of several activities. Sustain&#146;s</font></p> <p align="center"> <font size="2" face="Times New Roman">10 of 16</font></p>

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 <p> <font size="2" face="Times New Roman">business segment pretax loss decreased by $1,122,000 (38%) to $1,840,000 from $2,962,000, primarily due to increased consulting revenues. The consolidated net income was
$1,681,000 for the nine months ended June 30, 2003 compared to $816,000 in the comparable prior year period.&#160; (Consolidated net income was $740,000 for the three months ended June 30, 2003 compared to $646,000 in the comparable prior year
period.)&#160; Tax provisions were not recorded for the nine months ended June 30, 2003 because the Company was able to utilize net operating loss carry-forwards to offset taxes which otherwise would have been payable.&#160; (The Company recorded
income tax benefits of $180,000 in the prior comparative period ended June 30, 2002 primarily because of the tax law change for the carry-back of net operating losses.)&#160; Net income per share increased to $1.14 from $.55. </font></p> <p><font
size="2" face="Times New Roman">Liquidity and Capital Resources</font></p> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;During the nine months ended June 30, 2003, the Company&#146;s cash and cash equivalents and U.S. Treasury
Bill positions increased by $1,261,000.&#160; Cash and cash equivalents were used for the net purchase of capital assets of $2,031,000, including $1,620,000 for the new building now under construction in Los Angeles. The cash provided by operating
activities of $3,503,000 included a net decrease in prepayments for subscriptions and others of $112,000, primarily related to the discontinuance of several small publications.&#160; Proceeds from the sale of subscriptions from newspapers, court
rule books and other publications and for software maintenance and other services are recorded as deferred revenue and are included in earned revenue only when the services are rendered.&#160; Cash flows from operating activities increased by
$1,322,000 for the nine months ended June 30, 2003 as compared to the prior comparable period primarily due to increased net income. As of June 30, 2003 the Company had working capital of $5,217,000 before deducting the liability for deferred
subscription revenues and other revenues of $7,113,000 which will be earned within one year. </font></p> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;During fiscal 2003, and very likely much longer, the Company expects its total
expenditures in support of the development of the Sustain software to continue to be very significant.&#160; In addition, there has never been a resolution of the issues between Sustain and the outside software development service provider which was
terminated in April 2001. The terminated outside service provider filed for bankruptcy in December 2001 and stated in its filings with the U.S. Bankruptcy Court that it was considering bringing a collection action against Sustain.&#160; If it ever
does, Sustain will assert counter-claims that completely offset the terminated outside provider&#146;s claims. Sustain will vigorously defend any litigation or action brought by the terminated outside service provider, although no assurances can be
made as to the ultimate outcome of the dispute.&#160; It is the opinion of management that adequate provision has been made for any amounts that may become due as a result of the dispute. Nonetheless, the pendency of these issues could have an
impact on Sustain&#146;s ability to attract new customers or work with its existing customers. </font></p> <p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;As discussed in Item 5 of Part II of the Company&#146;s quarterly report on
Form 10-Q filed on May 15, 2003, Sustain received a letter on April 2, 2003 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;).&#160; The Ministries had entered into a contract with Sustain, dated as of April 22, 1999 (the &#147;Contract&#148;), pursuant to which the Ministries sought to license the software product that was to be developed by the
outside service provider referred to above.&#160; The Contract was formally terminated on June 7, 2002.&#160; The letter from counsel purported to invoke the dispute resolution process set forth in the Contract and claimed damages in the amount of
$20 million.&#160; Counsel for Sustain and counsel for the Ministries engaged in preliminary discussions with respect to this matter, and the parties so far have not utilized the dispute resolution process set forth in the Contract.&#160; Counsel
for Sustain last communicated with counsel for the Ministries by a letter sent on April 15, 2003.&#160; At this point,</font></p> <p align="center"> <font size="2" face="Times New Roman">11 of 16</font></p>

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 <p> <font size="2" face="Times New Roman">management is unable to determine whether this matter will have a material adverse effect on Sustain and the Company.</font></p> <p> <font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;The Company has a real estate loan of $1,822,000 secured by its existing Los Angeles facilities. The Company is constructing a new building and parking facilities in Los Angeles estimated to cost
approximately $2.5 million, and a bank has expressed interest in lending the Company up to an additional $2 million when the new building is completed.</font></p> <p> <font size="2" face="Times New Roman">&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.&#160; </font></p> <p> <font size="2"
face="Times New Roman">Critical Accounting Policies</font></p> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s financial statements and accompanying notes are prepared in accordance with generally accepted
accounting principles.&#160; Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates and assumptions are affected by
management&#146;s application of accounting policies. Management believes that both accounting for capitalized software costs and income tax accounting are critical accounting policies.</font></p> <p><font size="2"
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;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.&#160; 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) completed, (b) traced to the product specifications and (c) reviewed for high-risk development issues.&#160; For a period of time prior to the second
quarter of fiscal 2001, the Company believed that technological feasibility had been established for Sustain software being developed by the outside service provider referred to above.&nbsp; 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.&nbsp; Those events had no effect on the financial information presented in this quarterly report. </font></p> <p> <font
size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Statement of Financial Accounting Standards No. 109, <i>Accounting for Income Taxes</i>, establishes financial accounting and reporting standards for the effect of income taxes.&#160; The
objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and the deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the
financial statements or tax returns.&#160; Judgment is required in assessing the future tax consequences of events that have been recognized in the Company&#146;s financial statements or tax returns.&#160; Fluctuations in the actual outcome of these
future tax consequences could materially impact the Company&#146;s financial position or its results of operations.&#160; In future years, there may be substantial additional tax benefits, for financial statement purposes, from past Sustain-segment
losses.</font></p> <p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;The above discussion and analysis for the nine months ended June 30, 2003 and 2002 should be read in conjunction with the unaudited consolidated financial statements
and the notes thereto included in this report.&#160; (See Note 7 for debt and other commitments.)</font></p> <p align="center"> <font size="2" face="Times New Roman">12 of 16</font></p>

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 <p> <font size="2" face="Times New Roman">Disclosure Regarding Forward-Looking Statements</font></p> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;This Quarterly Report on Form 10-Q includes
&#147;forward-looking statements&#148; within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this document, including but not
limited to those in Items 1 and 2, are &#147;forward-looking&#148; statements that involve risks and uncertainties that may cause actual future events or results to differ materially from those described in the forward-looking statements.&#160;
Words such as &#147;expects,&#148; &#147;intends,&#148; &#147;anticipates,&#148; &#147;should,&#148; &#147;believes,&#148; &#147;will,&#148; &#147;plans,&#148; &#147;estimates,&#148; &#147;may,&#148; variations of such words and similar expressions
are intended to identify such forward-looking statements.&#160; We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise.&#160; There are many factors
that could cause actual results to differ materially from those contained in the forward-looking statements.&#160; These factors include, among others: risks associated with the functionality and resources required for new and existing case
management software projects; the success or failure of Sustain&#146;s internal software development efforts; the ultimate resolution, if any, of the disputes with the Ontario, Canada Ministries and Sustain&#146;s terminated outside service
provider; material changes in the costs of materials; a potential decline in subscriber revenue; an inability to continue borrowing on current terms; possible changes in tax laws; collectibility of accounts receivable; potential increases in
employee and consultant costs; attraction, training and retention of employees; changes in accounting guidance; and competitive factors in both the case management software business and the publishing business.&#160; In addition, such statements
could be affected by general industry and market conditions and growth rates, general economic conditions (particularly in California) and other factors. Although the Company believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from those in the forward-looking statements are disclosed in this
Form 10-Q, including without limitation in conjunction with the forward-looking statements themselves. Additional information concerning factors that could cause actual results 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>
<a name="tx70727_9"></a><font size="2" face="Times New Roman">Item 3.&#160; QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK</font></p> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;The Company does not use derivative
financial instruments.&#160; The Company does maintain a portfolio of cash equivalents maturing in three months or less as of the date of purchase and of U.S. Treasury Bills maturing within one year.&#160; Given the short-term nature of the
investments and borrowings, and the fact that the Company had no outstanding borrowing except for the real estate loan which bears a fixed interest rate, the Company was not subject to significant interest rate risk.&#160; The real estate loan of
$1,822,000 bears interest at approximately 8% and is repayable in equal monthly installments of about $19,000 through 2016.&#160; The real estate loan is secured by the Company&#146;s existing facilities in Los Angeles.</font></p> <p>
<a name="tx70727_10"></a> <font size="2" face="Times New Roman">Item 4.&#160; CONTROLS AND PROCEDURES</font></p> <p> <font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;An evaluation was performed under the supervision and with the
participation of the Company&#146;s management, including Gerald L. Salzman, its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company&#146;s disclosure controls and procedures as of
June 30, 2003.&#160; Based on that evaluation, Mr. Salzman concluded that the Company&#146;s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the Company in</font></p> <p align="center"> <font
size="2" face="Times New Roman">13 of 16</font></p>

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 <p> <font size="2" face="Times New Roman">reports it files or submits under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported as specified in the rules and forms of the
Securities Exchange Commission&#160; There have been no material changes in the Company&#146;s internal controls over financial reporting or in other factors reasonably likely to affect the internal controls over financial reporting during the
quarter ended June 30, 2003.</font></p> <p align="center">
<a name="tx70727_11"></a> <font size="2" face="Times New Roman">PART II</font></p> <p>
<a name="tx70727_12"></a><font size="2" face="Times New Roman">Item 6.&nbsp;&nbsp;EXHIBITS AND REPORTS ON FORM 8-K</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">(a)</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">Exhibits:</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td width="3%" valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td width="3%" valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td width="4%" colspan="2" valign="top"> <p> <font size="2" face="Times New Roman">31</font></p> </td>
<td width="88%" valign="top"> <p> <font size="2" face="Times New Roman">Certifications by Chief Executive Officer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="top"> <p> <font size="2" face="Times New Roman">32</font></p> </td>
<td valign="top"> <p> <font size="2" face="Times New Roman">Certification by Chief Executive Officer and Chief Financial Officer Pursuant to Section&#160; 906 of the Sarbanes-Oxley Act of 2002.</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">(b)</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">Reports on Form 8-K:</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">None.</font></p> </td> </tr>
<tr>
<td style='border:none'></td>
<td ></td>
<td ></td>
<td ></td>
<td ></td> </tr> </table> <p align="center"> <font size="2" face="Times New Roman">SIGNATURE</font></p> <p> <font size="2" face="Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="58%" valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td width="41%" colspan="2" valign="bottom"> <p> <font size="2" face="Times New Roman">D<small>AILY</small> J<small>OURNAL</small> C<small>ORPORATION</small></font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="bottom"> <p> <font size="1" face="Times New Roman">(Registrant)</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="center"> <font size="2" face="Times New Roman">/s/ G<small>ERALD</small>&#160; L. S<small>ALZMAN</small></font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="left"> <font size="1" face="Times New Roman"><b>Gerald L. Salzman</b></font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="left"> <font size="1" face="Times New Roman"><b>Chief Executive Officer<br> President</b></font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="left"> <font size="1" face="Times New Roman"><b>Chief Financial Officer</b></font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="bottom"> <p align="left"> <font size="1" face="Times New Roman"><b>Treasurer</b></font></p> </td>
<td valign="bottom"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p><font size="2" face="Times New Roman">DATE:&#160; August 14, 2003</font></p> <p align="center"><font size="2" face="Times New Roman">14 of
16</font></p>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>3
<FILENAME>dex311.htm
<DESCRIPTION>SECTION 302 CEO AND CFO CERTIFICATION - GERALD L. SALZMAN
<TEXT>
<HTML><HEAD>
<TITLE>Section 302 CEO and CFO Certification - Gerald L. Salzman</TITLE>
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  <p align="center"><font size="2" face="Times New Roman">Exhibit 31</font></p> <p align="center"> <font size="2" face="Times New Roman">CERTIFICATIONS BY CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICIER <br>
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</font></p> <p> <font size="2" face="Times New Roman">I, Gerald L. Salzman, certify that:</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">1.</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">I have reviewed this quarterly report on Form 10-Q of the Daily Journal Corporation;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">2.</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">3.</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial
condition, results of operations and cash flows of registrant as of, and for, the periods presented in this quarterly report;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">4.</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and
have:</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align=right> <font size="2" face="Times New Roman">a.</font></p> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="2" face="Times New Roman">designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, 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 report is being prepared;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align=right> <font size="2" face="Times New Roman">b.</font></p> </td>
<td valign="top"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="2" face="Times New Roman">evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align=right> <font size="2" face="Times New Roman">c.</font></p> </td>
<td valign="top"> <p align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="2" face="Times New Roman">disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></p> </td> </tr>
<tr>
<td width="5%" valign="top"> <p style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" colspan="2" valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td width="85%" valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">5.</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="2" face="Times New Roman">I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of registrant&#146;s
board of directors (or persons performing the equivalent functions):</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="3" valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align=right> <font size="2" face="Times New Roman">a.</font></p> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="2" face="Times New Roman">all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the
registrant&#146;s ability to record, process, summarize and report financial information; and</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td colspan="2" valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p align=right><font size="2" face="Times New Roman">b.</font></p> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p><font size="2" face="Times New Roman">any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</font></p>
</td> </tr> </table> <p><font size="2" face="Times New Roman">Date:&#160; August 14, 2003</font></p>
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<tr>
<td width="37%" valign="bottom"> <p align="center"><font size="2" face="Times New Roman">/s/ G<small>ERALD</small> L. S<small>ALZMAN</small></font></p> </td>
<td width="62%" valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p align="left"><font size="1" face="Times New Roman"><b>Gerald L. Salzman<br> Chief Executive Officer, <br> President,<br> Chief Financial Officer and <br> Treasurer</b></font></p> </td>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p><font size=1 face="Times New Roman">&nbsp;</font></p>
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<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>dex321.htm
<DESCRIPTION>SECTION 906 CEO AND CFO CERTIFICATION - GERALD L. SALZMAN
<TEXT>
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<TITLE>Section 906 CEO and CFO Certification - Gerald L. Salzman</TITLE>
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  <p align="center"><font size="2" face="Times New Roman">Exhibit 32</font></p> <p align="center"> <font size="2" face="Times New Roman">CERTIFICATION BY CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER <br> PURSUANT
TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></p> <p> <font size="2" face="Times New Roman">&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 June 30, 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>
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<tr>
<td width="8%" valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td width="3%" valign="top"> <p> <font size="2" face="Times New Roman">(1)</font></p> </td>
<td width="89%" valign="top"> <p> <font size="2" face="Times New Roman">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></p> </td> </tr>
<tr>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="top"> <p> <font size="1" face="Times New Roman">&nbsp;</font></p> </td>
<td valign="top"> <p> <font size="2" face="Times New Roman">(2)</font></p> </td>
<td valign="top"> <p> <font size="2" face="Times New Roman">the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</font></p> </td> </tr> </table> <p><font
size=1 face="Times New Roman">&nbsp;</font></p>
<table align="center" border="0" style="border-collapse:collapse" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td width="27%" valign="bottom"> <p align="center"><font size="2" face="Times New Roman">/s/ G<small>ERALD</small> L. S<small>ALZMAN</small></font></p> </td>
<td width="72%" valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom" height="19"> <hr size="1" width="100%" noshade color=black> </td>
<td valign="bottom" height="19"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p align="left"><font size="1" face="Times New Roman"><b>Gerald L. Salzman</b></font></p> </td>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr>
<tr>
<td valign="bottom"> <p align="left"><font size="1" face="Times New Roman"><b>Chief Executive Officer, President<br> and Chief Financial Officer</b></font></p> </td>
<td valign="bottom"> <p><font size="1" face="Times New Roman">&nbsp;</font></p> </td> </tr> </table> <p><font size="2" face="Times New Roman">August 14, 2003</font><font size="2" face="Times New Roman"><br> </font></p> <p><font size="2"
face="Times New Roman"> 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>
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