<SUBMISSION>
<ACCESSION-NUMBER>0001068590-03-000118
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20030930
<FILING-DATE>20031031
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>PROGRAMMERS PARADISE INC
<CIK>0000945983
<ASSIGNED-SIC>5045
<IRS-NUMBER>133136104
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-26408
<FILM-NUMBER>03968335
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1157 SHREWSBURY AVE
<CITY>SHREWSBURY
<STATE>NJ
<ZIP>07702
<PHONE>7323898950
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1157 SHREWSBURY AVE
<CITY>SHREWSBURY
<STATE>NJ
<ZIP>07702
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>ppiform10q305457.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY>

<P ALIGN="CENTER" style="margin-top: 0; margin-bottom: 0"><font size="2">UNITED STATES SECURITIES AND EXCHANGE COMMISSION</font></P>
<P ALIGN="CENTER" style="margin-top: 0"><font size="2">Washington, D.C. 20549</font></P>
<P ALIGN="CENTER"><font size="2">FORM 10-Q</font></P>
<TABLE CELLSPACING=1 BORDER=0 WIDTH=600>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">[X]</font></TD>
<TD WIDTH="93%" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="93%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="93%" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the quarterly period ended September 30, 2003</font></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="93%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">[  ]</font></TD>
<TD WIDTH="93%" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="93%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="93%" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the transition period from  __________ to ________</font></TD>
</TR>
</TABLE>

<P ALIGN="CENTER" style="margin-bottom: 15"><font size="2">Commission File No. </font> <U><font size="2">000-26408</font></P>
<P ALIGN="CENTER" style="margin-top: 0; margin-bottom: 0"><font size="2">Programmer's Paradise, Inc.</font></P>
</U>
<P ALIGN="CENTER" style="margin-top: 0"><font size="2">(Exact name of Registrant as specified in its charter)</font></P>
<TABLE BORDER="0" CELLSPACING=1 WIDTH=595>
<TR><TD WIDTH="243" VALIGN="TOP">
<P ALIGN="left"><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Delaware&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></TD>
<TD WIDTH="41" VALIGN="TOP" COLSPAN=2><font size="2">&nbsp;</font></TD>
<TD WIDTH="291" VALIGN="TOP">
<P ALIGN="left"><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
13-3136104&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></TD>
</TR>
<TR><TD WIDTH="243" VALIGN="TOP">
<P><font size="2">(State or other jurisdiction of incorporation or organization)</font></TD>
<TD WIDTH="41" VALIGN="TOP" COLSPAN=2><font size="2">&nbsp;</font></TD>
<TD WIDTH="291" VALIGN="TOP">
<P ALIGN="CENTER"><font size="2">(I.R.S. Employer Identification No.)</font></TD>
</TR>
<TR><TD WIDTH="243" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="41" VALIGN="TOP" COLSPAN=2><font size="2">&nbsp;</font></TD>
<TD WIDTH="291" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
</TR>
<TR><TD WIDTH="457" VALIGN="TOP" COLSPAN=2>
<P><u><font size="2">1157 Shrewsbury Avenue, Shrewsbury, New Jersey</font></u></TD>
<TD WIDTH="12" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="291" VALIGN="TOP">
<U><P ALIGN="left"><font size="2">07702</font></U></TD>
</TR>
<TR><TD WIDTH="457" VALIGN="TOP" COLSPAN=2>
<P><font size="2">(Address of principal executive offices)</font></TD>
<TD WIDTH="12" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="291" VALIGN="TOP">
<P ALIGN="left"><font size="2">(Zip code)</font></TD>
</TR>
</TABLE>

<P><font size="2">Issuer's Telephone Number </font> <U><font size="2">(732) 389-8950</font></P>
</U>
<P style="text-indent: 40"><font size="2">Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the past 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. Yes&nbsp;
<U>X</U>&nbsp;&nbsp; No__</font></P>

<P style="text-indent: 40"><font size="2">Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act) Yes__&nbsp;&nbsp;
No&nbsp; </font><U><font size="2">X</font></P>
</U>
<P style="text-indent: 40"><font size="2">There were 3,695,780 outstanding shares of Common Stock, par value $.01 per share, as of October 28, 2003, not including 1,561,970 shares classified as Treasury Stock.</font></P>

<FONT SIZE=3>

<P ALIGN="LEFT">&nbsp;</P>
</FONT>
<p align="center">
<font size="2">
Page 1</font>
<p Style='page-break-before:always'>

<P>

<center>
<table CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="588" height="910">
  <tr>
    <td VALIGN="TOP" COLSPAN="3" height="21" width="586"><b>
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      PART I - FINANCIAL INFORMATION</font></b></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3" height="21" width="586"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3" height="59" width="586"><b>
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      PROGRAMMER</font><font size="2">'</font><font FACE="CG Times,Times New Roman" size="2">S PARADISE, INC. AND SUBSIDIARIES<br>
      CONDENSED CONSOLIDATED BALANCE SHEETS<br>
      (In thousands)</font></b></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="59"><font size="2">&nbsp;</font></td>
    <td WIDTH="92" VALIGN="TOP" height="59">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      September 30,<u><br>
      2003<br>
      </u>(Unaudited)</font></td>
    <td WIDTH="121" VALIGN="TOP" height="59">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      December 31,<u><br>
      2002<br>
      </u>(Audited)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3" height="21" width="586">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      ASSETS</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      Current assets</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;Cash and cash equivalents</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp; 5,263</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $6,072</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;Marketable Securities</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      6,436</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      5,110</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;Accounts receivable, net</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      6,420</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      6,342</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;Inventory-finished goods</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      762</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      1,151</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;Prepaid expenses and other current assets</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><u><font face="CG Times,Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      348</font></u></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 264</font></u></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      Total current assets</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      19,229</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      18,939</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      Equipment and leasehold improvements, net</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      324</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      460</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;Other assets</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><u><font face="CG Times,Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      55</font></u></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><u><font face="CG Times,Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      69</font></u></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="40">
      <p><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;Total assets</font></td>
    <td WIDTH="92" VALIGN="TOP" height="40">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;19,608<br>
      =======</font></td>
    <td WIDTH="121" VALIGN="TOP" height="40">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;19,468<br>
      =======</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3" height="21" width="586">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      LIABILITIES AND STOCKHOLDERS</font><font size="2">'</font><font FACE="CG Times,Times New Roman" size="2"> EQUITY</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      Current liabilities</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21"><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;Accounts payable and accrued expenses</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;&nbsp;8,194</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;&nbsp;7,772</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;Dividend payable</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;369</font></u></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></u></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      Total current liabilities</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      8,563</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      7,772</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      Commitments and contingencies</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Stockholders</font><font size="2">'</font><font FACE="CG Times,Times New Roman" size="2"> equity</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="369" height="59" valign="bottom">
      <p style="word-spacing: 0; line-height: 100%; text-indent: 0; margin: 0"><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;
      Common stock, $.01 par value; authorized, 10,000,000<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares; issued 5,257,750 shares and
      5,230,250&nbsp;<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares, respectively</font></td>
    <td valign="bottom" height="59">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      53</font></td>
    <td WIDTH="121" height="59" valign="bottom">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      52</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;Additional paid-in capital</font></td>
    <td WIDTH="92" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      34,416</font></td>
    <td WIDTH="121" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      35,484</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="BOTTOM" height="27"><font FACE="CG Times,Times New Roman" size="2">&nbsp;&nbsp;&nbsp;Treasury
      stock, at cost, 1,561,970 shares and&nbsp;<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,389,576 shares, respectively</font></td>
    <td WIDTH="92" VALIGN="BOTTOM" height="27">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      (4,561)</font></td>
    <td WIDTH="121" VALIGN="BOTTOM" height="27">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      (4,184)</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;Accumulated deficit</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      (18,934)</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      (19,511)</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;Accumulated other comprehensive income
      (loss)</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      71</u></font></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (145</u>)</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21">
      <font FACE="CG Times,Times New Roman" size="2">
      Total stockholders</font><font size="2">'</font><font FACE="CG Times,Times New Roman" size="2">
      equity</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,045</u></font></td>
    <td WIDTH="121" VALIGN="TOP" height="21">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,696</u></font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="40">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Total liabilities and stockholders</font><font size="2"></font><font size="2">'</font><font FACE="CG Times,Times New Roman" size="2">
      equity</font></td>
    <td WIDTH="92" VALIGN="TOP" height="40">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;&nbsp;19,608<br>
      ========</font></td>
    <td WIDTH="121" VALIGN="TOP" height="40">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;&nbsp;19,468<br>
      ========</font></td>
  </tr>
  <tr>
    <td WIDTH="369" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="92" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
    <td WIDTH="121" VALIGN="TOP" height="21"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="3" height="21" width="586">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      The accompanying notes are an integral part of these
      consolidated financial statements.</font></td>
  </tr>
</table>
</center>
<FONT SIZE=3>
<P ALIGN="center">&nbsp;</FONT><font size="2">Page 2</font>
</P>
<p Style='page-break-before:always'>

<P>

<table CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="600" height="798">
  <tr>
    <td VALIGN="TOP" COLSPAN="5" width="598" height="17"><b>
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      PROGRAMMERS' PARADISE, INC. AND SUBSIDIARIES</font></b></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="5" width="598" height="17"><b>
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
      COMPREHENSIVE INCOME</font></b></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="5" width="598" height="17"><b>
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      (Unaudited)</font></b></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="5" width="598" height="17"><b>
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      (In thousands, except per share data)</font></b></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="164" VALIGN="TOP" COLSPAN="2" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="171" VALIGN="TOP" COLSPAN="2" height="17"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="32"><font size="2">&nbsp;</font></td>
    <td WIDTH="164" VALIGN="TOP" COLSPAN="2" height="32">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      Nine months ended<br>
      <u>September 30</u>,</font></td>
    <td WIDTH="171" VALIGN="TOP" COLSPAN="2" height="32">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      Three months ended<br>
      <u>September 30</u>,</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17"><u>
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      2003</font></u></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><u>
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      2002</font></u></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><u>
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      2003</font></u></td>
    <td WIDTH="84" VALIGN="TOP" height="17"><u>
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      2002</font></u></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="84" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Net sales</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;49,604</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;50,271</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;18,355</font></td>
    <td WIDTH="84" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;15,798</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Cost of sales</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      43,199</font></u></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      43,735</font></u></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      16,061</font></u></td>
    <td WIDTH="84" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      13,782</font></u></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Gross profit</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      6,405</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      6,536</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      2,294</font></td>
    <td WIDTH="84" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      2,016</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="bottom" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Selling, general and administrative expenses</font></td>
    <td WIDTH="77" VALIGN="bottom" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      5,940</font></td>
    <td WIDTH="85" VALIGN="bottom" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      6,453</font></td>
    <td WIDTH="85" VALIGN="bottom" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      2,001</font></td>
    <td WIDTH="84" VALIGN="bottom" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      2,087</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Litigation settlement</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></u></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 348</font></u></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></u></td>
    <td WIDTH="84" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp; 348</font></u></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Income (loss) from operations</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      465</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      (265)</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      293</font></td>
    <td WIDTH="84" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      (419)</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="bottom" height="32">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Realized gain on sale of available-for-sale securities</font></td>
    <td WIDTH="77" VALIGN="bottom" height="32">
      <p ALIGN="RIGHT"><font face="CG Times,Times New Roman" size="2">-</font></td>
    <td WIDTH="85" VALIGN="bottom" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      141</font></td>
    <td WIDTH="85" VALIGN="bottom" height="32">
      <p ALIGN="RIGHT"><font face="CG Times,Times New Roman" size="2">-</font></td>
    <td WIDTH="84" VALIGN="bottom" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      141</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Interest income, net</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      93</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      195</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      43</font></td>
    <td WIDTH="84" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      66</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Foreign exchange gain (loss)</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71</font></u></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9)</font></u></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9)</font></u></td>
    <td WIDTH="84" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)</font></u></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Income (loss) before income taxes</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      629</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      62</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      327</font></td>
    <td WIDTH="84" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      (214)</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Provision (benefit) for income taxes</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      52</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      (257)</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      (6)</font></td>
    <td WIDTH="84" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      (4)</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="32">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Net income (loss)</font></td>
    <td WIDTH="77" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 577<br>
      ======</font></td>
    <td WIDTH="85" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 319<br>
      ======</font></td>
    <td WIDTH="85" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;&nbsp; 333<br>
      ======</font></td>
    <td WIDTH="84" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp; (210)<br>
      ======</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="top" height="21">
    </td>
    <td WIDTH="77" VALIGN="top" height="21">
    </td>
    <td WIDTH="85" VALIGN="top" height="21">
    </td>
    <td WIDTH="85" VALIGN="top" height="21">
    </td>
    <td WIDTH="84" VALIGN="top" height="21">
    </td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="top" height="26">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Net income (loss) per common share - Basic</font></td>
    <td WIDTH="77" VALIGN="top" height="26">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $0.16<br>
      ======</font></td>
    <td WIDTH="85" VALIGN="top" height="26">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $0.07<br>
      ======</font></td>
    <td WIDTH="85" VALIGN="top" height="26">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $0.09<br>
      ======</font></td>
    <td WIDTH="84" VALIGN="top" height="26">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $(0.05)<br>
      ======</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="top" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Net income (loss) per common share - Diluted</font></td>
    <td WIDTH="77" VALIGN="top" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $0.15</font>
      <p ALIGN="RIGHT" style="word-spacing: 0; line-height: 100%; text-indent: 0; margin: 0"><font FACE="CG Times,Times New Roman" size="2">
      ======</font></td>
    <td WIDTH="85" VALIGN="top" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $0.07</font>
      <p ALIGN="RIGHT" style="word-spacing: 0; line-height: 100%; text-indent: 0; margin: 0"><font FACE="CG Times,Times New Roman" size="2">
      ======</font></td>
    <td WIDTH="85" VALIGN="top" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $0.09</font>
      <p ALIGN="RIGHT" style="word-spacing: 0; line-height: 100%; text-indent: 0; margin: 0"><font FACE="CG Times,Times New Roman" size="2">
      ======</font></td>
    <td WIDTH="84" VALIGN="top" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $(0.05)</font>
      <p ALIGN="RIGHT" style="word-spacing: 0; line-height: 100%; text-indent: 0; margin: 0"><font FACE="CG Times,Times New Roman" size="2">
      ======</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="84" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="32">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Weighted average number of common shares outstanding</font></td>
    <td WIDTH="77" VALIGN="TOP" height="32"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="32"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="32"><font size="2">&nbsp;</font></td>
    <td WIDTH="84" VALIGN="TOP" height="32"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="84" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="32">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Basic</font></td>
    <td WIDTH="77" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      3,722<br>
      ======</font></td>
    <td WIDTH="85" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      4,639<br>
      ======</font></td>
    <td WIDTH="85" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      3,694<br>
      ======</font></td>
    <td WIDTH="84" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      4,213<br>
      ======</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="32">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Diluted</font></td>
    <td WIDTH="77" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      3,816<br>
      ======</font></td>
    <td WIDTH="85" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      4,654<br>
      ======</font></td>
    <td WIDTH="85" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      3,788<br>
      ======</font></td>
    <td WIDTH="84" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      4,213<br>
      ======</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="84" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="36"><u>
      <p><font FACE="CG Times,Times New Roman" size="2">
      Reconciliation of net income (loss) to comprehensive income (loss)</font></u><font FACE="CG Times,Times New Roman" SIZE="3">:</font></td>
    <td WIDTH="77" VALIGN="TOP" height="36"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="36"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="36"><font size="2">&nbsp;</font></td>
    <td WIDTH="84" VALIGN="TOP" height="36"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Net income (loss)</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;&nbsp; 577</font></u></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;&nbsp; 319</font></u></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;&nbsp; 333</font></u></td>
    <td WIDTH="84" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp; (210)</font></u></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Other comprehensive income, net of tax:</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="84" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="bottom" height="32">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">
      Reclassification adjustment for gain realized
      on Sale of available-for-sale securities</font></td>
    <td WIDTH="77" VALIGN="bottom" height="32">
      <p ALIGN="RIGHT"><font face="CG Times,Times New Roman" size="2">-</font></td>
    <td WIDTH="85" VALIGN="bottom" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      (78)</font></td>
    <td WIDTH="85" VALIGN="bottom" height="32"><font size="2">&nbsp;</font></td>
    <td WIDTH="84" VALIGN="bottom" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      (78)</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="bottom" height="17">
      <p style="margin-left: 10; margin-right: 0"><font FACE="CG Times,Times New Roman" size="2">
      Unrealized gain on available-for-sale securities</font></td>
    <td WIDTH="77" VALIGN="bottom" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      16</font></td>
    <td WIDTH="85" VALIGN="bottom" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      173</font></td>
    <td WIDTH="85" VALIGN="bottom" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      2</font></td>
    <td WIDTH="84" VALIGN="bottom" height="17">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      73</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">
      Foreign currency translation adjustments</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200</font></u></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 347</font></u></td>
    <td WIDTH="85" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10)</font></u></td>
    <td WIDTH="84" VALIGN="TOP" height="17">
      <p ALIGN="RIGHT"><u><font FACE="CG Times,Times New Roman" size="2">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (47)</font></u></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="32">
      <p><font FACE="CG Times,Times New Roman" size="2">
      Total comprehensive income (loss)</font></td>
    <td WIDTH="77" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 793<br>
      ======</font></td>
    <td WIDTH="85" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 761<br>
      ======</font></td>
    <td WIDTH="85" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 325<br>
      ======</font></td>
    <td WIDTH="84" VALIGN="TOP" height="32">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">
      $&nbsp;&nbsp; (262)<br>
      ======</font></td>
  </tr>
  <tr>
    <td WIDTH="259" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="77" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="85" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
    <td WIDTH="84" VALIGN="TOP" height="17"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" COLSPAN="5" width="598" height="17">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">
      The accompanying notes are an integral part of these
      condensed consolidated financial statements.</font></td>
  </tr>
</table>

<FONT SIZE=3>

<P>&nbsp;</P>
<p align="center">
  </FONT>


<font size="2">
Page 3</font>

<FONT SIZE=3>

<p Style='page-break-before:always'>

<table BORDER="0" CELLSPACING="0" WIDTH="600" cellpadding="0">
  <tr>
    <td VALIGN="BOTTOM" COLSPAN="8" width="587"><b><font FACE="CG Times,Times New Roman" SIZE="3">
      <p ALIGN="CENTER">PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES<br>
      CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS'<font FACE="CG Times,Times New Roman" size="2">&nbsp;</font>
      EQUITY<br>
      (In thousands, except share amounts)</font></b></td>
  </tr>
  <tr>
    <td WIDTH="181" VALIGN="BOTTOM"></td>
    <td WIDTH="94" VALIGN="BOTTOM" COLSPAN="2"></td>
    <td WIDTH="68" VALIGN="BOTTOM"></td>
    <td WIDTH="58" VALIGN="BOTTOM"></td>
    <td WIDTH="62" VALIGN="BOTTOM"></td>
    <td WIDTH="83" VALIGN="BOTTOM"></td>
    <td WIDTH="55" VALIGN="BOTTOM"></td>
  </tr>
  <tr>
    <td WIDTH="181" VALIGN="BOTTOM"></td>
  </FONT>


    <td WIDTH="94" VALIGN="BOTTOM" COLSPAN="2"><b><u>
      <p ALIGN="CENTER"><font size="1">Common Stock</font></u></b></td>
    <td WIDTH="68" VALIGN="BOTTOM"><b>
      <p ALIGN="CENTER"><font size="1">Additional Paid-In</font></b></td>
    <td WIDTH="58" VALIGN="BOTTOM"><b>
      <p ALIGN="CENTER"><font size="1">Treasury</font></b></td>
    <td WIDTH="62" VALIGN="BOTTOM"><b>
      <p ALIGN="CENTER"><font size="1">Retained<br>
      Earnings /</font></b></td>
    <td WIDTH="83" VALIGN="BOTTOM"><b>
      <p ALIGN="CENTER"><font size="1">Accumulated other comprehensive</font></b></td>

<FONT SIZE=3>

    <td WIDTH="55" VALIGN="BOTTOM"></td>
  </tr>
  <tr>
    <td WIDTH="181" VALIGN="BOTTOM"></td>
  </FONT>


    <td WIDTH="46" VALIGN="BOTTOM"><b>
      <p ALIGN="CENTER"><font size="1">Shares</font></b></td>
    <td WIDTH="46" VALIGN="BOTTOM"><b>
      <p ALIGN="CENTER"><font size="1">Amount</font></b></td>
    <td WIDTH="68" VALIGN="BOTTOM"><b>
      <p ALIGN="CENTER"><font size="1">Capital</font></b></td>
    <td WIDTH="58" VALIGN="BOTTOM"><b>
      <p ALIGN="CENTER"><font size="1">Stock</font></b></td>
    <td WIDTH="62" VALIGN="BOTTOM"><b>
      <p ALIGN="CENTER"><font size="1">(Deficit)</font></b></td>
    <td WIDTH="83" VALIGN="BOTTOM"><b>
      <p ALIGN="CENTER"><font size="1">Income (loss)</font></b></td>
    <td WIDTH="55" VALIGN="BOTTOM"><b>
      <p ALIGN="CENTER"><font size="1">Total</font></b></td>
  </tr>
  <tr>
    <td WIDTH="181" VALIGN="BOTTOM">
      <p><font size="1">Balance at January 1, 2003</font></td>
    <td WIDTH="46" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">5,230,250</font></td>
    <td WIDTH="46" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">$52</font></td>
    <td WIDTH="68" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">$35,484</font></td>
    <td WIDTH="58" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">$(4,184)</font></td>
    <td WIDTH="62" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">$(19,511)</font></td>
    <td WIDTH="83" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">$(145)</font></td>
    <td WIDTH="55" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">$11,696</font></td>
  </tr>
  <tr>
    <td WIDTH="181" VALIGN="BOTTOM">
      <p style="margin-left: 10"><font size="1">Net income</font></td>

<FONT SIZE=3>

<td WIDTH="46" VALIGN="BOTTOM"></td>
<td WIDTH="46" VALIGN="BOTTOM"></td>
<td WIDTH="68" VALIGN="BOTTOM"></td>
<td WIDTH="58" VALIGN="BOTTOM"></td>
    </FONT>


<td WIDTH="62" VALIGN="BOTTOM">
  <p ALIGN="RIGHT"><font size="1">577</font></td>

<FONT SIZE=3>

<td WIDTH="83" VALIGN="BOTTOM"></td>
    </FONT>


<td WIDTH="55" VALIGN="BOTTOM">
  <p ALIGN="RIGHT"><font size="1">577</font></td>
  </tr>
  <tr>
    <td WIDTH="181" VALIGN="BOTTOM">
      <p style="margin-left: 10"><font size="1">Other comprehensive income:</font></td>
    <td WIDTH="46" VALIGN="BOTTOM"></td>
    <td WIDTH="46" VALIGN="BOTTOM"></td>
    <td WIDTH="68" VALIGN="BOTTOM"></td>
    <td WIDTH="58" VALIGN="BOTTOM"></td>
    <td WIDTH="62" VALIGN="BOTTOM"></td>
    <td WIDTH="83" VALIGN="BOTTOM"></td>
    <td WIDTH="55" VALIGN="BOTTOM"></td>
  </tr>
  <tr>
    <td WIDTH="181" VALIGN="BOTTOM">
      <p style="margin-left: 10"><font size="1">Exercise of stock options</font></td>
    <td WIDTH="46" VALIGN="BOTTOM">
      <p ALIGN="RIGHT"><font size="1">27,500</font></td>
    <td WIDTH="46" VALIGN="BOTTOM">
      <p ALIGN="RIGHT"><font size="1">1</font></td>
    <td WIDTH="68" VALIGN="BOTTOM">
      <p ALIGN="RIGHT"><font size="1">45</font></td>
    <td WIDTH="58" VALIGN="BOTTOM"></td>
    <td WIDTH="62" VALIGN="BOTTOM"></td>
    <td WIDTH="83" VALIGN="BOTTOM"></td>
    <td WIDTH="55" VALIGN="BOTTOM">
      <p ALIGN="RIGHT"><font size="1">46</font></td>
  </tr>
  <tr>
    <td WIDTH="181" VALIGN="BOTTOM">
      <p style="margin-left: 10"><font size="1">Dividend paid</font></td>

<FONT SIZE=3>

<td WIDTH="46" VALIGN="BOTTOM"></td>
<td WIDTH="46" VALIGN="BOTTOM"></td>
    </FONT>


<td WIDTH="68" VALIGN="BOTTOM">
  <p ALIGN="RIGHT"><font size="1">(744)</font></td>

<FONT SIZE=3>

<td WIDTH="58" VALIGN="BOTTOM"></td>
<td WIDTH="62" VALIGN="BOTTOM"></td>
<td WIDTH="83" VALIGN="BOTTOM"></td>
    </FONT>


<td WIDTH="55" VALIGN="BOTTOM">
  <p ALIGN="RIGHT"><font size="1">(744)</font></td>
  </tr>
  <tr>
    <td WIDTH="181" VALIGN="BOTTOM">
      <p style="margin-left: 10"><font size="1">Dividend declared payable</font></td>
    <td WIDTH="46" VALIGN="BOTTOM"></td>
    <td WIDTH="46" VALIGN="BOTTOM"></td>
    <td WIDTH="68" VALIGN="BOTTOM">
      <p ALIGN="RIGHT"><font size="1">(369)</font></td>
    <td WIDTH="58" VALIGN="BOTTOM"></td>
    <td WIDTH="62" VALIGN="BOTTOM"></td>
    <td WIDTH="83" VALIGN="BOTTOM"></td>
    <td WIDTH="55" VALIGN="BOTTOM">
      <p ALIGN="RIGHT"><font size="1">(369)</font></td>
  </tr>
  <tr>
    <td WIDTH="181" VALIGN="BOTTOM">
      <p style="margin-left: 10"><font size="1">Unrealized gain

 on available-for-sale securities</font></td>
    <td WIDTH="46" VALIGN="BOTTOM"></td>
    <td WIDTH="46" VALIGN="BOTTOM"></td>
    <td WIDTH="68" VALIGN="BOTTOM"></td>
    <td WIDTH="58" VALIGN="BOTTOM"></td>
    <td WIDTH="62" VALIGN="BOTTOM"></td>
    <td WIDTH="83" VALIGN="BOTTOM">
      <p ALIGN="RIGHT"><font size="1">16</font></td>
    <td WIDTH="55" VALIGN="BOTTOM">
      <p ALIGN="RIGHT"><font size="1">16</font></td>
  </tr>
  <tr>
    <td WIDTH="181" VALIGN="BOTTOM">
      <p style="margin-left: 10"><font size="1">Translation adjustment</font></td>
  <FONT SIZE=3>
  <td WIDTH="46" VALIGN="BOTTOM"></td>
  <td WIDTH="46" VALIGN="BOTTOM"></td>
  <td WIDTH="68" VALIGN="BOTTOM"></td>
  <td WIDTH="58" VALIGN="BOTTOM"></td>
  <td WIDTH="62" VALIGN="BOTTOM"></td>
</FONT>


  <td WIDTH="83" VALIGN="BOTTOM">
    <p ALIGN="RIGHT"><font size="1">200</font></td>
  <td WIDTH="55" VALIGN="BOTTOM">
    <p ALIGN="RIGHT"><u><font size="1">200</font></u></td>
  </tr>


<tr>
  <td WIDTH="181" VALIGN="BOTTOM">
    <p style="margin-left: 10"><font size="1">Comprehensive
    Income</font></td>
    <td WIDTH="46" VALIGN="BOTTOM"></td>
    <td WIDTH="46" VALIGN="BOTTOM"></td>
    <td WIDTH="68" VALIGN="BOTTOM"></td>
    <td WIDTH="58" VALIGN="BOTTOM"></td>
    <td WIDTH="62" VALIGN="BOTTOM"></td>
    <td WIDTH="83" VALIGN="BOTTOM"></td>
    <td WIDTH="55" VALIGN="BOTTOM">
      <p ALIGN="RIGHT"><font size="1">216</font></td>
  </tr>
  <tr>
    <td WIDTH="181" VALIGN="BOTTOM">
      <p style="margin-left: 10"><font size="1">Purchase of 172,394 treasury<br>
      stock shares</font></td>
    <td WIDTH="46" VALIGN="BOTTOM"></td>
    <td WIDTH="46" VALIGN="BOTTOM"></td>
    <td WIDTH="68" VALIGN="BOTTOM"></td>
    <td WIDTH="58" VALIGN="BOTTOM">
      <p ALIGN="RIGHT"><font size="1">(377)</font></td>
    <td WIDTH="62" VALIGN="BOTTOM"></td>
    <td WIDTH="83" VALIGN="BOTTOM"></td>
    <td WIDTH="55" VALIGN="BOTTOM">
      <p ALIGN="RIGHT"><font size="1">(377)</font></td>
  </tr>
  <tr>
    <td WIDTH="181" VALIGN="BOTTOM">
      <p><font size="1">Balance at September 30, 2003</font></td>
    <td WIDTH="46" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">5,257,750</font></td>
    <td WIDTH="46" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">$53</font></td>
    <td WIDTH="68" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">$34,416</font></td>
    <td WIDTH="58" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">$(4,561)</font></td>
    <td WIDTH="62" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">$(18,934)</font></td>
    <td WIDTH="83" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">$71</font></td>
    <td WIDTH="55" VALIGN="BOTTOM" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double; border-bottom-width: 1">
      <p ALIGN="RIGHT"><font size="1">$11,045</font></td>
  </tr>
</table>
<P>



<I><FONT SIZE=3><P ALIGN="left"></P>
<P ALIGN="CENTER" style="margin-top: 0; margin-bottom: 0">&nbsp;</P>
</FONT>
</I><FONT SIZE=3>
<I>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
</I>
</FONT>

<P ALIGN="CENTER"><font size="2">The accompanying notes are an integral part of the consolidated financial statements.</font></P>
<FONT SIZE=3>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER"></P>
</FONT>
<p align="center">
<font size="2">
Page 4</font>
<p Style='page-break-before:always'>
<P>

<p ALIGN="CENTER">&nbsp;<center>
<table CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="580">
  <tr>
    <td VALIGN="bottom" COLSPAN="3" width="578">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">PROGRAMMER'S
      PARADISE, INC. AND SUBSIDIARIES</font></td>
  </tr>
  <tr>
    <td VALIGN="bottom" COLSPAN="3" width="578">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS</font></td>
  </tr>
  <tr>
    <td VALIGN="bottom" COLSPAN="3" width="578">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">(Unaudited)</font></td>
  </tr>
  <tr>
    <td VALIGN="bottom" COLSPAN="3" width="578">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">(In
      thousands)</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom"><font size="2">&nbsp;</font></td>
    <td WIDTH="165" VALIGN="bottom" COLSPAN="2">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">Nine
      Months Ended<br>
      <u>September 30,</u></font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom"><font size="2">&nbsp;</font></td>
    <td WIDTH="76" VALIGN="bottom"><u>
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">2003</font></u></td>
    <td WIDTH="87" VALIGN="bottom"><u>
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">2002</font></u></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p><font FACE="CG Times,Times New Roman" size="2">Cash flows from
      operating activities:</font></td>
    <td WIDTH="76" VALIGN="bottom"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p><font FACE="CG Times,Times New Roman" size="2">Net income</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      577</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      319</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p><font FACE="CG Times,Times New Roman" size="2">Adjustments to reconcile
      net income to net cash provided by operating activities:</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Depreciation
      and amortization</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">249</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">301</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Allowance
      for doubtful accounts</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">12</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">1</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom"><font size="2">&nbsp;</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p><font FACE="CG Times,Times New Roman" size="2">Changes in operating
      assets and liabilities:</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Accounts
      receivable</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">(90)</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">2,496</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Inventory</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">389</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">(101)</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Prepaid
      expenses and other current assets</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">(84)</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">72</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Refundable
      income taxes</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <font face="CG Times,Times New Roman" size="2">-</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">(334)</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Accounts
      payable and accrued expenses</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">422</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">(4,192)</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Net
      change in other assets and liabilities</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (4</u>)</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (7)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p><font FACE="CG Times,Times New Roman" size="2">Net cash provided by
      (used for) operating activities</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1,471</u></font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;
      (1,445)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom"><font size="2">&nbsp;</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p><font FACE="CG Times,Times New Roman" size="2">Cash flows from
      investing activities:</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Purchases
      of available-for-sale securities</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">(3,309)</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">(8,099)</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Sales
      of available-for-sale securities</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font face="CG Times,Times New Roman" size="2">-</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">3,043</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Redemptions
      of available-for-sale securities</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">2,000</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font face="CG Times,Times New Roman" size="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Decrease
      in cash held in escrow</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <font face="CG Times,Times New Roman" size="2">-</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">1,773</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Capital
      expenditures</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (96)</u></font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (137)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p><font FACE="CG Times,Times New Roman" size="2">Net cash used for
      investing activities</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;
      (1,405)</u></font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;
      (3,420)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom"><font size="2">&nbsp;</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p><font FACE="CG Times,Times New Roman" size="2">Cash flows from
      financing activities:</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Net
      proceeds from issuance of common stock</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">46</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font face="CG Times,Times New Roman" size="2">-</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Dividend
      paid</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">(744)</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      -</u></font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p style="margin-left: 10"><font FACE="CG Times,Times New Roman" size="2">Purchase
      of treasury stock</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (377)</u></font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;
      (2,456)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p><font FACE="CG Times,Times New Roman" size="2">Net cash used for
      financing activities</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;
      (1,075)</u></font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;
      (2,456)</u></font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom"><font size="2">&nbsp;</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p><font FACE="CG Times,Times New Roman" size="2">Effect of foreign
      exchange rate on cash</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      200</u></font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      347</u></font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom"><font size="2">&nbsp;</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p><font FACE="CG Times,Times New Roman" size="2">Net decrease in cash and
      cash equivalents</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">(809)</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">(6,974)</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom">
      <p><font FACE="CG Times,Times New Roman" size="2">Cash and cash
      equivalents at beginning of period</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      6,072</u></font></td>
    <td WIDTH="87" VALIGN="bottom" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;
      11,425</u></font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="top">
      <p><font FACE="CG Times,Times New Roman" size="2">Cash and cash
      equivalents at end of period</font></td>
    <td WIDTH="76" VALIGN="top" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;
      5,263<br>
      =======</font></td>
    <td WIDTH="87" VALIGN="top" align="right">
      <p ALIGN="RIGHT"><font FACE="CG Times,Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;
      4,451<br>
      =======</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom"><font size="2">&nbsp;</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom"><font size="2">&nbsp;</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom"><font size="2">&nbsp;</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td WIDTH="411" VALIGN="bottom"><font size="2">&nbsp;</font></td>
    <td WIDTH="76" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
    <td WIDTH="87" VALIGN="bottom" align="right"><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td VALIGN="bottom" COLSPAN="3" width="578">
      <p ALIGN="CENTER"><font FACE="CG Times,Times New Roman" size="2">The
      accompanying notes are an integral part of these condensed consolidated
      financial statements.</font></td>
  </tr>
</table>
</center>

<FONT SIZE=3>
<P>&nbsp;</P>
</FONT>
<p align="center">
<font size="2">
Page 5</font>
<p Style='page-break-before:always'>
<P>
<FONT SIZE=3>

<B>
</B>
</FONT>


<B><P ALIGN="CENTER" style="margin-bottom: 0"><font size="2">PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES</font></P>
<P ALIGN="CENTER" style="margin-top: 0; margin-bottom: 0"><font size="2">NOTES TO CONDENSED CONSOLIDATED</font></P>
<P ALIGN="CENTER" style="margin-top: 0; margin-bottom: 0"><font size="2">FINANCIAL STATEMENTS</font></P>
<P ALIGN="CENTER" style="margin-top: 0"><font size="2">September 30, 2003</font></P>
</B>
<ol style="font-family: Times New Roman; font-size: 10pt">
  <li>
    <p align="left"><font size="2">The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.</font></li>
</ol>
<blockquote>

<P align="left"><font size="2">The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to product returns, bad debts, inventories, investments, intangible assets, income taxes, restructuring and contingencies and litigation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In the opinion of Management all adjustments that are of a normal recurring nature, considered necessary for fair presentation, have been included. Actual results may differ from these estimates under different assumptions or conditions. The unaudited condensed consolidated statements of income for the interim periods are not necessarily indicative of results for the full year. For further information, refer to the consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2002.</font></P>

</blockquote>
<ol style="font-family: Times New Roman; font-size: 10pt">
  <li value="2">
    <p style="margin-bottom: 20" align="left"><font size="2">Assets and liabilities of the Company's Canadian subsidiary have been translated at current exchange rates, and related revenues and expenses have been translated at average rates of exchange in effect during the year. The revenue for our Canadian operations in the first nine months of 2003 remained flat at $7.4 million as compared to the first nine months of 2002. Cumulative translation adjustments and unrealized gains on available-for-sale securities have been classified within other comprehensive income, which is a separate component of stockholders equity in accordance with FASB Statement No. 115. "Reporting Comprehensive Income".</font></li>
  <li>
    <p align="left">  <font size="2">  The Company records revenues from sales transactions when title to products sold passes to the customer. The Company's shipping terms dictate that the passage of title occurs upon receipt of products by the customer. The majority of the Company's revenues relates to physical products and is recognized on a gross basis with the selling price to the customer recorded as net sales with the acquisition cost of the product to the Company recorded as cost of sales. At the time of sale, the Company also records an estimate for sales returns based on historical experience. Software maintenance products, third party services and extended warranties sold by the Company (for which the Company is not the primary obligor) are recognized on a net basis in accordance with SAB 101, "Revenue Recognition" and EITF 99-19, "Reporting Revenue Gross as a Principal versus Net as an Agent". Accordingly, such revenues are recognized in net sales either at the time of sale or over the contract period, based on the nature of the contract, at the net amount retained by the Company, with no cost of goods sold. In accordance with EITF 00-10, "Accounting for Shipping and Handling Fees and Costs", the Company records freight billed to its customers as net sales and the related freight costs as a cost of sales.</font></li>
</ol>
<blockquote>

<P align="left"><font size="2">In accordance with EITF 02-16, "Accounting for Consideration Received from a Vendor by a Customer (Including a Reseller of the Vendor's Products)," consideration from vendors, such as advertising support funds, are accounted for as a reduction to cost of sales unless certain requirements are met showing that the vendor receives an identifiable fair value in exchange for the consideration. If these specific requirements related to individual vendors are met, the consideration is accounted for as revenue.</font> </P>
</blockquote>

<p align="center">

<font size="2">
Page 6</font>

<FONT SIZE=3>
<p Style='page-break-before:always'>


</FONT>


<P>


&nbsp;


<ol style="font-family: Times New Roman; font-size: 10pt">
  <li value="4">
    <p align="left"><font size="2">In December 2002, the FASB issued Statement of Financial Accounting Standards No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure" ("SFAS No. 148"). SFAS No. 148 amends FASB Statement No. 123, "Accounting for Stock-Based Compensation" ("SFAS No. 123"), to provide alternative methods of transition for a voluntary change to the fair value method of accounting for stock-based employee compensation. In addition, SFAS No. 148 amends the prior disclosure guidance and requires prominent disclosures in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results. The provisions of SFAS No. 148 are generally effective for fiscal years ending after December 15, 2002. The adoption of SFAS 148 had no effect on our financial position or results of operations for the quarter ended September 30, 2003.</font></li>
</ol>
<blockquote>

<P align="left"><font size="2">In January 2003, the FASB issued Interpretation 46 - "Consolidation of Variable Interest Entities" ("FIN 46"). FIN 46 requires that companies that control another entity through interests other than voting interests should consolidate the controlled entity. FIN 46 applies to variable interest entities created after January 31, 2003, and to variable interest entities in which an enterprise obtains an interest in after that date. The related disclosure requirements are effective immediately. The adoption of FIN 46 had no effect on financial position or results of operations for the quarter ended September 30, 2003.</font></P>

<P align="left"><font size="2">In January 2003, the EITF reached a consensus on Issue No.&nbsp;02-16, "Accounting by a Reseller for Cash Consideration Received from a Vendor." EITF Issue No.&nbsp;02-16 provides guidance on how resellers of vendors' products should account for cash consideration received from their vendors. The provisions of EITF Issue No.&nbsp;02-16 will apply to arrangements, including modifications of existing arrangements, entered into after December&nbsp;31, 2002. The adoption of EITF 02-16 had no effect on our financial position or results of operations for the quarter ended September 30, 2003.</font></P>
</blockquote>
<ol style="font-family: Times New Roman; font-size: 10pt">
  <li value="5">
    <p align="left"><font size="2">Basic EPS is computed by dividing net earnings (loss) by the weighted average number of shares outstanding during the period. Diluted EPS is computed considering the potentially dilutive effect of outstanding stock options. A reconciliation of the numerator and denominators of the basic and diluted per share computations follows (in thousands, except per share data):</font></li>
</ol>
<CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=576 height="1" cellpadding="0">
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=32><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 HEIGHT=32>
<P ALIGN="CENTER" style="margin-bottom: 0"><font size="2">Nine months ended</font></P>
<U><P ALIGN="CENTER" style="margin-top: 0"><font size="2">September 30,</font></U></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=7>
  </TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=7>
<p align="center">
<U><font size="2">2003</font>
</U></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=7>
<p align="center">
<U><font size="2">2002</font>
</U></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=14>
<P ALIGN="LEFT" style="margin-bottom: 0"><font size="2">Numerator:</font></P>
  </TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14>
  </TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
  </TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=14>
<p ALIGN="left" style="margin-left: 10; margin-top: 0; margin-bottom: 0"><font size="2"> Net Income</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14 align="right">
<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 577</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14 align="right">
<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;
319</font></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=14>
<font size="2">Denominator:</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14 align="right">
  </TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14 align="right">
  </TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=14>
<p ALIGN="left" style="margin-left: 10; margin-top: 0; margin-bottom: 0"><font size="2"> Weighted average shares (Basic)</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14 align="right">
<font size="2">3,722</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14 align="right">
<font size="2">4,639</font></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=14>
<p ALIGN="left" style="margin-left: 10; margin-top: 0; margin-bottom: 0"><font size="2"> Dilutive effect of outstanding options</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14 align="right">
<font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 94</u></font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14 align="right">
<font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</u></font></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=14>
<p ALIGN="left" style="margin-left: 10; margin-top: 0; margin-bottom: 0"></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14 align="right">
  </TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14 align="right">
  </TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=14>
<p ALIGN="left" style="margin-left: 10; margin-top: 0; margin-bottom: 0"><font size="2"> Weighted average shares including assumed conversions (Diluted)</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14 align="right">
<font size="2">3,816</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14 align="right">
<font size="2">4,654</font></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=14>
  </TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14 align="right">
  </TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14 align="right">
  </TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=14>
<font size="2">Basic net income per share</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14 align="right">
<font size="2">$0.16</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14 align="right">
<font size="2">$0.07</font></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=14>
<font size="2">Diluted net income per share</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14 align="right">
<font size="2">$0.15</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14 align="right">
<font size="2">$0.07</font></TD>
</TR>
</TABLE>
</CENTER>

<ol start="6" style="font-family: t; font-size: 10pt">
  <li>
    <p style="margin-bottom: 20" align="left"><font size="2">On September 16, 2003 our Board of Directors declared a quarterly dividend of $.10 per share on our common stock payable October 24, 2003 to shareholders of record on October 6, 2003. Our Board intends to periodically review the amount and frequency of future payments in the light of the Company's operations and need for capital. The dividend is reflected as a reduction of Additional Paid in Capital.</font></li>
  <li>
    <p style="margin-bottom: 20" align="left">  <font size="2">  The Company had one major customer that accounted for 13.6% of total net sales during the quarter ending September 30, 2003, and 7% of total net accounts receivable as of September 30, 2003. The Company had two major vendors that accounted for 29.8% and 16.6% of total purchases during the quarter ending September 30, 2003.</font></li>

  <p align="center">

<font size="2">
Page 7</font>

<FONT SIZE=3>
<p Style='page-break-before:always'>


 </FONT>


<P>


 &nbsp;


 <li>
    <p style="margin-bottom: 20" align="left"><font size="2">For the quarter ended September 30, 2003, the Company recorded a benefit for income taxes of approximately $6,000 and a provision of $52,000 for the nine month period ended September 30, 2003. Both are for Canadian income taxes. For the quarter ended September 30, 2002, the Company recorded a benefit for income taxes of approximately $ 4,000, also for Canadian income taxes. For the nine-month period ended September 30, 2002, the Company recorded a $257,000 income tax benefit. The Job Creation and Worker Assistance Act of 2002 (Job Creation Act), enacted March 9, 2002 temporarily extends the carry back period to five years for losses arising in tax years 2001 and 2002. As a result, the Company filed a carry back claim for a refund in the amount of approximately $315,000. The loss carry forwards offset the provision for income taxes for our U.S. operations.  As of September 30, 2003, the Company had a U.S. deferred tax asset of approximately $6.3 million reflecting, in part, a benefit of $3.1 million in federal and state tax loss carry forwards, which will expire in varying amounts between 2003 and 2022. As a result of the current uncertainty of realizing the benefits of the tax loss carry forward, valuation allowances equal to the tax benefits for the U.S. deferred taxes have been established. The full realization of the tax benefit associated with the carry forward depends predominantly upon the Company's ability to generate taxable income during the carry forward period. The valuation allowance will be evaluated at the end of each reporting period, considering positive and negative evidence about whether the deferred tax asset will be realized. At that time, the allowance will either be increased or reduced; reduction could result in the complete elimination of the allowance if positive evidence indicates that the value of the deferred tax assets is no longer impaired and the allowance is no longer required.  The Company's ability to utilize certain net operating loss carry forwards is restricted to approximately $1.5&nbsp;million per year cumulatively, as a result of an ownership change pursuant to Section&nbsp;382 of the Internal Revenue Code.</font></li>
  <li>
    <p align="left"><font size="2">The Company accounts for stock option plans under the recognition and measurement principles of Accounting Principle Board Opinion No. 25, "Accounting for Stock Issued to Employees" and related interpretations. No stock-based employee compensation cost is reflected in net income, as all options granted under those plans had an exercise price equal to the market value of the underlying common stock on the date of the grant. In accordance with SFAS No. 148, the effect on net income and net income per share if the Company had applied the fair value recognition provisions of SFAS No. 123 to stock-based employee compensation is as follows:</font></li>
</ol>
<TABLE BORDER="0" CELLSPACING=0 WIDTH=600 cellpadding="0" height="277">
<TR><TD WIDTH="346" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="10" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="112" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=21>
<P ALIGN="CENTER"><font size="2">Nine months ended</font></TD>
<TD WIDTH="10" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="112" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=21>
<P ALIGN="CENTER"><font size="2">Three months ended</font></TD>
</TR>
<TR><TD WIDTH="346" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="10" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="112" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=21>
<P ALIGN="CENTER"><font size="2">September 30,</font></TD>
<TD WIDTH="10" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="112" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=21>
<P ALIGN="CENTER"><font size="2">September 30,</font></TD>
</TR>
<TR><TD WIDTH="346" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="10" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="53" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="CENTER"><font size="2"><u>2003</u></font></TD>
<TD WIDTH="57" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="CENTER"><font size="2"><u>2002</u></font></TD>
<TD WIDTH="10" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="52" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="CENTER"><font size="2"><u>2003</u></font></TD>
<TD WIDTH="58" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="CENTER"><font size="2"><u>2002</u></font></TD>
</TR>
<TR><TD WIDTH="346" VALIGN="BOTTOM" HEIGHT=21>
<P><font size="2">Net income - as reported</font></TD>
<TD WIDTH="10" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="53" VALIGN="BOTTOM" HEIGHT=21 align="right">
<P><font size="2">577</font></TD>
<TD WIDTH="57" VALIGN="BOTTOM" HEIGHT=21 align="right">
<P><font size="2">319</font></TD>
<TD WIDTH="10" VALIGN="BOTTOM" HEIGHT=21 align="right"><P></P></TD>
<TD WIDTH="52" VALIGN="BOTTOM" HEIGHT=21 align="right">
<P><font size="2">333</font></TD>
<TD WIDTH="58" VALIGN="BOTTOM" HEIGHT=21 align="right">
<P><font size="2">(210)</font></TD>
</TR>
<TR><TD WIDTH="346" VALIGN="BOTTOM" HEIGHT=47>
<P><font size="2">Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards, net of related tax effects</font></TD>
<TD WIDTH="10" VALIGN="BOTTOM" HEIGHT=47><P></P></TD>
<TD WIDTH="55" VALIGN="BOTTOM" HEIGHT=47 align="right">
<P><u><font size="2">&nbsp;(31)</font></u></TD>
<TD WIDTH="59" VALIGN="BOTTOM" HEIGHT=47 align="right">
<P><u><font size="2">&nbsp;(176)</font></u></TD>
<TD WIDTH="10" VALIGN="BOTTOM" HEIGHT=47 align="right"><P></P></TD>
<TD WIDTH="54" VALIGN="BOTTOM" HEIGHT=47 align="right">
<P><u><font size="2">&nbsp;(10)</font></u></TD>
<TD WIDTH="60" VALIGN="BOTTOM" HEIGHT=47 align="right">
<P><u><font size="2">&nbsp;(59)</font></u></TD>
</TR>
<TR><TD WIDTH="346" VALIGN="top" HEIGHT=21>
<P><font size="2">Pro forma net income</font></TD>
<TD WIDTH="10" VALIGN="top" HEIGHT=21><P></P></TD>
<TD WIDTH="55" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">&nbsp; 546<br>
========</font></TD>
<TD WIDTH="59" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">&nbsp; 143<br>
========</font></TD>
<TD WIDTH="10" VALIGN="top" HEIGHT=21 align="right"><P></P></TD>
<TD WIDTH="54" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">&nbsp; 323<br>
========</font></TD>
<TD WIDTH="60" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">&nbsp; (269<br>
========</font></TD>
</TR>
<TR><TD WIDTH="346" VALIGN="BOTTOM" HEIGHT=21>
<P><font size="2">Net income per share:</font></TD>
<TD WIDTH="10" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="53" VALIGN="BOTTOM" HEIGHT=21 align="right"><P></P></TD>
<TD WIDTH="57" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="10" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="52" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="58" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
</TR>
<TR><TD WIDTH="346" VALIGN="top" HEIGHT=21>
<P><font size="2">Basic earnings per share - as reported</font></TD>
<TD WIDTH="10" VALIGN="top" HEIGHT=21><P></P></TD>
<TD WIDTH="55" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">$ 0.16<br>
========</font></TD>
<TD WIDTH="59" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">$ 0.07<br>
========</font></TD>
<TD WIDTH="10" VALIGN="top" HEIGHT=21 align="right"><P></P></TD>
<TD WIDTH="54" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">$ 0.09<br>
========</font></TD>
<TD WIDTH="60" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">$ (0.05)<br>
========</font></TD>
</TR>
<TR><TD WIDTH="346" VALIGN="top" HEIGHT=20>
<P><font size="2">Basic earnings per share - pro forma</font></TD>
<TD WIDTH="10" VALIGN="top" HEIGHT=20><P></P></TD>
<TD WIDTH="53" VALIGN="top" HEIGHT=20 align="right">
<P><font size="2">$ 0.15<br>
========</font></TD>
<TD WIDTH="57" VALIGN="top" HEIGHT=20 align="right">
<P><font size="2">$ 0.03<br>
========</font></TD>
<TD WIDTH="10" VALIGN="top" HEIGHT=20 align="right"><P></P></TD>
<TD WIDTH="52" VALIGN="top" HEIGHT=20 align="right">
<P><font size="2">$ 0.09<br>
========</font></TD>
<TD WIDTH="58" VALIGN="top" HEIGHT=20 align="right">
<P><font size="2">$ (0.06)<br>
========</font></TD>
</TR>
<TR><TD WIDTH="346" VALIGN="top" HEIGHT=21>
<P><font size="2">Net income per share:</font></TD>
<TD WIDTH="10" VALIGN="top" HEIGHT=21><P></P></TD>
<TD WIDTH="53" VALIGN="top" HEIGHT=21 align="right"><P></P></TD>
<TD WIDTH="57" VALIGN="top" HEIGHT=21><P></P></TD>
<TD WIDTH="10" VALIGN="top" HEIGHT=21><P></P></TD>
<TD WIDTH="52" VALIGN="top" HEIGHT=21><P></P></TD>
<TD WIDTH="58" VALIGN="top" HEIGHT=21><P></P></TD>
</TR>
<TR><TD WIDTH="346" VALIGN="top" HEIGHT=21>
<P><font size="2">Diluted earnings per share - as reported</font></TD>
<TD WIDTH="10" VALIGN="top" HEIGHT=21><P></P></TD>
<TD WIDTH="53" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">$ 0.15<br>
========</font></TD>
<TD WIDTH="57" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">$ 0.07<br>
========</font></TD>
<TD WIDTH="10" VALIGN="top" HEIGHT=21 align="right"><P></P></TD>
<TD WIDTH="52" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">$ 0.09<br>
========</font></TD>
<TD WIDTH="58" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">$ (0.05)<br>
========</font></TD>
</TR>
<TR><TD WIDTH="346" VALIGN="top" HEIGHT=21>
<P><font size="2">Diluted earnings per share - pro forma</font></TD>
<TD WIDTH="10" VALIGN="top" HEIGHT=21><P></P></TD>
<TD WIDTH="53" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">$ 0.14<br>
========</font></TD>
<TD WIDTH="57" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">$ 0.03<br>
========</font></TD>
<TD WIDTH="10" VALIGN="top" HEIGHT=21 align="right"><P></P></TD>
<TD WIDTH="52" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">$ 0.09<br>
========</font></TD>
<TD WIDTH="58" VALIGN="top" HEIGHT=21 align="right">
<P><font size="2">$ (0.06)<br>
========</font></TD>
</TR>
</TABLE>

<p align="center">
<font size="2">
Page 8</font>
<p Style='page-break-before:always'>

<P>

<B>
<P><font size="2">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.</font></P>
<P ALIGN="LEFT"><font size="2">Overview</font></P>
</B>
<P align="left"><font size="2">Programmer's Paradise, Inc. operates in one primary business segment: the marketing of technical software and hardware for microcomputers, servers and networks in the United States and Canada.</font> </P>

<P align="left"><font size="2">We offer a wide variety of technical and general business application software and PC hardware and components from a broad range of publishers and manufacturers. We market our products through our catalogs, direct mail programs and advertisements in trade magazines as well as through Internet and e-mail promotions. Through our wholly owned subsidiary, Lifeboat Distribution Inc., we distribute marketed products to dealers and resellers in the United States and Canada.</font> </P>
<P align="left"><font size="2">The Company's sales and results of operations have fluctuated and are expected to continue to fluctuate on a quarterly basis as a result of a number of factors, including: the condition of the software industry in general; shifts in demand for software products; industry shipments of new software products or upgrades; the timing of new merchandise and catalog offerings; fluctuations in response rates; fluctuations in postage, paper, shipping and printing costs and in merchandise returns; adverse weather conditions that affect response, distribution or shipping; shifts in the timing of holidays; and changes in the Company's product offerings. The Company's operating expenditures are based on sales forecasts. If revenues do not meet expectations in any given quarter, operating results may be materially adversely affected.</font> </P>
<B><P ALIGN="LEFT" style="margin-top: 0"><font size="2">Results of Operations</font></P>
</B>
<P align="left"><font size="2">The following table sets forth for the periods indicated certain financial information derived from the Company's consolidated statement of operations expressed as a percentage of net sales.</font></P>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=600 height="306" cellpadding="0">
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=32><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2 HEIGHT=32>
<P ALIGN="CENTER" style="margin-bottom: 0"><font size="2">Nine months ended</font></P>
<U><P ALIGN="CENTER" style="margin-top: 0"><font size="2">September 30,</font></U></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2 HEIGHT=32>
<P ALIGN="CENTER" style="margin-bottom: 0"><font size="2">Three months ended</font></P>
<U><P ALIGN="CENTER" style="margin-top: 0; margin-bottom: 0"><font size="2">September 30,</font></U></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
  </TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13 align="center">
<u><font size="2">2003</font></u></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="center">
<u><font size="2">2002</font></u></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="center">
<u><font size="2">2003</font></u></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13 align="center">
<u><font size="2">2002</font></u></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
  </TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13>
  </TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
  </TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
  </TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13>
  </TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
<font size="2">Net sales</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">100.0%</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">100.0%</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">100.0%</font></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">100.0%</font></TD>
</TR>
<tr>
  <TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
<font size="2">Cost of sales</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">
<u>87.1</u></font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>87.0&nbsp;</u></font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>87.5</u></font></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>87.2</u></font></TD>
</tr>
<tr>
  <TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
<font size="2">Gross profit</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">
12.9</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">13.0&nbsp;</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">12.5</font></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">12.8</font></TD>
</tr>
<tr>
  <TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
<font size="2">Selling, general and administrative expenses</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">
11.9</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">12.8&nbsp;</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">10.9</font></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">13.2</font></TD>
</tr>
<tr>
  <TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
<font size="2">Litigation settlement</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">&nbsp;<u>0.7</u></font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp; -</u></font></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>2.2</u></font></TD>
</tr>
<tr>
  <TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
<font size="2">Income (loss) from operations</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">
1.0</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">&nbsp;(0.5)</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">1.6</font></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">(2.6)</font></TD>
</tr>
<tr>
  <TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
<font size="2">Interest income, net</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">
0.2</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">0.4</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">0.2</font></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">0.9</font></TD>
</tr>
<tr>
  <TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
<font size="2">Realized gain on sale of available-for-sale securities</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">&nbsp;-</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">0.2</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
  </TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13 align="right">
  </TD>
</tr>
<tr>
  <TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
<font size="2">Foreign currency transaction gain</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">
<u>0.1</u></font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">&nbsp;<u>0.0</u></font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp; -</u></font></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>0.4</u></font></TD>
</tr>
<tr>
  <TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
<font size="2">Income (loss) before income taxes</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">
1.3&nbsp;</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">&nbsp;0.1</font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">1.8</font></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">(1.3)</font></TD>
</tr>
<tr>
  <TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
<font size="2">Provision (benefit) for income taxes</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13 align="right">
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>0.1</u></font></p>
  </TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>(0.5)</u></font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp; -</u></font></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></font></TD>
</tr>
<tr>
  <TD WIDTH="48%" VALIGN="TOP" HEIGHT=13>
<font size="2">Net income</font></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2">&nbsp;<u>1.2%</u></font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>0.6%</u></font></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>1.8%</u></font></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13 align="right">
<font size="2"><u>(1.3)%</u></font></TD>
</tr>
</TABLE>

<P align="left"><b><font size="2">Net Sales</font></b> </P>
<P align="left"><font size="2">Net sales in the third quarter of 2003 increased 16% or $2.6 million to $18.4 million compared to $15.8 million for the same period in 2002. The increase in revenue is mainly due to increased productivity per account representative. For the nine month period ended September 30, 2003, net sales decreased by $0.7 million or 1% over the nine months ended September 30, 2002. The revenue decline primarily reflects the continued difficult business environment.</font> </P>
<P align="left"><font size="2">On a forward-looking basis, the overall market demand for the software we sell continues to be volatile with the timing and extent of the market's recovery remaining uncertain.</font> </P>

<p align="center">

<font size="2">

Page 9</font>

<FONT SIZE=3>

<p Style='page-break-before:always'>

<P>

<B>
</B>
</FONT>

<B>
<P ALIGN="LEFT"><font size="2">Gross Profit</font></P>
</B>
<P align="left"><font size="2">Gross profit as a percentage of net sales decreased to 12.5% for the quarter ended September 30, 2003, compared to 12.8% for the same period in 2002. Gross profit in absolute dollars for the three-month period ended September 30, 2003 was $2.3 million as compared to $2.0 million for the same period in 2002. This was primarily due to the increase in revenue discussed above.</font> </P>
<P align="left"><font size="2">For the nine month period ended September 30, 2003, gross profit decreased by $0.1 million as compared to the same period in 2002. This decrease in gross profit dollars is a result of our slightly lower sales on a year-to-date basis. On a forward-looking basis, gross profit margin in future periods may be less than the 12.5% achieved in the third quarter and in the first nine months of 2003. Gross profit margin depends on various factors, including the continued participation by vendors in inventory price protection and rebate programs, product mix, including software maintenance and third party services, pricing strategies, market conditions and other factors, any of which could result in a reduction of gross margins below those realized in the third quarter of 2003.</font></P>
<B><P ALIGN="LEFT" style="margin-top: 0"><font size="2">Selling, General and Administrative Expenses</font></P>
</B>
<P align="left"><font size="2">SG&amp;A expenses for the quarter ended September 30, 2003 were $2 million as compared to $2.1 million for the same period in 2002, a decrease of $0.1 million or 4%. For the nine month period ended September 30, 2003, SG&amp;A expenses decreased by $0.5 million or 8%. This decrease was primarily due to lower personnel-related expenses, cost containment initiatives and improved cost control policies and procedures.</font></P>
<P align="left"><font size="2">In light of current business conditions, we will continue to review our organization and cost structure in an effort to further reduce operating expenses and improve efficiencies.</font> </P>
<B>
<P ALIGN="LEFT"><font size="2">Litigation settlement</font></P>
</B>
<P align="left"><font size="2">Pursuant to an Agreement, dated December&nbsp;1, 2000 ("Stock Sale Agreement"), between the Company and PC-Ware Information Technologies AG, a German corporation ("PC-Ware"), on January&nbsp;9, 2001 the Company sold all of the shares of its European subsidiaries for 14,500,000 Euros, subject to post-closing adjustments, including finalization of the closing balance sheet, in accordance with the Stock Sale Agreement.  As security for any claim of PC-Ware arising from alleged breaches of representations by the Company under the Stock Sale Agreement, 2,665,836 Euros (the equivalent of $2,628,514) were being held in an escrow account as per September 30, 2002. In September 2001, PC-Ware made claims aggregating 2,490,127 Euros against the escrow.</font>  </P>
<P align="left"><font size="2">On October 1, 2002, the claims brought against the Company by PC-Ware were settled for 435,000 Euros (the equivalent of $428,910). Associated fees, comprising of counsel fees, expert witness fees, arbitration fees, consultancy fees paid to the
Company'</font><font size="2">s previous Chief Financial Officer, and travel and related expenses, amounted to $269,000. This settlement amount and associated fees amounted to $698,000 in the third quarter of 2002. Since the Company had established reserves of $350,000 for this claim in the fourth quarter of 2001, the Company reported an additional $348,000 for this settlement and associated fees in the third quarter of 2002. A total amount of $698,000 was reported as other current liabilities as of September 30, 2002. All fees and the settlement were paid in the fourth quarter of 2002.</font></P>

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<B>
</B>
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<B>
<P ALIGN="LEFT"><font size="2">Foreign currency transactions Gain (Loss)</font></P>
</B>
<P align="left"><font size="2">The realized foreign exchange loss for the quarter ended September 30, 2003 was $9,000 compared to a loss of $2,000 for the same period in 2002. For the nine month period ended September 30, 2003, the realized foreign exchange gain was $71,000 as compared to a loss of $9,000 for the same period in 2002. Foreign exchange gains and losses primarily result from our trade activity with our Canadian subsidiary. Although the Company does maintain bank accounts in Canadian currencies to reduce currency exchange fluctuations, the Company is, nevertheless, subject to risks associated with such fluctuations.</font></P>
<B>
<P ALIGN="LEFT"><font size="2">Income Taxes</font></P>
</B>
<P align="left"><font size="2">For the quarter ended September 30, 2003, the Company recorded a benefit for income taxes of approximately $6,000 and a provision of $52,000 for the nine month period ended September 30, 2003. Both are for Canadian income taxes. For the quarter ended September 30, 2002, the Company recorded a benefit for income taxes of approximately $ 4,000, also for Canadian income taxes. For the nine-month period ended September 30, 2002, the Company recorded a $257,000 income tax benefit. The Job Creation and Worker Assistance Act of 2002 (Job Creation Act), enacted March 9, 2002 temporarily extends the carry back period to five years for losses arising in tax years 2001 and 2002. As a result, the Company filed a carry back claim for a refund in the amount of approximately $315,000.</font></P>
<P align="left"><font size="2">The loss carry forwards offset the provision for income taxes for our U.S. operations.  As of September 30, 2003, the Company had a U.S. deferred tax asset of approximately $6.3 million reflecting, in part, a benefit of $3.1 million in federal and state tax loss carry forwards, which will expire in varying amounts between 2003 and 2022. As a result of the current uncertainty of realizing the benefits of the tax loss carry forward, valuation allowances equal to the tax benefits for the U.S. deferred taxes have been established. The full realization of the tax benefit associated with the carry forward depends predominantly upon the Company's ability to generate taxable income during the carry forward period. The valuation allowance will be evaluated at the end of each reporting period, considering positive and negative evidence about whether the deferred tax asset will be realized.</font> </P>
<P align="left"><font size="2">At that time, the allowance will either be increased or reduced; reduction could result in the complete elimination of the allowance if positive evidence indicates that the value of the deferred tax assets is no longer impaired and the allowance is no longer required.  The
Company'</font><font size="2">s ability to utilize certain net operating loss carry forwards is restricted to approximately $1.5&nbsp;million per year cumulatively, as a result of an ownership change pursuant to Section&nbsp;382 of the Internal Revenue Code.</font></P>
<B>
<P ALIGN="LEFT"><font size="2">Liquidity and Capital Resources</font></P>
</B>
<P align="left"><font size="2">During the first nine months of 2003, our cash and cash equivalents decreased by $0.8 million to $5.3 million at September 30, 2003, from $6.1 million at December 31, 2002.  Net cash provided by operating activities amounted to $1.5 million; net cash used for investing activities amounted to $1.4 million and cash used for financing activities amounted to $1.1 million.</font> </P>
<P align="left"><font size="2">Net cash provided by operating activities in the first nine months of 2003 was $1.5 million and primarily resulted from our net income of $577,000, from a $ 0.4 million decrease in inventory and from a $0.4 million increase in accounts payable and accrued expenses. This was partly offset by a $90,000 increase in accounts receivable and a $84,000 increase in prepaid expenses and other current assets. The slight increase in accounts receivable relates primarily to our increased revenue. Days sales outstanding remained flat at 31 days as per September 30, 2003 as compared to 31 days as per September 30, 2002. The increase in accounts payable is primarily due to our increased revenue and our normal cycle of payments.</font> </P>
<P align="left"><font size="2">Net cash used for investing activities in the first nine months of 2003 amounted to $1.4 million. As a result of the current low interest rates on our short-term savings accounts we decided to invest $2 million in corporate bonds and an additional $1.3 million in U.S. Government securities. These securities are highly rated and highly liquid.</font> </P>

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&nbsp;

<P align="left"><font size="2">These securities are classified as available-for-sale securities in accordance with SFAS 115, and as a result unrealized gains and losses are reported as part of other comprehensive income (loss). For the nine months ending September 30, 2003, the unrealized gains on our total investment portfolio amounted to $16,000.</font></P>

<P align="left"><font size="2">Net cash used for financing activities in the first nine months of 2003 of $1.1 million consisted of the $0.7 million payment of our declared dividends and of the purchase of 172,394 shares of our own stock under the buyback program discussed below.</font> </P>

<P align="left"><font size="2">On October 9, 2002, the Company's Board of Directors authorized the purchase of 500,000 shares of our common stock. On September 16, 2002, the Company's Board of Directors authorized the purchase of 500,000 shares of our common stock.  These two purchase approvals are in addition to approval of 490,000 shares in September 2002 and 521,013 shares in October 1999 the company was authorized to buy back in both open market and private transactions, as conditions warrant.</font> </P>
<P align="left"><font size="2">The repurchase program is expected to remain effective for the remainder of 2003. We intend to hold the repurchased shares in treasury for general corporate purposes, including issuances under various stock option plans. As of September 30, 2003, we owned 1,561,970 shares purchased at an average cost of $2.92. In the first nine months of 2003, we repurchased 172,394 shares of company stock at an average share price of $2.18. In the quarter ended September 30, 2003 we repurchased 1,325 shares of company stock at an average share price of $3.45.</font></P>

<P align="left"><font size="2">The Company'</font><font size="2">s current and anticipated use of its cash and cash equivalents is, and will continue to be, to fund working capital, operational expenditures, the stock buyback program and dividends if declared by the board of directors. Our business plan furthermore contemplates to continue to use our cash to pay vendors promptly in order to obtain more favorable conditions.</font></P>
<P align="left"><font size="2">The Company believes that the funds held in cash and cash equivalents will be sufficient to fund the
Company'</font><font size="2">s working capital and cash requirements for at least the next 12 months.  We currently do not have any credit facility and, in the foreseeable future, we do not plan to enter into an agreement providing for a line of credit.</font></P>
<B><P ALIGN="LEFT" style="margin-top: 0"><font size="2">Critical Accounting Policies and Estimates</font> </P>
</B>
<P align="left"><font size="2">The Company'</font><font size="2">s discussion and analysis of its financial condition and results of operations are based upon the
Company'</font><font size="2">s consolidated financial statements that have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. The Company recognizes revenue from the sale of software and hardware for microcomputers, servers and networks upon shipment or upon electronic delivery of the product. The Company expenses the advertising costs associated with producing its catalogs. The costs of these catalogs are expensed in the same month the catalogs are mailed.</font>  </P>
<P align="left"><font size="2">On an on-going basis, the Company evaluates its estimates, including those related to product returns, bad debts, inventories, investments, intangible assets, income taxes, restructuring and contingencies and litigation.</font></P>

<P align="left"><font size="2">The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.</font> </P>

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&nbsp;

<P align="left"><font size="2">The Company records revenues from sales transactions when title to products sold passes to the customer. The
Company'</font><font size="2">s shipping terms dictate that the passage of title occurs upon receipt of products by the customer. The majority of the Company's revenues relates to physical products and is recognized on a gross basis with the selling price to the customer recorded as net sales with the acquisition cost of the product to the Company recorded as cost of sales. At the time of sale, the Company also records an estimate for sales returns based on historical experience. Software maintenance products, third party services and extended warranties sold by the Company (for which the Company is not the primary obligor) are recognized on a net basis in accordance with SAB 101, "Revenue Recognition" and EITF 99-19, "Reporting Revenue Gross as a Principal versus Net as an Agent". Accordingly, such revenues are recognized in net sales either at the time of sale or over the contract period, based on the nature of the contract, at the net amount retained by the Company, with no cost of goods sold. In accordance with EITF 00-10, "Accounting for Shipping and Handling Fees and Costs", the Company records freight billed to its customers as net sales and the related freight costs as a cost of sales.</font></P>
<P align="left"><font size="2">In accordance with EITF 02-16, "Accounting for Consideration Received from a Vendor by a Customer (Including a Reseller of the Vendor's Products)," consideration from vendors, such as advertising support funds, are accounted for as a reduction to cost of sales unless certain requirements are met showing that the vendor receives an identifiable fair value in exchange for the consideration. If these specific requirements related to individual vendors are met, the consideration is accounted for as revenue.</font> </P>
<P align="left"><font size="2">The Company believes the following critical accounting policies used in the preparation of its consolidated financial statements affect its more significant judgments and estimates. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company writes down its inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-offs may be required.</font> </P>
<P align="left"><font size="2">The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. While the Company has considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for the valuation allowance, in the event the Company were to determine that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, an adjustment to the deferred tax asset would increase income in the period such determination was made.</font> </P>

<B><P ALIGN="LEFT"><font size="2">Certain Factors Affecting Operating Results</font></P>
</B>
<P align="left"><font size="2">This report includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this report regarding future events or conditions, including statements regarding industry prospects and the
Company'</font><font size="2">s expected financial position, business and financing plans, are
forward-looking statements. 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. We strongly urge current and prospective investors to carefully consider the cautionary statements and risks contained in this Report. Such risks include, but are not limited to, the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, contribution of key vendor relationships and support programs, as well as factors that affect the software industry in general.</font></P>
<P align="left"><font size="2">The Company operates in a rapidly changing business, and new risk factors emerge from time to time. Management cannot predict every risk factor, nor can it assess the impact, if any, of all such risk factors on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those projected in any forward-looking statements.</font> </P>

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&nbsp;

<P align="left"><font size="2">Accordingly, forward-looking statements should not be relied upon as a prediction of actual results and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.</font></P>
<P align="left"><font size="2">The statement concerning future sales and future Gross Profit Margin are forward looking statements involving certain risks and uncertainties such as availability of products, product mix, market conditions and other factors, which could result in a fluctuation of sales below recent experience.</font></P>
<I><P style="margin-top: 0" align="left"><font size="2">Stock Volatility. </font> </I><font size="2">The technology sector of the United States stock markets has experienced substantial volatility in recent periods. Numerous conditions, which impact the technology sector or the stock market in general or the Company in particular, whether or not such events relate to or reflect upon the Company's operating performance, could adversely affect the market price of the Company's Common Stock.</font> </P>
<P align="left"><font size="2">Furthermore, fluctuations in the Company's operating results, announcements regarding litigation, the loss of a significant vendor, increased competition, reduced vendor incentives and trade credit, higher postage and operating expenses, and other developments, could have a significant impact on the market price of the Company's Common Stock.</font></P>
<B><P ALIGN="LEFT" style="margin-top: 0"><font size="2">Item 3. Quantitative and Qualitative Disclosures about Market Risk</font></P>
</B><P style="margin-top: 0" align="left"><font size="2">In addition to its activities in the United States, the Company also conducts business in Canada. We are subject to general risks attendant to the conduct of business in Canada, including economic uncertainties and foreign government regulations. In addition, the Company's Canadian business is subject to changes in demand or pricing resulting from fluctuations in currency exchange rates or other factors.</font></P>
<P align="left"><font size="2">The Company's $6.4 million investments in marketable securities are only in highly rated and highly liquid corporate bonds and U.S. government Securities. The remaining cash balance is invested in short-term savings accounts with our primary bank, The Bank of New York. As such, the risk of significant changes in the value of our cash invested is minimal.</font> </P>
<B>
<P ALIGN="LEFT"><font size="2">Item 4. Controls and Procedures</font> </P>
</B><P align="left"><font size="2">As required by Rule 13a-15(b), the Company's management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation as of the end of the period covered by this report, of the effectiveness of the Company's disclosure controls and procedures as defined in Exchange Act Rule 13a-15(e). Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by this report.  It should be noted that the design of any system of controls is based in part upon certain assumptions and can provide only reasonable, and not absolute, assurance that the objective s of the system are met. As required by Rule 13a-15(d), the Company's management, including the Chief Executive Officer and Chief Financial Officer, also conducted an evaluation of the Company's internal control over financial reporting to determine whether any changes occurred during the quarter covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.  Based on that evaluation, there has been no such change during the quarter covered by this report.</font></P>

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<B><P ALIGN="LEFT" style="margin-top: 0"><font size="2">PART II - OTHER INFORMATION</font></P>
<P ALIGN="LEFT"><font size="2">Item 6. Exhibits and Reports on Form 8-K</font></P>
</B>
<TABLE CELLSPACING=1 BORDER=0 WIDTH=600>
<TR><TD WIDTH="38" VALIGN="TOP">
  </TD>
  <TD WIDTH="20" VALIGN="TOP">
<P><font size="2">(a)</font></TD>
<TD WIDTH="60" VALIGN="TOP">
<P style="margin-top: 0"><font size="2">Exhibits.</font></TD>
<TD WIDTH="467" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
</TR>
<TR><TD WIDTH="38" VALIGN="TOP"></TD>
  <TD WIDTH="20" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="60" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">31.1</font></TD>
<TD WIDTH="467" VALIGN="TOP">
<P ALIGN="LEFT" style="margin-bottom: 15"><font size="2">Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, of William H. Willett, the Chief Executive Officer of the Company.</font></TD>
</TR>
<TR><TD WIDTH="38" VALIGN="TOP"></TD>
  <TD WIDTH="20" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="60" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">31.2</font></TD>
<TD WIDTH="467" VALIGN="TOP">
<P ALIGN="LEFT" style="margin-bottom: 15"><font size="2">Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, of Simon F. Nynens, the Chief Financial Officer of the Company.</font></TD>
</TR>
<TR><TD WIDTH="38" VALIGN="TOP"></TD>
  <TD WIDTH="20" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="60" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">32.1</font></TD>
<TD WIDTH="467" VALIGN="TOP">
<P ALIGN="LEFT" style="margin-bottom: 15"><font size="2">Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of William H. Willett, the Chief Executive Officer of the Company.</font></TD>
</TR>
<TR><TD WIDTH="38" VALIGN="TOP"></TD>
  <TD WIDTH="20" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="60" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">32.2</font></TD>
<TD WIDTH="467" VALIGN="TOP">
<P ALIGN="LEFT" style="margin-bottom: 15"><font size="2">Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Simon F. Nynens, the Chief Financial Officer of the Company.</font></TD>
</TR>
<TR><TD WIDTH="38" VALIGN="TOP">
  </TD>
  <TD WIDTH="20" VALIGN="TOP">
<P><font size="2">(b)</font></TD>
<TD WIDTH="533" VALIGN="TOP" COLSPAN=2>
<P style="margin-bottom: 15"><font size="2">Reports on Form 8-K</font></TD>
</TR>
<TR><TD WIDTH="38" VALIGN="TOP"></TD>
  <TD WIDTH="20" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="533" VALIGN="TOP" COLSPAN=2>
<P><font size="2">Current Report on Form 8-K (Items 9 and 12) filed on August 1, 2003, attaching a press release announcing the Company's financial results for the quarter ended June 30, 2003.</font></TD>
</TR>
</TABLE>

<B>
<P ALIGN="CENTER"><font size="2">SIGNATURES</font></P>
</B>

<P ALIGN="LEFT"><font size="2">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>

<P ALIGN="LEFT"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PROGRAMMER'S PARADISE, INC.</font></P>

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<P ALIGN="LEFT">&nbsp;</P>
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<TABLE BORDER="0" CELLSPACING=1 WIDTH=600>
<TR><TD WIDTH="46%" VALIGN="TOP">
<P ALIGN="LEFT" style="margin-top: 0"><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
October 30, 2003&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></TD>
<TD WIDTH="8%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">By:</font></TD>
<TD WIDTH="41%" VALIGN="TOP"><font size="2"><u>/s/ William H.
  Willett&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Date</font></TD>
<TD WIDTH="8%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="46%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="LEFT"><font size="2">William H. Willett,</font></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="8%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="46%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="LEFT"><font size="2">Chairman of the Board, President</font></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="8%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="46%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="LEFT"><font size="2">and Chief Executive Officer</font></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="8%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="46%" VALIGN="TOP" COLSPAN=2><font size="2">&nbsp;</font></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="8%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="46%" VALIGN="TOP" COLSPAN=2><font size="2">&nbsp;</font></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP">
<P ALIGN="LEFT">
<u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; October 30, 2003&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></TD>
<TD WIDTH="8%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">By:</font></TD>
<TD WIDTH="41%" VALIGN="TOP"><font size="2"><u>/s/ Simon F. Nynens&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP">
<P ALIGN="LEFT"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Date</font></TD>
<TD WIDTH="8%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="46%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="LEFT"><font size="2">Simon F. Nynens,</font></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="8%" VALIGN="TOP"><font size="2">&nbsp;</font></TD>
<TD WIDTH="46%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="LEFT"><font size="2">Chief Financial Officer and Vice President</font></TD>
</TR>
</TABLE>


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<TYPE>EX-31
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<FILENAME>ppi305457ex31_1.htm
<DESCRIPTION>EXHIBIT 31.1 CERTIFICATION
<TEXT>
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<U><P ALIGN="RIGHT"><font size="2">Exhibit 31.1</font></P>
</U>
<B><P><u><font size="2">CERTIFICATION</font></u></P>
</B>
<P><font size="2">I, William H. Willett, certify that:</font></P>

<P align="left"><font size="2">1.  I have reviewed this quarterly report on Form 10-Q of Programmer's Paradise, Inc.;</font></P>

<P align="left"><font size="2">2. Based on my knowledge, this 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 report;</font> </P>

<P align="left"><font size="2">3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</font> </P>

<P align="left"><font size="2">4.  The registrant's other certifying officer(s) and I are 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>
<blockquote>

<P align="left"><font size="2">(a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></P>

<P align="left"><font size="2">(b)  Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based upon such evaluation; and</font></P>

<P align="left"><font size="2">(c)  Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and</font></P>
</blockquote>

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

<blockquote>

<P align="left"><font size="2">(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</font></P>

<P align="left"><font size="2">(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</font></P>

</blockquote>


<FONT SIZE=3>
<P>&nbsp;</P>
</FONT>

<P><font size="2">Date: October 30, 2003</font></P>
<P style="margin-bottom: 0"><font size="2"><u>/s/ William H.
Willett&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></P>
<P style="margin-top: 0"><font size="2">William H.Willett<BR>
Chief Executive Officer</font></P>

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<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>4
<FILENAME>ppi305457ex31_2.htm
<DESCRIPTION>EXHIBIT 31.2 CERTIFICATION
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<U><P ALIGN="RIGHT"><font size="2">Exhibit 31.2</font></P>
<B><P><font size="2">CERTIFICATION</font></P>
</B></U>
<P><font size="2">I, Simon F. Nynens, certify that:</font></P>

<P align="left"><font size="2">1.  I have reviewed this quarterly report on Form 10-Q of Programmer's Paradise, Inc.;</font></P>
<P align="left"><font size="2">2.  Based on my knowledge, this 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 report;</font> </P>
<P align="left"><font size="2">3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</font> </P>
<P align="left"><font size="2">4.  The registrant's other certifying officer(s) and I are 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>
<blockquote>

<P align="left"><font size="2">(a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></P>
<P align="left"><font size="2">(b)  Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based upon such evaluation; and</font></P>
<P align="left"><font size="2">(c)  Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and</font></P>
</blockquote>

<P align="left"><font size="2">5.  The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):</font></P>
<blockquote>

<P align="left"><font size="2">(a)  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</font></P>
<P align="left"><font size="2">(b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</font></P>
</blockquote>

<P ALIGN="LEFT" style="margin-bottom: 0"><font size="2">Date:  October 30, 2003</font></P>

<P ALIGN="LEFT" style="margin-top: 0">&nbsp;</P>
  <FONT SIZE=2>
<P ALIGN="LEFT" style="margin-bottom: 0"><u>/s/ Simon F. Nynens&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></P>
</FONT>
<P style="margin-top: 0"><font size="2">Simon F. Nynens<BR>
Chief Financial Officer</font></P>

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<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>5
<FILENAME>ppi305457ex32_1.htm
<DESCRIPTION>EXHIBIT 32.1 CERTIFICATION
<TEXT>
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<U><P ALIGN="RIGHT"><font size="2">Exhibit 32.1</font></P>
</U>
  <FONT SIZE=3>

<P ALIGN="CENTER">&nbsp;</P>
</FONT>
<P ALIGN="CENTER" style="margin-top: 0; margin-bottom: 0"><font size="2">CERTIFICATION PURSUANT TO</font></P>
<P ALIGN="CENTER" style="margin-top: 0; margin-bottom: 0"><font size="2">18 U.S.C. SECTION 1350,</font></P>
<P ALIGN="CENTER" style="margin-top: 0; margin-bottom: 0"><font size="2">AS ADOPTED PURSUANT TO</font></P>
<P ALIGN="CENTER" style="margin-top: 0"><font size="2">SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></P>
  <FONT SIZE=3>

<P ALIGN="CENTER">&nbsp;</P>
</FONT>
<P align="left"><font size="2">In connection with the Quarterly Report of Programmer's Paradise, Inc. (the "Company") on Form 10-Q for the period ending September 30, 2003 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, William H. Willett, Chief Executive Officer of the Company, certify, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:</font></P>
<P align="left"><font size="2">(1)  The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></P>

<P align="left"><font size="2">(2)  The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</font></P>

  <FONT SIZE=3>

<P>&nbsp;</P>
</FONT>
<P style="margin-top: 0; margin-bottom: 0"><font size="2"><u>/s/ William H.
Willett&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></P>
<P style="margin-top: 0; margin-bottom: 0"><font size="2">William H. Willett</font></P>
<P style="margin-top: 0; margin-bottom: 0"><font size="2">Chief Executive Officer</font></P>
<P style="margin-top: 0; margin-bottom: 0"><font size="2">October 30, 2003</font></P>

  <FONT SIZE=3>

<P>&nbsp;</P>
</FONT>
<I><P align="left"><font size="2">A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by Company and furnished to the Securities and Exchange Commission or its staff upon request.</font></P>

  <FONT SIZE=3>

<P ALIGN="RIGHT">&nbsp;</P>
</FONT>
</I>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>6
<FILENAME>ppi305457ex32_2.htm
<DESCRIPTION>EXHIBIT 32.2 CERTIFICATION
<TEXT>
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<U><P ALIGN="RIGHT"><font size="2">Exhibit 32.2</font></P>
</U>
  <FONT SIZE=3>

<P ALIGN="RIGHT">&nbsp;</P>
</FONT>
<P ALIGN="CENTER" style="margin-top: 0; margin-bottom: 0"><font size="2">CERTIFICATION PURSUANT TO</font></P>
<P ALIGN="CENTER" style="margin-top: 0; margin-bottom: 0"><font size="2">18 U.S.C. SECTION 1350,</font></P>
<P ALIGN="CENTER" style="margin-top: 0; margin-bottom: 0"><font size="2">AS ADOPTED PURSUANT TO</font></P>
<P ALIGN="CENTER" style="margin-top: 0"><font size="2">SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></P>
  <FONT SIZE=3>

<P ALIGN="CENTER">&nbsp;</P>
</FONT>
<P align="left"><font size="2">In connection with the Quarterly Report of Programmer's Paradise, Inc. (the "Company") on Form 10-Q for the period ending September 30, 2003 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Simon F. Nynens, Chief Financial Officer of the Company, certify, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:</font></P>

<P align="left"><font size="2">(1)  The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></P>

<P align="left"><font size="2">(2)  The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</font></P>

  <FONT SIZE=3>

<P>&nbsp;</P>
</FONT>
<P style="margin-top: 0; margin-bottom: 0"><font size="2"><u>/s/ Simon F. Nynens&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></P>
<P style="margin-top: 0; margin-bottom: 0"><font size="2">Simon F. Nynens</font></P>
<P style="margin-top: 0; margin-bottom: 0"><font size="2">Chief Financial Officer</font></P>
<P style="margin-top: 0; margin-bottom: 0"><font size="2">October 30, 2003</font></P>

  <FONT SIZE=3>

<P>&nbsp;</P>
</FONT>
<I><P align="left"><font size="2">A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by Company and furnished to the Securities and Exchange Commission or its staff upon request.</font></P>
</I>
  <FONT SIZE=3>

<P>&nbsp;</P></FONT>

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