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Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000950136-05-008205.txt : 20051221
<SEC-HEADER>0000950136-05-008205.hdr.sgml : 20051221
<ACCEPTANCE-DATETIME>20051221160407
ACCESSION NUMBER:		0000950136-05-008205
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		13
CONFORMED PERIOD OF REPORT:	20050930
FILED AS OF DATE:		20051221
DATE AS OF CHANGE:		20051221

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TEAMSTAFF INC
		CENTRAL INDEX KEY:			0000785557
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-HELP SUPPLY SERVICES [7363]
		IRS NUMBER:				221899798
		STATE OF INCORPORATION:			NJ
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18492
		FILM NUMBER:		051278697

	BUSINESS ADDRESS:	
		STREET 1:		300 ATRIUM DRIVE
		CITY:			SOUTH PLAINFIELD
		STATE:			NJ
		ZIP:			08873
		BUSINESS PHONE:		7327481700

	MAIL ADDRESS:	
		STREET 1:		300 ATRIUM DRIVE
		CITY:			SOUTH PLAINFIELD
		STATE:			NJ
		ZIP:			08873

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DIGITAL SOLUTIONS INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>file001.htm
<DESCRIPTION>FORM 10-K
<TEXT>
<HTML>
<HEAD>
<TITLE>
</TITLE>
</HEAD>
<BODY>


<page>
<table border="0" cellpadding="0" cellspacing="0" width="634">
<tr>
<td><img src="spacer.gif" height="3" width="1"></td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="3" width="1"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="3" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:12pt;  width: 480pt; text-align: center; font-style: normal; line-height: 14pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">SECURITIES
AND EXCHANGE COMMISSION<br>WASHINGTON, D.C.
20549</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 480pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">FORM 10-K</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 480pt; text-align: center; font-style: normal; line-height: 10pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">FOR
ANNUAL AND TRANSITION REPORTS<br>PURSUANT TO SECTIONS 13 OR 15(d) OF
THE<br>SECURITIES EXCHANGE ACT OF
1934</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:9pt;  width: 480pt; text-align: left; font-style: normal; line-height: 11pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(MARK
ONE)</p>
<table cellpadding="0" cellspacing="0" border="0" width="634">
<tr>
<td><img src="spacer.gif" height="1" width="16"></td>
<td><img src="spacer.gif" height="1" width="618"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:bold;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<img src="xbox.gif" alt="[X]" width="10" height="10">&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:bold;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: center; font-style: normal; width: 468pt">ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF<br>THE SECURITIES EXCHANGE
ACT OF 1934<br> FOR THE FISCAL YEAR ENDED SEPTEMBER 30,
2005<br>OR</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="634">
<tr>
<td><img src="spacer.gif" height="1" width="30"></td>
<td><img src="spacer.gif" height="1" width="603"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:bold;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 23pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<img src="ebox.gif" alt="[ ]" width="10" height="10">&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:bold;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: center; font-style: normal; width: 457pt">TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF<br>THE SECURITIES EXCHANGE
ACT OF 1934<br>FOR THE TRANSITION PERIOD FROM
&emsp;&emsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TO
&emsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&emsp;</td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 480pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">COMMISSION FILE NO.
0-18492</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 480pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">TEAMSTAFF, INC.<br>(Exact name
of registrant as specified in its
charter)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 634px; padding-top: 10px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="634" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="277"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="203"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">NEW
JERSEY</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">22-1899798</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 3pt; background-color: #ffffff;" align="center" valign="top" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">(State
or other jurisdiction of<br>incorporation or
organization)</font></td>
<td style="padding-top: 3pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 3pt; background-color: #ffffff;" align="center" valign="top" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">(I.R.S.
Employer<br>Identification
No.)</font></td>
</tr>
<tr>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">300
ATRIUM DRIVE,<br> SOMERSET, NEW
JERSEY</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">08873</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 3pt; background-color: #ffffff;" align="center" valign="top" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">(Address
of principal executive offices)</font></td>
<td style="padding-top: 3pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 3pt; background-color: #ffffff;" align="center" valign="top" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">(Zip
Code)</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 480pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">REGISTRANT'S TELEPHONE
NUMBER, INCLUDING AREA CODE (732) 748-1700</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 480pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">SECURITIES
REGISTERED PURSUANT TO SECTION 12(b) OF THE
ACT:</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 634px; padding-top: 0px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="634" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="240"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="240"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>NAME
OF EACH EXCHANGE ON</b></font></td>
</tr>
<tr>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>TITLE OF EACH
CLASS</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>WHICH
REGISTERED</b></font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 480pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">NONE</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 480pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">SECURITIES
REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 480pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">COMMON
STOCK, $.001 PAR VALUE PER SHARE<br>
<font style="font-size: 9pt;">(Title of
class)</font>
</p>
<!--0--><table border="0" cellpadding="0" cellspacing="0" width="634">
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<td><img src="spacer.gif" width="1" height="1"></td>
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<td><img src="spacer.gif" height="1" width="222"></td>
<td bgcolor="#000000"><img src="spacer.gif" height="1"><img src="spacer.gif" height="1" width="190"></td>
<td><img src="spacer.gif" height="1" width="222"></td>
<td><img src="spacer.gif" height="1" width="444"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="8" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:8pt;  width: 480pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Indicate
by check mark if the registrant is a well known seasoned issuer, as
defined in Rule 405 of the Securities Act</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:8pt;  width: 480pt; text-align: center; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Yes&nbsp;&nbsp;&nbsp;<img src="ebox.gif" alt="[ ]" width="10" height="10">&nbsp;&nbsp;&nbsp;&nbsp;
No&nbsp;&nbsp;&nbsp;<img src="xbox.gif" alt="[X]" width="10" height="10"></p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:8pt;  width: 480pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Indicate by check mark if the
registrant is not required to file reports pursuant to Section 13 or
section 15d of the
Act.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:8pt;  width: 480pt; text-align: center; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Yes&nbsp;&nbsp;&nbsp;<img src="ebox.gif" alt="[ ]" width="10" height="10">&nbsp;&nbsp;&nbsp;&nbsp;
No&nbsp;&nbsp;&nbsp;<img src="xbox.gif" alt="[X]" width="10" height="10"></p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:8pt;  width: 480pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Indicate by check mark whether
the Registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90
days.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:8pt;  width: 480pt; text-align: center; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Yes&nbsp;&nbsp;&nbsp;<img src="xbox.gif" alt="[X]" width="10" height="10">&nbsp;&nbsp;&nbsp;&nbsp;
No&nbsp;&nbsp;&nbsp;<img src="ebox.gif" alt="[ ]" width="10" height="10"></p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:8pt;  width: 480pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Indicate by check mark whether
the Registrant is an accelerated filer (as defined in Rule 12b-2 of the
Exchange
Act)</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:8pt;  width: 480pt; text-align: center; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Yes&nbsp;&nbsp;&nbsp;<img src="ebox.gif" alt="[ ]" width="10" height="10">&nbsp;&nbsp;&nbsp;&nbsp;
No&nbsp;&nbsp;&nbsp;<img src="xbox.gif" alt="[X]" width="10" height="10"></p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:8pt;  width: 480pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Indicate by check mark if
disclosure of delinquent filers pursuant to Item 405 of Regulation S-K
is not contained herein, and will not be contained, to the best of
registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or
any amendment to this Form 10-K.
<img src="ebox.gif" alt="[ ]" width="10" height="10"></p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:8pt;  width: 480pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Indicate by check mark whether the
registrant is a shell company (as defined in Exchange Act Rule
12b-2).</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:8pt;  width: 480pt; text-align: center; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Yes&nbsp;&nbsp;&nbsp;<img src="ebox.gif" alt="[ ]" width="10" height="10">&nbsp;&nbsp;&nbsp;&nbsp;
No&nbsp;&nbsp;&nbsp;<img src="xbox.gif" alt="[X]" width="10" height="10"></p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:8pt;  width: 480pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">At the close of our second
quarter, March 31, 2005, the aggregate market value of the voting stock
of TeamStaff, Inc. (consisting of Common Stock, $.001 par value per
share) held by non-affiliates of the Registrant was approximately
$12,327,000 based upon the closing sales price of $1.43 for such Common
Stock on March 31, 2005 as reported by Nasdaq National Market. At the
close of our fiscal year, September 30, 2005, the aggregate market
value of the voting stock of TeamStaff, Inc. (consisting of Common
Stock, $.001 par value per share) held by non-affiliates of the
Registrant was approximately $12,793,000 based upon the closing sales
price of $1.38 for such Common Stock on said date as reported on the
Nasdaq National Market. On December 16, 2005 there were 19,278,270
shares outstanding of Common Stock of the
Registrant.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 480pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">DOCUMENTS INCORPORATED BY
REFERENCE</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 480pt; text-align: center; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">None</p>
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<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">PART
I</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM
1.&nbsp;&nbsp;&nbsp;&nbsp;BUSINESS</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">INTRODUCTION</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff, Inc., a
New Jersey corporation (&lsquo;&lsquo;TeamStaff&rsquo;&rsquo; or
the &lsquo;&lsquo;Company&rsquo;&rsquo;), was founded in 1969 as a
payroll service company and has evolved into a national provider of
payroll and temporary and permanent medical and administrative staffing
services. TeamStaff&rsquo;s corporate headquarters is in Somerset, New
Jersey. TeamStaff has offices located in Clearwater, Florida, Memphis,
Tennessee, Monroe, Georgia, Decatur, Georgia and Atlanta,
Georgia.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">When we use the term
&lsquo;&lsquo;TeamStaff,&rsquo;&rsquo; or the
&lsquo;&lsquo;Company&rsquo;&rsquo; we mean TeamStaff and its
subsidiaries. Currently, we operate only through the parent
corporation, TeamStaff, Inc. (through its DSI Payroll Services
division), and our TeamStaff Rx, Inc. (including its Nursing
Innovations division) and RS Staffing Services, Inc. subsidiaries.
TeamStaff&rsquo;s wholly-owned subsidiaries also include DSI Staff
ConnXions Northeast, Inc., DSI Staff ConnXions Southwest, Inc.,
TeamStaff Solutions, Inc., TeamStaff I, Inc., TeamStaff II, Inc.,
TeamStaff III, Inc., TeamStaff IV, Inc., TeamStaff V, Inc., TeamStaff
VI, Inc., TeamStaff Insurance Services, Inc., TeamStaff VIII, Inc.,
Employer Support Services, Inc., TeamStaff IX, Inc., Digital Insurance
Services, Inc., HR2, Inc. and BrightLane.com, Inc. As a result of the
sale of our PEO business in fiscal year 2004, most of these
subsidiaries are not actively operating.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff
provides specialized medical, nursing and administrative staffing and
payroll administration services. TeamStaff provides allied healthcare
and nursing professionals and administrative personnel through three
staffing units. The Company&rsquo;s TeamStaff Rx subsidiary operates
throughout the United States and specializes in providing allied
medical employees and nurses, especially
&lsquo;&lsquo;travel&rsquo;&rsquo; staff (typically on a
thirteen-week assignment basis). Allied medical staff includes MRI
technicians, mammographers, dosimetrists, ultrasound staff and
physicists. TeamStaff Rx places temporary employees for over 250
clients. TeamStaff Rx&rsquo;s Nursing Innovations unit provides travel
nursing, per diem nursing, temporary-to-permanent nursing and permanent
nursing placement services. Nursing Innovations places temporary
employees for over 85 clients. The Company&rsquo;s RS Staffing
subsidiary specializes in providing medical and office
administration/technical professionals through nationwide Schedule
contracts with both the General Services Administration and Veterans
Affairs. RS Staffing places temporary employees at over 75
facilities.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Through its DSI Payroll Services division,
TeamStaff provides customized payroll management and tax services,
primarily to the construction industry. DSI&rsquo;s service offerings
include payroll check processing via web, phone or fax, federal and
state quarterly and year-end tax compliance reports, W-2 processing and
financial management reports, including certified payroll reports and
custom software interfaces. DSI processes payrolls for over 700 clients
that have more than 30,000 employees.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff, Inc. was
organized under the laws of the State of New Jersey on November 25,
1969 and maintains its executive offices at 300 Atrium Drive, Somerset,
New Jersey 08873 where its telephone number is (732)
748-1700.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ACQUISITIONS DURING THE MOST RECENT FISCAL
YEAR</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On November 14, 2004, TeamStaff's medical
staffing subsidiary, TeamStaff Rx, Inc. acquired the assets of the
staffing business of Nursing Innovations, Inc., a Memphis,
Tennessee-based provider of travel and per diem nurses. The terms of
the agreement provided for TeamStaff Rx to acquire certain assets from
Nursing Innovations and its primary shareholder. The combined purchase
price was approximately $1.8 million, of which $180,000 was held in an
escrow account for a period of one year to provide security for the
sellers' indemnification obligations. The purchase price was
subject to downward adjustment based upon the percentage of former
Nursing Innovations business that successfully transferred to TeamStaff
Rx. Subsequent to the balance sheet date, it was determined that no
additional purchase price adjustment was due after the first year and
on November 18, 2005, we </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">1</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
authorized the release of the $180,000 of
funds held in escrow to the sellers. In addition, there are certain
deferred purchase price provisions which may increase the total
purchase price based upon the performance of the former Nursing
Innovations business during the two years following closing of the
transaction. It was determined that no additional purchase price was
due for year one of the two year earn-out period.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On June
8, 2005 TeamStaff, Inc. completed its acquisition of RS Staffing
Services, Inc., a privately held Georgia corporation, pursuant to the
terms of a Stock Purchase Agreement dated as of May 26, 2005. RS
Staffing, headquartered in Monroe, GA, specializes in providing medical
and office administration/technical professionals through nationwide
Schedule contracts with both the General Services Administration
(&lsquo;&lsquo;GSA&rsquo;&rsquo;) and Veterans Affairs
(&lsquo;&lsquo;VA&rsquo;&rsquo;). Closing of the transaction was
completed for accounting purposes as of June 4, 2005. TeamStaff
acquired all of the capital stock of RS Staffing for a purchase price
of $8 million consisting of $3.25 million in cash, $3 million in a
2-year note, and $1.75 million in TeamStaff common stock (1,206,896
shares). The shares are restricted shares. The Sellers guaranteed a
minimum net worth of $1.4 million and any amounts above or below this
amount after a finalized accounting are subject to a purchase price
adjustment. In addition, there is a one-year earn out of up to $2
million based upon the achievement of specified performance targets for
the business. Principals of RS Staffing, namely Roger Staggs and Barry
Durham, have continued as management of RS pursuant to employment
agreements with each of them. Effective December 4, 2005, Barry Durham
terminated his employment with RS Staffing and his responsibilities
were assumed predominantly by Roger Staggs. The agreement also provided
for mutual indemnification for breaches of representations and
warranties. Further, the note issued by TeamStaff as part of the
purchase price bears interest at 5% per annum, is payable one
half in one year and the remainder in two years, and is secured by a
lien on certain assets of the business, subordinate to any liens
granted in connection with financing for the transaction. In connection
with the acquisition, TeamStaff obtained financing from PNC Bank,
National Association. See a discussion of our revolving line of credit
with PNC Bank in the Management Discussion and Analysis section.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">SERVICES</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As a part of its continuing operations,
TeamStaff operates two lines of business: staffing services and payroll
services. TeamStaff provides staffing services through its wholly-owned
subsidiaries, TeamStaff Rx, Inc. (including its Nursing Innovations
division) and RS Staffing Services, Inc. TeamStaff provides payroll
services through its DSI Payroll Services
division.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">I.&nbsp;&nbsp;&nbsp;&nbsp;Staffing Services</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff
provides allied healthcare and nursing professionals and administrative
staffing through three distinct staffing units. The Company&rsquo;s
TeamStaff Rx subsidiary operates throughout the United States and
specializes in the supply of allied medical employees and nurses,
especially &lsquo;&lsquo;travel&rsquo;&rsquo; staff (typically on
thirteen-week assignments). Allied medical staff includes MRI
technicians, mammographers, dosimetrists, ultrasound staff and
physicists. The Nursing Innovations unit of TeamStaff Rx provides
travel nursing, per diem nursing, temporary-to-permanent nursing and
permanent nursing placement services. TeamStaff&rsquo;s RS Staffing
Services, Inc. subsidiary specializes in providing medical and office
administration/technical professionals through nationwide Schedule
contracts with both the General Services Administration and Veterans
Affairs, among other customers.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff Rx has more
than 23 years of experience in placing temporary and permanent
employees with specialized skills and talents to regional and national
medical facilities. Temporary medical staffing enables clients to
attain management and productivity goals by matching highly trained
professional and technical personnel to specific staffing requirements.
During the fiscal year ended September 30, 2005, this unit generated
$25.5 million of revenue.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff Rx focuses its allied
health and nurse staffing services in all national markets, and seeks
to place employees on temporary long-term assignments or on a permanent
basis. TeamStaff Rx employs radiological technologists, diagnostic
sonographers, cardiovascular technologists, radiation therapists,
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">2</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
registered nurses and other medical
professionals, and places these professionals in hospitals, clinics and
therapy centers throughout the United States.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Through its
Nursing Innovations division, TeamStaff Rx provides travel nursing, per
diem nursing, temporary-to-permanent nursing and permanent nursing
placement services. Clients whose staff requirements vary depending on
the level of activity at their facilities are therefore able to secure
the services of qualified individuals on an interim basis. Since the
date of acquisition of Nursing Innovations on November 14, 2004 through
the fiscal year ended September 30, 2005, this unit generated $12.8
million of revenue.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff Rx&rsquo;s clients are
dependent on temporary staffing to supplement various internal
departments for staffing shortages due to vacations, medical leaves and
other causes. Our Company&rsquo;s operating units fill our
clients&rsquo; needs by providing qualified personnel on a weekly,
monthly, quarterly or longer basis, depending upon a client&rsquo;s
particular staffing objectives. TeamStaff Rx also provides targeted
recruiting and placement for clients for permanent employees.
Additionally, if an employee on temporary assignment is hired by the
client on a permanent basis, TeamStaff Rx usually receives a
recruitment fee from that client.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff&rsquo;s RS
Staffing Services subsidiary specializes in providing medical and
office administration/technical professionals through nationwide
schedule contracts with both the General Services Administration and
Veterans Affairs, among other customers. RS Staffing provides its
clients, primarily the U.S. Government, with personnel to supplement
various departments experiencing staffing shortages because of open
positions, vacations, medical leaves and other causes. RS Staffing
provides qualified personnel on a weekly, monthly, quarterly or longer
basis. Since the date of acquisition of RS Staffing Services effective
June 4, 2005 through the fiscal year ended September 30, 2005, this
unit generated $13.0 million of
revenue.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff&rsquo;s entire complement of staffing
services provide clients the ability to &lsquo;&lsquo;right
size;&rsquo;&rsquo; that is, to expand or reduce their workforces in
response to changing business conditions. The Company believes that
these services provide numerous benefits to its clients, such as saving
the costs of salary and benefits of a permanent employee whose services
are not needed throughout the year. The clients also avoid the costs,
uncertainty and delays associated with searches for qualified interim
employees. TeamStaff&rsquo;s temporary staffing services also allow a
client to avoid administrative responsibility for payroll, payroll
taxes, workers&rsquo; compensation, unemployment and medical benefits
for interim employees.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The Company believes that its
temporary staffing services provide a client with an increased pool of
qualified personnel. Since TeamStaff&rsquo;s temporary staffing
employees have access to a wide array of benefits, such as paid time
off, health and life insurance, Section 125 premium conversion plans
and 401(k) retirement savings plans, TeamStaff believes it is able to
attract a sufficient pool of personnel to grow this business. These
benefits provide temporary employees with the motivation of permanent
workers without additional benefit and administrative costs to the
client.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The current shortage in the availability of
certain allied health and nursing personnel, along with the advent of
certain patient protection measures, has, in management&rsquo;s
opinion, created an improving market opportunity for TeamStaff Rx and
its Nursing Innovations division. TeamStaff believes that both
divisions are in a pivotal position to increase its market share based
on its reputation and experience in the temporary medical staffing
industry. RS Staffing Services continues to seek further opportunities
in the government sector, and to grow further where it has previously
enjoyed a strong market position. RS Staffing also has significant
revenue opportunities through the use of &lsquo;teaming
partners&rsquo; that provide personnel to fill positions secured by RS
Staffing.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff&rsquo;s goal is to build on its
reputation and to become a leading one-stop provider of its
clients&rsquo; temporary travel medical staffing, nursing and
government sector personnel. The Company believes it can achieve this
goal through a combination of: 1) organic growth; 2) establishing and
building a network of alliances with complementary staffing
organizations; and 3) completing acquisitions of complementary staffing
organizations to increase its product offerings and achieve operational
scale. The Company&rsquo;s acquisition of certain temporary nurse
staffing assets of Nursing Innovations and RS </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">3</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
Staffing Services, Inc. during the last fiscal
year is part of its acquisitive growth strategy. We have not entered
into any definitive agreements to acquire any further businesses, and
there can be no assurance that we will be able to identify any such
businesses, or that even once identified, we will be able to acquire
them on terms acceptable to us.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Government Contracts</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The U.S. Government is the primary customer to our RS
Staffing Services, Inc. subsidiary. Many of the U.S. Government
programs in which we participate as a contractor or subcontractor may
extend for several years. However, such programs are normally funded on
an annual basis. All U.S. Government contracts and subcontracts may be
modified, curtailed or terminated at the convenience of the government
for any reason, including if program requirements or budgetary
constraints change. If a contract is terminated for convenience, we
would generally be reimbursed for our allowable costs through the date
of termination and are paid a proportionate amount of the stipulated
profit or fee attributable to the work actually performed. Although
contract and program modifications, curtailments or terminations have
not had a material adverse effect on the business of RS Staffing
Services, Inc. in the past, no assurance can be given that such
modifications, curtailments or terminations will not have a material
adverse effect on our financial condition or results of operations in
the future. In addition, the U.S. Government may terminate a contract
for default. Although the U.S. Government has never terminated any of
RS Staffing Service&rsquo;s contracts for default, such a termination
could have a significant impact on our business. If a contract is
terminated for default, we may be unable to recover amounts billed or
billable under the contract and may be liable for other costs and
damages.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">II.&nbsp;&nbsp;&nbsp;&nbsp;Payroll Services</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff was
originally established as a payroll service firm in 1969 and continues
to provide customized payroll management and tax reporting services to
its clients. During the fiscal year ended September 30, 2005, the DSI
payroll services division generated $4.6 million of revenue.
Historically, DSI has provided payroll services primarily to the
construction industry and currently more than 75% of
DSI&rsquo;s over 700 payroll service clients are in the construction
industry located in the greater New York metropolitan area. DSI offers
most, if not all, of what other payroll services provide, including the
preparation of payroll checks, direct deposit, government compliance
reports, workers&rsquo; compensation reports and workers&rsquo;
compensation audit reports as required by New York State, quarter and
year end tax reports, W-2's (including federal and state magnetic
media), and remote processing (via modem or internet) directly from the
clients&rsquo; offices, as well as certified payrolls. Tax reporting
services include the impounding of tax payments, timely deposit of tax
liability, filing of payroll tax returns, distribution of quarter and
year-end payroll tax statements and timely response to agency
inquiries. DSI processes payrolls for over 700 clients that have more
than 30,000 employees.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">CUSTOMERS</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As of September
30, 2005, TeamStaff&rsquo;s combined customer base consisted of over
1,100 payroll and staffing clients. More than 75% of the clients
in the payroll services division are in the construction industry.
Substantially all of the customers of our TeamStaff Rx, Inc. and
Nursing Innovations subsidiary are engaged in the healthcare industry.
Substantially all of the business of RS Staffing Services, Inc. is
accomplished through contracts with the United States government.
TeamStaff Rx (including its Nursing Innovations division) has 4 clients
who each individually comprise greater than 5% of the staffing
unit&rsquo;s revenue. RS Staffing Services has 6 clients who each
individually comprise greater than 5% of the subsidiary&rsquo;s
revenue.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">SALES AND MARKETING</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff maintains
payroll and/or staffing sales and marketing personnel in its Somerset,
New Jersey, Memphis, Tennessee, Monroe, Georgia, Decatur, Georgia and
Clearwater, Florida locations. Our staffing division sales efforts are
both telephonic and through a sales force. Our payroll services
division sales force travels throughout the metropolitan New York area
in an effort to expand our payroll services business. We have recently
implemented a direct mail sales effort for the payroll services
division.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">4</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff has implemented new sales
and marketing and product development strategies with respect to its
staffing division. Previously, TeamStaff Rx utilized only a telephonic
sales force to generate sales. Over the past 18 months, the Company has
expanded its sales organization to include relationship- based inside
and outside sales professionals who maintain contact with existing and
prospective clients. Additionally, the Company provides a Vendor
Integration Program, or VIP, that is intended to provide both large and
middle-market healthcare institutions and facilities the opportunity to
manage their medical staffing needs quickly and efficiently through a
web-based application.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">COMPETITION</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The payroll
services industry is characterized by intense competition. The
principal competitive factors are price and service. Management
believes that Automatic Data Processing, Inc., Ceridian Corporation,
and Paychex, Inc. are major competitors. TeamStaff also competes with
in-house payroll software sold by numerous companies, as well as other
providers of computerized payroll services, including banks, and
smaller independent companies. The increasing availability of personal
computers and software packages at low cost may result in additional
businesses acquiring such capabilities.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The primary
competitors in our staffing business are CompHealth, Aureus Medical
Group, Resources On Call, Cross Country Healthcare, Inc., AMN
Healthcare Services, Inc. and Medical Staffing Network Holdings, Inc.
TeamStaff competes with these companies by offering customized
products, such as TeamStaff Rx&rsquo;s Vendor Integration Program,
personalized service, competitive prices and specialized personnel to
satisfy a client's particular requirements. The Company believes
that its broad scope of services and its commitment to quality service
differentiate it from its competition. Further, the Company believes
that RS Staffing Services Inc.&rsquo;s knowledge and processes with
respect to government contract bidding represents a competitive
advantage.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">INDUSTRY/GOVERNMENT
REGULATION</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Introduction</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Federal and state laws
materially affect TeamStaff&rsquo;s operations. These laws relate to
labor, tax and employment matters. As an employer, TeamStaff is subject
to all federal statutes and regulations governing its employer-employee
relationships. The development of additional statutes and regulations
and interpretation of existing statutes and regulations with respect to
the alternative staffing industry can be expected to evolve over time.
TeamStaff cannot predict with certainty the nature or direction of the
development of federal, state and local statutes and
regulations.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Federal and State Employment
Taxes</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff assumes the sole responsibility and
liability for the payment of federal and state employment taxes with
respect to wages and salaries paid to its employees, including its
temporary staffing employees. There are essentially three types of
federal employment tax obligations: (i) withholding of income tax
requirements; (ii) obligations under FICA; and, (iii) obligations under
the Federal Unemployment Tax Act. Under these statutes, employers have
the obligation to withhold and remit the employer portion and, where
applicable, the employee portion of these taxes.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Employee
Benefit Plans</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff offers various employee benefit
plans to its full-time employees and temporary staffing employees.
These plans include a 401(k) Plan (a profit-sharing plan with a cash or
deferred arrangement, or CODA), under Code Section 401(k)), a Section
125 plan, group health plans, group dental insurance, vision insurance,
a group life insurance plan and a group disability insurance plan.
Generally, employee benefit plans are subject to provisions of both the
Code and the Employee Retirement Income Security Act. TeamStaff also
makes a variety of voluntary insurance products available to its
employees, which its employees may purchase through payroll
deductions.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">5</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In order to qualify for favorable
tax treatment under the Code, the plans must be established and
maintained by an employer for the exclusive benefit of its employees.
In addition to the employer/employee threshold, pension and
profit-sharing plans, including plans that offer CODAs under Code
Section 401(k) and matching contributions under Code Section 401(m),
must satisfy certain other requirements under the Code. These other
requirements are generally designed to prevent discrimination in favor
of highly compensated employees to the detriment of non-highly
compensated employees with respect to both the availability of, and the
benefits, rights and features offered in qualified employee benefit
plans.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Employee pension and welfare benefit plans are also
governed by ERISA. ERISA defines
&lsquo;&lsquo;employer&rsquo;&rsquo; as &lsquo;&lsquo;any person
acting directly as an employer, or indirectly in the interest of an
employer, in relation to an employee benefit plan.&rsquo;&rsquo;
ERISA defines the term &lsquo;&lsquo;employee&rsquo;&rsquo; as
&lsquo;&lsquo;any individual employed by an
employer.&rsquo;&rsquo;</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">State Regulation</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As an
employer, TeamStaff is subject to all federal, state and local statutes
and regulations governing the employer-employee relationship.
Additionally, an increasing number of states have adopted or are
considering adopting licensing or registration requirements that affect
TeamStaff&rsquo;s temporary medical staffing and permanent placement
business. These license and registration requirements generally provide
for an evaluation of the operator&rsquo;s background and integrity and
periodic or ongoing monitoring of the medical staffing firm&rsquo;s
policies and practices. TeamStaff Rx is licensed or registered for its
temporary allied healthcare staffing services in the following
jurisdictions: Florida, Massachusetts, North Carolina and Rhode Island
and has license applications pending in Illinois and New Jersey.
TeamStaff Rx is licensed or registered for its temporary nursing
business in California, Kentucky, Maine, Maryland, Massachusetts
Minnesota, North Carolina and Washington. TeamStaff Rx is licensed or
registered for its permanent placement business in the District of
Columbia and New Jersey. The Company continues to review applicable
statutes and regulations and prepare appropriate applications for
filing.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Information and Technology Systems</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
Company believes that it continued to improve its IT operations during
fiscal year 2005. The Company's IT group focused a majority of
its attention on our staffing segment business. The Company commenced a
strategy to drive more candidates to our Web sites through search
engine optimizations. The Company believes that this is yielding better
employees at a cost that is less than prior, traditional acquisition
costs. The online application process was simplified to help us obtain
customers in a quicker and more efficient manner.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
Company IT group also commenced integration of Nursing Innovations and
RS Staffing Services, Inc. This integration will continue into the 2006
fiscal year. Efforts for 2006 will focus on supporting and improving
our sales and marketing efforts, increasing our recruiting
capabilities, and consolidating the infrastructures and processes of
the three staffing business units.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The Company developed
a new marketing site for the payroll services division. This was
accomplished to better educate our customers and potential clients on
the numerous ways we could benefit their companies. We also redesigned
the Web-based payroll entry system, to be more user-friendly, secure
and efficient. This has further helped us attract and retain customers.
Efforts for 2006 will focus on improvements to the overall
infrastructure.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The Company will also seek to improve the
efficiencies of the corporate infrastructure, through IT system
consolidations and process and platform
improvements.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Employees</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As of September 30, 2005,
TeamStaff employed 149 corporate (non worksite) employees, both
full-time and part-time, including executive officers, an increase from
112 during the previous fiscal year, due mainly to the two acquisitions
completed in fiscal 2005. TeamStaff also employed </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">6</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
approximately 1,200 temporary employees on
client assignments. TeamStaff believes its relationship with its
current employees is satisfactory. None of TeamStaff&rsquo;s corporate
employees is covered by a collective bargaining agreement.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">RISK FACTORS</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">You should carefully consider
the risks described below with respect to our operations, business,
industry, financial condition and stock. The risks and uncertainties
described below are not the only ones facing us. Other risks and
uncertainties that we have not predicted or assessed may also adversely
affect us. Some of the information in this filing contains
forward-looking statements that involve substantial risks and
uncertainties. You can identify these statements by forward-looking
words such as &lsquo;&lsquo;may,&rsquo;&rsquo;
&lsquo;&lsquo;will,&rsquo;&rsquo;
&lsquo;&lsquo;expect,&rsquo;&rsquo;
&lsquo;&lsquo;anticipate,&rsquo;&rsquo;
&lsquo;&lsquo;believe,&rsquo;&rsquo;
&lsquo;&lsquo;intend,&rsquo;&rsquo;
&lsquo;&lsquo;estimate,&rsquo;&rsquo; and
&lsquo;&lsquo;continue&rsquo;&rsquo; or other similar words. You
should read statements that contain these words carefully for the
following reasons:</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="28"></td>
<td><img src="spacer.gif" height="1" width="574"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 21pt">&mdash;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 435pt">the
statements may discuss our future
expectations;</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="28"></td>
<td><img src="spacer.gif" height="1" width="574"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 21pt">&mdash;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 435pt">the statements
may contain projections of our future earnings or of our financial
condition; and</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="28"></td>
<td><img src="spacer.gif" height="1" width="574"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 21pt">&mdash;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 435pt">the
statements may state other
&lsquo;&lsquo;forward-looking&rsquo;&rsquo;
information.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Safe Harbor Statement</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Certain
statements contained herein constitute &lsquo;&lsquo;forward-looking
statements&rsquo;&rsquo; within the meaning of the Private Securities
Litigation Reform Act of 1995. TeamStaff desires to avail itself of
certain &lsquo;&lsquo;safe harbor&rsquo;&rsquo; provisions of the
1995 Reform Act and is therefore including this special note to enable
it to do so. Forward-looking statements included in this Report on Form
10-K involve known and unknown risks, uncertainties, and other factors
which could cause TeamStaff&rsquo;s actual results, performance
(financial or operating) or achievements to differ from the future
results, performance (financial or operating) or achievements expressed
or implied by such forward-looking statements. Such future results are
based upon management's best estimates based upon current
conditions and the most recent results of operations. These risks
include, but are not limited to, the risks identified below.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">We believe it is important to communicate our expectations to
our shareholders and potential shareholders. There may be events in the
future, however, that we are not accurately able to predict or over
which we have no control. The risk factors listed below, as well as any
cautionary language in this filing, provide examples of risks,
uncertainties and events that may cause our actual results to differ
materially from the expectations we describe in our forward-looking
statements. You should be aware that the occurrence of any of the
events described in the risk factors below, elsewhere in this filing
and other events that we have not predicted or assessed could have a
material adverse effect on our earnings, financial condition or
business. In such case, the price of our securities could
decline.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Risks Relating to Our Business and Our
Industry</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">If we fail to execute our acquisitions or
investments, our business could suffer. </font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">We have
supplemented our internal growth through acquisitions and may do so in
the future through acquisitions, investments or joint ventures. We
evaluate potential acquisitions, investments and joint ventures on an
ongoing basis. Our acquisitions and investments pose many risks,
including:</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="552"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 38.04pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 418pt">We may not be able to
compete successfully for available acquisition candidates, complete
future acquisitions or investments or accurately estimate their
financial effect on our
business;</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="552"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 38.04pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 418pt">Future acquisitions,
investments or joint ventures may require us to issue additional common
stock, spend significant cash amounts or decrease our operating
income;</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="552"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 38.04pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 418pt">We may have trouble
integrating the acquired business and retaining its
personnel;</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="552"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 38.04pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 418pt">Acquisitions,
investments or joint ventures may disrupt our business and distract our
management from other responsibilities;
and</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="552"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 38.04pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 418pt">If our acquisitions or
investments fail, our business could be harmed</td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">We may
acquire additional companies, which may result in adverse effects on
our earnings. </font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">We may at times become involved in
discussions with potential acquisition candidates. Any acquisition that
we may consummate may have an adverse effect on our liquidity and
earnings and may be </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">7</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
dilutive to our earnings. In the event that we
consummate an acquisition or obtain additional capital through the sale
of debt or equity to finance an acquisition, our shareholders may
experience dilution in their equity. We have previously obtained growth
through acquisitions of other companies and businesses. Under
Statements of Financial Accounting Standards No.141, Business
Combinations (SFAS No.141) and No. 142 Goodwill and Other intangible
Assets (SFAS No. 142) implemented in June 2001, we are required to
periodically review goodwill and indefinite life intangible assets for
possible impairment. In the event that we are required to write down
the value of any assets under these pronouncements, it may materially
and adversely affect our earnings. See the more detailed discussion
appearing as part of our Management Discussion and
Analysis.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Our management may be unable to effectively
integrate acquisitions and to manage our growth, and we may be unable
to fully realize any anticipated benefits of these
acquisitions.</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Our business strategy includes growth
through both acquisitions and internal development. We are subject to
various risks associated with our growth strategy, including the risk
that we will be unable to identify and recruit suitable acquisition
candidates in the future or to integrate and manage the acquired
companies. Acquired companies' histories, geographical locations,
business models and business cultures can be different from our own in
many respects. Our directors and senior management may face significant
challenges in their efforts to integrate our businesses and the
business of the acquired companies or assets, and to effectively manage
our continued growth. There can be no assurance that our efforts to
integrate the operations of any acquired assets or companies acquired
in the future will be successful, that we can manage our growth or that
the anticipated benefits of these proposed acquisitions will be fully
realized. The dedication of management resources to these efforts may
detract attention from our day-to-day business. There can be no
assurance that there will not be substantial costs associated with
these activities or of the success of our integration efforts, either
of which could have a material adverse effect on our operating
results.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: bold; font-style: italic">A substantial percentage of RS Staffing
Services Inc.&rsquo;s revenue is from U.S. Government customers.
</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">We derive a substantial portion of our revenues in
our RS Staffing Services, Inc. subsidiary from the U.S. Government as a
prime contractor or a subcontractor. Revenues from the U.S. Government
represented approximately 94% of the total revenues of RS
Staffing Services, Inc. in each of fiscal years 2005, 2004 and 2003.
Our revenues could be adversely impacted by a reduction in the overall
level of U.S. Government spending and by changes in its spending
priorities from year to year. Furthermore, even if the overall level of
U.S. Government spending does increase or remains stable, the budgets
of the government agencies with whom we do business may be decreased or
our projects with them may not be sufficiently funded, particularly
because Congress usually appropriates funds for a given project on a
fiscal-year basis even though contract performance may take more than
one year. In addition, obtaining U.S. Government contracts remains a
highly competitive process and this has led to a greater portion of our
revenue base being associated with contracts providing for a lower
amount of reimbursable cost than we have traditionally been able to
recover.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">We are heavily dependent upon the U.S.
Government as the primary customer to our RS Staffing Services, Inc.
subsidiary. Our future success and revenue growth will depend in part
upon our ability to continue to expand our customer base.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">We face risks relating to Government contracts because these
contracts may be terminated at will.</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: normal; font-style: italic">The
Government may modify, curtail or terminate our
contracts.</font>&emsp;Many of the U.S. Government programs in which we
participate as a contractor or subcontractor may extend for several
years. However, these programs are normally funded on an annual basis.
The U.S. Government may modify, curtail or terminate its contracts and
subcontracts at its convenience. Modification, curtailment or
termination of our major programs or contracts could have a material
adverse effect on our results of operations and financial
condition.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: normal; font-style: italic">Our business is subject to potential
Government inquiries and investigations.</font>&emsp;We are from time to
time subject to certain U.S. Government inquiries and investigations of
our business practices due to our participation in government
contracts. We cannot assure you that any such inquiry or investigation
will not have a material adverse effect on our results of operations
and financial condition.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">8</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: normal; font-style: italic">Our contract costs are subject to
audits by Government agencies.</font>&emsp;From time to time, U.S.
Government representatives may audit costs incurred on our U.S.
Government contracts, including allocated indirect costs. These audits
may result in adjustments to our contract costs. In the event that it
is determined that our payments from government agencies was in excess
of contractual costs, we could be assessed for these excess payments.
We would expect that we would normally negotiate with U.S. Government
representatives before settling on final adjustments to our contract
costs. However, we do not know the outcome of any future audits and
adjustments and we may be required to reduce our revenues or profits
upon completion and final negotiation of these audits.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">We
are dependent upon certain of our management
personnel.</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Our success to date has resulted in part
from the significant contributions of our executive officers. Our
executive officers are expected to continue to make important
contributions to our success. The loss of our key personnel could
materially affect our operations. Other than with our CEO and CFO, we
generally do not have long-term employment contracts with our key
personnel, nor do we maintain &lsquo;&lsquo;key
person&rsquo;&rsquo; life insurance policies on any of our key
personnel.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Our medical staffing business may be adversely
affected if there is a continued economic downturn in the healthcare
industry. </font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Our medical staffing business is
concentrated entirely in the healthcare industry. The economic downturn
in the last three years has caused a reduction in our clients&rsquo;
utilization of our services. Any continued economic weakness generally
or in the healthcare industry specifically could have an adverse impact
on our results of operations.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Our payroll business may be
adversely affected if there is an economic downturn in the construction
industry. </font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Although we have expanded our services to
a number of industries, our payroll service business continues to be
heavily concentrated in the construction industry primarily in the New
York City metropolitan area. Any economic weakness generally or in the
construction industry specifically could have an adverse impact on
TeamStaff&rsquo;s results of operations.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Unfavorable
economic conditions could harm our business. </font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Our
business, financial condition and results of operations may be affected
by various economic factors. Unfavorable economic conditions may make
it more difficult for us to maintain and continue our revenue growth.
In an economic recession or under other adverse economic conditions,
customers and vendors may be more likely to be unable to meet
contractual terms or their payment obligations. A decline in economic
conditions may have a material adverse effect on our business.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Our business may be adversely affected due to economic
conditions in specific geographic markets.</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">A
significant portion of our revenues are derived from Tennessee and
California with respect to our nursing staffing division, Illinois,
South Carolina, Tennessee, Massachusetts and Maryland with respect to
RS Staffing and the New York metropolitan tri-state area with respect
to our payroll services division. While we believe that our market
diversification will eventually lessen this risk in addition to
generating significant revenue growth, we may not be able to duplicate
in other markets the revenue growth and operating results experienced
in the listed markets.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">9</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: bold; font-style: italic">Our financial condition may be
affected by increases in health insurance premiums, unemployment taxes
and workers&rsquo; compensation rates. </font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Health
insurance premiums, state unemployment taxes and workers'
compensation rates are in part determined by our claims experience and
comprise a significant portion of our direct costs. If we experience a
large increase in claim activity, our health insurance premiums,
unemployment taxes or workers&rsquo; compensation rates could
increase. Although we employ internal and external risk management
procedures in an attempt to manage our claims incidence and estimate
claims expenses and structure our benefit contracts to provides as much
cost stability as possible, we may not be able to prevent increases in
claim activity, accurately estimate our claims expenses or pass the
cost of such increases on to our clients. Since our ability to
incorporate such increases into our fees to our clients is constrained
by contractual arrangements with our clients, a delay could occur
before such increases could be reflected in our fees, which may reduce
our profit margin. As a result, such increases could have a material
adverse effect on our financial condition, results of operations and
liquidity.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Our financial condition may be affected by risks
associated with our health and workers&rsquo; compensation claims
experience. </font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Although we utilize only fully insured
plans of health care and incur no direct risk of loss under those
plans, the premiums that we pay for health care and workers&rsquo;
compensation insurance are directly affected by our claims experience,
including the claims experience of our off-site temporary employees. If
this experience is unfavorable, the premiums that are payable by us
will increase or coverage may become unavailable altogether. We may not
be able to pass such increases onto our clients, which may reduce our
profit margins. Increasing health care and workers&rsquo; compensation
premiums could also place us at a disadvantage in competing for new
clients. In addition, periodic reassessments of workers'
compensation claims of prior periods (when TeamStaff was covered under
large deductible-type plans) may require an increase or decrease to our
reserves, and therefore may also affect our present and future
financial condition.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: bold; font-style: italic">If unfavorable government
regulations regarding temporary and permanent staffing are implemented,
or if current regulations are changed, our business could be harmed.
</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Because many of the laws related to the employment
relationship were enacted prior to the development of alternative
staffing businesses, many of these laws do not specifically address the
obligations and responsibilities of non-traditional employers. Numerous
federal, state and local laws and regulations relating to labor, tax,
insurance and employment matters affect our operations. Many states
require licensure or registration of entities providing temporary
health care or nursing services as well as those offering permanent
placement services. There can be no assurance that we will be able to
comply with any such regulations, which may be imposed upon us now or
in the future, and our inability to comply with any such regulations
could have a material adverse effect on our results of operations and
financial condition. In addition, there can be no assurance that
existing laws and regulations which are not currently applicable to us
will not be interpreted more broadly in the future to apply to our
existing activities or that new laws and regulations will not be
enacted with respect to our activities. Either of these changes could
have a material adverse effect on our business, financial condition,
results of operations and liquidity.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">We may not be able to
obtain all of the licenses and certifications that we need to operate.
</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">State authorities extensively regulate the
temporary medical staffing and permanent placement industry and some
states require us to satisfy operating, licensing or certification
requirements. If we are unable to obtain or maintain all of the
required licenses or certifications that we need, we could experience
material adverse effects to our results of operations, financial
condition and liquidity.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Health care reform could impose
unexpected burdens on our ability to conduct our business.
</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Regulation in the health care field continues to
evolve, and we cannot predict what additional government regulations
affecting our business may be adopted in the future. Changes in any of
these laws or regulations may adversely impact the demand for our
services, require that we develop new or </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">10</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
modified services to meet the demands of the
marketplace, or require that we modify the fees that we charge for our
services. Any such changes may adversely impact our competitiveness and
financial condition.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">We bear the risk of nonpayment from
our clients and the possible effects of bankruptcy filings by clients.
</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">To the extent that any particular client
experiences financial difficulty, or is otherwise unable to meet its
obligations as they become due, our financial condition and results of
operations could be adversely affected. For work performed prior to the
termination of a client agreement, we may be obligated, as an employer,
to pay the gross salaries and wages of our temporary medical employees
and the related employment taxes and workers&rsquo; compensation
costs, whether or not our client pays us on a timely basis, or at all.
A significant increase in our uncollected account receivables may have
a material adverse effect on our earnings and financial
condition.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">We may be held liable for the actions of our
temporary employees and therefore incur unforeseen
liabilities.</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">A number of legal issues with respect
to the employment arrangements among temporary staffing firms, their
clients and temporary employees remain unresolved. These issues include
who bears the ultimate liability for violations of employment and
discrimination laws. As a result of our employer status, we may be
liable for violations of these or other laws despite contractual
protections. While our client service agreements generally provide that
the client is to indemnify us for any liability caused by the
client's failure to comply with its contractual obligations and
the requirements imposed by law, we may not be able to collect on such
a contractual indemnification claim and may then be responsible for
satisfying such liabilities. In addition, temporary employees may be
deemed to be our agents, which could make us liable for their
actions.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Our staffing of healthcare professionals exposes
us to potential malpractice liability. </font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Through our
TeamStaff Rx and RS Staffing subsidiaries, we engage in the business of
providing temporary healthcare professionals. The placement of such
employees increases our potential liability for negligence and
professional malpractice of those employees. Although we are covered by
professional malpractice liability insurance in the aggregate amount of
$5,000,000 with a $2,000,000 per occurrence limit, which we deem
reasonable under the circumstances, not all of the potential liability
we face may be fully covered by insurance. Any significant adverse
claim, which is not covered by insurance, may have a material adverse
effect on us.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">We may not be fully covered by the insurance
we procure.</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Although we carry liability insurance,
the insurance we purchase may not be sufficient to cover any judgments,
settlements or costs relating to any present or future claims, suits or
complaints. In addition, sufficient insurance may not be available to
us in the future on satisfactory terms or at all. Additionally, the
ever increasing costs of insurance will impact our profitability to the
extent that we cannot offset these increases into our costs of
services. If the insurance we carry is not sufficient to cover any
judgments, settlements or costs relating to any present or future
claims, suits or complaints, our business, financial condition, results
of operations and liquidity could be materially adversely
affected.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">If we were not able to renew all of the insurance
plans that cover temporary healthcare employees, our business would be
adversely impacted.</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The maintenance of health and
workers' compensation insurance plans that cover our temporary
healthcare employees is a significant part of our business. If we were
unable to secure renewal of contracts for such plans or the renewal of
such plans with favorable rates and with competitive benefits, our
business would be adversely affected. The current health and
workers' compensation contracts are provided by vendors with whom
we have an established relationship and on terms that we believe to be
favorable. While we believe that renewal contracts could be secured on
competitive terms without causing significant disruption to our
business, there can be no assurance in this regard.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">11</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Our business will suffer if our
services are not competitive.</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Both the payroll and
temporary employee placement industries are characterized by vigorous
competition. Since we compete with numerous entities that have greater
resources than us in each of our business lines, our business will
suffer if we are not competitive with respect to each of the services
we provide. We believe that our major competitors with respect to
payroll and tax services are Automatic Data Processing, Inc., Ceridian
Corporation and Paychex, Inc. Our major competitors with respect to
temporary medical staffing resources include, but are not limited to,
CompHealth, Aureus Medical Group, Resources on Call, Cross Country
Healthcare, Inc., AMN Healthcare Services, Inc. and Medical Staffing
Network Holdings, Inc. These companies may have greater financial and
marketing resources than we. We also compete with manual payroll
systems and computerized payroll services provided by banks, and
smaller independent companies.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Our failure to remain
competitive could harm our business. </font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Our business
is highly competitive. We compete with larger companies that have
greater name recognition, financial resources and larger staffs. We
also compete with smaller, more specialized entities who are able to
concentrate their resources on particular areas. In the Government
segment, we also compete with the U.S. Government&rsquo;s own in-house
capabilities and the U.S. Government&rsquo;s ability to hire permanent
staff. To remain competitive, we must provide superior service and
performance on a cost-effective basis to our customers. Any failure to
do so could have a material adverse effect on our business.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">If we cannot obtain sufficient levels of temporary employees,
our business may be affected.</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff Rx is a
temporary employment agency, which depends on a pool of qualified
temporary employees willing to accept assignments for our clients. Its
business is materially dependent upon the continued availability of
such qualified medical temporary personnel. Our inability to secure
temporary medical personnel would have a material adverse effect on our
business.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Potential tax liabilities may adversely affect
our financial condition.</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">From time to time, we have
received several notices from the Internal Revenue Service regarding
potential underpayment, overpayment or non-payment of payroll-related
taxes. We have disputed these notices, and strongly believe that such
notices were the result of errors made in reporting taxes paid and the
resulting misapplication of taxes paid, in large part due to our
operation of approximately thirteen different subsidiaries over the
last few years to conduct our various lines of business. The IRS has
made claims that, if we were required to pay in full, could materially
adversely affect our financial condition. We are contesting these
notices because we believe all material payroll-related taxes have been
paid. We further believe that once all tax payments are applied
appropriately, all material penalties and interest should be abated. We
have retained the services of Ernst &amp; Young, LLP to assist us in
this regard. However, there can be no assurance that we will be
successful in our efforts.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Risks Relating To Our Revolving
Credit Line</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Team Staff, Inc. completed a $7.0 million
revolving credit facility by PNC Bank effective on June 8, 2005.
Revolving Credit advances bear interest at either the Prime Rate plus
25 basis points or LIBOR plus 275 basis points, whichever is higher.
The facility has a three-year life and contains term and line of credit
borrowing options. The facility is subject to certain restrictive
covenants, including minimum EBITDA and a minimum consolidated debt
service coverage ratio. In addition, the line of credit is secured by a
lien on substantially all of our assets. The facility is subject to
acceleration upon non-payment or various other standard default
clauses. Material increases in Prime or LIBOR rate could have a
material adverse effect on our results of operations, the status of the
Revolving Credit Facility, as well as interest costs. Failure to pay
revolving credit advances or any failure to comply with applicable
restrictive covenants would have a material adverse effect on our
business in that we could </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">12</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
be required to repay the outstanding balance
in advance or sell assets in order to repay the outstanding amount.
Further, availability under the line is directly related to the
successful assignment of certain accounts receivable. Certain
government accounts of RS Staffing Services are required to execute
&lsquo;&lsquo;Acknowledgements of Assignment.&rsquo;&rsquo; There
can be no assurance that every RS Staffing government account will
execute the documentation to effectuate the assignment and secure
availability. The failure of government third parties to sign the
required documentation could result in a decrease in availability under
the line of credit, which would materially affect the Company&rsquo;s
business.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Risks Relating To Our Stock</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Changes in our
business, the volatility of the market value of our comparable
companies and the impact of litigation and disputes may increase the
volatility of the stock price. </font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The price of our
stock could be subject to fluctuations in the future. This volatility
may result from the impact on our stock price of:</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="552"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 38.04pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 418pt">the impact of acquisitions,
investments, joint ventures and divestitures that we may
undertake</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="552"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 38.04pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 418pt">the impact of the
volatility of the market value of comparable public companies that are
considered in our valuation process and any publicly traded securities
we may own</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="552"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 38.04pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 418pt">the impact of
litigation, government investigations or other customer disputes on our
operating performance and future
prospects</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="552"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 20pt; text-align: left;  font-style: normal; width: 38.04pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 418pt">the mix of our commercial
and international business as a proportion of our overall business and
the volatility associated with companies in those business
areas</td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Since we have not paid dividends on our common stock,
you cannot expect dividend income from an investment in our common
stock.</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">We have not paid any dividends on our common
stock since our inception and do not contemplate or anticipate paying
any dividends on our common stock in the foreseeable future. Future
potential lenders may prohibit us from paying dividends without its
prior consent. Therefore, holders of our common stock may not receive
any dividends on their investment in us. Earnings, if any, will be
retained and used to finance the development and expansion of our
business.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">We may issue preferred stock with rights senior
to our common stock, which may adversely impact the voting and other
rights of the holders of our common stock. </font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Our
certificate of incorporation authorizes the issuance of
&lsquo;&lsquo;blank check&rsquo;&rsquo; preferred stock with such
designations, rights and preferences as may be determined from time to
time by our board of directors up to an aggregate of 5,000,000 shares
of preferred stock. Accordingly, our board of directors is empowered,
without stockholder approval, to issue preferred stock with dividend,
liquidation, conversion, voting or other rights, which would adversely
affect the voting power or other rights of the holders of our common
stock. In the event of issuance, the preferred stock could be utilized,
under certain circumstances, as a method of discouraging, delaying or
preventing a change in control of our company, which could have the
effect of discouraging bids for our company and thereby prevent
stockholders from receiving the maximum value for their shares.
Although we have no present intention to issue any shares of our
preferred stock, in order to discourage or delay a change of control of
our company, we may do so in the future. In addition, we may determine
to issue preferred stock in connection with capital raising efforts and
the terms of the stock so issued could have special voting rights or
rights related to the composition of our
Board.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">Anti-takeover provisions in our Articles of
Incorporation make a change in control of our company more difficult.
</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The provisions of our articles of incorporation and
the New Jersey Business Corporation Act, together or separately, could
discourage potential acquisition proposals, delay or prevent a change
in control </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">13</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
and limit the price that certain investors
might be willing to pay in the future for our common stock. Among other
things, these provisions:</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="28"></td>
<td><img src="spacer.gif" height="1" width="574"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 21pt">&mdash;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 435pt">require certain supermajority
votes;</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="28"></td>
<td><img src="spacer.gif" height="1" width="574"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 21pt">&mdash;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 435pt">establish certain
advance notice procedures for nomination of candidates for election as
directors and for shareholders' proposals to be considered at
shareholders' meetings;
and</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="28"></td>
<td><img src="spacer.gif" height="1" width="574"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 21pt">&mdash;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 435pt">divide the board of
directors into three classes of directors serving staggered three-year
terms.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Pursuant to our articles of incorporation, the
board of directors has authority to issue up to 5,000,000 preferred
shares without further shareholder approval. Such preferred shares
could have dividend, liquidation, conversion, voting and other rights
and privileges that are superior or senior to our common stock.
Issuance of preferred shares could result in the dilution of the voting
power of our common stock, adversely affecting holders of our common
stock in the event of its liquidation or delay, and defer or prevent a
change in control. In certain circumstances, such issuance could have
the effect of decreasing the market price of our common stock. In
addition, the New Jersey Business Corporation Act contains provisions
that, under certain conditions, prohibit business combinations with
10% shareholders and any New Jersey corporation for a period of
five years from the time of acquisition of shares by the 10%
shareholder. The New Jersey Business Corporation Act also contains
provisions that restrict certain business combinations and other
transactions between a New Jersey corporation and 10%
shareholders.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Forward-Looking Statement Risks</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: bold; font-style: italic">You
may not be able to rely on forward-looking statements.
</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The information contained in this report or in
documents that we incorporate by reference or in statements made by our
management includes some forward-looking statements that involve a
number of risks and uncertainties. A number of factors, including but
not limited to those outlined in the Risk Factors, could cause our
actual results, performance, achievements, or industry results to be
very different from the results, performance or achievements expressed
or implied by these forward-looking statements.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In
addition, forward-looking statements depend upon assumptions, estimates
and dates that may not be correct or precise and involve known or
unknown risks, uncertainties and other factors. Accordingly, a
forward-looking statement in this report is not a prediction of future
events or circumstances and those future events or circumstances may
not occur. Given these uncertainties and risks, you are warned not to
rely on the forward-looking statements. A forward-looking statement is
usually identified by our use of certain terminology including
&lsquo;&lsquo;believes,&rsquo;&rsquo;
&lsquo;&lsquo;expects,&rsquo;&rsquo;
&lsquo;&lsquo;may,&rsquo;&rsquo;
&lsquo;&lsquo;will,&rsquo;&rsquo;
&lsquo;&lsquo;should,&rsquo;&rsquo;
&lsquo;&lsquo;seeks,&rsquo;&rsquo; &lsquo;&lsquo;pro
forma,&rsquo;&rsquo; &lsquo;&lsquo;anticipates&rsquo;&rsquo; or
&lsquo;&lsquo;intends,&rsquo;&rsquo; or by discussions of
strategies or intentions. We are not undertaking any obligation to
update these factors or to publicly announce the results of any changes
to our forward-looking statements due to future events or
developments.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;PROPERTIES</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Operation and
Facilities</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff leases its 15,244 square foot
corporate headquarters in Somerset, New Jersey, as well as offices in
Clearwater, Florida; Atlanta, Georgia; Memphis, Tennessee; New Orleans,
Louisiana; Monroe, Georgia and Decatur Georgia. The facilities provide
sufficient capacity to meet demands for the foreseeable future. In the
fiscal year ended September 30, 2005, TeamStaff&rsquo;s total lease
expense for continuing operations was approximately $700,000.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">14</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The following is summary
information on TeamStaff&rsquo;s facilities as of September 30,
2005:</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 12px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="185"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="75"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="86"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="110"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">LOCATION</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">APPROXIMATE<br> SQUARE
FEET</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">EXPIRATION<br>
DATE</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">TERMS</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Corporate
Headquarters<br> 300 Atrium Drive<br> Somerset, NJ
</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">15,244</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">9/30/2007</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$26,677
per
month</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">18167
US 19 North<br> Suite 400<br> Clearwater, FL
</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="left" valign="top" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="left" valign="top" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;&nbsp;<br>15,177</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="top"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;&nbsp;<br>2/28/2011</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;&nbsp;<br>$0
thru 2/2006<br> $22,765&nbsp;&nbsp;3/2006 &ndash; 8/2006<br>
$23,446&nbsp;&nbsp;9/2006 &ndash; 8/2007<br> $24,144&nbsp;&nbsp;9/2007 &ndash;
8/2008<br> $24,865&nbsp;&nbsp;9/2008 &ndash; 8/2009<br>
$25,624&nbsp;&nbsp;9/2009 &ndash; 8/2010<br> $26,395&nbsp;&nbsp;9/2010 &ndash;
2/2011</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2650 N. Military
Trail*<br> Suite 300<br> Boca Raton, FL
</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">10,823</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">7/31/2007</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$13,167 per
month</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">6555 Quince Road**<br>
Suite 303<br> Memphis, TN
</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">5,777</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">12/31/2005</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$8,160 per
month</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">245 Fifth
Avenue***<br> Suite 701<br> New York, NY
</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3,560</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">7/31/2006</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$13,777 per
month</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">533 Plaza Drive
****<br> Monroe, GA 30655
</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2,500</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">12/31/2009</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$3,800 per
month</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">724 W College Ave
****<br> Decatur, GA 30030
</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,500</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">12/31/2009</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$2,250 per
month</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">3350 Ridgelake
Drive**<br> Suite 82<br> Metairie, LA
</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">500</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Month&nbsp;To&nbsp;Month</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$650 per
month</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">3390 Peachtree Road,
N.E.<br> Execucourt @ Lenox Towers<br> Suites 1033, 1034,
1035, 1036<br> Atlanta, GA
</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">504</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">11/30/2005</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$2,500 per
month</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="34"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">*</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">As part of the
transaction with Gevity HR, Inc. completed in 2003, Gevity agreed to
sublease this office space through the expiration of the lease
term.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="34"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">**</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">As part of the
transaction with Nursing Innovations, Inc., TeamStaff agreed to accept
an assignment or sublease of these leases effective as of November 14,
2004. The Metairie, LA location was closed as a result of hurricane
Katrina, and the lease was terminated as of October
2005.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="34"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">***</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">As a result of the sale
of the PEO division completed in 2003, TeamStaff will no longer utilize
the facilities at this location and has subleased this space to Big
Brothers Big Sisters of New York through the expiration of the lease
term.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="34"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">****</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">As part of the
transaction with RS Staffing Services, Inc., TeamStaff agreed to accept
an assignment or sublease of these leases effective as of June 4, 2005.
Effective December 2005, the lease for the Decatur, Georgia facility
has been terminated.</font></td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">15</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;LEGAL
PROCEEDINGS</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In July 2000, TeamStaff made claims for
indemnification against the selling shareholders of the TeamStaff
Companies (the Sellers), which were acquired by TeamStaff in January
1999. The claims consisted of various potential liabilities and
expenses incurred based on breaches of representations and warranties
contained in the acquisition agreement. The Sellers disputed these
claims and attempted to assert claims of their own. On January 12,
2001, TeamStaff entered into a settlement agreement with the Sellers.
Under the settlement agreement, the Sellers agreed to be liable and
responsible for certain potential liabilities estimated at
approximately $0.5 million and agreed that 55,000 shares of TeamStaff
common stock, which had been held in escrow since the acquisition, were
to be cancelled. TeamStaff also agreed to release 29,915 escrow shares
to the Sellers. TeamStaff retains 75,000 shares in escrow to provide
security for the Seller&rsquo;s obligations. Each party agreed to
release each other from all other claims under the acquisition
agreements. No third parties have contacted TeamStaff seeking payment
in the last fiscal year for these potential liabilities. In the event
that TeamStaff incurs liability to third parties with respect to the
claims, TeamStaff would declare an event of default under the
settlement agreement and seek collection from the Sellers.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff&rsquo;s subsidiary, BrightLane, is party to a suit
brought by one of its former shareholders (<u>Atomic Fusion, Inc. v.
BrightLane.com, Inc. Civil Action No ONS02246OE, Fulton County State
Court, Georgia</u>). The plaintiff seeks damages for alleged unpaid
contractual services provided to BrightLane, alleging that the shares
(both in number and value) of BrightLane stock provided to the
plaintiff in payment of services were inadequate to pay for the alleged
agreed upon value of services. In connection with TeamStaff&rsquo;s
acquisition of BrightLane, the former shareholders of BrightLane were
required to place approximately 158,000 shares in escrow to provide
indemnification for any claims made by TeamStaff under the acquisition
agreement, subject to a $0.3 million threshold. Some or all of these
shares may be canceled in an amount equal to the amount of any claim or
expense in excess of the threshold. Under the terms of the agreements
between TeamStaff and BrightLane, the value of the shares held in
escrow is $8.10 per share. On November 20, 2003, the Fulton County
Superior Court (to which the action was transferred) awarded summary
judgment in BrightLane&rsquo;s favor on all counts of Atomic
Fusion&rsquo;s complaint except for a beach of contract claim. In
August, 2004, a trial was held on Atomic Fusion&rsquo;s breach of
contract claim before a jury. The jury returned a verdict in Atomic
Fusion&rsquo;s favor, awarding $534,246 in damages and $116,849 in
attorney&rsquo;s fees, for a total verdict of $651,095, including
interest and costs. BrightLane filed a motion for judgment
notwithstanding the verdict, which was denied by the court. BrightLane
believes that the jury&rsquo;s award of damages and attorney&rsquo;s
fees is not supported by Georgia law, and BrightLane also believes the
trial court erred in denying its motion for judgment notwithstanding
the verdict. Therefore, BrightLane has filed appeals on both the
jury&rsquo;s verdict on liability and damages and the denial of the
motion for judgment notwithstanding the verdict. BrightLane also has
filed a motion to recover certain of its attorneys&rsquo; fees
expended in pursuing its motion for summary judgment. This motion also
is pending before the court. BrightLane is no longer an operating
entity and has minimal assets.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In connection with
TeamStaff&rsquo;s acquisition of BrightLane effective as of August 31,
2001, persons holding BrightLane options to acquire approximately 2.1
million BrightLane shares (the equivalent of approximately 481,000
TeamStaff shares) exercised their options. BrightLane made recourse
loans of approximately $1.0 million principal amount to the holders of
these options to assist them in payment of tax obligations incurred
with exercise of the options. The loans were repayable upon the earlier
of (i) sale of the TeamStaff shares or (ii) three years. The shares
that were received for the option exercise secured the loans. As of
September 30, 2005 all of these loans have been repaid or forgiven. All
loans were to be repaid in cash with the exception of one loan. Under
the terms of TeamStaff&rsquo;s employment agreement with a former
executive officer of TeamStaff&rsquo;s BrightLane subsidiary, the loan
($131,000) was forgiven over a two-year period of time. We previously
commenced litigation against two of the persons who received loans, and
these persons filed counterclaims against BrightLane and our Chairman.
Both of the actions were settled. Pursuant to one of the settlements,
the shareholder returned all shares of TeamStaff stock and the note was
forgiven. This settlement has been completed. The other action was
settled on identical terms. However, TeamStaff is awaiting delivery of
the shares to be returned and at that time the accounting with respect
to the return of the shares will be </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">16</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
completed. TeamStaff recognized an expense
in the amount of $190,000 in the second fiscal quarter of 2005,
representing a partial write-down of the original principal amount of
the loan.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As a commercial enterprise and employer and with
respect to its employment-related businesses in particular, TeamStaff
is engaged in litigation from time to time during the ordinary course
of business in connection with employment-relations issues,
workers&rsquo; compensation and other matters. Generally, TeamStaff is
entitled to indemnification or repayment from its former PEO clients
for claims brought by worksite employees related to their employment.
However, there can be no assurance that the client employer will have
funds or insurance in amounts to cover any damages or awards, and as
co-employer, TeamStaff may be subject to liability. Additionally, in
connection with its medical staffing business, TeamStaff is exposed to
potential liability for the acts, errors or omissions of its temporary
medical employees. The professional liability insurance policy provides
up to $5,000,000 aggregate coverage with a $2,000,000 per occurrence
limit. Although TeamStaff believes the liability insurance is
reasonable under the circumstances to protect it from liability for
such claims, there can be no assurance that such insurance will be
adequate to cover all potential claims.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff is
engaged in no other litigation, the effect of which would be
anticipated to have a material adverse impact on TeamStaff&rsquo;s
financial condition or results of operations.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM
4.&nbsp;&nbsp;&nbsp;&nbsp;SUBMISSION OF MATTERS TO VOTE OF SECURITY
HOLDERS</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On September 15, 2005, TeamStaff held its Annual
Meeting of Shareholders. The only matter before the shareholders was
the election of two persons as Class III directors for a term of three
years. The persons nominated for election were Martin Delaney and Rocco
Marano. The record date for shareholders eligible to vote was July 25,
2005. As of the record date there were 19,278,270 shares of common
stock issued and outstanding. Voting of the shares of common stock was
on a noncumulative basis.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Both nominees were elected to
the Board of Directors. The results of the vote
were:</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 12px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="245"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="79"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="78"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="55"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Nominees</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Votes<br>
Cast For</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Withheld<br> Authority to<br>Vote</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Votes
Cast<br>Against</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 16pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Martin
Delaney</font></td>
<td style="padding-top: 16pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 16pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 16pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">12,554,869</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 16pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 16pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 16pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 16pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">230,007</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 16pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 16pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 16pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 16pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 16pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Rocco
Marano</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">12,104,876</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">680,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">PART
II</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="66"></td>
<td><img src="spacer.gif" height="1" width="536"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:bold;color:#000000;font-size: 10pt; padding-top: 12pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 50pt">ITEM 5. &nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:bold;color:#000000;font-size: 10pt; padding-top:12pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 406pt">MARKET OF AND DIVIDENDS ON THE
REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS</td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">A.&nbsp;&nbsp;&nbsp;&nbsp;Principal
Market</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff&rsquo;s Common Stock is traded in the
over-the-counter market and included in the National Market System of
the National Association of Securities Dealers, Inc.
(&lsquo;&lsquo;Nasdaq&rsquo;&rsquo;) under the symbol
&lsquo;&lsquo;TSTF.&rsquo;&rsquo;&emsp;TeamStaff started trading
on the National Market in June 2001. Prior to that date, TeamStaff was
trading on the SmallCap market system.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">17</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">B.&nbsp;&nbsp;&nbsp;&nbsp;Market
Information</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The range of high and low sales prices for
TeamStaff&rsquo;s Common Stock for the periods indicated below
are:</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">Common
Stock</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 12px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="554" bgcolor="#ffffff">
<tr>
<td rowspan="100"><img src="spacer.gif" height="3" width="32"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="308"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="68"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="45"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">FISCAL
YEAR 2003</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">HIGH</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">LOW</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">1st
Quarter</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">4.05</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2.47</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2nd
Quarter</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">3.62</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2.48</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">3rd Quarter
</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">3.09</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2.00</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">4th Quarter
</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2.70</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2.01</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 12px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="554" bgcolor="#ffffff">
<tr>
<td rowspan="100"><img src="spacer.gif" height="3" width="32"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="308"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="68"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="45"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;"><b>FISCAL
YEAR 2005</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">HIGH</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">LOW</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">1st Quarter</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">4.80</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1.86</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2nd
Quarter</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2.83</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1.97</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">3rd Quarter</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2.46</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1.97</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">4th Quarter</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2.94</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1.95</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 12px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="554" bgcolor="#ffffff">
<tr>
<td rowspan="100"><img src="spacer.gif" height="3" width="32"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="308"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="68"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="45"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;"><b>FISCAL
YEAR 2005</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">HIGH</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">LOW</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">1st Quarter</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2.50</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1.71</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2nd
Quarter</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2.02</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1.20</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">3rd Quarter
</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1.80</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0.92</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">4th Quarter
</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1.75</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1.24</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The above
quotations, reported by Nasdaq, represent prices between dealers and do
not include retail mark-ups, markdowns or commissions. Such quotations
do not necessarily represent actual transactions. On December 16, 2005,
TeamStaff&rsquo;s Common Stock had a closing price of $1.18 per
share.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">C.&nbsp;&nbsp;&nbsp;&nbsp;Dividends</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff has not
declared any cash dividends on its common stock since inception, and
has no present intention of paying any cash dividends on its common
stock in the foreseeable future.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">D.&nbsp;&nbsp;&nbsp;&nbsp;Approximate Number of
Equity Security Holders</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Effective August 31, 2001,
TeamStaff acquired all of the capital stock of BrightLane. As
contemplated under the agreements governing the transaction, TeamStaff
agreed to issue 8,216,522 shares of its Common Stock in exchange for
all of the outstanding capital stock of BrightLane. The issuance of
8,216,522 shares includes the issuance of 158,000 shares into escrow to
provide for potential indemnification to TeamStaff for claims against
BrightLane covered by the acquisition agreements and is before
deduction for fractional shares, which were paid in cash. As of
December 16, 2005, not all of the BrightLane shareholders had submitted
their capital stock for exchange.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In connection with the
acquisition of RS Staffing Services, Inc., TeamStaff issued to the
shareholders of RS Staffing Services an aggregate of 1,206,896 shares
of its Common Stock. The shares are restricted securities and may be
sold only pursuant to Rule 144. TeamStaff relied upon the exemption
from registration under the Securities Act of 1993 provided by Section
4(2) of the Securities Act in issuing the shares.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As of
December 16, 2005, there were 19,278,270 shares issued and outstanding
held of record by 289 persons. TeamStaff believes it has approximately
2,000 beneficial owners of its common stock.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">E.&nbsp;&nbsp;&nbsp;&nbsp;Securities
Authorized for Issuance Under Equity Compensation
Plans</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff has five equity compensation plans, all
of which were approved by its Board of Directors and its shareholders.
There are no equity based plans that have not been approved by
shareholders. </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">18</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
All option grants made to executive officers
and directors, including those to the Chief Executive Officer under
employment agreements, are made under the plans referenced below. The
stock option plans under which options are outstanding
are:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:24pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The 2000 Employee Stock Option Plan<br>The 2000
Non-Executive Director Option Plan</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Options are no longer
being issued under the 1990 Employee Stock Option Plan, the 1990
Non-Executive Director Option Plan or the 1990 Senior Management Plan
and no options were issued under these plans during the fiscal years
ended September 30, 2005 or 2004.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">Equity Compensation Plan
Information</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 12px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="157"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="107"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="85"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="107"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Plan
Category</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Number of
Securities<br> to be issued upon exercise<br> of outstanding
options,<br> warrants and rights</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Weighed
Average<br> exercise price of<br> outstanding options,<br> warrants
and rights</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Number of securities<br>remaining
available for<br>future issuances under<br>equity compensation
plans<br>(excluding securities<br>reflected in column
(a))</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Equity Compensation Plans Approved by Security
Holders</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #cceeff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">1,318,000</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #cceeff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$3.07</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #cceeff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">517,687
(1)</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Equity Compensation Plans Not Approved
by Security
Holders</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">0</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">0</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">0</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(1)
Number of securities remaining available for future issuance under the
2000 Employee Stock Option Plan. An additional 5,000 shares per year
per non-executive director are granted under the Non-Executive Director
Plan for a full year&rsquo;s service and pro rata for less than a full
year&rsquo;s service.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Registrant Repurchases of
Securities</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">During the quarter ended September 30, 2005,
TeamStaff did not repurchase any of its securities. TeamStaff did not
repurchase any of its securities during the fiscal year ended September
30, 2005.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">19</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>






<page>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="63"></td>
<td><img src="spacer.gif" height="1" width="539"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:bold;color:#000000;font-size: 10pt; padding-top: 12pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 48pt">ITEM
6.&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:bold;color:#000000;font-size: 10pt; padding-top:12pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 408pt">SELECTED FINANCIAL DATA<br>
<font style="font-weight: normal; font-style: normal">(AMOUNTS IN
THOUSANDS)</font></td>
</tr>
</table>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 12px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="196"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="40"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="40"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="44"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="51"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="40"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="40"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="4"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2003</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2002<br>As
Restated</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2001</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2000</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Revenues</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">55,804</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">37,288</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">62,805</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">79,820</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">69,054</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">46,557</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Direct
expenses</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">43,652</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">28,545</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">50,615</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">63,796</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">54,730</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">37,145</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Gross
profit</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">12,152</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">8,743</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">12,190</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">16,024</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">14,324</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">9,412</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Operating
expenses<br>(includes depreciation and
amortization)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">14,891</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">11,780</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">14,923</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">12,283</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">9,812</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">6,866</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">(Loss)
income from
operations</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(2,739</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(3,037</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(2,733</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3,741</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">4,512</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,546</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">(Loss)
income from continuing operations before extraordinary
item</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(1,694</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(1,765</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(1,491</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2,974</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2,955</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,680</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Extraordinary
item net of
tax</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(354</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Discontinued
operations net of
tax</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(795</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(2,314</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(27,394</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">101</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(1,251</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(729</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Net
(loss)
income</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(2,489</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(4,079</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(28,885</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3,075</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,350</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">951</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Earnings
per share &ndash;
Basic</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">(Loss)
income from continuing
operations</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.09</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.11</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.10</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0.18</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0.34</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0.21</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Extraordinary
item</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.04</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">(Loss)
income from discontinued
operations</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.05</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.15</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(1.74</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0.01</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.14</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.09</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Net
(loss)
income</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.14</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.26</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(1.84</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0.19</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0.16</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0.12</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Earnings
per share &mdash;
Diluted</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">(Loss)
income from continuing
operations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.09</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.11</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.10</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0.18</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0.33</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0.21</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Extraordinary
item</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.04</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">(Loss)
income from discontinued
operations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.05</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.15</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(1.74</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0.01</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.14</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.09</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Net
(loss)
income</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.14</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.26</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(1.84</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0.19</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0.15</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0.12</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Weighted
average shares
outstanding:</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Basic</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">18,206</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">15,714</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">15,732</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">16,014</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">8,693</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">7,954</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Diluted</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">18,206</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">15,714</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">15,732</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">16,183</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">8,907</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">7,991</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">BALANCE
SHEET
DATA:</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Assets
from continuing
opertions</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">50,054</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">37,429</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">38,257</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">42,540</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">42,636</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">21,775</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Assets
from discontinued
operations</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">22,360</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">51,426</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">49,224</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">27,739</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Total
Assets</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">50,054</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">37,429</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">60,617</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">93,966</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">91,860</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">49,514</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Long-term
liabilities from continuing
operations</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,298</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">864</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,042</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,418</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,197</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">6,222</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Liabilities
from continuing
opertions</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">15,320</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">5,473</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">9,123</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">10,883</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">11,406</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">15,248</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Liabilites
from discontinued
operations</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">422</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">963</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">16,384</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">18,344</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">19,311</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">16,207</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Liabilities</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">15,742</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">6,436</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">25,507</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">29,227</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">30,717</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">31,455</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Working
capital from continuing
operations</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,002</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">5,621</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">4,848</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">17,938</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">14,636</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">5,199</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Shareholders'
equity</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">34,312</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">30,993</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">35,110</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">64,739</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">61,143</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">18,059</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">20</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>






<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM
7.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Forward Looking and
Cautionary Statements</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Certain statements contained
herein constitute &lsquo;&lsquo;forward-looking
statements&rsquo;&rsquo; within the meaning of the Private Securities
Litigation Reform Act of 1995 (the &lsquo;&lsquo;1995 Reform
Act&rsquo;&rsquo;). TeamStaff, Inc. desires to avail itself of
certain &lsquo;&lsquo;safe harbor&rsquo;&rsquo; provisions of the
1995 Reform Act and is therefore including this special note to enable
TeamStaff to do so. Forward-looking statements included in this report
involve known and unknown risks, uncertainties, and other factors which
could cause TeamStaff&rsquo;s actual results, performance (financial
or operating) or achievements to differ from the future results,
performance (financial or operating) or achievements expressed or
implied by such forward-looking statements. Such future results are
managements best estimates based upon current conditions and the most
recent results of operations. These risks include, but are not limited
to, risks associated with risks undertaken in connection with
acquisitions, risks from potential workers&rsquo; compensation claims,
increased insurance costs and required payments, risks from
employer/employee related suits such as discrimination or wrongful
termination, risks associated with payroll and employee related taxes
which may require unanticipated payments by TeamStaff, liabilities
associated with TeamStaff&rsquo;s status under certain federal and
state employment laws as a co-employer, effects of competition,
TeamStaff&rsquo;s ability to implement its internet based business and
technological changes, and dependence upon key
personnel.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Critical Accounting Policies and
Estimates</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff believes the accounting policies
below represent its critical accounting policies due to the
significance or estimation process involved in each.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Revenue Recognition</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As of and for the
period ended September 30, 2005, TeamStaff operated two different lines
of business from which it derived substantially all of its revenue:
temporary and permanent staffing and payroll
services.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff accounts for its revenues in
accordance with EITF 99-19, <font style="font-weight: normal; font-style: italic">Reporting Revenues Gross as a Principal
Versus Net as an Agent</font> and SAB 104<font style="font-weight: normal; font-style: italic">, Revenue Recognition</font>.
TeamStaff recognizes all amounts billed to its temporary staffing
customers as gross revenue because, among other things, TeamStaff is
the primary obligor in the temporary staffing arrangement, TeamStaff
has pricing latitude, TeamStaff selects temporary employees for a given
assignment from a broad pool of individuals, TeamStaff is at risk for
the payment of its direct costs, and TeamStaff assumes a significant
amount of other risks and liabilities as an employer of its temporary
employees, and therefore, is deemed to be a principal in regard to
these services. TeamStaff also recognizes as gross revenue and as
unbilled receivables, on an accrual basis, any such amounts that relate
to services performed by temporary employees which have not yet been
billed to the customer as of the end of the accounting
period.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Staffing (whether medical or administrative)
revenue is recognized as service is rendered. TeamStaff bills its
clients based on an hourly rate. The hourly rate is intended to cover
TeamStaff&rsquo;s direct labor costs of the temporary employees, plus
an estimate to cover overhead expenses and a profit margin.
Additionally, commissions from permanent placements are included in
revenue related to Medical Staffing. Commissions from permanent
placements result from the successful placement of a medical staffing
employee to a customer&rsquo;s workforce as a permanent
employee.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Payroll Services revenue is recognized as
service is rendered and consists primarily of administrative service
fees charged to clients for the processing of paychecks as well as
preparing quarterly and annual payroll related reports.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In
connection with its discontinued operation, TeamStaff&rsquo;s
professional employer organization division revenues were derived from
its PEO division billings, net of worksite employee payroll costs (net
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">21</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
method), which included payroll taxes,
benefit costs, workers&rsquo; compensation charges and administrative
fees. The net method was used because TeamStaff was not generally
responsible for the output and quality of work performed by the
worksite employees. These amounts are reflected as part of income
(loss) from discontinued operations in the consolidated financial
statements.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Goodwill and Intangible
Assets</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Beginning October 1, 2001, with the adoption
of accounting standard (SFAS 142), TeamStaff no longer amortizes
goodwill or indefinite life intangible assets, but continues to
amortize software at its expected useful life. TeamStaff continues to
review its goodwill and other intangible assets for possible impairment
or loss of value at least annually or more frequently upon the
occurrence of an event or when circumstances indicate that a reporting
unit&rsquo;s carrying amount is greater than its fair value. If an
impairment write off of all the goodwill became necessary, a charge of
up to $10.3 million would be expensed on the Statement of Operations.
If an impairment write off of all the trade name became necessary, a
charge of up to $4.2 million would be expensed on the Statement of
Operations. TeamStaff does not believe that there is any required write
off of goodwill or its tradename.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Workers&rsquo;
Compensation</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff&rsquo;s current
workers&rsquo; compensation insurance program is provided by Zurich
American Insurance Company. The Zurich program originally covered the
period from March 22, 2002 through March 31, 2003, inclusive. On March
28, 2003, TeamStaff renewed its workers&rsquo; compensation program
with Zurich for the period from April 1, 2003, through March 31, 2004,
inclusive. The renewal program contained a large deductible feature of
$0.5 million for each claim, with a maximum liability cap of the
greater of 104.41% of manual premium or $15.6 million. The
premium for the program was paid monthly based upon estimated payroll
for the year and is subject to a policy year-end audit. The renewal
program was collateralized by a letter of credit inuring to the benefit
of Zurich, and cash held in a trust account by a third party. A letter
of credit for $3.5 million was secured through Fleet Bank, as part of
TeamStaff&rsquo;s line of credit. Effective March 31, 2004, Zurich
agreed to a reduction in the amount of the letter of credit to $1.8
million. As a result, on March 31, 2004, TeamStaff secured a new letter
of credit in the amount of $1.8 million with SunTrust Bank. Effective
March 31, 2005, Zurich withdrew the requirement for a letter of credit
and $1.8 million of restricted cash held in the form of a certificate
of deposit at SunTrust Bank was released to TeamStaff. Payments were
made to the trust monthly based on projected claims for the year.
Interest on all assets held in the trust is credited to TeamStaff.
Payments for claims and claims expenses are made from the trust. Assets
in the trust may be adjusted from time to time based on program
experience. GAB Robins, a third party administrator, provide claims
handling services for the program. On May 12, 2004, TeamStaff received
$963,000 in return premiums from Zurich. At September 30, 2005,
TeamStaff has a prepaid asset of $3.6 million for the premiums and the
prepayments made to the trust for both years of the Zurich plan. A
reduction of the prepaid asset in the amount of $0.5 million was
recorded in the fiscal year ended September 30, 2005 as a result of
adverse claims development for the period April 1, 2002 through
November 17, 2003. This write-down was predominantly driven by one
claim that caused the Company to increase its maximum exposure to equal
the policy deductible. TeamStaff estimates that, of the remaining
prepaid asset, approximately an additional $1.4 million in return
premiums will be received within the next twelve months, and this is
reflected on the balance sheet at September 30, 2005 as a current
asset.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In conjunction with the sale of its PEO assets to
GevityHR, Inc., TeamStaff requested and received a pro rata
cancellation of the policy described immediately above as of November
17, 2003.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff then entered into a new
workers&rsquo; compensation program with Zurich covering
TeamStaff&rsquo;s temporary employees and, as of January 1, 2004, its
corporate employees. The program is managed by Cedar Hill and GAB
Robins provide claims handling services. This program was a fully
insured, guaranteed cost program that contained no deductible or
retention feature (the &lsquo;&lsquo;Zurich Policy&rsquo;&rsquo;).
The Zurich Policy expired April 1, 2004. Effective April 1, 2004,
TeamStaff entered into a new workers&rsquo; compensation program with
Zurich for the period April 1, 2004 through March 31, 2005 identical to
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">22</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
the Zurich Policy. Effective April 1, 2005,
TeamStaff renewed its workers&rsquo; compensation program with Zurich
for the period from April 1, 2005 through March 31, 2006. This renewal
is also identical to the Zurich Policy.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As of September
30, 2005, the adequacy of the workers&rsquo; compensation reserves was
determined, in management&rsquo;s opinion, to be reasonable. In
determining our reserves we rely in part upon information regarding
loss data received from our workers&rsquo; compensation insurance
carriers that may include loss data for claims incurred during prior
policy periods. In addition, these reserves are for claims that have
not been sufficiently developed due to their relatively young age, and
such variables as timing of payments and investment returns thereon are
uncertain or unknown, therefore actual results may vary from current
estimates. TeamStaff will continue to monitor the development of these
reserves, the actual payments made against the claims incurred, the
timing of these payments, the interest accumulated in
TeamStaff&rsquo;s prepayments and adjust the reserves as deemed
appropriate.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As was previously reported in
TeamStaff's Exchange Act filing on Form 8-K, filed on October 20,
2005, the Company settled certain disputed workers&rsquo; compensation
insurance premium and loss claims totaling nearly $4.4 million for
$2.05 million payable over two (2) years (subject to certain prepayment
requirements), and was fully reserved as of the Company's June
30, 2005 balance sheet. The settlement was entered on or about October
10, 2005. In or about January, 2001, TeamStaff purchased from
Transportation Insurance Company
(&lsquo;&lsquo;TPIC&rsquo;&rsquo;), Transcontinental Insurance
Company (&lsquo;&lsquo;TCIC&rsquo;&rsquo;), Continental Casualty
Company (&lsquo;&lsquo;CCC&rsquo;&rsquo;), CNA Claimplus, Inc.
(&lsquo;&lsquo;ClaimPlus&rsquo;&rsquo;) and North Rock Insurance
Company Limited (&lsquo;&lsquo;North Rock&rsquo;&rsquo;) (together,
the &lsquo;&lsquo;CNA Entities&rsquo;&rsquo;) a workers'
compensation insurance program to provide workers' compensation
insurance and claims services for TeamStaff's professional
employee operations nationwide (the
&lsquo;&lsquo;Program&rsquo;&rsquo;). The Program provided
TeamStaff with workers' compensation insurance coverage and
claims services for all covered claims incurred during the period from
January 22, 2001 to January 22, 2002 (the &lsquo;&lsquo;Initial
Policy Term&rsquo;&rsquo;). TeamStaff secured its obligations under
the Program through its February 5, 2001 purchase of an Exposure
Buyback Policy numbered EBP 006/001 from North Rock (the
&lsquo;&lsquo;Exposure Buyback Policy&rsquo;&rsquo;), also covering
the period from January 22, 2001 to January 22, 2002. On or around
January 22, 2002, TeamStaff purchased from TCIC and RSKCo an extension
of the Program (the &lsquo;&lsquo;Program Extension&rsquo;&rsquo;).
The Program Extension provided TeamStaff with workers'
compensation insurance coverage and claims services for all covered
claims incurred during the period from January 22, 2002 to March 22,
2002 (the &lsquo;&lsquo;Extended Policy Term&rsquo;&rsquo;).</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff contested the CNA Entities' accounting of the
amount due and owing under the Program, the Program Extension and the
Exposure Buyback Policy, and of the ultimate losses projected to be due
from TeamStaff. TeamStaff additionally asserted that the CNA Entities
committed certain errors in claims management which unjustifiably
increased the losses incurred under the Program and the Program
Extension, and inappropriately included certain non-recoverable items
in the premium calculations for both the Program and the Program
Extension, thereby entitling TeamStaff to a credit against the amounts
ultimately due and owing under the Program, the Program Extension and
the Exposure Buyback Policy. The CNA Entities maintained that there was
due and owing from TeamStaff the sum of $1,824,975 in premiums,
deductibles, claims services fees, losses and allocated loss adjustment
expenses under the Program and the Program Extension, and $835,596 in
premiums and losses under the Exposure Buyback Policy. The CNA Entities
projected that TeamStaff would be liable for an additional $1,181,301
of losses under the Program and the Program Extension, and an
additional $556,176 of losses under the Exposure Buyback Policy. The
aggregate amounts totaled $4,398,048.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The settlement
fully and completely resolves, without litigation, all of the issues
addressed above on the material terms described below and in the
Agreement, without admitting and, in fact, expressly denying, the
allegations and claims each party could have made against the other.
TeamStaff will pay the CNA Entities the sum of $2,050,000, plus
interest at a rate of 6.0%, as follows: (1) $300,000 upon
execution of the Agreement; (2) $250,000 every 90 days thereafter, plus
interest on the unpaid sum at a rate of 6.0% from the date of
the preceding payment, for a total of eight (8) payments. The first
$300,000 payment is in settlement of the outstanding premiums,
deductibles, claims services fees, losses and allocated loss adjustment
expenses due and owing under the Program, the Program </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">23</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
Extension and the Exposure Buyback Policy.
The second through eighth payments are in settlement of liabilities
that become due and/or may become due under the Program, the Program
Extension and the Exposure Buyback Policy, including but not limited
to, premiums, deductibles, claims services fees, losses and allocated
loss adjustment expenses. It was also agreed that the payment schedule
would be accelerated by and in the amount of any and all payments
TeamStaff receives from Zurich North American in settlement of the
receivable TeamStaff is carrying from its prior years'
workers&rsquo; compensation insurance programs, up and to the then
outstanding balance due the CNA Entities.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Employee Pension
Plan</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Effective October 1, 2000, TeamStaff adopted a
non-qualified Supplemental Retirement Plan (SERP) covering certain
TeamStaff corporate officers. TeamStaff&rsquo;s former President and
Chief Executive Officer and its former Chief Financial Officer were the
only SERP participants. No current employees are covered under the
SERP. SERP participants also were provided with a split dollar life
insurance policy, insuring the life of the participant. Each
participant collaterally assigned his policy to TeamStaff to secure
repayment of policy premiums. In connection with the change in their
employment status, TeamStaff engaged in negotiations with its former
President and Chief Executive Officer and the former Chief Financial
Officer regarding the payment of certain severance benefits and the
satisfaction of TeamStaff&rsquo;s obligations to each of them under
the SERP and the split dollar life insurance arrangements.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On December 31, 2003, TeamStaff executed an agreement with
its former President and Chief Executive Officer pursuant to which
TeamStaff agreed to, among other things, release the collateral
assignment of the split dollar life insurance policy as of December 31,
2003 and to accelerate the payment of certain agreed upon payments
under the SERP in complete satisfaction of TeamStaff&rsquo;s
obligations under the SERP.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff entered into a
similar agreement with its former Chief Financial Officer effective as
of December 30, 2003 in complete satisfaction of TeamStaff&rsquo;s
obligations under the SERP. That agreement also provided for the
payment of severance and other benefits over time in complete
satisfaction of TeamStaff&rsquo;s obligations to its former Chief
Financial Officer under his severance agreement effective May 22,
2002.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Cash payments aggregating $0.6 million have been
made to the former President and Chief Executive Officer and the former
Chief Financial Officer during the fiscal year ended September 30,
2005.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Deferred Taxes</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff accounts
for income taxes in accordance with Statement of Financial Accounting
Standards No. 109, &lsquo;&lsquo;Accounting for Income
Taxes.&rsquo;&rsquo; Under SFAS No. 109, deferred tax assets and
liabilities are determined based on the difference between the
financial statement and tax bases of assets and liabilities, using
enacted tax rates in effect for the year in which the differences are
expected to reverse. Deferred tax assets are reflected on the balance
sheet when it is determined that it is more likely than not that the
asset will be realized. If the company cannot ultimately realize the
benefit of this asset, it would potentially have to write off an amount
in excess of $18.5 million.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Allowance for doubtful
accounts</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff maintains an allowance for
doubtful accounts for estimated losses resulting from the inability of
its customers to pay. However, if the financial condition of
TeamStaff&rsquo;s customers were to deteriorate rapidly, resulting in
nonpayment, TeamStaff&rsquo;s accounts receivable balances could grow
and TeamStaff could be required to provide for additional allowances,
which would decrease net income in the period that such determination
was made. For example, TeamStaff currently maintains an allowance of
approximately .4% of accounts receivable. If, for example, the
allowance grew to 2% of accounts receivable, net income would
have been reduced by $149,000.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Fiscal Year 2005 as Compared
to Fiscal Year 2004-Continuing
Operations</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff&rsquo;s revenues for the
fiscal years ended September 30, 2005 and 2004 were $55.8 million and
$37.3 million, respectively, which represents an increase of $18.5
million, or 49.7% over the prior fiscal </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">24</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
year. Revenues from staffing services for the
fiscal years ended September 30, 2005 and 2004 were $51.2 million and
$32.9 million, respectively, which represents an increase of $18.3
million, or 55.8% over the prior fiscal year. Revenues for
fiscal 2005 include $12.8 million related to the acquisition of Nursing
Innovations, a Memphis, Tennessee-based provider of travel and per diem
nurses effective as of November 14, 2004 (See Note 3 of Notes to
Consolidated Financial Statements) and $13.0 million related to the
acquisition of RS Staffing Services, a Monroe, Georgia-based provider
of medical and office administration/technical professionals effective
as of June 4, 2005 (See Note 3 of Notes to Consolidated Financial
Statements.) These acquisitions helped offset a decrease in the
revenues of the allied healthcare portion of our Staffing Services
division for fiscal 2005 of $7.4 million. The Payroll Services division
revenues for fiscal years ended September 30, 2005 and 2004 were $4.6
million and $4.4 million, respectively, which represents an increase of
$0.2 million, or 4.4% over the prior fiscal year.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">We believe that during the first half of fiscal 2005,
hospitals continued to focus on cost efficiencies by placing greater
reliance on existing full time staff. This, in turn, led to less demand
for temporary health care professionals. We also believe that some
healthcare providers who once traveled for temporary assignments took
full time jobs, specifically because they viewed them as more stable or
secure. This trend also provided facilities with a greater pool of full
time staff on which to rely. We also believe that the continued lack of
growth in hospital admissions nationwide may have had an adverse impact
on demand for our temporary medical staffing services for this
period.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">We did see increases in demand as well as
increases in applicants entering the field for traveling nurses during
the second half of fiscal 2005. For our Nursing Innovations division,
this translated into an 11 percent sequential quarterly increase in
revenues for the last two quarters of fiscal 2005, from $3.6 million
for quarter ended June 30, 2005 to $4.0 million for quarter ended
September 30, 2005. Recovery in our allied segment still continued to
be slower than expected, however, as hospitals sought to contain costs
by limiting temporary staff in higher health care professional payroll
areas. For our allied health division, this resulted in a 2.8%
sequential quarterly increase in billable hours and a 3.7%
sequential quarterly increase in revenues, not including permanent
placement revenues, for the last two quarters of fiscal 2005. We
believe that since the business fundamentals of allied health are
similar to those in the nursing segment, that the allied sector will
eventually experience a sustained rebound.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Longer term,
we believe the demand for temporary medical personnel will increase.
Key drivers in our major business segments include an aging population,
an improving employment environment and growth in hospital admissions.
We believe demand will also increase as more states introduce
legislation for mandatory minimum nurse to patient ratios and overtime
limitations. The acquisition of Nursing Innovations provides TeamStaff
with the opportunity to benefit from these industry changes that, we
believe, impact our temporary nurse staffing business most
significantly. Our acquisition of RS Staffing completed in early June
2005 gives us a strong presence in the government sector and provides
us with an opportunity to cross sell to our nursing and allied
divisions. We continue to expand our sales and marketing efforts
throughout the divisions in order to increase our contact with current
and prospective clients.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Direct expenses for the fiscal
years ended September 30, 2005 and 2004 were $43.7 million and $28.5
million, respectively, which represents an increase of $15.1 million,
or 52.9%. This increase is a direct result of increased
revenues. As a percentage of revenue, direct expenses for the fiscal
years ended September 30, 2005 and 2004 were 78.2% and
76.6%, respectively. This increase is a result of a higher
volume of teaming partner (subcontractor) costs due to the inclusion of
RS Staffing. Teaming is a business practice expected by government
entities who prefer their suppliers to provide more of a master vendor
service where the supplier looks to outside sources when needed to fill
open staffing positions.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Gross profits for the fiscal
years ended September 30, 2005 and 2004 were $12.2 million and $8.7
million, respectively, which represents an increase of $3.4 million, or
39.0%. This increase is attributable to the growth by
acquisition of our staffing business as well as more prudent expense
management and selected price increases in both the Medical Staffing
and Payroll Services divisions. </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">25</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
Gross profits, as a percentage of revenue,
decreased to 21.8% from 23.4%, for the fiscal years ended
September 30, 2005 and 2004, respectively. This decrease is primarily
due to the inclusion of RS Staffing in the last four months of fiscal
2005 and costs related to staffing teaming partners.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Operating expenses for the fiscal years ended September 30,
2005 and 2004 were $14.3 million and $11.4 million, respectively, which
represents an increase of $3.0 million, or 26.0%. This increase
includes $0.5 million of workers&rsquo; compensation receivable
write-offs related to adverse claims development for the period April
1, 2002 through November 17, 2003 (the date of sale of the discontinued
PEO operation) and $0.2 from certain loan forgiveness related to
TeamStaff&rsquo;s acquisition of BrightLane in 2001. Operating
expenses related to Nursing Innovations, since the date of acquisition
effective November 14, 2004, were $1.8 million. Operating expenses
related to RS Staffing, since the date of acquisition effective June 4,
2005 were $1.0 million. After adjusting for operating expenses in
fiscal 2005 related to Nursing Innovations and RS Staffing and the
write-offs related to the worker&rsquo;s compensation receivable
write-off and TeamStaff&rsquo;s acquisition of BrightLane in 2001,
expenses for the fiscal year decreased 4% from 2004 to 2005.
Operating expenses, as a percentage of revenue, were 25.7% and
30.5%, for the fiscal years ended September 30, 2005 and 2004,
respectively.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Depreciation and amortization for the
fiscal years ended September 30, 2005 and 2004 was $561,000 and
$409,000, respectively. This increase is due to additional depreciation
related to capital leases as well as fixed assets acquired as part of
the acquisitions of Nursing Innovations and RS Staffing.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Other income, which is comprised of interest income and late
fee income, for the fiscal years ended September 30, 2005 and 2004 was
$228,000 and $270,000, respectively, representing a decrease of
$42,000.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Interest expense for the fiscal years ended
September 30, 2005 and 2004 was $222,000 and $81,000, respectively,
representing an increase of $141,000. This increase is primarily a
result of interest expense related to the revolving credit facility
effective as of June 8, 2005, as well as interest expense from the
notes payable related to the acquisition of RS Staffing effective as of
June 4, 2005.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Income tax benefit from continuing
operations for fiscal years ended September 30, 2005 and 2004 was $1.0
million and $1.1 million, respectively. These tax benefits are a result
of losses from operations. Management believes that due to the
acquisitions of RS Staffing and Nursing Innovations, two historically
profitable companies, coupled with an improving business climate for
temporary staffing, the Company will be able to utilize the recorded
deferred tax asset.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Loss from continuing operations for
the fiscal year ended September 30, 2005 was $1.7 million, or $(0.09)
per fully diluted share, as compared to loss from continuing operations
for the fiscal year ended September 30, 2004 of $1.8 million, or
$(0.11) per fully diluted share.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Loss from discontinued
operations, net of tax, for the fiscal year ended September 30, 2005
was $0.8 million, or $(0.05) per fully diluted share, as compared to
loss from discontinued operations, net of tax, for the fiscal year
ended September 30, 2004 of $2.3 million, or $(0.15) per fully diluted
share. Loss from operations from the discontinued business unit, net of
tax, for the fiscal years ended September 30, 2005 and 2004 was $0.8
million and $1.4 million, respectively. There was virtually no activity
from disposal of the discontinued business unit for fiscal year 2005.
Loss on disposal, net of tax, for the fiscal year ended September 30,
2004, was $0.9 million. In fiscal 2005, the loss was due to previously
unbilled legal fees, non-cancelable software licenses related to the
discontinued business unit and additional reserves posted for a
settlement with CNA related to PEO workers&rsquo; compensation for
periods prior to March 31, 2002. In the first nine months of fiscal
2004, TeamStaff generated revenue from the discontinued business unit
for only the first six weeks, while certain costs associated with the
operation of that business unit continued throughout the period. For
fiscal 2004, the loss is attributable to the write-down of goodwill and
fixed assets, salary, severance and stay bonus payouts to affected
employees, accruals for losses from lease obligations in offices no
longer used by TeamStaff&rsquo;s continuing operations offset by
estimated sublease of unoccupied office space, investment banking fees
and other expenses required to dispose of the discontinued business
unit.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Net loss for the fiscal year ended September 30,
2005 was $2.5 million, or ($0.14) per fully diluted share, as compared
to a net loss of $4.1 million, or $(0.26) per fully diluted share, for
the fiscal year ended September 30, 2004.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">26</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Fiscal Year 2004 as Compared to
Fiscal Year 2003-Continuing
Operations</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff&rsquo;s revenues for the
fiscal years ended September 30, 2004 and 2003 were $37.3 million and
$62.8 million, respectively, which represents a decrease of $25.5
million, or 40.6% over the prior fiscal year. Decreased revenues
in TeamStaff&rsquo;s Medical Staffing division accounted for
approximately $25.3 million of the revenue decline. Lower revenues were
attributable, in part, to the decrease in demand for temporary medical
staffing workers. We believe hospitals continue to focus on cost
efficiencies by placing greater reliance on existing full time staff.
This, in turn, has led to less demand for temporary health care
professionals. Longer term, we believe the demand for temporary medical
personnel will increase, driven in part, by an aging population and an
improving economy. We also believe demand will increase as more states
introduce legislation for mandatory minimum nurse to patient ratios and
overtime limitations. Additionally, we continue to substantially expand
our sales and marketing efforts in order to increase our contact with
current and prospective clients.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Direct expenses for the
fiscal years ended September 30, 2004 and 2003 were $28.5 and $50.6
million, respectively, which represents a decrease of $22.1 million, or
43.6% This decrease is a direct result of the lower consolidated
revenues. As a percentage of revenue, direct expenses for the fiscal
years ended September 30, 2004 and 2003 were 76.6% and
80.6%, respectively.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Gross profits for the fiscal
years ended September 30, 2004 and 2003 were $8.7 million and $12.2
million, respectively, which represents a decrease of $3.4 million, or
28.3%. This decrease is attributed to the reduction in our
Medical Staffing business as discussed above. Gross profits, as a
percentage of revenue, were 23.4% and 19.4%, for the
fiscal years ended September 30, 2004 and 2003, respectively. This
increase is due to improved margins in the medical staffing division
and the higher gross margin Payroll Services division, which
represented 31.7% of total gross profit for fiscal year ended
September 30, 2004 versus 24.5% for fiscal year ended September
30, 2003, thus increasing TeamStaff&rsquo;s total gross margin
percentage.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Operating expenses for the fiscal years ended
September 30, 2004 and 2003 were $11.4 million and $14.6 million,
respectively, representing a decrease of $3.2 million, or 22.1%.
This decrease is attributed to lower SERP expenses and the absence of
severance costs related to TeamStaff&rsquo;s former Chief Executive
Officer and Chief Financial Officer, lower corporate expenses, as well
as reduced expenses in the Medical Staffing business. Operating
expenses, as a percentage of revenue, were 30.5% and
23.2%, for the fiscal years ended September 30, 2004 and 2003,
respectively, as revenue declined at a higher rate than operating
expenses. While our Medical Staffing division has reduced overall
operating expenses, we are increasing our product development, sales
and marketing efforts in that division, which has partially offset
reductions in general expenses.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Depreciation and
amortization for the fiscal years ended September 30, 2004 and 2003
were $0.4 million and $0.3 million, respectively.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Other
income (net) for the fiscal years ended September 20, 2004 and 2003 was
$0.2 million and $0.4 million, respectively, representing a decrease of
$0.2 million. This decrease is primarily attributable to the reduction
in late payment fees received by our Medical Staffing division due to
associated lower revenues and a more competitive pricing
environment.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Income tax benefit from continuing
operations for the fiscal years ended September 30, 2004 and 2003 was
$1.1 million and $0.9 million, respectively. These tax benefits are a
result of losses from operations.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Loss from continuing
operations for the fiscal year ended September 30, 2004 was $1.8
million, or $.11 per fully diluted share, as compared to loss from
continuing operations of $1.5 million, or $0.10 per fully diluted
share, for fiscal year ended September 30, 2003. This increased loss is
due to the decreased performance in our Medical Staffing division,
offset partially by decreased costs related to TeamStaff&rsquo;s
former Chief Executive Officer and Chief Financial Officer and other
operating expense decreases.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Losses from discontinued
operations, net of tax, for the fiscal years ended September 30, 2004
and 2003 were $2.3 million and $27.4 million, respectively. The loss in
2003 resulted primarily from the </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">27</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
write-down of goodwill and intangible assets
from the PEO business totaling $25.4 million. Loss from operations from
the discontinued business unit, net of tax, for the fiscal years ended
September 30, 2004 and 2003 were $1.4 million and $27.4 million,
respectively. In fiscal year 2004, TeamStaff generated revenue from the
PEO business for only the first six weeks, while certain costs
associated with the operation of that business unit continued
throughout the year. Losses on disposal, net of tax, were $0.9 million
for fiscal year ended September 30, 2004. The loss is based on the
selling price of $9.25 million, offset by expenses including the
write-down of goodwill and fixed assets, salary, severance and stay
bonus payouts to affected employees, accruals for losses from lease
obligations in offices no longer used by TeamStaff&rsquo;s continuing
operations offset by estimated sublease of unoccupied office space,
investment banking fees and other expenses required to dispose of the
PEO business.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Net loss for the fiscal year ended
September 30, 2004 was $4.1 million or $0.26 per fully diluted share,
as compared to net loss of $28.9 million or $1.84 per fully diluted
share for the fiscal year ended September 30, 2003.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Liquidity and Capital Resources</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Net cash
used in operating activities for the fiscal year ended September 30,
2005 was $2.1 million compared to $1.2 million in the fiscal year ended
September 30, 2004. Use of cash during fiscal 2005 includes increased
accounts receivable of $1.8 million primarily due to the operations of
Nursing Innovations subsequent to its acquisition on November 14, 2004
and RS Staffing subsequent to its acquisition effective June 4, 2005,
increased accrued payroll and other accrued expenses of $1.3 million
and losses in continuing and discontinued operations, offset by a
decrease of $1.8 million in restricted cash related to the release of
the letter of credit requirement from Zurich for TeamStaff&rsquo;s
workers&rsquo; compensation policy.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Cash used in
investing activities for the fiscal year ended September 30, 2005 was
$4.8 million compared to $0.02 in fiscal 2004. Use of cash was
primarily for the purchase of certain of the assets of Nursing
Innovations for $1.9 million including acquisition expenses and the
capital stock purchase of RS Staffing Services for $3.25 million plus
acquisiton expenses, less acquired cash of $0.7 million.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Cash provided by financing activities for the fiscal year
ended September 30, 2005 was $5.1 million compared to $0.06 million in
fiscal 2004. During the first fiscal quarter of 2005, TeamStaff entered
into Securities Purchase Agreements with several accredited investors
for the private sale under Section 4(2) of the Securities Act of 1933
and/or Regulation D of securities for an aggregate purchase price of
$4.3 million. The offering consisted of the sale of 2,392,000 shares of
Common Stock and 598,000 common stock warrants. The investors in the
transaction received one three-year warrant to purchase an additional
share of common stock at a price of $2.50 per share for every four
shares of common stock purchased in the transaction. TeamStaff received
net proceeds of approximately $4.0 million, after payment of
commissions and related offering expenses. SunTrust Robinson Humphrey
Capital Markets and Maxim Group LLC served as selling agents on
TeamStaff's behalf and received combined commissions of
6.5% of the gross proceeds.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Effective June 8,
2005, TeamStaff, Inc. entered into a $7.0 million revolving credit
facility provided by PNC Bank to (i) provide for the acquisition of RS
Staffing; (ii) refinance an outstanding senior loan facility; and (iii)
provide ongoing working capital. Revolving Credit advances bear
interest at either the Prime Rate plus 25 basis points or LIBOR plus
275 basis points, whichever is higher. The facility has a three-year
life and contains term and line of credit borrowing options. The
facility is subject to certain restrictive covenants, including minimum
EBITDA and a minimum consolidated debt service coverage ratio. For the
period ended September 30, 2005, TeamStaff was not in compliance with
the EBITDA covenant. PNC issued an Amendment to Revolving Credit and
Security Agreement, waiving the minimum EBITDA requirement because the
Company met the minimum consolidated debt service coverage ratio. The
facility is subject to acceleration upon non-payment or various other
standard default clauses. In addition, we granted PNC a lien and
security interest on all of our assets. As of September 30, 2005, there
was $4.0 million debt outstanding under the Credit Facility and $1.8
million of unused availability under the line, based on billed accounts
receivable. The interest rate effective as of September 30, 2005 was
7.0%.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">28</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Availability under the PNC line of
credit is directly related to the successful assignment of certain
accounts receivable. Certain government accounts of RS Staffing
Services are required to execute &lsquo;&lsquo;Acknowledgements of
Assignment.&rsquo;&rsquo; There can be no assurance that every RS
Staffing government account will execute the documentation to
effectuate the assignment and secure availability. The failure of
government third parties to sign the required documentation could
result in a decrease in availability under the line of
credit.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As of September 30, 2005, TeamStaff had
unrestricted cash and cash equivalents of $1.3 million and net accounts
receivable of $9.5 million. As of September 30, 2005, TeamStaff had
working capital of $1.0 million. Management believes its existing cash,
liquidity provided by the Company&rsquo;s revolving line of credit and
funds generated by operations will be sufficient to support cash needs
for at least the next twelve months.</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 12px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="223"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="62"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="63"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="63"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="45"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Obligations<br>
(Amounts in
Thousands)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="15"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Payments Due
By
Period</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Total</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Less
than<br> 1 year</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">1-3 years</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">4-5
years</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Long-term debt
(1)</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$&nbsp;&nbsp;
9,439</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$&nbsp;&nbsp;&nbsp;&nbsp;7,719</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$&nbsp;&nbsp;&nbsp;&nbsp;1,720</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$0</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Operating
leases
(2)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2,498</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">644</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">1,396</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">458</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Pension
liability
(3)</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;872</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;275</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;462</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;135</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Total
Obligations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$
12,809</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$&nbsp;&nbsp;&nbsp;&nbsp;8,657</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$&nbsp;&nbsp;&nbsp;&nbsp;3,559</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$&nbsp;&nbsp;
593</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="32"></td>
<td><img src="spacer.gif" height="1" width="570"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 24pt">(1)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 432pt">Represents bank
line of credit, notes payable related to acquisition of RS Staffing,
CNA settlement, and capital lease obligations. Bank line of credit has
a 3-year life but is classified as short term because it is subject to
acceleration upon non-payment or various other standard default
clauses. Additionally, the CNA settlement is classified as short term
because it contains an acceleration clause not to exceed amounts
received from Zurich American Insurance
Company.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="32"></td>
<td><img src="spacer.gif" height="1" width="570"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 24pt">(2)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 432pt">Represents lease payments
net of sublease income.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="32"></td>
<td><img src="spacer.gif" height="1" width="570"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 24pt">(3)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 432pt">Represents
pension liability for the former CEO and former
CFO.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Recently Issued Accounting Pronouncements Affecting the
Company</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In December 2004, the Financial Accounting
Standards Board issued SFAS No. 123 (revised 2004) <font style="font-weight: normal; font-style: italic">Share-Based
Payments (</font>SFAS No. 123(R)), which replaces SFAS No. 123 and
supercedes APB No. 25. SFAS No. 123(R) requires all share-based
payments to employees, including grants of employee stock options, to
be recognized in the financial statements based on their fair values
beginning with the first interim or annual period after June 15, 2005.
The pro forma disclosures previously permitted under SFAS No. 123 no
longer will be an alternative to financial statement recognition. In
April 2005, the SEC issued a press release that revises the required
date of adoption under SFAS 123(R). The new rule allows companies to
adopt the provisions of SFAS 123(R) beginning on the first annual
period beginning after June 15, 2005. Based on the new required
adoption date, the Company expects to adopt SFAS 123(R) effective
October 1, 2005.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">SFAS 123(R) permits public companies to
adopt its requirements using one of two methods: (1) a
&lsquo;&lsquo;modified prospective&rsquo;&rsquo; method under which
compensation cost is recognized beginning with the effective date based
on the requirements of SFAS 123(R) for all share-based payments granted
after the effective date and based on the requirements of SFAS 123 for
all awards granted to employees prior to the effective date of SFAS
123(R) that are unvested on the effective date; or (2) a
&lsquo;&lsquo;modified retrospective&rsquo;&rsquo; method which
includes the requirements of the modified prospective method and also
has entities restate either all prior periods presented or prior
interim periods of the year of adoption using the amounts previously
calculated for pro forma disclosure under SFAS 123. The Company intends
to follow the modified prospective method upon adoption in the first
fiscal quarter of 2006.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">See &lsquo;&lsquo;Stock-Based
Incentive Compensation&rsquo;&rsquo; in the Notes to Consolidated
Financial Statements for the pro forma net income and net income per
share amounts, for the fiscal years ended September 30, </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">29</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
2005, 2004 and 2003, as if we had used a
fair-value-based method similar to the methods required under
SFAS&nbsp;123(R) to measure compensation expense for employee stock
incentive awards. Although we have not yet determined whether the
adoption of SFAS&nbsp;123(R) will result in amounts that are similar
to the current pro forma disclosures under SFAS&nbsp;123, we are
evaluating whether the requirements under SFAS&nbsp;123(R) will have
a significant adverse impact on our consolidated statements of
operations and net income (loss) per share.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM
7a.&nbsp;&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff does not undertake trading practices in
securities or other financial instruments and therefore does not have
any material exposure to interest rate risk, foreign currency exchange
rate risk, commodity price risk or other similar risks, which might
otherwise result from such practices. TeamStaff is not materially
subject to fluctuations in foreign exchange rates, commodity prices or
other market rates or prices from market sensitive instruments.
TeamStaff has a material interest rate risk with respect to our prior
workers&rsquo; compensation programs. In connection with
TeamStaff&rsquo;s prior workers&rsquo; compensation programs,
prepayments of future claims were deposited into trust funds for
possible future payments of these claims in accordance with the
policies. The interest income resulting from these prepayments is for
the benefit of TeamStaff, and is used to offset workers&rsquo;
compensation expense. If interest rates in these periods&rsquo;
decrease, TeamStaff&rsquo;s workers&rsquo; compensation expense would
increase because TeamStaff would be entitled to less interest income on
the deposited funds. Further, and as discussed elsewhere in this
filing, TeamStaff, Inc. completed a $7.0 million revolving credit
facility by PNC Bank effective on June 8, 2005. Revolving Credit
advances bear interest at either the Prime Rate plus 25 basis points or
LIBOR plus 275 basis points, whichever is higher. The facility has a
three-year life and contains term and line of credit borrowing options.
The facility is subject to certain restrictive covenants, including
minimum EBITDA and a minimum consolidated debt service coverage ratio.
The facility is subject to acceleration upon non-payment or various
other standard default clauses. Material increases in the Prime or
LIBOR rate could have a material adverse effect on our results of
operations, the status of the Revolving Credit Facility as well as
interest costs.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM 8.&emsp; FINANCIAL STATEMENTS AND
SUPPLEMENTAL DATA</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">See attached Financial Statements
beginning on page F-1 attached to this report on Form 10-K.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM
9.&nbsp;&nbsp;&nbsp;&nbsp;CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">None.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM 9A.&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS
AND PROCEDURES</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Evaluation of Disclosure Controls and
Procedures:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Our management, under the supervision and
with the participation of our Chief Executive Officer and Chief
Financial Officer (who serves as our principal accounting officer),
conducted an evaluation of our &lsquo;&lsquo;disclosure controls and
procedures&rsquo;&rsquo; (as defined in the Securities Exchange Act
of 1934 Rules 13a-14(c)) as of the end of the period (September 30,
2005) (&lsquo;&lsquo;Evaluation Date&rsquo;&rsquo;) covered by this
Annual Report on Form 10-K. Based on their evaluation, our Chief
Executive Officer and Chief Financial Officer (who serves as our
principal accounting officer) have concluded that as of the Evaluation
Date, our disclosure controls and procedures are effective to ensure
that all material information required to be filed in this Annual
Report on Form 10-K has been made known to them.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Changes in
Internal Controls:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">There have been no significant
changes, including corrective actions with regard to significant
deficiencies or material weaknesses, in our internal controls or in
other factors that could significantly affect these controls subsequent
to the Evaluation Date set forth above.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">30</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM 9B.&nbsp;&nbsp;&nbsp;&nbsp;OTHER
INFORMATION</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On September 1, 2005, pursuant to our
Non-Executive Director Stock Option Plan, we granted our non-executive
directors options to purchase shares of our common stock at an exercise
price of $1.36 per share, which represents the closing selling price
per share of our common stock on the NASDAQ National Market on
September 1, 2005. Four of the six non-executive directors were each
granted 5,000 options. Two non-executive directors who joined the board
in fiscal year 2005 were each granted 2,500 options for their partial
year service at September 30, 2005 (plus the initial grant of 5,000
options each for joining the Board). The options are governed by our
standard form stock option agreement, a copy of which is filed as an
exhibit to this Annual Report on Form 10-K, and the terms of our
Non-Executive Director Stock Option Plan, as amended. The options vest
after one year, are exercisable for a period of five years (subject to
earlier termination under certain circumstances) and were granted on a
non-discretionary basis pursuant to our Non-Executive Director Stock
Option Plan.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">31</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>






<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">PART
III</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM 10.&nbsp;&nbsp;&nbsp;&nbsp;DIRECTORS AND EXECUTIVE OFFICERS</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
executive officers and directors of TeamStaff as of December 16, 2005
are as
follows:</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:left">
<table cellpadding="0" cellspacing="0" border="0" width="412" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="147"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="25"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="243"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">NAME</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">AGE</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">OFFICE</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">T. Stephen
Johnson</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">55</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Chairman
of the Board of Directors Class 1</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Karl W.
Dieckmann</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">77</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Vice-Chairman Class
2</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Ron Aldrich</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">62</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Director Class
2</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Peter Black</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">33</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Director Class
1</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Martin Delaney</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">62</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Director Class
3, Senior Vice President</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Ben J.
Dyer</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">57</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Director Class 1</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Rocco J.
Marano</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">76</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Director Class 3</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">T. Kent
Smith</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">49</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">President, Chief Executive Officer, Director
Class 2</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Rick J. Filippelli</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">49</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Vice
President, Finance, Chief Financial Officer</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">James D.
Houston</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">46</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Vice President, General
Counsel</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Timothy Nieman</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">46</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Senior
Vice President, Sales</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Peter
Rosen</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">58</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Vice President, Human
Resources</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Barry
McDonald</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">47</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">President, TeamStaff Rx,
Inc.</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">William L. Booth</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">42</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">President,
Nursing Innovations</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Roger
Staggs</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">53</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">President, RS Staffing Services,
Inc.</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="11"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Board
of Directors</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Our board is classified into three classes, which
are each elected in staggered three-year terms. Class 1 consists of T.
Stephen Johnson, Ben J. Dyer and Peter Black, and the term expires in
2006; Class 2 consists of Karl Dieckmann, T. Kent Smith and Ron
Aldrich, and the term expires in 2007 and Class 3 consists of Rocco
Marano and Martin Delaney, and the term expires in 2008.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Ron
Aldrich joined the Board of Directors in May 2005. Mr. Aldrich has more
than thirty-seven years of leadership experience in health care
organizations throughout the United States. He served for nineteen
years as the President and CEO of three multi-hospital Catholic Systems
(a 3,400 bed system based in Aston, Pennsylvania, a regional system
located in Urbana, Illinois and a regional system based in Melville,
Long Island, New York). He was also President and CEO of Mercy Hospital
in Urbana, Illinois for five years from 1977 to 1982. Mr. Aldrich was
instrumental in the formation of Catholic Health Initiatives that
integrated three large Catholic Systems (including Franciscan Health
System) in 1996. With 126 Health Care Organizations in 21 states, it
was the largest not-for-profit health care merger to occur in the
United States. Mr. Aldrich has also served on the Boards of Directors
of five Catholic Health Systems. From 1992 to 1993 he served as
Chairperson of the Catholic Health Association of the United States. He
currently serves on the Boards of Bon Secours Health System, Franciscan
Ministries Foundation and the Board of Trustees of the University of
Florida Foundation.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Peter Black joined the Board of Directors in
March 2005. For the past six years, Mr. Black has been an Investment
Analyst and Portfolio Manager at Wynnefield Capital, Inc., where he is
responsible for researching and identifying small-cap value
investments. Mr. Black has initiated investments on Wynnefield's
behalf that span multiple industries. Prior to joining Wynnefield, Mr.
Black was an investment banker in the mergers and acquisition
departments of UBS Securities and SG Cowen &amp; Co., where he amassed
significant valuation and transactional experience. Mr. Black is a
graduate of Boston College and received his MBA from Fordham
University. Wynnefield Capital, Inc., through certain of its investment
funds, is the owner of approximately 12% of our outstanding
shares of common stock.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Martin J. Delaney joined the Board of
Directors in July 1998. Mr. Delaney was hired as a Senior
Vice-President of TeamStaff effective January 5, 2005. Mr. Delaney is
an attorney and a prominent </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">32</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
healthcare executive who began his hospital
management career in 1971 as an Assistant Administrator at Nassau
County Medical Center. He has been a director of a large regional
Health Maintenance Organization on Long Island, the Hospital
Association of New York State, the Greater New York Hospital
Association, and chairman of the Nassau-Suffolk Hospital Council. He
has been President, CEO and a Director of Winthrop University Hospital,
Winthrop South Nassau University Health Care Systems, and the Long
Island Health Network. He has a graduate degree in health care
management from The George Washington University and a law degree from
St. John's University. He has been admitted to practice in New
York State and federal courts.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Karl W. Dieckmann, a Director of
TeamStaff since April 1990, had been Chairman of the Board from
November 1991 until September 2001 and has been Vice Chairman since
September 2001. From 1980 to 1988, Mr. Dieckmann was the Executive Vice
President of Science Management Corporation and managed the
Engineering, Technology and Management Services Groups. From 1948 to
1980, Mr. Dieckmann was employed by the Allied Signal Corporation (now
Honeywell Corporation) in various capacities including President, Semet
Solvay Division; Executive Vice President, Industrial Chemicals
Division; Vice President Technical &ndash; Fibers Division; Group
General Manager &ndash; Fabricated Products Division; and General
Manager &ndash; Plastics Division, as well as various positions with
the Chemicals Division.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Ben J. Dyer joined the Board of Directors
in December 2002. Mr. Dyer is currently President of investment banking
firm Jackson Capital, a general partner of the early stage technology
fund Cordova Intellimedia Ventures LP, and President of Innovations
Publishing, LLC, an Atlanta based company which provides a
subscription-based online catalog of emerging private ventures across
the Southeastern US. In the 1980s Mr. Dyer served as Chairman and CEO
of Comsell, Inc., a pioneering multimedia development firm and was
President and a Director of the de novo Enterprise National Bank. Mr.
Dyer founded Intellimedia Sports, Inc. in 1992 to create the
ESPN-branded sports instruction category in the CD-ROM industry. He was
earlier a founder of Peachtree Software, Inc. and served as its
President from 1977 to September 1983. He currently serves on a number
of private boards including FundRaisingInfo.com and Atlanta
Bancorporation, and is a member of the External Advisory Council of
Georgia Tech Research Institute. He has concentrated his community
activities on higher education and has been President of the Georgia
Tech Alumni Association, a Director of the Georgia Tech Foundation,
Chairman of the Alumni Advisory Board for Tech's School of
Industrial &amp; Systems Engineering, and chairman of the Georgia Tech
Research Corporation. He is currently a Senior Fellow of the Center for
Entrepreneurship and Corporate Growth at Emory University's
Goizueta Business School. Mr. Dyer holds a Bachelors degree in
Industrial Engineering from Georgia Tech and an MBA in finance from
Georgia State University.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">T. Stephen Johnson has been Chairman of
the Board of TeamStaff since September 2001. He has served as Chairman
of T. Stephen Johnson &amp; Associates, Inc., a financial services
consulting firm, and its related entities since inception in 1986. Mr.
Johnson is a long-time banking consultant and Atlanta entrepreneur who
has advised and organized dozens of community banks throughout the
Southeast. He is Chairman Emeritus of Netbank, the largest and most
successful Internet-only bank, as well as Chairman and principal owner
of Bank Assets, Inc., a provider of benefit programs for directors and
officers of financial institutions. Mr. Johnson is Chairman of the
Board of Directo, Inc. a company specializing in providing financial
services for un-banked individuals and Chairman of Atlanta Financial
Corporation. See &lsquo;&lsquo;Certain Relationships and Related
Transactions&rsquo;&rsquo;.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Rocco Marano served as member of
the Board of Directors from July 1999 thru September 2001. He rejoined
the Board of Directors in November 2002. Mr. Marano, a prominent
telecommunications executive, is the retired chairman and President of
Bellcore, Inc. a Bell Communications research and engineering entity
formerly owned by the seven Bell regional communications companies.
Prior to acting as President of Bellcore, Mr. Marano served as
President of New Jersey Bell Telephone Company. His present additional
board affiliations include Horizon Blue Cross/Blue Shield Foundation.
He has also served as Chairman of Horizon Blue Cross/Blue Shield of New
Jersey. Mr. Marano holds a B.S. in Accounting from Fordham University
and a J.D. from Fordham University Law School, and is admitted to
practice law in New York.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">33</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">T. Kent Smith was appointed as our Chief
Executive Officer, President and a member of our Board of Directors on
June 18, 2003. From January 2000 to January 2003, Mr. Smith served as
the President of HoneyBaked Ham Company and Chief Executive Officer of
the Heavenly Ham Company. From 1998 to 1999, Mr. Smith was the Senior
Vice President of Organization Serv. Prior to that; Mr. Smith served in
various executive positions for Norrell Corporation from 1987 to 1998,
including Senior Vice President, Service Operations, Vice President and
Chief Information Officer and Vice President, Finance &amp; Strategic
Planning. Mr. Smith received a Masters in Business Administration from
the University of Virginia and is a graduate of Vanderbilt
University.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Other Executive Officers</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Rick J. Filippelli
assumed his current position as Vice President and Chief Financial
Officer of TeamStaff in September 2003. Prior to joining TeamStaff, Mr.
Filippelli spent approximately two years as Chief Financial Officer of
Rediff.com, a publicly traded global information technology company.
From 1985 through 2001 Mr. Filippelli held various financial positions
including that of Chief Financial Officer with Financial Guaranty
Insurance Company (&lsquo;&lsquo;FGIC&rsquo;&rsquo;), a subsidiary
of GE Capital. Prior to joining FGIC, Mr. Filippelli spent six years in
public accounting including three years with the Big 4 firm of Ernst
and Young. Mr. Filippelli holds a BS in Accounting from Brooklyn
College and is a Certified Public Accountant as well as a member of the
American Institute of Certified Public Accountants.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">James D.
Houston has been Vice President, Business and Legal Affairs, General
Counsel and Corporate Secretary of TeamStaff since May, 2005. Mr.
Houston has spent most of his career acting as the chief legal officer
for several public and private companies. From 1999 through 2005,
several companies engaged Mr. Houston through his own independent
consulting firm. Mr. Houston was general counsel for SITA and division
counsel for the Strategic and Global Licensing Division of SAS
Institute, Inc. from 1997 through 1999. Prior to joining SAS Institute,
Mr. Houston spent six years as an independent legal consultant after
having worked as an associate for the national law firms Adams, Duque
and Hazeltine and Keck, Mahin and Cate from 1987 through 1991. Mr.
Houston holds a Juris Doctorate from Boston University School of Law
and a B.A. in Political Science and Philosophy from Long Island
University. He is admitted to practice law in New York and
California.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Timothy Nieman is TeamStaff&rsquo;s Senior Vice
President, Sales. Mr. Nieman was President of TeamStaff Rx until April
2005. Prior to joining TeamStaffRx, Mr. Nieman operated an independent
consulting firm providing advisory services to the human capital and
staffing industries. Mr. Nieman was employed with Spherion Corporation
and its predecessor, Norrell Services Corporation, from January 1985
through September 2002, where he held a number of positions, including
Senior Vice President and General Manager of Spherion&rsquo;s
Enthusian business unit, which provided application service provider
interfaces for the contingent workforce and financial service arenas.
Prior to assuming his role with Enthusian, Mr. Nieman held the position
of Vice President of Integration, overseeing the merger between Norrell
and Interim, as well as a number of executive operational and sales
leadership positions with Norrell. Mr. Nieman received his
Bachelor&rsquo;s in Business Administration in 1984 from the
University of Memphis.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Peter F. Rosen is a Human Resources
executive with over 20 years of domestic and international experience.
Mr. Rosen has been in senior HR roles for established organizations
like Capital One, the Coca-Cola Company and SmithKline-Beecham, as well
as serving as the VP HR for Norrell Corporation, which was a publicly
traded staffing and outsourcing company. Mr. Rosen has an undergraduate
degree in Industrial and Labor Relations from Cornell University and a
law degree from St. John&rsquo;s University School of Law.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">W.
Lee Booth is the former founder and current President of Nursing
Innovations, a leading provider of Travel and Per-diem Nurses which we
acquired in June 2005. He has ten years experience in the healthcare
industry, with management experience in one of TennCare&rsquo;s
Managed Care Organizations. He is a Registered Nurse with experience in
various clinical settings including ER and Telemetry. Mr. Booth has a
Bachelor&rsquo;s in Business Administration from the University of
Memphis and a Bachelor of Science in Nursing from the University of
Memphis.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">34</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Kathleen Z. Charles joined DSI in January
of 1996 as Client Services Manager. In October of 1996 she assumed
responsibility for the DSI Payroll Services division. Mrs. Charles
brought 20 years of experience in client support team management,
operations management and system integration in the Payroll and Human
Resource Services (ADP) and Commercial Insurance (Crum &amp; Forster
Insurance) industries to the DSI
&lsquo;&lsquo;family&rsquo;&rsquo;. She attended Seton Hall
University and Kean College as an education major.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Barry McDonald
joined TeamstaffRx in May 2004 as Senior Vice President of Sales and
was named President of TeamStaff Rx in April 2005. Mr. McDonald has
worked in the health care staffing industry since 1987 as either a
Senior Executive or Business Principal. Mr. McDonald's industry
experience has been in the Sales, Marketing, and Operations as well as
in Merger's and Acquisitions. He attended The University of
Toledo and is a Registered Respiratory Therapist with a
Bachelor's of Science degree in Health Care
Administration.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Roger D. Staggs, President of RS Staffing
Services, Inc. joined TeamStaff with the acquisition of RS Staffing
Services, Inc. in June 2005. He has thirty years experience in
management and employee training/development, with fifteen years
experience in the staffing industry. Mr. Staggs also has six years
experience in the government-contracting arena, creating innovative
staffing solutions for government and private sector
clients.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Management Resources and Compensation Committee
Interlocks and Insider Participation in Compensation
Decisions</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Karl W. Dieckmann (Chair), Martin J. Delaney and
Steven Johnson, served on the Management Resources and Compensation
Committee during the fiscal year ended September 30, 2004. Mr. Delaney
resigned his position on the Committee effective January 5, 2005. Mr.
Rocco Marano replaced Mr. Delaney on the Committee. There are no
interlocks between TeamStaff's Directors and Directors of other
companies and at all times members of the Management Resources and
Compensation Committee satisfied the independence requirements of
Section 4200(a)(15) of the NASDAQ Marketplace Rules.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Meetings of
the Board of Directors and Committees</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">During the fiscal year
ended September 30, 2005, the Board of Directors met on 13 occasions, 9
of which were by telephone conference call. Our board of directors
determined that from October 1, 2004 to January 5, 2005 Messrs.
Johnson, Dyer, Dieckmann, Delaney and Marano satisfied the independence
requirements within the meaning of Section 4200(a)(15) of the NASDAQ
Marketplace Rules. From and after January 5, 2005, to the end of the
Company&rsquo;s 2005 fiscal year, Messrs. Johnson, Dyer, Dieckmann,
and Marano continued to satisfy the independence requirements within
the meaning of Section 4200(a)(15) of the NASDAQ Marketplace Rules.
Messrs. Aldrich and Black each joined the Board as independent
directors and continuously satisfied the independence requirements
within the meaning of Section 4200(a)(15) of the NASDAQ Marketplace
Rules through the end of the Company&rsquo;s 2005 fiscal year. As of
September 30, 2005 through and including the date of this filing,
Messrs. Aldrich, Black, Dyer, Dieckmann, Johnson and Marano satisfied
the independence requirements within the meaning of Section 4200(a)(15)
of the NASDAQ Marketplace Rules.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The Board of Directors has four
committees: Audit, Management Resources and Compensation, Executive,
and Nominating and Corporate Governance Committees.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">For the
fiscal year ended September 30, 2005, the members of the committees,
and a description of the duties of the Committees were as
follows:&emsp;</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: normal; font-style: italic">Audit Committee.</font>&emsp;TeamStaff's
Audit Committee acts to: (i) review with management the finances,
financial condition and interim financial statements of TeamStaff; (ii)
review with TeamStaff's independent auditors the year-end
financial statements; and (iii) review implementation with the
independent auditors and management any action recommended by the
independent auditors and (iv)  the retention and termination of
TeamStaff&rsquo;s independent auditors. During the fiscal year ended
September 30, 2005, the Audit Committee met on 5 occasions, 4 of which
were by telephone conference call.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">35</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The Audit Committee adopted a written
charter governing its actions effective June 14, 2000. Effective May
27, 2003, the Audit Committee adopted an Amended and Restated Charter
which was filed as an exhibit to our Proxy Statement prepared in
connection with our Annual Meeting of Shareholders held on August 12,
2003. A copy of the Audit Committee's Amended and Restated
Charter may be reviewed on our website at www.teamstaff.com. From
October 1, 2004 through January 5, 2005, our Audit Committee was
comprised of Martin Delaney, Karl W. Dieckmann and Rocco J. Marano.
From January 5, 2005 to September 30, 2005, our Audit Committee was
comprised of Rocco J. Marano (Chair), Karl W. Dieckmann and Ben J.
Dyer. On July 19, 2005, Mr. Black was added to the Audit Committee. At
all times during the fiscal year, all of the members of our Audit
Committee were &lsquo;&lsquo;independent&rsquo;&rsquo; within the
definition of that term as provided by Rule 4200(a)(15) of the NASDAQ
Marketplace Rules. From the end of fiscal year to the present, all of
the members of our Audit Committee are
&lsquo;&lsquo;independent&rsquo;&rsquo; within the meaning of Rule
4200(a)(15) of the NASDAQ Marketplace Rules. From October 1, 2004
through January 5, 2005 Martin Delaney acted as chairman of the audit
committee and Rocco J. Marano was designated as an
&lsquo;&lsquo;Audit Committee financial expert&rsquo;&rsquo; in
accordance with the Sarbanes Oxley Act of 2002 and the regulations
promulgated thereunder. Beginning on January 5, 2005, Mr. Marano
assumed the position of Chairman of the Audit Committee and maintained
his position as financial expert.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: normal; font-style: italic">Management Resources and
Compensation Committee.</font>&emsp;The Management Resources and
Compensation Committee functions include negotiation and review of all
employment agreements of executive officers of TeamStaff and
administration of TeamStaff's 2000 Employee Stock Option Plan and
Non-Executive Director Stock Option Plan. Karl W. Dieckmann is the
chairman of the Committee. From October 1, 2004 to January 5, 2005, the
Management Resources and Compensation Committee's members were
Karl W. Dieckmann (Chair), Martin J. Delaney and T. Stephen Johnson.
From January 5, 2005 to the present, the members were and are Karl W.
Dieckmann (Chair), Rocco Marano, and T. Stephen Johnson. At all times
members of the Management Resources and Compensation Committee
satisfied the independence requirements within the meaning of Section
4200(a) (15) of the NASDAQ Marketplace Rules. During the fiscal year
ended September 30, 2005, the committee met on 5 occasions, 3 of which
were by telephone conference call.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: normal; font-style: italic">Nominating and Corporate
Governance Committee.</font>&emsp;The Nominating and Corporate
Governance Committee functions include the review of all candidates for
a position on the board of directors including existing directors for
renomination and reports its findings with recommendations to the
Board. The Nominating and Corporate Governance Committee solicits
candidates on behalf of TeamStaff to fill any vacancy on the Board. The
Nominating and Corporate Governance Committee performs such other
duties and assignments as directed by the Chairman or the Board but
shall have no power to add or remove a director without the approval of
the Board. Our Board of Directors has adopted a charter governing the
activities of the Nominating and Corporate Governance Committee, which
may be viewed online on our Web site at www.teamstaff.com. Pursuant to
its charter, the Nominating and Corporate Governance Committee's
tasks include reviewing and recommending to the Board issues relating
to the Board's composition and structure; establishing criteria
for membership and evaluating corporate policies relating to the
recruitment of Board members; implementing and monitoring policies
regarding principles of corporate governance in order to ensure the
Board's compliance with its fiduciary duties to the company and
its shareholders; and making recommendations regarding proposals
submitted by shareholders. From October 1, 2004 to July 19, 2005, the
Nominating and Corporate Governance Committee members were Ben J. Dyer
(Chair), Karl W. Dieckmann and T. Stephen Johnson. From and after July
19, 2005, the Nominating and Corporate Governance Committee members
were and are Ben J. Dyer (Chair), Karl W. Dieckmann and Ron Aldrich. At
all times members of the Nominating and Corporate Governance Committee
satisfied the independence requirements within the meaning of Section
4200(a) (15) of the NASDAQ Marketplace Rules. During the fiscal year
ended September 30, 2005, the committee met on 4 occasions, 1 of which
was by telephone conference call.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">36</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: normal; font-style: italic">Executive Committee.</font>&emsp;The
Board of Directors created an Executive Committee effective September
4, 2001. Executive committee members are Karl W. Dieckmann, T. Stephen
Johnson and T. Kent Smith. T. Stephen Johnson serves as its chairman.
This committee did not meet during the fiscal year ended September 30,
2005.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">No member of the Board of Directors or any committee failed
to attend or participate in fewer than 75% of the meetings of
the Board or any committee on which such member serves.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Code of
Ethics</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On June 20, 2003, TeamStaff distributed a company-wide
Code of Ethics and Business Conduct and Code of Ethics for Chief
Executive Officer, Chief Financial Officer and Controller.
Additionally, both the Codes were posted on TeamStaff's internal
intranet website and are available on TeamStaff&rsquo;s Internet web
address, www.teamstaff.com. These Codes were adopted by
TeamStaff's Board of Directors, and provide employees with a
confidential method of reporting suspected Code violations.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM
11.&nbsp;&nbsp;&nbsp;&nbsp;EXECUTIVE COMPENSATION</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The following provides certain
summary information concerning compensation during the years ended
September 30, 2005, 2004, and 2003 paid to or earned by
TeamStaff&rsquo;s Chief Executive Officer and each of the executive
officers and key employees of TeamStaff who received in excess of
$100,000 in compensation during the last fiscal year.</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="119"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="47"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="60"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="77"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="72"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="80"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="7"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">ANNUAL
COMPENSATION</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">NAME
AND<br>PRINCIPAL
POSTION</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">YEAR</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">SALARY</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">BONUS</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">OTHER</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">LONG
TERM<br>COMPENSATION<br>OPTIONS/SAR&rsquo;S</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">T.
Kent
Smith</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2005</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">250,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">170,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">100,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Chief
Executive
Officer</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2004</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">250,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">100,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2003</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">70,192</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">35,616</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">400,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Rick
J.
Filippelli</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2005</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">224,988</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">138,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2004</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">224,988</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">70,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">50,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2003</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">8,653</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">20,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">50,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Martin
Delaney</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2005</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">103,923</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,248</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">100,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2004</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2003</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Barry
McDonald</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2005</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">135,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">27,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2004</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">57,115</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">13,608</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">25,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2003</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Tim
Nieman</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2005</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">175,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">28,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2004</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">141,346</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">21,600</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">50,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2003</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">-0-</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff
provides normal and customary life and health insurance benefits to all
of its employees including executive officers. TeamStaff has a 401(k)
plan that is voluntary.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Compensation of Directors</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Effective commencing as of January 1, 2004, the Chairman, Vice
Chairman and Chairman of the Audit Committee each receive $3,000 per
month. The Chairman of the Nominating and Corporate Governance
Committee receives $2,500 per month. All other non-employee directors
receive $1,667 per month. All non-employee Board members receive $1,500
for each in-person Board meeting attended and $750 for each telephonic
Board meeting in which they participate. All committee </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">37</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
members receive $600 for each in-person
meeting attended and $300 for each telephonic committee meeting in
which they participate. The Chairman of each committee receives $1,000
for each in-person committee meeting attended and $500 for each
telephonic meeting in which he participates. Non-employee Directors
also receive $1,000 for each in-person meeting with Company executives
that do not constitute Board or Committee meetings. On November 18,
2004 the non-employee director cash compensation terms were amended to
provide that non-committee members would be compensated in the same
manner as committee members for any committee meeting they attend or
telephonic meeting in which they participate at the written request of
the committee Chairman. Additionally non-employee directors will
receive $1,000 per day for their attendance at continuing education or
other seminars they attend in connection with their service as a
TeamStaff director. Non-employee Board members also receive
reimbursement of their Board-related travel, cell phone and similar
expenses.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 13pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Under the Company&rsquo;s Non-Executive Director
Stock Option Plan, directors 1) receive 5,000 options upon joining the
Board; 2) receive 5,000 options on September 1<sup>st</sup> of each
year thereafter (subject to downward adjustment for less than a full
year&rsquo;s service); and 3) for one year after joining the Board are
entitled to purchase restricted stock from TeamStaff at a price equal
to 80% of the closing bid price on the date of purchase up to an
aggregate purchase price of $50,000. Our shareholders previously
approved this option plan.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Employment Agreements</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Effective as of June 18, 2003, TeamStaff entered into an employment
agreement with T. Kent Smith pursuant to which Mr. Smith serves as
TeamStaff's President and Chief Executive Officer. The agreement
expired on September 30, 2005. Under the terms of the agreement, Mr.
Smith was paid an annual base salary of $250,000 and was eligible to
receive a bonus of up to 50% of his base salary based on the
achievement of revenue, income and other objectives established by the
Management Resources and Compensation Committee. Pursuant to the
Agreement, Mr. Smith also was granted an option to purchase 400,000
shares of TeamStaff common stock, one-fourth of which vested on June
18, 2003, one-fourth of which vested on June 18, 2004 and the remainder
of which vested on June 18, 2005. Mr. Smith also received four weeks
annual vacation and was offered welfare benefit plans, 401(k) and
fringe benefits generally made available to other TeamStaff employees.
The agreement provided, among other things, that Mr. Smith would be
paid a severance payment of three months of his base salary if Mr.
Smith and TeamStaff did not enter into a new employment agreement by
September 30, 2005. Additionally, the agreement provided for certain
post-termination payments depending upon the reason for the termination
of Mr. Smith's employment. The agreement also provided for the
payment of nine months of base salary and the provision of certain
other benefits should Mr. Smith's employment have terminated in
connection with a change in control, as defined in the
agreement.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On June 30, 2005 TeamStaff entered into a new two-year
employment agreement with Mr. T. Kent Smith, its President and Chief
Executive Officer. The term of the agreement commenced on October 1,
2005 and terminates on September 30, 2007. The material terms of Mr.
Smith's employment agreement provide for a base salary of
$250,000 per annum and standard Company executive benefits as provided
under his prior agreement. In addition, Mr. Smith is eligible to
receive a bonus equal to up to 70% of his base salary upon
satisfaction of performance-based criteria. Mr. Smith will be
considered for future salary increases as may be determined by the
Management Resources and Compensation Committee of the Board of
Directors. Mr. Smith will be eligible to participate in the
Company's incentive stock ownership plan as may be determined by
the Management Resources and Compensation Committee of the Board of
Directors. The agreement also includes provisions for payment of all
compensation otherwise payable under the agreement in the event that
Mr. Smith is terminated without cause and one year of severance in all
circumstances other than for termination &lsquo;&lsquo;for
cause.&rsquo;&rsquo; In the event that there is a change of control
of TeamStaff and Mr. Smith's employment is terminated (or his
position is changed), Mr. Smith will be entitled to acceleration of all
incentive compensation, all compensation otherwise due under the
agreement and an additional twelve (12) months of his then in-effect
base salary. A &lsquo;&lsquo;change of control&rsquo;&rsquo; is
defined generally to constitute a </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">38</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
change of 20% of more of the
beneficial ownership of the Company's outstanding Common Stock,
or a change in two thirds of the Board of Directors, subject to certain
exceptions.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On June 30, 2005 TeamStaff entered into a twenty
seven month employment agreement with Mr. Rick J. Filippelli, its Vice
President and Chief Financial Officer. The term of the agreement
commenced on June 30, 2005 and terminates on September 30, 2007. The
material terms of Mr. Filippelli's employment agreement provide
for a base salary of $225,000 per annum, a potential bonus of up to
70% and standard Company executive benefits, upon substantially
the same terms as provided for Mr. Smith. The Management Resources and
Compensation Committee of the Board of Directors will consider Mr.
Filippelli for future compensation increases as may be determined. Mr.
Filippelli will be eligible to participate in the Company's
incentive stock ownership plan as may be determined by the Management
Resources and Compensation Committee of the Board of Directors. The
agreement also includes provisions for payment of all compensation
otherwise payable under the agreement in the event that Mr. Filippelli
is terminated without cause and one year of severance in all
circumstances other than for termination &lsquo;&lsquo;for
cause.&rsquo;&rsquo; In the event that there is a change of control
of TeamStaff and Mr. Filippelli's employment is terminated (or
his position is changed), Mr. Filippelli will be entitled to
acceleration of all incentive compensation, all compensation otherwise
due under the agreement and an additional twelve (12) months of his
then in-effect base salary. A &lsquo;&lsquo;change of
control&rsquo;&rsquo; is defined generally to constitute a change of
20% of more of the beneficial ownership of the Company's
outstanding Common Stock, or a change in two thirds of the Board of
Directors, subject to certain exceptions.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Pursuant to the RS
Staffing Services, Inc. acquisition, the Company entered into an
employment agreement with Roger Staggs to be employed as President of
RS Staffing Services, Inc. The material terms of Mr. Staggs&rsquo;
agreement are for a period of one (1) year from on or about June 4,
2005 and provide for a base salary of $150,000 per annum, a potential
bonus at the discretion of the Board of Directors and standard Company
executive benefits.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Pursuant to the RS Staffing Services, Inc.
acquisition, the Company entered into an employment agreement with
Barry Durham to be employed as Vice-President of RS Staffing Services,
Inc. The material terms of Mr. Durham's agreement are for a
period of one (1) year from on or about June 4, 2005 and provide for a
base salary of $150,000 per annum, a potential bonus at the discretion
of the Board of Directors and standard Company executive benefits.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Management Resources and Compensation Committee Report on Executive
Compensation</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">This report is submitted by the Management
Resources and Compensation Committee of the Board of Directors of
TeamStaff, Inc. (&lsquo;&lsquo;TeamStaff&rsquo;&rsquo;). During the
fiscal year ended September 30, 2005, the Management Resources and
Compensation Committee was responsible for reviewing TeamStaff's
stock option plans and reviewing and approving compensation matters
concerning the executive officers and senior management of TeamStaff.
Further, the Management Resources and Compensation Committee balances
compensation among TeamStaff&rsquo;s executive officers and senior
management.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: normal; font-style: italic">Overview and Philosophy.</font>&emsp;TeamStaff uses
its compensation program to achieve the following
objectives:</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="26"></td>
<td><img src="spacer.gif" height="1" width="30"></td>
<td><img src="spacer.gif" height="1" width="545"></td>
</tr>
<tr>
<td align="left" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; font-style: normal; width: 20pt"></td>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: -20pt; text-align: left;  font-style: normal; width: 23pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 413pt">To provide compensation, as
determined by the Management Resources and Compensation Committee, that
attracts, motivates and retains the talented, high caliber officers and
employees necessary to achieve TeamStaff's strategic
objectives;</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="26"></td>
<td><img src="spacer.gif" height="1" width="30"></td>
<td><img src="spacer.gif" height="1" width="545"></td>
</tr>
<tr>
<td align="left" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; font-style: normal; width: 20pt"></td>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: -20pt; text-align: left;  font-style: normal; width: 23pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 413pt">To align the interest of
officers with the success of
TeamStaff;</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="26"></td>
<td><img src="spacer.gif" height="1" width="30"></td>
<td><img src="spacer.gif" height="1" width="545"></td>
</tr>
<tr>
<td align="left" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; font-style: normal; width: 20pt"></td>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: -20pt; text-align: left;  font-style: normal; width: 23pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 413pt">To align the interest of
officers with stockholders by including long-term equity incentives;
and</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="26"></td>
<td><img src="spacer.gif" height="1" width="30"></td>
<td><img src="spacer.gif" height="1" width="545"></td>
</tr>
<tr>
<td align="left" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; font-style: normal; width: 20pt"></td>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: -20pt; text-align: left;  font-style: normal; width: 23pt">&bull;&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 413pt">To increase the long-term
profitability of TeamStaff and, accordingly, increase stockholder
value.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Compensation under the executive compensation program is
comprised of cash compensation in the form of base salary and bonus
compensation. Executives are also granted severance plans providing
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">39</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
various benefits upon termination of
employment without cause and, in some cases (including the Chief
Executive Officer), a change of control of TeamStaff. In addition, the
compensation program includes various other benefits, including medical
and insurance plans and TeamStaff's 401(k) Plan. These plans are
generally available to all employees of TeamStaff.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The principal
factors that the Management Resources and Compensation Committee
considered with respect to each officer's compensation package
for fiscal year ended September 30, 2005 are summarized below. The
Management Resources and Compensation Committee may apply different or
additional factors in making decisions with respect to executive
compensation in future years, at its discretion.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: normal; font-style: italic">Base
Salary.</font>&emsp;Compensation levels for each of TeamStaff's
officers, including the Chief Executive Officer, are generally set
within the range of salaries that the Management Resources and
Compensation Committee believes is paid to officers with comparable
qualifications, experience and responsibilities at similar companies.
In setting compensation levels, the Management Resources and
Compensation Committee takes into account such factors as (i)
TeamStaff's past performance and future expectations, (ii)
individual performance and experience and (iii) past salary levels. The
Management Resources and Compensation Committee does not assign
relative weights or ranking to these factors, but instead makes a
determination based upon the consideration of all of these factors as
well as the progress made with respect to TeamStaff's long-term
goals and strategies. Base salary, while reviewed annually, is only
adjusted as deemed necessary by the Management Resources and
Compensation Committee in determining total compensation for each
officer. Base salary levels for each of TeamStaff's officers,
other than the Chief Executive Officer, are also based in part upon
evaluations and recommendations made by the Chief Executive
Officer.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: normal; font-style: italic">Equity Incentives.</font>&emsp;The Management
Resources and Compensation Committee believes that stock participation
aligns officers' interests with those of the stockholders. In
addition, the Management Resources and Compensation Committee believes
that equity ownership by officers helps to balance the short-term focus
of annual incentive compensation with a longer-term view and may help
to retain key executive officers. Long-term incentive compensation,
generally granted in the form of stock options, allows the officers to
share in any appreciation in the value of TeamStaff's common
stock.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In making stock option grants, the Management Resources
and Compensation Committee considers general corporate performance,
individual contributions to TeamStaff's financial, operational
and strategic objectives, the Chief Executive Officer's
recommendations, level of seniority and experience, existing levels of
stock ownership, previous grants of restricted stock or options,
vesting schedules of outstanding restricted stock or options and the
current stock price. During the fiscal year ended September 30, 2005,
the Management Resources and Compensation Committee approved the grant
of 280,000 options, 250,000 of which were granted to executive
officers, as follows: 50,000 to Lee Booth, 100,000 to Martin Delaney
and 100,000 to T. Kent Smith.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: normal; font-style: italic">Other
Benefits.</font>&emsp;TeamStaff also has various broad-based employee
benefit plans. Executive officers participate in these plans on the
same terms as eligible, non-executive employees, subject to any legal
limits on the amounts that may be contributed or paid to executive
officers under these plans. TeamStaff offers a 401(k) plan, which
allows employees to invest in a wide array of funds on a pre-tax basis.
TeamStaff also maintains insurance and other benefit plans for its
employees, including the executive officers of
TeamStaff.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: normal; font-style: italic">Chief Executive Officer
Compensation.</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In the fiscal year ended September 30, 2005,
T. Kent Smith, TeamStaff&rsquo;s Chief Executive Officer, received a
base salary at the annual rate of $250,000, which was the same as his
base salary during the prior fiscal year. TeamStaff employed Mr. Smith
as its Chief Executive Officer in June 2003 and paid an aggregate
amount of $250,000 to him as base salary for his services as Chief
Executive Officer during the period October 1, 2004 through September
30, 2005. Mr. Smith&rsquo;s compensation is determined pursuant to an
employment agreement dated June 18, 2003, which provides for base
compensation of $250,000 per annum and a bonus, in the discretion of
the Management Resources and Compensation Committee, of up to 50
% of his base salary. Pursuant to his employment </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">40</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
agreement, Mr. Smith also was awarded
options to purchase 400,000 shares of Common Stock exercisable at $3.00
per share and subject to certain vesting requirements. Mr.
Smith&rsquo;s base salary is believed by the Management Resources and
Compensation Committee to be consistent with the range of salary levels
received by executives in a similar capacity in companies of comparable
size. During the period between October 1, 2004 and September 30, 2005,
Mr. Smith was awarded a bonus of $70,000 in light of the success he
achieved inclosing the favorable acquisition of RS Staffing Services,
Inc. In accordance with the terms of his employment agreement, Mr.
Smith was awarded a total bonus of $170,000 for the fiscal year ended
September 30, 2005 (including the $70,000 previously mentioned). Mr.
Smith was awarded options to purchase 100,000 shares of Common Stock
exercisable at $2.08 per share and subject to certain vesting
requirements during the fiscal year ended September 30, 2005.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On
June 30, 2005 TeamStaff, Inc.
(&lsquo;&lsquo;TeamStaff&rsquo;&rsquo;) entered into new two-year
employment agreement with Mr. T. Kent Smith, its President and Chief
Executive Officer, as his then-current employment agreement was due to
expire as of September 30, 2005. The Compensation Committee and the
Board determined that the Company desired to retain Mr. Smith&rsquo;s
services and desired to set the terms of his new agreement in advance
of the termination of the then-existing agreement. The term of the new
agreement commenced on October 1, 2005. The material terms of Mr.
Smith's employment agreement provide for a base salary of
$250,000 per annum and standard Company executive benefits. In
addition, Mr. Smith is eligible to receive a bonus equal to up to
70% of his base salary upon satisfaction of performance-based
criteria. Mr. Smith will be considered for future salary increases as
may be determined by the Management Resources and Compensation
Committee of the Board of Directors. Mr. Smith will be eligible to
participate in the Company's incentive stock ownership plan as
may be determined by the Management Resources and Compensation
Committee of the Board of Directors. The agreement also includes
provisions for payment of all compensation otherwise payable under the
agreement in the event that Mr. Smith is terminated without cause and
one year of severance in all circumstances other than for termination
&lsquo;&lsquo;for cause.&rsquo;&rsquo; In the event that there is a
change of control of TeamStaff and Mr. Smith's employment is
terminated (or his position is changed), Mr. Smith will be entitled to
acceleration of all incentive compensation, all compensation otherwise
due under the agreement and an additional twelve (12) months of his
then in-effect base salary. A &lsquo;&lsquo;change of
control&rsquo;&rsquo; is defined generally to constitute a change of
20% of more of the beneficial ownership of the Company's
outstanding Common Stock, or a change in two thirds of the Board of
Directors, subject to certain exceptions. The term of the agreement
commences on October 1, 2005 and terminates on September 30,
2007.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<font style="font-weight: normal; font-style: italic">Compensation of Executive Officers Other Than the CEO
During Fiscal Year 2005</font>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">For the fiscal year ended September
30, 2005, executive officers other than the Chief Executive Officer
received base salaries and bonuses which the Management Resources and
Compensation Committee believes reflected industry standards,
prevailing compensation practices in similar companies with which
TeamStaff competes for executive talent, the seniority and skill level
of the executive officer, TeamStaff&rsquo;s performance, and each
executive officer&rsquo;s contribution thereto. Base salaries and
bonuses paid to our named executive officers for the fiscal year ended
September 30, 2005 are as set forth in the table provided under the
heading &lsquo;&lsquo;Executive Compensation &ndash; Summary
Compensation Table.&rsquo;&rsquo;</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The Management Resources and
Compensation Committee periodically reviews the number of vested and
unvested options held by executive officers and makes stock grants to
these executives to provide greater incentives to continue employment
with TeamStaff and to strive to increase stockholder value. Stock
options typically have been granted to executive officers when the
executive first joins TeamStaff, in connection with a significant
change in responsibilities and, occasionally, to achieve equity within
a peer group. During the fiscal year ended September 30, 2005, the
Management Resources and Compensation Committee made stock option
grants to executive officers, as described in the section entitled
&lsquo;&lsquo;Executive Compensation &ndash; Option/SAR Grants in
Last Fiscal Year.&rsquo;&rsquo; The primary factors upon which
specific stock option grants made by the Management Resources and
Compensation Committee during fiscal year 2005 were based are the
executive&rsquo;s past performance, anticipated future contribution,
consistency within the executive&rsquo;s peer group, prior option
grants to the executive officer, the percentage of outstanding equity
owned by the executive, the level of vested </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">41</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
and unvested options, competitive market
practices, and the executive&rsquo;s responsibilities and performance.
The Management Resources and Compensation Committee does not set
specific target levels for options granted to named executive officers
or for the CEO but seeks to be competitive with similar companies.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<font style="font-weight: normal; font-style: italic">Tax Deductibility of Executive Compensation.</font>&emsp;Section
162(m) of the Code limits the tax deduction to TeamStaff to $1 million
for compensation paid to any of the executive officers unless certain
requirements are met. The Management Resources and Compensation
Committee has considered these requirements and the regulations. It is
the Management Resources and Compensation Committee&rsquo;s present
intention that, so long as it is consistent with its overall
compensation objectives, substantially all executive compensation be
deductible for United States federal income tax purposes. The
Management Resources and Compensation Committee believes that any
compensation deductions attributable to options granted under the
employee stock option plan currently qualify for an exception to the
disallowance under Section 162(m).</p>
<div style="width: 593;">
<table border="0" cellpadding="0" cellspacing="0" width="593">
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 6pt;" valign="top" align="left" width="285"><img src="spacer.gif" height="1" width="285"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 6pt;" valign="top" align="left">By
the Management Resources and<br> Compensation Committee of
the<br>Board of Directors of TeamStaff,
Inc.</td>
</tr>
</table>
</div>
<div style="width: 593;">
<table border="0" cellpadding="0" cellspacing="0" width="593">
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 12pt;" valign="top" align="left" width="285"><img src="spacer.gif" height="1" width="285"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 12pt;" valign="top" align="left"><font style="font-weight: normal; font-style: italic">Karl W. Dieckmann<br>Martin
Delaney (October 1, 2004 &ndash; January 5, 2005)<br>T. Stephen
Johnson<br>Rocco Marano (January 5, 2005 &ndash; September 30,
2005)</font></td>
</tr>
</table>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">This report of the Management Resources and
Compensation Committee does not constitute soliciting material and
should not be deemed filed or incorporated by reference into any other
filing by us under the Securities Act of 1933, as amended, or the
Securities Exchange Act of 1934, as amended, except to the extent we
specifically incorporate this report by reference
therein.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">42</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Option/SAR Grants in Last Fiscal
Year</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">
<font style="font-weight: normal; font-style: normal">OPTION/SAR GRANTS IN LAST FISCAL YEAR<br>(Individual
Grants)</font>
</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="174"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="73"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="74"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="72"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="64"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Name</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">No.
of Securities<br>Underlying<br>Options Granted</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Percentage
of<br>Total Options<br>Granted in Fiscal<br>Year</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Exercise of
Base<br>Price Per Share</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Expiration Date</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">T.
Kent
Smith</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">100,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">36</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">%&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2.08</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">11/17/2009</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Rick
J.
Filippelli</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">%&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Martin
Delaney</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">100,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">36</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">%&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1.75</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1/18/2010</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Barry
McDonald</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">%&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Tim
Nieman</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">%&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">AGGREGATED
OPTION/SAR EXERCISES IN LAST FISCAL YEAR<br>AND FISCAL YEAR END
OPTION/SAR VALUES</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The following table sets forth information
with respect to the named executive officers concerning exercise of
stock options and SARs during the last fiscal year and the value of
unexercised options and SARs held as of the year ended September 30,
2005.</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="160"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="56"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="54"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="98"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="88"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">NAME</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">SHARES<br>
ACQUIRED<br> ON<br> EXERCISE</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">VALUE<br>
REALIZED</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">NUMBER OF<br>
SECURITIES<br>UNDERLYING<br>UNEXERCISED<br>OPTIONS/SARS AS
OF<br>SEPTEMBER 30,
2005<br>EXERCISABLE/<br>UNEXERCISABLE</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">VALUE OF<br>
UNEXERCISED<br>IN-THE-MONEY<br>OPTIONS AS OF<br>SEPTEMBER 30,
2005<br>EXERCISABLE/<br>UNEXERCISABLE(1)</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">T. Kent
Smith</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">500,000/0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0/$0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Rick
J.
Filippelli</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">100,000/0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0/$0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Martin
Delaney</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">120,000/0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0/$0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Barry
McDonald</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">25,000/0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0/$0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Tim
Nieman</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">50,000/0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0/$0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(1)
Based upon a closing sales price of the Common Stock at $1.38 per share
on September 30, 2005.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Stock Option Plans</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In April 1990,
the Board of Directors adopted the 1990 Employees Stock Option Plan
(the &lsquo;&lsquo;1990 Plan&rsquo;&rsquo;), which was approved by
shareholders in August 1990. The 1990 Plan provided for the grant of
options to purchase up to 285,714 shares of TeamStaff's common
stock. Under the terms of the 1990 Plan, options granted thereunder may
be designated as options which qualify for incentive stock option
treatment (&lsquo;&lsquo;ISOs&rsquo;&rsquo;) under Section 422A of
the Code, or options which do not so qualify
(&lsquo;&lsquo;Non-ISO's&rsquo;&rsquo;).</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In April 1990,
the Board of Directors adopted the Non-Executive Director Stock Option
Plan (the &lsquo;&lsquo;Director Plan&rsquo;&rsquo;), which was
approved by shareholders in August, 1991 and amended in March 1996. The
Director Plan provided for issuance of a maximum of 142,857 shares of
common stock upon the exercise of stock options arising under the
Director Plan.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In April 1990, the Board of Directors adopted and
in August, 1990, TeamStaff's shareholders approved the Senior
Management Incentive Plan (the &lsquo;&lsquo;Management
Plan&rsquo;&rsquo;) for use in connection with the issuance of stock,
options and other stock purchase rights to executive officers and other
key employees and consultants who render significant services to
TeamStaff and its subsidiaries. A total of 1,428,571 shares of common
stock were reserved for issuance under the Management Plan.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
foregoing plans have expired and options are no longer being granted
under any of these plans. There are no options outstanding under any of
these plans.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">2000 Employee Stock Option Plan</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In the
fiscal year 2000, the Board of Directors and shareholders approved the
adoption of the 2000 Employees Stock Option Plan (the
&lsquo;&lsquo;2000 Plan&rsquo;&rsquo;) to provide for the grant of
options to purchase up to </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">43</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
1,714,286 shares of TeamStaff's common
stock to all employees, including senior management. The 2000 Plan
replaces the 1990 Employee Plan and Senior Management Plans, both of
which expired. Under the terms of the approved 2000 Plan, options
granted there under may be designated as options which qualify for
incentive stock option treatment (&lsquo;&lsquo;ISOs&rsquo;&rsquo;)
under Section 422A of the Code, or options which do not so qualify
(&lsquo;&lsquo;Non-ISO's&rsquo;&rsquo;). As of September 30,
2005, there were 1,193,000 options outstanding under the 2000 Plan.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The 2000 Plan is administered by the Management Resources and
Compensation Committee designated by the Board of Directors. The
Management Resources and Compensation Committee has the discretion to
determine the eligible employees to whom, and the times and the price
at which, options will be granted; whether such options shall be ISOs
or Non-ISOs; the periods during which each option will be exercisable;
and the number of shares subject to each option. The Committee has full
authority to interpret the 2000 Plan and to establish and amend rules
and regulations relating thereto.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Under the 2000 Plan, the
exercise price of an option designated, as an ISO shall not be less
than the fair market value of the common stock on the date the option
is granted. However, in the event an option designated as an ISO is
granted to a ten percent (10%) shareholder (as defined in the
2000 Plan), such exercise price shall be at least 110% of such
fair market value. Exercise prices of Non-ISO options may be less than
such fair market value.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The aggregate fair market value of shares
subject to options granted to a participant, which are designated as
ISOs and which become exercisable in any calendar year shall not exceed
$100,000.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The Management Resources and Compensation Committee
may, in its sole discretion, grant bonuses or authorize loans to or
guarantee loans obtained by an optionee to enable such optionee to pay
the exercise price or any taxes that may arise in connection with the
exercise or cancellation of an option. The Management Resources and
Compensation Committee can also permit the payment of the exercise
price in the common stock of the Corporation held by the optionee for
at least six months prior to exercise.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Non-Executive Director
Plan</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In fiscal 2000, the Board of Directors and stockholders
approved the adoption of the 2000 Non-Executive Director Stock Option
Plan (the &lsquo;&lsquo;Director Plan&rsquo;&rsquo;) to provide for
the grant of options to non-employee directors of TeamStaff. Under the
terms of the Director Plan, each non-executive director is
automatically granted an option to purchase 5,000 shares upon joining
the Board and each September lst, pro rata, based on the time the
director has served in such capacity during the previous year. The
Directors' Plan also provides that directors, upon joining the
Board, and for one (1) year thereafter, will be entitled to purchase
restricted stock from TeamStaff at a price equal to 80% of the
closing bid price on the date of purchase up to an aggregate purchase
price of $50,000. The Director Plan replaced the previous Director Plan
that expired in April 2000.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Under the Director Plan, the
exercise price for options granted under the Director Plan shall be
100% of the fair market value of the common stock on the date of
grant. Until otherwise provided in the Stock Option Plan, the exercise
price of options granted under the Director Plan must be paid at the
time of exercise, either in cash, by delivery of shares of common stock
of TeamStaff or by a combination of each. The term of each option
commences on the date it is granted and unless terminated sooner as
provided in the Director Plan, expires five (5) years from the date of
grant. The Committee has no discretion to determine which non-executive
director or advisory board member will receive options or the number of
shares subject to the option, the term of the option or the
exercisability of the option. However, the Committee will make all
determinations of the interpretation of the Director Plan. Options
granted under the Director Plan are not qualified for incentive stock
option treatment. As of September 30, 2005, there were 125,000 options
held by directors outstanding under the Director
Plan.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Shareholder Return Performance Presentation</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Set
forth herein is a line graph comparing the total returns (assuming
reinvestment of dividends) of TeamStaff&rsquo;s common stock, the
Standard and Poor Industrial Average, and an industry composite
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">44</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
consisting of a group of four peer issuers
selected in good faith by TeamStaff. TeamStaff&rsquo;s common stock is
listed for trading in the NASDAQ National Market and is traded under
the symbol
&lsquo;&lsquo;TSTF&rsquo;&rsquo;.</p>
<div style="padding:0;margin:0;width:602;">
<div style="padding:0;margin:0;text-align:center;margin-top:6pt;">
<img src="html_99225chart.jpg" align="middle"></div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">NOTES</p>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="30"></td>
<td><img src="spacer.gif" height="1" width="572"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 23pt">(1)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 433pt">Assumes
that the value of the investment in TeamStaff&rsquo;s Common Stock and
each index was $100 on September 30, 2000 and that dividends were
reinvested at years ended September 30th.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="30"></td>
<td><img src="spacer.gif" height="1" width="572"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 23pt">(2)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 433pt">Industry
composite for &lsquo;&lsquo;Old Peer Group&rsquo;&rsquo;, which
includes only companies related to our medical staffing, includes Cross
Country Healthcare, Medical Staffing Network Holdings, On Assignment,
and Rehabcare Group. Industry composite for &lsquo;&lsquo;New Peer
Group&rsquo;&rsquo;, which includes companies related to both our
medical staffing and office administration/technical professional
staffing, includes Cross Country Healthcare, Medical Staffing Network
Holdings, On Assignment, Rehabcare Group, ATC Healthcare, AMN
Healthcare Services and KForce. The industry composite has been
determined in good faith by management to represent entities that
compete with TeamStaff in certain of its significant business segments.
Management does not believe there are any publicly held entities that
compete with all TeamStaff&rsquo;s business segments.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM
12.&nbsp;&nbsp;&nbsp;&nbsp;SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The following table sets forth certain information as
of December 16, 2005 with respect to each director, each of the named
executive officers as defined in Item 402(a) (3), and directors and
executive officers of TeamStaff as a group, and to the persons known by
TeamStaff to be the beneficial owner of more than five percent of any
class of TeamStaff's voting securities. At December 16, 2005,
TeamStaff had 19,278,270 shares of common stock outstanding. The
figures stated below are based upon Schedule 13G, Schedule 13G/A, Form
3, and Form 4&rsquo;s filed with the Securities and Exchange
Commission by the named persons.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">45</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 0px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="198"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="144"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="114"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 7pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Name</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 7pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Number
of Shares<br>Currently Owned (1)</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 7pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Percent of
Company's<br>Outstanding Stock</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 7pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Ronald Aldrich
(2)<br> c/o TeamStaff, Inc.<br> 300 Atrium Drive<br> Somerset, NJ
08873</font></td>
<td style="padding-top: 7pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 7pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">0</font></td>
<td style="padding-top: 7pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 7pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">*</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Peter
Black (3)(16)(17)<br> c/o TeamStaff, Inc.<br> 300 Atrium Drive<br>
Somerset, NJ
08873</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">0</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">*</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Martin
J. Delaney (4)<br> c/o TeamStaff, Inc.<br> 300 Atrium Drive<br>
Somerset, NJ
08873</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">172,235</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">*</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Karl
W. Dieckmann (5)<br> c/o TeamStaff, Inc.<br> 300 Atrium Drive<br>
Somerset, NJ
08873</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">105,924</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">*</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Ben
J. Dyer (6)<br> c/o TeamStaff, Inc.<br> 300 Atrium Drive<br>
Somerset, NJ
08873</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">38,126</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">*</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Rick
J. Filippelli (7)<br> c/o TeamStaff, Inc.<br> 300 Atrium Drive<br>
Somerset, NJ 08873</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">100,000</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">*</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">James
D. Houston (8)<br> c/o TeamStaff, Inc.<br> 300 Atrium Drive<br>
Somerset, NJ
08873</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">0</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">*</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">T.
Stephen Johnson (9)<br> c/o T. Stephen Johnson &amp; Associates,
Inc.<br> 3650 Mansell Road, Suite 200<br> Alpharetta, GA
30022</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">284,011</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">1.47%</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Rocco
Marano (10)<br> c/o TeamStaff, Inc.<br> 300 Atrium Drive<br>
Somerset, NJ
08873</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">48,857</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">*</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Timothy
Nieman (11)<br> c/o TeamStaff, Inc.<br> 300 Atrium Drive<br>
Somerset, NJ
08873</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">50,000</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">*</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Barry
McDonald (12)<br> c/o TeamStaff, Inc.<br> 300 Atrium Drive<br>
Somerset, NJ 08873</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">25,000</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">*</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">46</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 0px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="198"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="144"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="114"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 7pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Name</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 7pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Number
of Shares<br>Currently Owned (1)</font></td>
<td style="border-bottom: 1px solid #000000;background-color: #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 7pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Percent of
Company's<br>Outstanding Stock</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 7pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">T. Kent Smith (13)<br> c/o
TeamStaff, Inc.<br> 300 Atrium Drive<br> Somerset, NJ
08873</font></td>
<td style="padding-top: 7pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 7pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">500,000</font></td>
<td style="padding-top: 7pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 7pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2.59%</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Wachovia
Corp (14)<br> One First Union Center<br> Charlotte, NC 28288</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2,822,417</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">14.64%</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Nationwide
Financial Services (15)<br> One Nationwide Plaza<br> Mail Stop
01-12-13<br> Columbus, OH
43215</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2,256,488</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">11.70%</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Wynnefield
Capital Management, LLC (16)<br> 450 Seventh Ave<br> New York, NY
10123</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">1,675,875</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">8.69%</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Wynnefield
Capital Inc. (17)<br> 450 Seventh Ave<br> New York NY
10123</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">559,625</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2.90%</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Hummingbird
Value Fund (18)<br>460 Park Avenue, 12<sup>th</sup> Flr.<br>New York
NY 10022</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">698,995</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">3.63%</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Hummingbird
Microcap Value<br>Fund (19)<br> 460 Park Avenue, 12<sup>th</sup>
Flr.<br>New York NY
10022</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">636,115</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">3.30%</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">All
officers and directors as a group<br> (12) persons (2, 3, 4, 5, 6, 7,
8, 9, 10, 11, 12, 13, 16, 17)</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">3,609,653</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 8pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">18.72%</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<!--0-->
<table border="0" cellpadding="0" cellspacing="0" width="602">
<tr>
<td><img src="spacer.gif" width="1" height="1"></td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1"><img src="spacer.gif" height="1" width="602"></td>
<td><img src="spacer.gif" height="1" width="0"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="8" width="1"></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="30"></td>
<td><img src="spacer.gif" height="1" width="572"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 23pt">*&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 433pt">Less
than 1 percent.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">1.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Ownership consists of sole voting
and investment power except as otherwise
noted.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">2.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Excludes unvested options to purchase
7,500 shares of TeamStaff&rsquo;s common
stock.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">3.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Excludes unvested options to purchase
7,500 shares of TeamStaff&rsquo;s common stock. Mr. Black is a member
of the Company&rsquo;s Board of Directors and is an Investment Analyst
and Portfolio Manager at Wynnefield Capital, Inc. Mr. Black expressly
disclaims beneficial ownership of the securities owned by Wynnefield
Capital and its affiliates.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">4.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Includes options
to purchase 120,000 shares of TeamStaff&rsquo;s common stock. Also
includes warrants to purchase 10,000 shares of TeamStaff&rsquo;s
common stock.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">5.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Includes options to purchase
20,000 shares of TeamStaff&rsquo;s common stock and excludes unvested
options to purchase 5,000 shares of common
stock.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">6.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Includes options to purchase 15,000
shares of TeamStaff&rsquo;s common stock and excludes unvested options
to purchase 5,000 shares of TeamStaff&rsquo;s common
stock.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">7.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Includes options to purchase 100,000
shares of TeamStaff&rsquo;s common
stock.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">8.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">None.</font></td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">47</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">9.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Includes an aggregate of
147,790 shares owned by or on behalf of certain of the holder&rsquo;s
family members and as to which shares the listed holder expressly
disclaims beneficial ownership. Includes options to purchase 20,000
shares of TeamStaff&rsquo;s common stock, and excludes unvested
options to purchase 5,000 shares of TeamStaff&rsquo;s common
stock.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">10.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Includes options to purchase 15,000
shares of TeamStaff&rsquo;s common stock and excludes unvested options
to purchase 5,000 shares of TeamStaff&rsquo;s common stock. Also
includes warrants to purchase 2,000 shares of TeamStaff&rsquo;s common
stock.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">11.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Includes options to purchase 50,000
shares of TeamStaff&rsquo;s common
stock.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">12.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Includes options to purchase 25,000
shares of TeamStaff&rsquo;s common stock.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="0"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"></font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">13. Includes
options to purchase 500,000 shares of TeamStaff&rsquo;s common
stock.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">14.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Wachovia Corporation obtained these
shares in connection with the acquisition of BrightLane completed as of
August 31, 2001.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">15.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Nationwide Financial
Services obtained these shares in connection with the acquisition of
BrightLane completed as of August 31,
2001.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">16.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Beneficial ownership is based upon
Schedule 13G, Schedule 13G/A, Form 3, and Form 4&rsquo;s filed with
the Securities and Exchange Commission. Mr. Peter Black, one of our
directors, is an affiliate of Wynnefield Capital and its affiliated
entities. Mr. Black expressly disclaims beneficial ownership of the
securities owned by Wynnefield Capital and its
affiliates.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">17.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Beneficial ownership is based
upon Schedule 13G, Schedule 13G/A, Form 3, and Form 4&rsquo;s filed
with the Securities and Exchange Commission. Mr. Peter Black, one of
our directors, is an affiliate of Wynnefield Capital and its affiliated
entities. Mr. Black expressly disclaims beneficial ownership of the
securities owned by Wynnefield Capital and its
affiliates.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">18.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Beneficial ownership is based
upon Schedule 13D filed with the Securities and Exchange Commission.
Includes 118,750 shares issuable upon exercise of warrants to purchase
common stock.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="23"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left">19.</font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">Beneficial ownership is based
upon Schedule 13D filed with the Securities and Exchange Commission.
Includes 118,750 shares issuable upon exercise of warrants to purchase
common stock.</font></td>
</tr>
</table>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM 13.&nbsp;&nbsp;&nbsp;&nbsp;CERTAIN RELATIONSHIPS AND
RELATED TRANSACTIONS</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">For information concerning employment and
severance agreements with, and compensation of, the Corporation's
present executive officers and directors, see &lsquo;&lsquo;Executive
Compensation.&rsquo;&rsquo; The Directors' Plan provides that
directors, upon joining the Board, and for one year thereafter, will be
entitled to purchase restricted stock from TeamStaff at a price equal
to 80% of the closing bid price on the date of purchase up to an
aggregate purchase price of $50,000.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Effective August 31, 2001,
TeamStaff, Inc. completed its acquisition of BrightLane. In connection
with the transaction, persons holding BrightLane options to acquire
approximately 2.1 million BrightLane shares (the equivalent of
approximately 481,000 TeamStaff shares) exercised their options.
TeamStaff made recourse loans of approximately $1.0 million principal
amount to the holders of these options to assist them in payment of tax
obligations incurred with exercise of the options. The loans were
repayable upon the earlier of (i) sale of the TeamStaff shares; or (ii)
three years. As of September 30, 2004, all of these loans have been
repaid or forgiven or otherwise disposed of. Under the terms of
TeamStaff's employment agreement with an executive officer of
TeamStaff's BrightLane subsidiary, the loan ($131,000) was
forgiven over a two-year period of time. One of our current directors,
Ben J. Dyer, was a former shareholder of BrightLane, and received a
loan in the amount of $67,840 in connection with the transaction. The
loan was on the same terms as provided to all other option holders of
BrightLane. The loan was made and repaid prior to Mr. Dyer joining the
Board.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Wachovia Corporation, through an affiliate held all of the
BrightLane Series B Preferred stock, and therefore owns 2,822,417
shares of TeamStaff's Common Stock (approximately 15%). In
addition, </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">48</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
Nationwide Financial Services, Inc. held all
of the BrightLane Series C Preferred stock, and therefore owns
2,256,488 shares of TeamStaff's Common Stock (approximately
12%). The two classes of preferred stock were converted into
Common Stock in connection with the acquisition of BrightLane.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As
part of its acquisition of BrightLane, completed in August 2001,
TeamStaff entered into a two-year, extendable marketing relationship
with First Union Corporation (renamed Wachovia). The Wachovia
relationship provided TeamStaff with the ability to market its PEO
services to Wachovia's small business customers through
Wachovia's network of small business bankers. The agreement
terminated effective as of October 14, 2003. Wachovia Corporation
continues as a major shareholder of TeamStaff's
stock.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff entered into a one year, automatically renewable
marketing agreement with Directo, Inc. effective as of February 1,
2004. Directo provides financial and direct deposit services to
companies and their employees. Pursuant to the terms of the agreement,
TeamStaff is compensated based on its sales of Directo pay card
services. TeamStaff offers these services primarily through its payroll
services division. For the fiscal years ended September 30, 2005 and
2004, TeamStaff has not earned any commissions from its sales of
Directo's services. T. Stephen Johnson, TeamStaff's
Chairman, is also Chairman of Directo. TeamStaff's entry into the
marketing agreement with Directo was approved by the disinterested
members of the Board and was believed to be fair and reasonable to the
Company.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">During the year ended September 30, 2005, the company
shared a portion of its leased office space in Alpharetta, Georgia with
an affiliated entity of the Chairman of the Board of Directors, T.
Stephen Johnson &amp; Associates, Inc. As part of the agreement,
TeamStaff shared the cost of a receptionist, phone service, and leased
common area furniture. During the fiscal year ended September 30, 2005,
TeamStaff paid $12,000 in shared costs. TeamStaff was responsible for
payment of the monthly lease obligation and T. Stephen Johnson &amp;
Associates reimbursed TeamStaff in the amount of $9,000 in fiscal year
ended September 30, 2005 for their prorated portion of the space. We no
longer use these facilities.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">ITEM 14.&nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL ACCOUNTANT
FEES AND SERVICES</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The following table presents the total fees
paid for professional audit and non-audit services rendered by our
independent auditors for the audit of our annual financial statements
for the years ended September 30, 2005 and September 30, 2004, and fees
billed for other services rendered by our independent auditors during
those periods.</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="380" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="138"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="81"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="69"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="7"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Fiscal
Years Ended September
30,</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Audit
Fees
(1)</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">132,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">114,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Audit-Related
Fees (2)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">94,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">18,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Tax Fees
(3)</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">198,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">137,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">All Other Fees
(4)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">3,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Total</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">425,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">272,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="0"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"></font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">(1)&nbsp;&nbsp;&nbsp;&nbsp;Audit
services consist of audit work performed in the examination of
financial statements, as well as work that generally only the
independent auditor can reasonably be expected to provide, including
comfort letters, statutory audits, and attest services and consultation
regarding financial accounting and/or reporting standards.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="0"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"></font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">(2)&nbsp;&nbsp;&nbsp;&nbsp;Audit-related services consist of assurance and
related services that are traditionally performed by the independent
auditor, including due diligence related to mergers and acquisitions
and special procedures required to meet certain regulatory
requirements.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="0"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"></font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">(3)&nbsp;&nbsp;&nbsp;&nbsp;Tax services consist of all
services performed by the independent auditor's tax personnel,
except those services specifically related to the audit of the
financial statements, and includes fees in the areas of tax compliance,
tax planning, and tax advice.</font></td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="0"></td>
<td><img src="spacer.gif" height="1" width="602"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-left: 0pt; text-align: left"></font></td>
<td align="left" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;"><font style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt;  padding-bottom: 6pt;">(4)&nbsp;&nbsp;&nbsp;&nbsp;Other services
consist of those service not captured in the other categories.</font></td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">49</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Our Audit Committee has determined that
the services provided by our independent auditors and the fees paid to
them for such services has not compromised the independence of our
independent auditors.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Consistent with SEC policies regarding
auditor independence, the Audit Committee has responsibility for
appointing, setting compensation and overseeing the work of the
independent auditor. In recognition of this responsibility, the Audit
Committee has established a policy to pre-approve all audit and
permissible non-audit services provided by the independent auditor.
Prior to engagement of the independent auditor for the next
year's audit, management will submit a detailed description of
the audit and permissible non-audit services expected to be rendered
during that year for each of four categories of services provided by
the independent auditor to the Audit Committee for approval. The four
categories of services provided by the independent auditor are as
defined in the footnotes to the fee table set forth above. In addition,
management will also provide to the Audit Committee for its approval a
fee proposal for the services proposed to be rendered by the
independent auditor. Prior to the engagement of the independent
auditor, the Audit Committee will approve both the description of audit
and permissible non-audit services proposed to be rendered by the
independent auditor and the budget for all such services. The fees are
budgeted and the Audit Committee requires the independent auditor and
management to report actual fees versus the budget periodically
throughout the year by category of service.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">During the year,
circumstances may arise when it may become necessary to engage the
independent auditor for additional services not contemplated in the
original pre-approval. In those instances, the Audit Committee requires
separate pre-approval before engaging the independent auditor. To
ensure prompt handling of unexpected matters, the Audit Committee may
delegate pre-approval authority to one or more of its members. The
member to whom such authority is delegated must report any pre-approval
decisions to the Audit Committee at its next scheduled meeting.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 6pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">PART IV</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<b>ITEM 15.&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS, FINANCIAL
STATEMENT SCHEDULES, AND REPORTS ON FORM
8-K</b>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:40pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: -20pt; background-color: #ffffff">(a)&emsp;1. Financial
Statements</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:40pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: -40pt; background-color: #ffffff">The financial statements and schedules of
TeamStaff are included in Part II, Item 8 of this report beginning on
page F-1 and including page S-1.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:40pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: -40pt; background-color: #ffffff">2. All other schedules
have been omitted since the required information is not applicable or
because the information required is included in the Consolidated
Financial Statements or the notes thereto.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 40pt; background-color: #ffffff">3. Exhibit
List</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:40pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: -40pt; background-color: #ffffff">The exhibits designated with an asterisk (*) are
filed herewith. All other exhibits have been previously filed with the
Commission and, pursuant to 17 C.F.R. Secs. 20l.24 and 240.12b-32, are
incorporated by reference to the document referenced in brackets
following the descriptions of such
exhibits.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<u>EXHIBIT
NO</u>.&nbsp;&nbsp;&nbsp;&nbsp;DESCRIPTION</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="30"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="12"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="426"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2.1</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Agreement
and Plan of Merger by and among TeamStaff, Inc., TeamSub, Inc and
BrightLane.com, Inc., dated as of March 6, 2001, as amended by
Amendment No. 1 dated as of March 21, 2001 and Amendment No. 2 dated as
of April 6, 2001 (filed as Appendix A to the Proxy Statement/prospectus
filed on August 7, 2001, SEC File no. 333-61730, as part of
Registrant&rsquo;s Registration Statement on Form
S-4).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2.2.1</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Asset Purchase
Agreement between TeamStaff, Inc and Gevity HR, Inc. dated as of
November 14, 2003 (filed as Exhibit 2 to Form 8-K dated November 14,
2003).</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">50</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 0px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="30"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="12"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="426"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">3.1</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Amended and
Restated Certificate of Incorporation (filed as Exhibit A to Definitive
Proxy Statement dated May 1, 2000 as filed with the Securities and
Exchange Commission).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">3.2</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of
Form of Certificate of Designation of Series A Preferred Stock (filed
as Exhibit 3.1 to Form 8-K dated April 6,
2001).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">3.3</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Amended By-Laws of
Registrant adopted as of May 15, 2001 (filed as Exhibit 3.4 to the
Registration Statement on Form S-4 File No.
333-61730).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">3.4</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Amended and restated
by-laws of Registrant adopted as of August 29, 2001 (filed as
Exhibit  3.5 to the Registrant&rsquo;s Form S-3 filed on
December 19,2001).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">4.1</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of the
Common Stock Certificate (Exhibit 4.1 to Registration Statement on
Form  S-18, File No.
33-46246-NY).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">4.2</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;2000 Employee
Stock Option Plan (filed as Exhibit B to the Proxy Statement dated as
of March 8, 2000 with respect to the Annual meeting of Shareholders
held on April 13, 2000).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">4.3</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;2000
Non-Executive Director Stock Option Plan (filed as Exhibit B to the
Proxy Statement dated as of March 8, 2000 with respect to the Annual
meeting of Shareholders held on April  13,
2000).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.1</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Lease dated May 30, 1997
for office space at 300 Atrium Drive, Somerset, New Jersey (Exhibit
10.6.1 to Form 10-K for the fiscal year ended September 30,
1997).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.2</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Stock Purchase
Agreement dated as of April 6, 2001 between TeamStaff, Inc. and
BrightLane.com, Inc. with respect to purchase of Series A Preferred
Stock (filed as Exhibit  10.1 to Form 8-K dated April 6,
2001).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.3</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Escrow Agreement
between TeamStaff, Inc. and BrightLane Shareholders with respect to the
placement of 150,000 shares into escrow by the BrightLane shareholders
(filed as Appendix B to the proxy statement/prospectus filed on August
7, 2001 SEC File No.
333.61730).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.4</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Severance
Agreement dated as of May 22, 2002 between the Registrant and Donald
Kappauf (filed as Exhibit 10.12 to the Form 10-K filed on February 10,
2003).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.5</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Severance
Agreement dated as of May 22, 2002 between the Registrant and Donald
Kelly (filed as Exhibit 10.13 to the Form 10-K filed on February 10,
2003).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.6</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Employment
Agreement made as of June 18, 2003 between TeamStaff, Inc. and
T.  Kent Smith (filed as Exhibit 10.16 to the Form 10-K filed on
December 23, 2004).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.7</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of
Securities Purchase Agreement dated as of November 5, 2004 including
Form of Warrant (filed as Exhibit 10.1 to the Form 8-K filed on
November 12, 2004)</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.8</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of
Asset Purchase Agreement by and among Nursing Innovations, Inc.,
Vitriarc, Inc., and William L. Booth and Teamstaff Rx, Inc. dated as of
November 5, 2004 (filed as Exhibit  10.1 to the Form 8-K filed on
November 18, 2004).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.9</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of
Agreement for Sale of Goodwill dated as of November 5, 2004 by and
between William Lee Booth and TeamStaff Rx, Inc. (filed as Exhibit 10.2
to the Form 8-K filed on November 18,
2004).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.10</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Client Transfer
Agreement as of November 14, 2004, by and among Nursing Innovations,
Inc., Vitriarc, Inc., and William L. Booth and TeamStaff Rx Inc. (filed
as Exhibit  10.3 to the Form 8-K filed on November 18,
2004)</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.11</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Employee
Incentive Stock Option Certificate and Agreement (filed as
Exhibit  10.13 to the Form 10-K filed on December 23,
2004).</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">51</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 0px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="30"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="12"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="426"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.12</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of
Employee Non-Qualified Stock Option Certificate and Agreement (filed as
Exhibit  10.14 to the Form 10-K filed on December 23,
2004).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.13&emsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of 2000
Director Plan Non-Qualified Stock Option Agreement (filed as Exhibit
10.15 to the Form 10-K filed on December 23,
2004).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.14</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Employee
Incentive Stock Option Certificate and Agreement dated as of June 18,
2003 between TeamStaff, Inc. and T. Kent Smith. (filed as Exhibit 10.16
to the Form 10-K filed on December 23,
2004).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.15</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Lease for our
business premises located at 18167 U.S. Highway 19N, Suite 400,
Clearwater, Fl 33764 (filed as Exhibit 10.1 to Form 8-K dated February
29, 2005).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.16</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Stock
Purchase Agreement among TeamStaff, Inc. and the Shareholders of RS
Staffing Services, Inc. dated as of May 26, 2005 (filed as Exhibit 10.1
to Form 8-K dated June  8, 2005).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.16.1</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Note dated June 8, 2005 issued by TeamStaff, Inc.
to Roger Staggs (filed as Exhibit  10.2 to the Form 10-Q filed on
August 12, 2005).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.16.2</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of
Note dated June 8, 2005 issued by Team Staff, Inc. to Barry Durham
(filed as Exhibit 10.2 to the Form 10-Q filed on August 12,
2005).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.16.3*</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Employment
Agreement between TeamStaff, Inc. and Roger Staggs, dated as of June 8,
2005</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.16.4*</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Employment
Agreement between TeamStaff, Inc. and Barry Durham, dated as of June 8,
2005.</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.17</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Revolving Credit
Agreement, Promissory Notes and related documents between TeamStaff,
Inc. and PNC Bank, NA, dated as of June 8, 2005 (filed as Exhibits 10.4
and 10.5 to the Form 10-Q filed on August 12,
2005).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.18</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Employment
Agreement between TeamStaff, Inc. and T. Kent Smith, dated as of June
30, 2005 (filed as Exhibit 10.1 to the Form 8-K filed on July 14,
2005).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.19</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Employment
Agreement between TeamStaff, Inc. and Rick J. Filippelli, dated as of
June 30, 2005 (filed as Exhibit 10.2 to the Form 8-K filed on July 14,
2005).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.20*&emsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of
Director Stock Option Agreement for options granted September 1,
2005.</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">10.21</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Form of Settlement
Agreement between TeamStaff, Inc. and the CNA Entities dated as of
October 10. 2005 (filed as Exhibit 10.1 to the Form 8-K filed on
October 20, 2005).</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">21.0*</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Subsidiaries of
Registrants.</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">23.1*</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Consent of Lazar
Levine and Felix
LLP.</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">31.1*</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Certification of Chief
Executive Officer pursuant to Section17 CFR 240.13a-14(a) or 17
CFR
240.15d-14(a)</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">31.2*</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Certification of
Chief Financial Officer pursuant to Section17 CFR 240.13a-14(a) or
17  CFR
240.15d-14(a)</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">32.1*</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&mdash;Certification of
Chief Executive Officer and Chief Financial Officer pursuant to
17  CFR  240.13a-14(b) or 17 CFR 240.15d-14(b) and Section
1350 of Chapter 63 of Title 18 of the United States
Code</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="48"></td>
<td><img src="spacer.gif" height="1" width="554"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 36pt">(c)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 420pt">Exhibits. See Item
(a)(3) above.</td>
</tr>
</table>
<table cellpadding="0" cellspacing="0" border="0" width="602">
<tr>
<td><img src="spacer.gif" height="1" width="48"></td>
<td><img src="spacer.gif" height="1" width="554"></td>
</tr>
<tr>
<td align="right" valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top: 6pt; padding-left: 0pt; text-align: left;  font-style: normal; width: 36pt">(d)&nbsp;</td>
<td valign="top" style="font-family:serif;font-weight:normal;color:#000000;font-size: 10pt; padding-top:6pt; padding-bottom: 6pt; text-align: left; font-style: normal; width: 420pt">Valuation of qualifying
accounts. See Schedule I annexed to the financial
statements.</td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">52</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>






<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">SIGNATURES</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Pursuant
to the requirements of Section 13 or 15(d) 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.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 216pt; background-color: #ffffff">TEAMSTAFF,
INC.</p>
<div style="width: 593;">
<table border="0" cellpadding="0" cellspacing="0" width="593">
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 6pt;" valign="top" align="left" width="285"><img src="spacer.gif" height="1" width="285"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 6pt;" valign="top" align="left"><u>/s/T. Kent Smith</u>
<br>T. Kent
Smith<br>President and Chief Executive
Officer</td>
</tr>
</table>
</div>
<div style="width: 593;">
<table border="0" cellpadding="0" cellspacing="0" width="593">
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 6pt;" valign="top" align="left" width="285"><img src="spacer.gif" height="1" width="285"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 6pt;" valign="top" align="left"><u>/s/ Rick Filippelli</u>
<br>Rick
Filippelli<br>Vice President, Finance and Chief Financial
Officer</td>
</tr>
</table>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Dated: December 16, 2005</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">Pursuant to the
requirements of the Securities Exchange Act of 1934, this Report has
been signed below by the following persons on behalf of the Registrant
and in the capacities and on the dates
indicated.</p>
<table cellpadding="0" cellspacing="0" border="0" width="593">
<tr>
<td><img src="spacer.gif" height="1" width="218"></td>
<td><img src="spacer.gif" height="1" width="16"></td>
<td><img src="spacer.gif" height="1" width="234"></td>
<td><img src="spacer.gif" height="1" width="16"></td>
<td><img src="spacer.gif" height="1" width="109"></td>
</tr>
<tr>
<td style="font-family: serif; font-weight: bold; font-size: 8pt; font-style: normal; line-height: 12pt; border-bottom: 1px solid #000000;" align="center"></td>
<td></td>
<td style="font-family: serif; font-weight: bold; font-size: 8pt; font-style: normal; line-height: 12pt; border-bottom: 1px solid #000000;" align="center"></td>
<td></td>
<td style="font-family: serif; font-weight: bold; font-size: 8pt; font-style: normal; line-height: 12pt; border-bottom: 1px solid #000000;" align="center"></td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td valign="top" align="center" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt ; padding-top: -24; ">/s/
T. Stephen Johnson</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt; padding-top: -24; " align="left">Chairman of the Board</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt; padding-top: -24; " align="center">December
16, 2005</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td align="center" valign="top" style="font-family: serif; font-weight: normal;  font-size: 10pt ; font-style: normal; line-height: 12pt ; padding-top: -24; ">T. Stephen
Johnson</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td valign="top" align="center" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt ; ">/s/ Karl W.
Dieckmann</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt; " align="left">Vice-Chairman of the Board</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt; " align="center">December 16, 2005</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td align="center" valign="top" style="font-family: serif; font-weight: normal;  font-size: 10pt ; font-style: normal; line-height: 12pt ; ">Karl W.
Dieckmann</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td valign="top" align="center" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt ; ">/s/ Ron
Aldrich</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt; " align="left">Director</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt; " align="center">December 16, 2005</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td align="center" valign="top" style="font-family: serif; font-weight: normal;  font-size: 10pt ; font-style: normal; line-height: 12pt ; ">Ron Aldrich</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td valign="top" align="center" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt ; ">/s/ Peter
Black</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt; " align="left">Director</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt; " align="center">December 16, 2005</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td align="center" valign="top" style="font-family: serif; font-weight: normal;  font-size: 10pt ; font-style: normal; line-height: 12pt ; ">Peter Black</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td valign="top" align="center" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt ; ">/s/ Martin
J. Delaney</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt; " align="left">Director</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt; " align="center">December 16,
2005</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td align="center" valign="top" style="font-family: serif; font-weight: normal;  font-size: 10pt ; font-style: normal; line-height: 12pt ; ">Martin J.
Delaney</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td valign="top" align="center" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt ; ">/s/ Ben J.
Dyer</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt; " align="left">Director</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt; " align="center">December 16,
2005</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td align="center" valign="top" style="font-family: serif; font-weight: normal;  font-size: 10pt ; font-style: normal; line-height: 12pt ; ">Ben J.
Dyer</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td valign="top" align="center" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt ; ">/s/ Rocco
Marano</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt; " align="left">Director</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt; " align="center">December 16,
2005</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td align="center" valign="top" style="font-family: serif; font-weight: normal;  font-size: 10pt ; font-style: normal; line-height: 12pt ; ">Rocco
Marano</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td valign="top" align="center" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt ; ">/s/ T. Kent
Smith</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt; " align="left">President, Chief
Executive Officer and Director</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt; " align="center">December 16,
2005</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td align="center" valign="top" style="font-family: serif; font-weight: normal;  font-size: 10pt ; font-style: normal; line-height: 12pt ; ">T. Kent Smith</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
<tr>
<td valign="top" align="center" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt ; ">/s/ Rick
Filippelli</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; font-style: normal; line-height: 12pt; " align="left">Chief
Financial Officer, Principal Accounting Officer</td>
<td rowspan="3"></td>
<td valign="top" rowspan="3" style="font-family: serif; font-weight: normal; font-size: 10pt; normal; line-height: 12pt; " align="center">December
16, 2005</td>
</tr>
<tr>
<td bgcolor="#000000"><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td align="center" valign="top" style="font-family: serif; font-weight: normal;  font-size: 10pt ; font-style: normal; line-height: 12pt ; ">Rick Filippelli</td>
</tr>
<tr>
<td><img src="spacer.gif" height="16" width="1"></td>
</tr>
</table>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">53</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>






<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>TeamStaff,
Inc. and Subsidiaries</u>
</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">
<u>Index to Consolidated Financial
Statements</u>
</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 12px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="421"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="35"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 11pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 11pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-left: 0pt; text-indent: 0pt;padding-top: 11pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Page</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 11pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Report
Of Registered Independent Public
Accountants</font></td>
<td style="padding-top: 11pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 11pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">F-2</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 11pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Consolidated
Balance Sheets As Of September 30, 2005 and
2004</font></td>
<td style="padding-top: 11pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 11pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">F-3</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 11pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Consolidated Statements Of
Operations and Comprehensive Operations For the Years Ended September
30, 2005, 2004, and 2003</font></td>
<td style="padding-top: 11pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 11pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">F-5</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 11pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Consolidated
Statements Of Shareholders' Equity For The Years Ended September
30, 2005, 2004, and 2003</font></td>
<td style="padding-top: 11pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 11pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">F-6</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 11pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Consolidated
Statements Of Cash Flows For The Years Ended September 30, 2005, 2004,
and 2003</font></td>
<td style="padding-top: 11pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 11pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">F-7</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 11pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Notes To Consolidated
Financial Statements </font></td>
<td style="padding-top: 11pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 11pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">F-9</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 11pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Schedule I
&mdash; Valuation And Qualifying Accounts For The Years Ended
September 30, 2005, 2004, and 2003</font></td>
<td style="padding-top: 11pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 11pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">S-1</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Schedules other than those listed
above have been omitted as they are either not required or because the
related information has been included in the notes to consolidated
financial statements</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-1</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>REPORT&nbsp;OF&nbsp;REGISTERED
INDEPENDENT&nbsp;PUBLIC&nbsp;ACCOUNTANTS</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:20pt; padding-right:20pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">To
the Board of Directors and Shareholders of<br> TeamStaff,
Inc.<br>Somerset, NJ</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:20pt; padding-right:20pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">We have audited the
accompanying consolidated balance sheets of TeamStaff, Inc. and
Subsidiaries as of September 30, 2005 and 2004, and the related
consolidated statements of operations and comprehensive income,
shareholders&rsquo; equity, and cash flows for the three years in the
period ended September 30, 2005. Our audits also included the financial
statement schedule listed in Part IV, Item 15. These financial
statements and schedule are the responsibility of the Company&rsquo;s
management. Our responsibility is to express an opinion on these
financial statements and schedule based on our
audits.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:20pt; padding-right:20pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">We performed our audits in accordance
with standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. The Company is not required to have, nor
were we engaged to perform an audit of its internal control over
financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the
Company&rsquo;s internal control over financial reporting.
Accordingly, we express no such opinion. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our
opinion.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:20pt; padding-right:20pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In our opinion, the financial
statements referred to above present fairly, in all material respects,
the financial position of TeamStaff, Inc. and Subsidiaries as of
September 30, 2005 and 2004, and the results of its operations and its
cash flows for each of the three years in the period ended September
30, 2005, in conformity with accounting principles generally accepted
in the United States of America. Also, in our opinion, the related
financial statement schedule, when considered in relation to the basic
financial statements taken as a whole, presents fairly in all material
respects the information set forth
therein.</p>
<div style="width: 593;">
<table border="0" cellpadding="0" cellspacing="0" width="593">
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 24pt;" valign="top" align="left" width="317"><img src="spacer.gif" height="1" width="317"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 24pt;" valign="top" align="left"><u>/s/ Lazar Levine &amp; Felix
LLP</u>
<br>Lazar Levine &amp; Felix LLP</td>
</tr>
</table>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:20pt; padding-right:20pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">New
York, NY<br>November 23, 2005</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-2</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>






<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">TEAMSTAFF,
INC. AND SUBSIDIARIES<br>CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER
30, 2005 AND 2004<br>(AMOUNTS IN
THOUSANDS)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="305"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="84"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="67"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">ASSETS</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">September
30,<br> 2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">September 30,<br>
2004</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>CURRENT
ASSETS:</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Cash and cash
equivalents</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,304</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">3,060</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Restricted
cash</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,800</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Accounts
receivable, net of allowance for doubtful accounts of $41 and $39 as of
September 30, 2005 and September 30, 2004,
respectively</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">9,470</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">3,013</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Deferred
tax asset</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">634</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">90</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Prepaid
workers'
compensation</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,461</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Other
current
assets</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,155</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,267</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 30pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>Total
current
assets</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">14,024</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">10,230</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>EQUIPMENT
AND IMPROVEMENTS:</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Furniture and
equipment</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3,360</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,795</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Computer
equipment</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">516</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">367</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Computer
software</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,250</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,134</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Leasehold
improvements</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">177</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">210</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">5,303</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">4,506</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Less
accumulated depreciation and
amortization</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(4,037</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(3,589</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 30pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>Equipment
and improvements,
net</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">1,266</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">917</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>DEFERRED
TAX ASSET, net of current
portion</b></font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">17,848</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">16,723</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>TRADENAME</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">4,199</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">4,199</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>GOODWILL</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">10,281</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">1,710</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>OTHER
ASSETS:</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Prepaid workers'
compensation, net of current
portion</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2,200</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">3,341</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Other
assets</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">236</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">309</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 30pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>Total
other
assets</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">2,436</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">3,650</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>TOTAL
ASSETS</b></font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">50,054</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">37,429</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top:192pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
accompanying notes to consolidated financial statements<br>are an
integral part of these consolidated financial
statements</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-3</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">TEAMSTAFF, INC. AND
SUBSIDIARIES<br>CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2005
AND 2004<br>(AMOUNTS IN
THOUSANDS)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="305"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="84"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="67"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">LIABILITIES
AND SHAREHOLDERS' EQUITY</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">September
30,<br> 2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">September 30,<br>
2004</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>CURRENT
LIABILITIES:</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Bank line of
credit</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">4,006</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Current portion of captial lease
obligations</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">120</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">112</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Notes
payable</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,543</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Accrued
workers'
compensation</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,050</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,626</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Accrued
payroll</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,512</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">782</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Accrued
pension
liability</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">294</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">588</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Accounts
payable</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,537</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">731</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Accrued
expenses and other current
liabilities</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,960</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">770</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 30pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>Total
current
liabilities</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">13,022</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">4,609</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>CAPITAL
LEASE OBLIGATIONS, net of current
portion</b></font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">220</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">24</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>NOTES PAYABLE,
net of current
portion</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,500</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>ACCRUED
PENSION LIABILITY, net of current
portion</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">578</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">840</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>LIABILITIES
FROM DISCONTINUED
OPERATIONS</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">422</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">963</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 30pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>Total
liabilities</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">15,742</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">6,436</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>COMMITMENTS
AND
CONTINGENCIES</b></font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>SHAREHOLDERS'
EQUITY:</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Preferred stock, $.10 par value;
authorized 5,000 shares; 0 issued and
outstanding</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Common
Stock, $.001 par value; authorized 40,000 shares; issued 19,285 and
15,721 respectively; outstanding 19,278 and 15,714
respectively</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">19</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">16</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Additional
paid-in
capital</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">68,615</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">62,963</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Retained
(deficit)
earnings</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(34,140</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(31,651</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Accumulated
comprehensive
losses</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(158</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(311</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Treasury
stock, 7 shares at cost at September 30, 2005 and September 20, 2004,
respectively</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(24</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(24</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 30pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Total
shareholders'
equity</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">34,312</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">30,993</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>TOTAL
LIABILITIES AND SHAREHOLDERS'
EQUITY</b></font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">50,054</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">37,429</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top:192pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
accompanying notes to consolidated financial statements<br>are an
integral part of these consolidated financial
statements</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-4</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">TEAMSTAFF, INC. AND SUBSIDIARIES<br>
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS<br>
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE
DATA)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="297"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="55"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="55"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
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<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="11"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">For
the Years Ended September
30,</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2003</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>REVENUES</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;"> 55,804</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;"> 37,288</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
62,805</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>DIRECT
EXPENSES</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">43,652</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">28,545</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">50,615</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>Gross
profit</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">12,152</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">8,743</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">12,190</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>OPERATING
EXPENSES</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">14,330</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">11,371</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">14,594</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>DEPRECIATION AND
AMORTIZATION</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">561</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">409</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">329</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>Loss from
operations</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(2,739</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(3,037</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(2,733</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>OTHER INCOME
(EXPENSE)</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Interest income</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">48</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">38</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">63</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Interest
expense</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(222</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(81</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(220</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Other income</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">180</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">232</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">538</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">6</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">189</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">381</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>Loss from continuing operations
before
tax</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(2,733</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(2,848</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(2,352</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>INCOME TAX
BENEFIT</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,039</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,083</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">861</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>Loss from continuing
operations</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(1,694</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(1,765</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(1,491</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>(LOSS) INCOME FROM DISCONTINUED
OPERATIONS</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Loss from operations, net of
tax benefit of $494, $856, and $3,015 for the years
ended</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(796</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(1,387</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(27,394</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Income (loss) from disposal, net of tax benefit of $0,
$575, and $0 for the years ended</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(927</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(795</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(2,314</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(27,394</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>Net
loss</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">(2,489</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">(4,079</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">(28,885</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>OTHER COMPREHENSIVE INCOME
(EXPENSE)</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Minimum pension liability
adjustment, net of tax</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">153</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(38</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(131</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>COMPREHENSIVE
LOSS</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">
														(2,336</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">
														(4,117</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">
														(29,016</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>EARNINGS PER SHARE - BASIC
&amp; DILUTED</b></font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Loss from continuing
operations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.09</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.11</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.10</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Loss from discontinued
operations</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.05</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(0.15</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(1.74</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Net
loss</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.14</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.26</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(1.84</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 8pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>WEIGHTED AVERAGE
BASIC SHARES OUTSTANDING</b></font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">18,206</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">15,714</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 8pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 8pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 8pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">15,732</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 8pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>WEIGHTED AVERAGE
DILUTED SHARES OUTSTANDING</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">18,206</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">15,714</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">15,732</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top:192pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The accompanying
notes to consolidated financial statements<br>are an integral part of
these consolidated financial
statements</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-5</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<!-- begin landscape -->
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">TEAMSTAFF, INC. AND
SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF SHAREHOLDERS&rsquo;
EQUITY<br>FOR THE YEARS ENDED SEPTEMBER 30, 2005, 2004, AND 2003<br>
(AMOUNTS IN
THOUSANDS)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="201"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="41"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="48"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="56"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="84"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="41"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="48"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="73"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="56"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="7"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Common
Stock</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3" rowspan="2"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Additional<br>Paid-in<br>Capital</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;" rowspan="2"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3" rowspan="2"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Accumulated<br>Retained
Earnings<br>Deficit</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;" rowspan="2"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="7"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Treasury
Stock</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3" rowspan="2"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Other<br>Comprehensive<br>Loss</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;" rowspan="2"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3" rowspan="2"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Total<br>Shareholder's<br>Equity</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Shares</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Amount</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Shares</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Amount</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>BALANCE,
September 30,
2002</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">16,229</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">16</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">65,200</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">1,313</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">330</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">($1,648</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">($142</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">64,739</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Common
stock repurchased to
treasury</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">251</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(782</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(782</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Common
stock retirement from
treasury</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(28</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(113</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(28</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">113</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Common
Stock issued in connection with buyout obligation of Corporate Staffing
Concepts</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">27</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">79</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">79</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Minimum
pension liability
adjustment</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(131</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(131</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Director
stock
purchase</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">39</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">90</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">90</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Net
loss</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(28,885</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(28,885</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>BALANCE,
September 30,
2003</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">16,267</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">16</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">65,256</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(27,572</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">553</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(2,317</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(273</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">35,110</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Common
stock retirement from
treasury</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(546</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(2,293</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(546</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,293</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Minimum
pension liability
adjustment</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(38</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(38</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Net
loss</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(4,079</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(4,079</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>BALANCE,
September 30,
2004</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">15,721</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">16</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">62,963</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(31,651</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">7</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(24</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(311</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">30,993</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Common
stock issued in connection with private stock offering, net of
expense</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,392</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3,455</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3,457</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Common
stock issued in connection with acquisition of RS Staffing
Services</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,207</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,749</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,750</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Warrants
granted in connection with private stock
offering</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">498</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">498</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Minimum
pension liability
adjustment</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">153</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">153</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Return
of shares related to forgiveness of shareholder
note</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(35</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(50</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(50</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Net
Income</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(2,489</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(2,489</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>BALANCE,
September 30,
2005</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">19,285</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">19</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">68,615</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">($34,140</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">7</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">($24</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">($158</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">34,312</font></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top:78pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
accompanying notes to consolidated financial statements<br>are an
integral part of these consolidated financial
statements</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-6</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
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<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">TEAMSTAFF, INC. AND
SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF CASH FLOWS<br>(AMOUNTS IN
THOUSANDS)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="297"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="59"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="54"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="46"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="11"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">For
the Years Ended September
30,</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2003</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>CASH
FLOWS FROM OPERATING ACTIVITIES:</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Net loss
from continuing
operations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(1,694</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(1,765</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(1,491</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Adjustments
to reconcile net loss to net cash (used in) operating
activities:</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Deferred income
taxes</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(1,575</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,444</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(1,083</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Depreciation
and
amortization</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">561</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">409</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">329</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Pension
amortization</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">612</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Provision
for doubtful
accounts</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">30</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">12</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">128</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Changes
in operating assets and
liabilities:</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">(Increase) decrease in accounts
receivable</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(1,762</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,901</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,563</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">(Increase)
decrease in other current
assets</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(30</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">52</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">320</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Decrease
(increase) in other
assets</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,248</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(3,704</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(4,963</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Increase
(decrease) in accounts payable, accrued expenses and
other</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,261</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(3,335</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(2,162</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Decrease
(increase) in restricted
cash</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,800</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(536</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(1,135</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">(Decrease)
increase in pension
liability</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(556</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(296</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">453</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Change
in net assets from disposal of discontinued
operations</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(1,336</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">4,625</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(377</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>Net
cash used in operating
activities</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(2,053</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(1,193</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(6,806</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>CASH
FLOWS FROM INVESTING ACTIVITIES:</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Purchase
of equipment, leasehold improvements and
software</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(129</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(19</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(525</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Payment
for acquisition of RS Staffing Services, net of cash
acquired</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(2,847</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Payment
for acquisition of Nursing
Innovations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(1,866</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Earn
out provision on prior
acquisition</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">79</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>Net
cash used in investing
activities</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(4,842</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(19</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(446</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>CASH
FLOWS FROM FINANCING
ACTIVITIES:</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Borrowings on revolving line
of
credit</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">32,084</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Payment
on revolving line of
credit</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(28,078</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Payment of bank line
of credit acquired from RS Staffing
Services</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(2,560</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Repayments
on capital lease
obligations</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(237</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(69</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(51</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Principal
payments on notes
payable</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(178</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Proceeds
from capital
lease</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">50</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Retirement
of treasury
stock</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">113</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Net
proceeds from issuance of common stock, net of
expense</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3,955</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(23</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Repurchase
of common
shares</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(782</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Net
comprehensive income (expense) on
pension</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">153</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(38</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(131</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>Net
cash provided by (used in) financing
activities</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">5,139</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(57</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">(874</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>Net
decrease in cash and cash
equivalents</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">(1,756</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">(1,269</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">(8,126</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><b>CASH
AND CASH EQUIVALENTS AT BEGINNING OF
YEAR</b></font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">3,060</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">4,329</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #ffffff;">12,455</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>CASH
AND CASH EQUIVALENTS AT END OF
YEAR</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">1,304</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">3,060</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal; background-color: #cceeff;">4,329</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: bold; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-7</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 0px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="297"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="59"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="54"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="46"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="11"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">For
the Years Ended September
30,</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2003</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><b>SUPPLEMENTAL DISCLOSURES
OF CASH FLOW INFORMATION:</b></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Cash
paid during the year
for:</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 30pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Interest</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">222</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">81</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">144</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 30pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Income
taxes</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">212</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">60</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">556</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">SUPPLEMENTAL
DISCLOSURES OF NON CASH INVESTING AND FINANCING ACTIVITIES:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The
company recorded $391,000 in capital leases during the fiscal year
ended September 30, 2005.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The company retired shares valued at
$50,000 in connection with forgiveness of shareholder note.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The company purchased all the capital stock of RS Staffing
Services for $8.0 million as of June 4, 2005. In conjunction with the
acquisition, liabilities were assumed as
follows:</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:left">
<table cellpadding="0" cellspacing="0" border="0" width="396" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="254"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="46"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Fair
value of assets acquired</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">13,034</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Cash paid
for capital stock</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(3,250</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Notes payable
issued for capital stock</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(3,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Common
stock issued for capital
stock</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(1,750</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Acquisition related
expenses</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(315</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Liabilities
assumed</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">4,719</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 22pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">The
accompanying notes to consolidated financial statements<br>are an
integral part of these consolidated financial
statements</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-8</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>






<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>TEAMSTAFF,
INC. AND SUBSIDIARIES</u>
</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</u>
</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>SEPTEMBER 30, 2005, 2004 AND
2003</u>
</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(1)&nbsp;&nbsp;&nbsp;&nbsp;<u>ORGANIZATION AND
BUSINESS</u>:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff, Inc., a New Jersey
corporation (&lsquo;&lsquo;TeamStaff&rsquo;&rsquo; or the
&lsquo;&lsquo;Company&rsquo;&rsquo;), was founded in 1969 as a
payroll service company and has evolved into a national provider of
payroll and temporary and permanent medical and administrative staffing
services. TeamStaff&rsquo;s corporate headquarters is in Somerset, New
Jersey. TeamStaff has offices located in Clearwater, Florida, Memphis,
Tennessee, Monroe, Georgia, Decatur, Georgia and Atlanta, Georgia.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">When we use the term
&lsquo;&lsquo;TeamStaff,&rsquo;&rsquo; we mean TeamStaff and its
subsidiaries. Currently, we operate only through the parent
corporation, TeamStaff, Inc., and our TeamStaff Rx, Inc. (including its
Nursing Innovations division) and RS Staffing Services, Inc.
subsidiaries. TeamStaff&rsquo;s wholly-owned subsidiaries also include
DSI Staff ConnXions Northeast, Inc., DSI Staff ConnXions Southwest,
Inc., TeamStaff Solutions, Inc., TeamStaff I, Inc., TeamStaff II, Inc.,
TeamStaff III, Inc., TeamStaff IV, Inc., TeamStaff V, Inc., TeamStaff
VI, Inc., TeamStaff Insurance Services, Inc., TeamStaff VIII, Inc.,
Employer Support Services, Inc., TeamStaff IX, Inc., Digital Insurance
Services, Inc., HR2, Inc. and BrightLane.com, Inc. As a result of the
sale of our PEO business in fiscal year 2004 as described in Note 4,
&lsquo;&lsquo;Discontinued Operations&rsquo;&rsquo;, none of these
subsidiaries are actively operating.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff provides
specialized medical, nursing and administrative staffing and payroll
administration services. TeamStaff provides allied healthcare and
nursing professionals and administrative personnel through three
staffing units. The Company&rsquo;s TeamStaff Rx subsidiary operates
throughout the United States and specializes in providing allied
medical employees and nurses, especially
&lsquo;&lsquo;travel&rsquo;&rsquo; staff (typically on a
thirteen-week assignment basis). Allied medical staff includes MRI
technicians, mammographers, dosimetrists, ultrasound staff and
physicists. TeamStaff Rx places temporary employees for over 250
clients.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff Rx&rsquo;s Nursing Innovations unit
provides travel nursing, per diem nursing, temporary-to-permanent
nursing and permanent nursing placement services. Nursing Innovations
places temporary employees for over 85 clients. The Company&rsquo;s RS
Staffing subsidiary specializes in providing medical and office
administration/technical professionals through nationwide Schedule
contracts with both the General Services Administration and Veterans
Affairs. RS Staffing places temporary employees at over 75
facilities.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Through its DSI Payroll Services division,
TeamStaff provides customized payroll management and tax services,
primarily to the construction industry. DSI&rsquo;s service offerings
include payroll check processing via web, phone or fax, federal and
state quarterly and year-end tax compliance reports, W-2 processing and
financial management reports, including certified payroll reports and
custom software interfaces. DSI processes payrolls for over 700 clients
that have more than 30,000
employees.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(2)&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES:</u>&nbsp;</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Basis of
Presentation-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The accompanying consolidated
financial statements include the accounts of TeamStaff, Inc. and its
subsidiaries, all of which are wholly owned. All significant
intercompany balances and transactions have been eliminated in the
consolidated financial statements.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Use of
Estimates-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The preparation of financial statements
in conformity with accounting principles generally accepted in the
United States requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-9</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Revenue
Recognition-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As of and for the period ended
September 30, 2005, TeamStaff operated two different lines of business
from which it derived substantially all of its revenue: temporary and
permanent staffing and payroll services.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff
accounts for its revenues in accordance with EITF 99-19, <font style="font-weight: normal; font-style: italic">Reporting
Revenues Gross as a Principal Versus Net as an Agent</font> and SAB
104<font style="font-weight: normal; font-style: italic">, Revenue Recognition</font>. TeamStaff recognizes all amounts
billed to its temporary staffing customers as gross revenue because,
among other things, TeamStaff is the primary obligor in the temporary
staffing arrangement, TeamStaff has pricing latitude, TeamStaff selects
temporary employees for a given assignment from a broad pool of
individuals, TeamStaff is at risk for the payment of its direct costs,
and TeamStaff assumes a significant amount of other risks and
liabilities as an employer of its temporary employees, and therefore,
is deemed to be a principal in regard to these services. TeamStaff also
recognizes as gross revenue and as unbilled receivables, on an accrual
basis, any such amounts that relate to services performed by temporary
employees which have not yet been billed to the customer as of the end
of the accounting period.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Staffing (whether medical or
administrative) revenue is recognized as service is rendered. TeamStaff
bills its clients based on an hourly rate. The hourly rate is intended
to cover TeamStaff&rsquo;s direct labor costs of the temporary
employees, plus an estimate to cover overhead expenses and a profit
margin. Additionally, commissions from permanent placements are
included in revenue related to Medical Staffing. Commissions from
permanent placements result from the successful placement of a medical
staffing employee to a customer&rsquo;s workforce as a permanent
employee.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Payroll Services revenue is recognized as
service is rendered and consists primarily of administrative service
fees charged to clients for the processing of paychecks as well as
preparing quarterly and annual payroll related
reports.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Direct costs of services are reflected in
TeamStaff's Statement of Operations as &lsquo;&lsquo;direct
expenses&rsquo;&rsquo; and are reflective of the type of revenue
being generated. Direct costs of the temporary staffing business
include wages, employment related taxes and reimbursable expenses.
Payroll services' direct costs include salaries and supplies
associated with the processing of the payroll service.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In
connection with its discontinued operation, TeamStaff&rsquo;s
professional employer organization division revenues were derived from
its PEO division billings, net of worksite employee payroll costs (net
method), which included payroll taxes, benefit costs, workers&rsquo;
compensation charges and administrative fees. The net method was used
because TeamStaff was not generally responsible for the output and
quality of work performed by the worksite employees. These amounts are
reflected as part of income (loss) from discontinued operations in the
consolidated financial statements.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Concentrations of Credit
Risk-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Financial instruments that potentially subject
TeamStaff to concentrations of credit risk consist principally of cash
and accounts receivable. TeamStaff maintains substantially all its cash
balances in a limited number of financial institutions. The balances
are insured by the Federal Deposit Insurance Corporation up to
$100,000. TeamStaff monitors the financial health of these banking
institutions.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff's customer base consists of
over 1,100 client companies, representing over 31,000 employees
(including payroll services employees) as of September 30, 2005. More
than 75% of the customers in the payroll processing area are in
the construction industry. Substantially all of the customers of our
TeamStaff Rx, Inc. and Nursing Innovations subsidiary are engaged in
the healthcare industry. Substantially all of the business of RS
Staffing Services, Inc. is accomplished through contracts with the
General Services Administration and Veterans Affairs. Credit, when
given, is generally granted on an unsecured basis.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-10</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Cash
Equivalents-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">For purposes of the statements of cash
flows, TeamStaff considers all liquid investments purchased with a
maturity of three months or less to be cash
equivalents.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Restricted Cash-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff
had restricted cash related to collateral for a letter of credit to
Zurich for its workers&rsquo; compensation program. Effective March
31, 2005, Zurich withdrew the requirement for a letter of credit and
$1.8 million of restricted cash held in the form of a certificate of
deposit at SunTrust Bank was released to TeamStaff. As of September 30,
2005, the company had no restricted cash.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Allowance for
Doubtful Accounts-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff maintains an allowance
for doubtful accounts for estimated losses resulting from the inability
of its customers to pay. However, if the financial condition of
TeamStaff&rsquo;s customers were to deteriorate rapidly, resulting in
nonpayment, TeamStaff&rsquo;s accounts receivable balances could grow
and TeamStaff could be required to provide for additional allowances,
which would decrease net income in the period that such determination
was made.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Fair Value-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff has
financial instruments, none of which are held for trading purposes.
TeamStaff estimates that the fair value of all financial instruments at
September 30, 2005 and 2004, does not differ materially from the
aggregate carrying values of these financial instruments recorded in
the accompanying balance sheets. The estimated fair value amounts have
been determined by TeamStaff using available market information and
appropriate valuation methodologies. Considerable judgment is
necessarily required in interpreting market data to develop the
estimates of fair value, and, accordingly, the estimates are not
necessarily indicative of the amounts that TeamStaff could realize in a
current market exchange.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Equipment and
Improvements-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Equipment and improvements are stated
at cost. Depreciation and amortization are provided using the
straight-line method over the estimated useful asset lives (3 to 5
years) and the shorter of the initial lease term or estimated useful
life for leasehold improvements.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Advertising
Costs-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The Company expenses advertising costs as
they are incurred. Total advertising costs were $0.3 million, $0.3
million, and $0.7 million for fiscal years ended September 30, 2005,
2004, and 2003, respectively.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Occupancy Lease
Commitments-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The Company has occupancy leases with
various payment terms to include a fixed payment schedule over the
lease term, variable payment schedule over the lease term, or a lease
that may have a rent abatement period or &lsquo;&lsquo;rent
holiday&rsquo;&rsquo; period. The Company records occupancy expense
using the straight-line method over the lease term, regardless of
actual payment terms.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Acquired Intangible
Assets-</u>
</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 456pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(amounts in
thousands)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="358"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Tradename</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">4,199</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff
determined that no impairment of its tradename existed as of September
30, 2005. TeamStaff will continue to review annually its remaining
indefinite life intangible assets for possible impairment or loss of
value.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-11</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Impairment of
Goodwill-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Goodwill is assigned to specific reporting
units and, in accordance with SFAS 142, is reviewed for possible
impairment at least annually or more frequently upon the occurrence of
an event or when circumstances indicate that a reporting unit&rsquo;s
carrying amount may be greater than its fair value. As of the fiscal
quarter ended December 31, 2002, TeamStaff carried a total of $27.2
million in goodwill. During the fiscal quarter ended March 31, 2003,
TeamStaff determined that the carrying amount of the PEO reporting
segment exceeded its fair value, which was estimated based on the
present value of expected future cash inflows and the market approach
which compares TeamStaff to other comparable entities. The decision to
test for impairment was based on a variety of factors, including, but
not limited to, the overall downturn in the nation&rsquo;s economy,
the relatively recent substantial decrease in the number of TeamStaff
PEO worksite employees, the performance of the Wachovia marketing
relationship, the reduced valuations of individual PEOs by various
market analysts and the associated market downgrade in the PEO industry
generally. Accordingly, a goodwill impairment loss of $20.4 million, as
indicated by an independent outside valuation, was recognized in the
PEO reporting unit for the fiscal quarter ended March 31, 2003. The
goodwill impairment loss is included in discontinued operations. As a
result of the sale of the PEO business, TeamStaff wrote off the
remaining goodwill related to the PEO business of $5.4 million in the
fiscal year ended September 30, 2004. This write off is included in
discontinued operations.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff determined that no
impairment of its remaining goodwill existed as of September 30, 2005.
TeamStaff will continue to review annually its remaining goodwill for
possible impairment or loss of
value.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Goodwill:</u>
</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 456pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(Amounts
in
thousands)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="356"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="52"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Balance
as of September 30, 2004</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,710</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Goodwill
acquired through
acquisition</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">8,571</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Balance
as of September 30,
2005</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">10,281</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">$1.7
million of goodwill was recorded as part of the acquisition of the
assets of Nursing Innovations on November 14, 2004, all of which is
deductible for tax purposes. $6.9 million of goodwill was recorded as
part of the acquisition of the stock of RS Staffing Services, effective
as of June 4, 2005, none of which is deductible for tax purposes. (See
Note 3)</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Long-Lived Assets-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff
reviews its long-lived assets for impairment whenever events or changes
in circumstances indicate that the carrying amount of an asset may not
be recoverable. Management of TeamStaff believes that no such events or
changes in circumstances have occurred though September 30, 2005. If
such events or changes in circumstances are present, a loss is
recognized to the extent that the carrying value of the asset is in
excess of the sum of the undiscounted cash flows expected to result
from the use of the asset and its eventual disposition.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Workers&rsquo; Compensation-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff
applies loss-development factors to its open years&rsquo;
workers&rsquo; compensation incurred losses in order to estimate fully
developed losses as well as other formula driven methodologies supplied
by its current third party administrator. (See Note 10)</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Income Taxes-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff accounts for income
taxes in accordance with Statement of Financial Accounting Standards
No. 109, &lsquo;&lsquo;Accounting for Income Taxes.&rsquo;&rsquo;
Under SFAS No. 109, deferred tax assets and liabilities are determined
based on the difference between the financial statement and tax basis
of assets and </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-12</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
liabilities, using enacted tax rates in
effect for the year in which the differences are expected to reverse.
Deferred tax assets are reflected on the balance sheet when it is
determined that it is more likely than not that the asset will be
realized. (See Note 5)</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Stock-Based
Compensation-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Stock-based compensation for employees
and directors is recognized using the intrinsic value method under APB
No. 25. TeamStaff uses the fair value method for options issued to
non-employees. For disclosure purposes, pro forma net income (loss)
impacts are provided as if the fair market value method has been
applied.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In accordance with Statement of Financial
Accounting Standards No. 123, &lsquo;&lsquo;Accounting for
Stock-Based Compensation&rsquo;&rsquo; (&lsquo;&lsquo;SFAS
123&rsquo;&rsquo;), which was effective October 1, 1996, as amended,
the fair value of option grants is estimated on the date of grant using
the Black-Scholes option-pricing model for proforma footnote purposes
with the following assumptions; dividend yield of 0%, risk-free
interest rate of 3.56%, 3.68%, and 2.58% in fiscal
years ended September 30, 2005, 2004, and 2003 respectively, and
expected option life of 4 years. Volatility was assumed to be
47%, 68%, and 73%, in fiscal years ended September
30, 2005, 2004, and 2003, respectively.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As permitted by
SFAS 123, TeamStaff has chosen to continue to account for its employee
stock-based compensation at their intrinsic value in accordance with
Accounting Principle Board Opinion No. 25, &lsquo;&lsquo;Accounting
for Stock Issued to Employees&rsquo;&rsquo; and related
Interpretations. No stock-based employee compensation cost is reflected
in the Statement of Operations, 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 grant. The following table illustrates the
effect on net loss and loss per share if the company had applied the
fair value recognition provisions of FASB Statement No. 123,
<font style="font-weight: normal; font-style: italic">Accounting for Stock-Based Compensation</font>, as amended, to
stock-based employee compensation.</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 12px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="269"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="66"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="66"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="54"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">(Amounts
in thousands, except per share
data)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2003</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Net
loss, as
reported</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(2,489</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(4,079</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(28,885</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Deduct:
Total stock-based employee compensation expense determined under fair
value based method for all awards, net of related tax
effects</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(294</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(250</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(471</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Pro
forma net
loss</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(2,783</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(4,329</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(29,356</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Loss
per share Basic:</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">As
reported</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.14</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.26</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(1.84</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Pro
forma</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.15</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.28</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(1.87</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Loss
per share Diluted:</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">As
reported</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.14</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0.26</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(1.84</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Pro
forma</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.15</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.28</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(1.87</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Effective
August 29, 2005, in anticipation of the adoption of new accounting
standards required under SFAS No. 123 (R), TeamStaff accelerated the
vesting of certain unvested and
&lsquo;&lsquo;out-of-the-money&rsquo;&rsquo; stock options
previously awarded to employees and officers that have exercise prices
per share of $1.60 or higher. As a result, options to purchase 368,000
shares of TeamStaff stock became exercisable immediately. Proforma
expense related to these accelerated options is included in the table
above for fiscal year 2005. Under the recently revised Financial
Accounting Standards Board Statement SFAS No. 123 (R),
&lsquo;&lsquo;Share-Based Payment,&rsquo;&rsquo; TeamStaff will
apply the expense recognition provisions relating to stock options
beginning in the first quarter of 2006. See &lsquo;&lsquo;Recent
Accounting Standards&rsquo;&rsquo; below for further
explanation.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Options held by non-employee directors issued
under the Company's Non-Employee Director Plan are excluded from
the vesting acceleration. In addition, in order to prevent unintended
personal benefits to executive officers, restrictions will be imposed
on any shares received through the exercise </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-13</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
of accelerated options held by those
individuals. Those restrictions will prevent the sale of any shares
received from the exercise of an accelerated option prior to the
original vesting date of the option or the individual's
termination of employment, whichever is earlier.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Under
the recently revised Financial Accounting Standards Board Statement
SFAS No. 123 (R), &lsquo;&lsquo;Share-Based Payment,&rsquo;&rsquo;
TeamStaff will apply the expense recognition provisions relating to
stock options beginning in the first quarter of 2006. See
&lsquo;&lsquo;Recent Accounting Standards&rsquo;&rsquo; below for
further explanation.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Earnings (Loss) Per
Share-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Basic earnings per share is calculated by
dividing income available to common shareholders by the weighted
average number of shares of common stock outstanding during the period.
Diluted earnings per share is calculated by dividing income available
to common shareholders by the weighted average number of common shares
outstanding for the period adjusted to reflect potentially dilutive
securities.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In accordance with SFAS 128, the following
table reconciles basic shares outstanding to fully diluted shares
outstanding.</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="250"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="72"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="72"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="62"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="11"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Years
Ended September 30,<br>(Amounts in thousands, except per share
data)</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2003</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Weighted
average number of common shares outstanding &mdash; Basic
</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">18,206</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">15,714</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">15,732</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Incremental
shares for assumed conversions of stock
options/warrants</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Weighted
average number of common and equivalent shares
outstanding-Diluted</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">18,206</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">15,714</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">15,732</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Stock
options and warrants outstanding at September 30, 2005, 2004, and 2003
to purchase 1,942,000, 1,252,941, and 1,456,900 shares of common stock
respectively were not included in the computation of Diluted EPS as
they were antidilutive.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Comprehensive Income
(Loss)-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff has comprehensive losses resulting
from its Supplemental Executive Retirement Plan (SERP) (See Note 13).
When the Company&rsquo;s SERP obligations were measured at September
30, 2005, the recorded SERP liability exceeded the Projected Benefits
Obligation (PBO). This was due to changes in discount rate assumptions
used in the SERP calculations. The discount rates used in the PBO
calculations dropped from 5.5% in 2003, to 3.0% in 2004
and 2005. The discount rates used in the periodic benefit cost
calculations dropped from 6.5% in 2003, to 5.5% in 2004,
and to 3.0% in 2005. These changes resulted in comprehensive
income net of tax in fiscal year 2005 of $153,000, and a comprehensive
loss net of tax of $38,000 and $131,000, in fiscal year 2004 and 2003,
respectively. No other sources of comprehensive gains or losses
occurred.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<b><u>Recent Accounting
Standards</u></b>:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In December 2004, the Financial
Accounting Standards Board issued SFAS No. 123 (revised 2004)
<font style="font-weight: normal; font-style: italic">Share-Based Payments (</font>SFAS No. 123(R)), which replaces SFAS No.
123 and supercedes APB No. 25. SFAS No. 123(R) requires all share-based
payments to employees, including grants of employee stock options, to
be recognized in the financial statements based on their fair values
beginning with the first interim or annual period after June 15, 2005.
The pro forma disclosures previously permitted under SFAS No. 123 no
longer will be an alternative to financial statement recognition. In
April 2005, the SEC issued a press release that revises the required
date of adoption under SFAS 123(R). The new rule allows companies to
adopt the provisions of SFAS 123(R) beginning on the first annual
period beginning after June 15, 2005. Based on the new required
adoption date, the Company will adopt SFAS 123(R) effective October 1,
2005.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-14</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">SFAS 123(R) permits public
companies to adopt its requirements using one of two methods: (1) a
&lsquo;&lsquo;modified prospective&rsquo;&rsquo; method under which
compensation cost is recognized beginning with the effective date based
on the requirements of SFAS 123(R) for all share-based payments granted
after the effective date and based on the requirements of SFAS 123 for
all awards granted to employees prior to the effective date of SFAS
123(R) that are unvested on the effective date; or (2) a
&lsquo;&lsquo;modified retrospective&rsquo;&rsquo; method which
includes the requirements of the modified prospective method and also
has entities restate either all prior periods presented or prior
interim periods of the year of adoption using the amounts previously
calculated for pro forma disclosure under SFAS 123. The Company intends
to follow the modified prospective method upon adoption in the first
fiscal quarter of 2006.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(3)&nbsp;&nbsp;&nbsp;&nbsp;<u>BUSINESS
COMBINATIONS</u>:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<b>Acquisition of RS Staffing
Services, Inc.:</b>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On June 8, 2005 TeamStaff, Inc.
completed its acquisition of RS Staffing Services, Inc., a privately
held Georgia corporation, pursuant to the terms of a Stock Purchase
Agreement dated as of May 26, 2005. RS Staffing, headquartered in
Monroe, GA, specializes in providing medical and office
administration/technical professionals through nationwide Schedule
contracts with both the General Services Administration
(&lsquo;&lsquo;GSA&rsquo;&rsquo;) and Veterans Affairs
(&lsquo;&lsquo;VA&rsquo;&rsquo;). Closing of the transaction was
completed for accounting purposes as of June 4, 2005. TeamStaff
acquired all of the capital stock of RS Staffing for a purchase price
of $8 million consisting of $3.25 million in cash, $3 million in a
2-year note, and $1.75 million in TeamStaff common stock (1,206,896
shares). The shares are restricted shares. The Sellers guaranteed a
minimum net worth of $1.4 million and any amounts above or below this
amount after a finalized accounting are subject to a purchase price
adjustment. In addition, there is a one-year earn out of up to $2
million based upon the achievement of specified performance targets for
the business. Principals of RS Staffing, namely Roger Staggs and Barry
Durham, have continued as management of RS pursuant to employment
agreements with each of them. The agreement also provided for mutual
indemnification for breaches of representations and warranties.
Further, the note issued by TeamStaff as part of the purchase price
bears interest at 5% per annum, is payable one half in one year
and the remainder in two years, and is secured by a lien on certain
assets of the business, subordinate to any liens granted in connection
with financing for the transaction. In connection with the acquisition,
TeamStaff obtained financing from PNC Bank, National Association.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The following table summarizes the estimated fair values of
the assets acquired and liabilities
assumed:</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 456pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(Amounts in
thousands)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="356"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="52"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Current
assets</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">5,865</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Property, plant, and
equipment</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">204</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Goodwill</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">6,890</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Other
assets</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">75</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Total assets
acquired</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">13,034</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Current
liabilities</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">4,680</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Long term
liabilities</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">39</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Total
liabilities
assumed</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">4,719</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Net
assets
acquired</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">8,315</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Included
in Goodwill is $315,000 of expenses directly related to the
acquisition.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<b>Acquisition of Certain Assets of Nursing
Innovations, Inc.:</b>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On November 14, 2004,
TeamStaff's medical staffing subsidiary, TeamStaff Rx, Inc.
acquired the assets of the staffing business of Nursing Innovations,
Inc., a Memphis, Tennessee-based provider of travel and per diem
nurses. The terms of the agreement provided for TeamStaff Rx to acquire
certain assets from Nursing Innovations and its primary shareholder.
The combined purchase price was approximately $1.8 million, of which
$180,000 was held in an escrow account for a period of one year
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-15</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
to provide security for the sellers'
indemnification obligations. The purchase price was subject to downward
adjustment based upon the percentage of former Nursing Innovations
business that successfully transferred to TeamStaff Rx. Subsequent to
the balance sheet date, it was determined that no additional purchase
price adjustment was due after the first year and on November 18, 2005,
we authorized the release of the $180,000 of funds held in escrow to
the sellers. In addition, there are certain deferred purchase price
provisions which may increase the total purchase price based upon the
performance of the former Nursing Innovations business during the two
years following closing of the transaction. It was determined that no
additional purchase price was due for year one of the two year earn-out
period.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The following table summarizes the estimated fair
values of the assets acquired and liabilities
assumed:</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 456pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(Amounts in
thousands)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="358"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Property,
plant, &amp;
equipment</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">185</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Goodwill</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,681</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Total
assets
acquired</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,866</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Total
liabilities
assumed</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Net
assets
acquired</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,866</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Included
in Goodwill is $66,000 of expenses directly related to the
acquisition.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The following unaudited pro forma information
presents a summary of consolidated financial results of operations of
the Company and acquired companies as if the acquisitions had occurred
on October 1, 2002, the beginning of the earliest period
presented.</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="303"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="39"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="39"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="41"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="11"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Years
Ended September
30,</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2003</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">(amounts
in
thousands)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Revenues</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">87,419</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">88,535</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">108,684</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Net
loss
</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(2,318</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(3,527</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(29,491</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Earnings
per share &mdash; basic and
diluted</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.12</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.18</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(1.53</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
number of common shares outstanding used to calculate pro forma
earnings per share have been adjusted to include 2,392,000 shares
issued as the source of financing for the Nursing Innovations
acquisition and 1,206,896 shares issued as part of the RS Staffing
Services acquisition, as if these shares had been outstanding as of the
earliest period presented.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">These proforma results for the
fiscal year ended September 30, 2005 include $175,000 of additional
expense recorded by RS Staffing, prior to acquisition, predominately
related to outstanding former employee claims, as well as $300,000 of
non recurring incentives paid to its owners, prior to the acquisition.
This table also does not reflect cost savings of approximately
$115,000, $417,000 and $444,000 for the twelve months ended September
30, 2005, 2004 and 2003, respectively, that would have potentially been
eliminated due to cost synergies between the companies as part of the
acquisition.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(4)&nbsp;&nbsp;&nbsp;&nbsp;<u>DISCONTINUED OPERATIONS:</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Effective November 17, 2003, TeamStaff sold certain of the
assets of the subsidiaries through which it operated its professional
employer organization (&lsquo;&lsquo;PEO&rsquo;&rsquo;) business to
Gevity HR, Inc. (&lsquo;&lsquo;Gevity&rsquo;&rsquo;) for the sum of
$9.5 million in cash, $2.5 million of which had been placed in
escrow.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On April 23, 2004, TeamStaff and Gevity agreed
that TeamStaff&rsquo;s share of the $2.5 million placed in escrow was
$2.25 million. That amount was released from escrow for
TeamStaff&rsquo;s benefit. When added to the $7.0 million previously
paid by Gevity, the total purchase price paid was $9.25 million.
Concurrently, TeamStaff settled obligations to Gevity related to
payroll for TeamStaff&rsquo;s internal employees under a co-employment
arrangement of $1.2 million, and settled obligations predominantly
related to PEO client payments received by TeamStaff during the period
following the sale, offset in </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-16</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
part by invoices paid by TeamStaff on
Gevity&rsquo;s behalf, totaling $1.1 million. Additionally, effective
May 2, 2004, TeamStaff sold certain of the assets of TeamStaff
Solutions, Inc., the subsidiary through which it operated its temporary
technical staffing business, to Metro Tech Consulting Services, Inc.
for the sum of $65,000.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Net revenues for the PEO segment
for fiscal years ended September 30, 2005, 2004, and 2003 were $0,
$12.1 million, and $88.0 million, respectively.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
following chart details assets and liabilities from discontinued
operations:</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="299"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="60"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="49"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="7"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">For
Fiscal Years Ended<br> September
30,</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">ASSETS</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">LIABILITIES</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Accrued
expenses and other current
liabilities</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">422</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">963</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Total
current
liabilities</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">422</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">963</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Total
liabilities</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">422</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">963</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 12px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="225"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="68"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="52"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="52"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="59"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Liability
Balances<br> (amounts in
thousands)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">September 30,<br> 2004
Balance</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Expensed<br> This Year</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Paid This<br>
Year</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">September 30,<br> 2005 Balance</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Accrued
expenses and other current
liabilities</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">963</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,289</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(1,830</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">422</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Total</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">963</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,289</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(1,830</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">422</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(5)&nbsp;&nbsp;&nbsp;&nbsp;<u>INCOME
TAXES</u>:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">At September 30, 2005, TeamStaff has
available operating loss carryforwards of approximately $41.0 million
to reduce future periods' taxable income. Approximately $21.0
million of the operating loss carryforwards were acquired in connection
with the acquisition of BrightLane on August 31, 2001. The BrightLane
carryforwards extend through 2021. TeamStaff also has tax credits
available of approximately $1.1 million to reduce future taxable income
that begin to expire in 2020. In accordance with IRS regulations, the
utilization of operating losses acquired from BrightLane are limited to
approximately $2.1 million per year.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff has
recorded a $18.5 million and a $16.8 million deferred tax asset at
September 30, 2005 and 2004, respectively. This represents
management's estimate of the income tax benefits to be realized
upon utilization of its net operating losses and tax credits as well as
temporary differences between the financial statement and tax bases of
certain assets and liabilities, for which management believes
utilization to be more likely than not. Management believes
TeamStaff's operations can generate sufficient taxable income to
realize this deferred tax asset as a result of historical profitability
and its ability to generate operating income in the future. The
acquisitions of RS Staffing and Nursing Innovations, two historically
profitable companies, coupled with an improving business climate for
temporary medical staffing will help drive TeamStaff's return to
profitability. Management believes it will generate enough future
profits to utilize the carrying value of its deferred tax
asset.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-17</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">An analysis of TeamStaff's
deferred tax asset and liability is as
follows-</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 456pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(Amounts in
thousands)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="316"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="78"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="62"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="7"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Years
Ended September
30,</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Deferred
income tax asset:</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Net operating
loss carry forwards and tax
credits</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">18,620</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">16,869</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Workers&rsquo;
compensation
reserves</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(527</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(922</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Occupancy
leases</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">143</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">312</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Pension</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">207</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">486</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Other
items,
net</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">39</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">68</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">18,482</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">16,813</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
components of the income tax expense for income taxes from continuing
operations are summarized as
follows-</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="292"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="40"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="40"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="36"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="11"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Years
Ended September 30,<br>(Amounts in
thousands)</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2003</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Current (benefit)
expense</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(1,069</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">361</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">222</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Deferred
expense (benefit)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">30</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(1,444</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(1,083</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Total
(benefit) expense</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(1,039</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(1,083</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(861</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
following table indicates the significant elements contributing to the
difference between the Federal statutory rates and TeamStaff&rsquo;s
effective tax
rate-</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 0px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="294"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="40"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="40"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="34"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="11"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Years
Ended September 30,</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2003</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Federal
statutory
rate</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(34</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)%&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(34</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)%&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(34</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)%&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">State
taxes, net of federal income tax
benefit</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(4</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(4</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(7</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Tax
credits</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(7</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Valuation
allowance</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">11</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(38</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)%&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(38</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)%&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(37</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)%&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(6)&nbsp;&nbsp;&nbsp;&nbsp;<u>DEBT:</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In connection with the acquisition of RS Staffing Services,
Inc. (see Note 3), TeamStaff secured financing with PNC Bank, National
Association in the form of a $7.0 million revolving credit facility.
The credit facility was provided by PNC Bank effective on June 8, 2005
to (i) provide for the acquisition of RS Staffing; (ii) refinance an
outstanding senior loan facility; and (iii) provide ongoing working
capital. Revolving Credit advances under the credit facility will bear
interest at either a PNC bank internal rate that approximates the Prime
Rate plus 25 basis points or LIBOR plus 275 basis points, whichever is
higher. The facility has a three-year life and contains term and line
of credit borrowing options. The facility is subject to certain
restrictive covenants, including minimum EBITDA, and minimum
consolidated debt service coverage ratio. For the period ended
September 30, 2005, TeamStaff was not in compliance with the EBITDA
covenant. PNC issued an Amendment to Revolving Credit and Security
Agreement, waiving the minimum EBITDA requirement because the Company
met the minimum consolidated debt service coverage ratio. The facility
is subject to acceleration upon non-payment or various other standard
default clauses. In addition, we granted PNC a lien and security
interest on all of our assets. At September 30, 2005, the outstanding
balance of the credit facility was $4.0 million and there was $1.8
million of unused availability under the line, based on billed accounts
receivable. The average amount of borrowing since the date of inception
on June 8, 2005 through September 30, 2005, was $4.3 million. The
weighted average interest rate on advances since the date of inception
on June 8, 2005 through September 30, 2005, was 6.54%. The
interest rate effective as of September 30, 2005 was
7.0%</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-18</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In connection with the acquisition
of RS Staffing, TeamStaff issued two promissory notes to the former
owners of RS Staffing as part of the acquisition price, in the
aggregate principal amount of $3.0 million. The notes bear interest at
5% per annum, and are subordinate to the financing provided by
PNC Bank described above. One half of the principal and interest is due
on June 8, 2006 and the remaining is due in June 2007.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In
connection with the acquisition of RS Staffing, TeamStaff also assumed
several short term notes payable with AI Credit Corp for the financing
of various RS Staffing insurance premiums. As of September 30, 2005,
the remaining principal balance on these notes was approximately
$43,000. Interest rates range from 4.75% to 6.0% with
maturity dates ranging from August 2005 through February 2006.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Long-term debt from continuing operations at September 30,
2005 and 2004 consists of the
following-</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 456pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(Amounts in
thousands)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="304"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="64"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="40"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Notes
payable</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3,043</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Less-
Current portion
</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(1,543</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(112</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Long-term
debt</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,500</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">24</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Maturities
of long-term debt as of September 30, 2005 are as
follows-</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 456pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(Amounts in
thousands)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="358"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Years
Ending September
30,</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2006</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,543</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2007</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,500</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Total</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3,043</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(7)&emsp;<u>CAPITAL
LEASES:</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The company leases certain office equipment
under non-cancelable capital lease agreements that expire at various
dates through 2009. Terms range from 36 to 60 months. Interest rates
range from 4.0% to 13.3%. As of September 30, 2005, the
company has recorded $1.1 million in gross capital leases and
accumulated depreciation of $0.8 million.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Future minimum
lease payments at September 30, 2005 are as
follows:</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 456pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(amounts in
thousands)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="360"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="48"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Fiscal
year:</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2006</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">135</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2007</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">110</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2008</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">70</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2009</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">54</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Total
minimum lease payments</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">369</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Amounts
representing
interest</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(29</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">340</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Less
current
portion</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(120</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Long term
portion of capital
leases</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">220</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-19</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(8)&emsp;<u>ACCRUED EXPENSES
AND OTHER CURRENT LIABILITIES:
</u>&nbsp;</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Accrued expenses and other current
liabilities at September 30, 2005 and 2004 consist of the
following-</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 456pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(Amounts in
thousands)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="306"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="64"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="38"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Accrued
bonus and
commission</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">528</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">456</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Accrued medical
insurance and employee benefit
expense</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">420</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Accrued audit
and tax fees</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">222</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">194</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Accrued
subcontracting
expense</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">168</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Accrued
rebates</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">128</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Accrued interest
expense</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">74</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Accrued payroll
taxes and workers&rsquo; compensation
</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">74</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Accrued occupany
expense</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">34</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">63</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Accrued professional
fees</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">33</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">15</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Other miscellaneous
accrued
expenses</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">279</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">42</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,960</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">770</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(9)&emsp;<u>OTHER
CURRENT ASSETS:</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Other current assets at September
30, 2005 and 2004 consist of the
following-</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 456pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(amounts in
thousands)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="304"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="60"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="44"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Miscellaneous
receivables</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">516</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">754</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Prepaid
insurance</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">283</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">363</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Miscellaneous
prepaid expense</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">126</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">103</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Other
miscellaneous current
assets</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">230</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">47</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,155</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,267</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(10)&emsp;<u>COMMITMENTS
AND
CONTINGENCIES</u>:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<b><u>Leases</u>&mdash;</b>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Minimum
payments net of sublease income, under non-cancelable operating lease
obligations at September 30, 2005 are as
follows-</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:8pt;  width: 456pt; text-align: left; font-style: normal; line-height: 10pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(Amounts in
thousands)</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="539" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="358"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="50"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Years
Ending September
30,</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2006</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">644</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2007</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">661</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2008</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">363</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2009</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">372</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2010</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">326</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2011</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">132</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,498</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Rent
expense net of sublease income, under all operating leases in fiscal
year ended September 30, 2005, was $1.1 million, of which $0.7 million
is attributed to continuing operations and $0.4 million is attributed
to discontinued operations. Rent expense net of sublease income, under
all operating leases in fiscal year ended September 30, 2004, was $2.6
million, of which $0.8 million was attributed to continuing operations
and $1.8 million was attributed to discontinued operations. Rent
expense was $1.9 million in 2003.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-20</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The PEO office space located in
Boca Raton, Florida has been subleased by GevityHR, Inc for a remaining
lease term as of September 30, 2005, of 21 months for $0.3 million. The
office space located in New York, New York has been subleased by Big
Brothers Big Sisters of New York for the remaining lease term as of
September 30, 2005, of 10 months for $0.06
million.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Workers' Compensation Policy-</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff&rsquo;s current workers&rsquo; compensation
insurance program is provided by Zurich American Insurance Company. The
Zurich program originally covered the period from March 22, 2002
through March 31, 2003, inclusive. On March 28, 2003, TeamStaff renewed
its workers&rsquo; compensation program with Zurich for the period
from April 1, 2003, through March 31, 2004, inclusive. The renewal
program contained a large deductible feature of $0.5 million for each
claim, with a maximum liability cap of the greater of 104.41% of
manual premium or $15.6 million. The premium for the program was paid
monthly based upon estimated payroll for the year and is subject to a
policy year-end audit. The renewal program was collateralized by a
letter of credit inuring to the benefit of Zurich, and cash held in a
trust account by a third party. A letter of credit for $3.5 million was
secured through Fleet Bank, as part of TeamStaff&rsquo;s line of
credit. Effective March 31, 2004, Zurich agreed to a reduction in the
amount of the letter of credit to $1.8 million. As a result, on March
31, 2004, TeamStaff secured a new letter of credit in the amount of
$1.8 million with SunTrust Bank. Effective March 31, 2005, Zurich
withdrew the requirement for a letter of credit and $1.8 million of
restricted cash held in the form of a certificate of deposit at
SunTrust Bank was released to TeamStaff. Payments were made to the
trust monthly based on projected claims for the year. Interest on all
assets held in the trust is credited to TeamStaff. Payments for claims
and claims expenses are made from the trust. Assets in the trust may be
adjusted from time to time based on program experience. GAB Robins, a
third party administrator, provide claims handling services for the
program. On May 12, 2004, TeamStaff received $963,000 in return
premiums from Zurich. At September 30, 2005, TeamStaff has a prepaid
asset of $3.6 million for the premiums and the prepayments made to the
trust for both years of the Zurich plan. A reduction of the prepaid
asset in the amount of $0.5 million was recorded in the fiscal year
ended September 30, 2005 as a result of adverse claims development for
the period April 1, 2002 through November 17, 2003. This write-down was
predominantly driven by one claim that caused the Company to increase
its maximum exposure to equal the policy deductible. TeamStaff
estimates that, of the remaining prepaid asset, approximately an
additional $1.4 million in return premiums will be received within the
next twelve months, and this is reflected on the balance sheet at
September 30, 2005 as a current asset.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In conjunction
with the sale of its PEO assets to GevityHR, Inc., TeamStaff requested
and received a pro rata cancellation of the policy described
immediately above as of November 17, 2003.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff then
entered into a new workers&rsquo; compensation program with Zurich
covering TeamStaff&rsquo;s temporary employees and, as of January 1,
2004, its corporate employees. The program is managed by Cedar Hill and
GAB Robins provide claims handling services. This program was a fully
insured, guaranteed cost program that contained no deductible or
retention feature (the &lsquo;&lsquo;Zurich Policy&rsquo;&rsquo;).
The Zurich Policy expired April 1, 2004. Effective April 1, 2004,
TeamStaff entered into a new workers&rsquo; compensation program with
Zurich for the period April 1, 2004 through March 31, 2005 identical to
the Zurich Policy. Effective April 1, 2005, TeamStaff renewed its
workers&rsquo; compensation program with Zurich for the period from
April 1, 2005 through March 31, 2006. This renewal is also identical to
the Zurich Policy.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As of September 30, 2005, the adequacy
of the workers&rsquo; compensation reserves was determined, in
management&rsquo;s opinion, to be reasonable. In determining our
reserves we rely in part upon information regarding loss data received
from our workers&rsquo; compensation insurance carriers that may
include loss data for claims incurred during prior policy periods. In
addition, these reserves are for claims that have not been sufficiently
developed due to their relatively young age, and such variables as
timing of payments and investment returns thereon are uncertain or
unknown, therefore actual results may vary from current estimates.
TeamStaff will continue to monitor the development of these reserves,
the actual payments made against the claims incurred, the timing of
these payments, the interest accumulated in TeamStaff&rsquo;s
prepayments and adjust the reserves as deemed
appropriate.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-21</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As was previously reported in
TeamStaff's Exchange Act filing on Form 8-K, filed on October 20,
2005, the Company settled certain disputed workers compensation
insurance premium and loss claims totaling nearly $4.4 million for
$2.05 million payable over two (2) years (subject to certain prepayment
requirements), and was fully reserved as of the Company's June
30, 2005 balance sheet. The settlement was entered on or about October
10, 2005. In or about January, 2001, TeamStaff purchased from
Transportation Insurance Company
(&lsquo;&lsquo;TPIC&rsquo;&rsquo;), Transcontinental Insurance
Company (&lsquo;&lsquo;TCIC&rsquo;&rsquo;), Continental Casualty
Company (&lsquo;&lsquo;CCC&rsquo;&rsquo;), CNA Claimplus, Inc.
(&lsquo;&lsquo;ClaimPlus&rsquo;&rsquo;) and North Rock Insurance
Company Limited (&lsquo;&lsquo;North Rock&rsquo;&rsquo;) (together,
the &lsquo;&lsquo;CNA Entities&rsquo;&rsquo;) a workers'
compensation insurance program to provide workers' compensation
insurance and claims services for TeamStaff's professional
employee operations nationwide (the
&lsquo;&lsquo;Program&rsquo;&rsquo;). The Program provided
TeamStaff with workers' compensation insurance coverage and
claims services for all covered claims incurred during the period from
January 22, 2001 to January 22, 2002 (the &lsquo;&lsquo;Initial
Policy Term&rsquo;&rsquo;). TeamStaff secured its obligations under
the Program through its February 5, 2001 purchase of an Exposure
Buyback Policy numbered EBP 006/001 from North Rock (the
&lsquo;&lsquo;Exposure Buyback Policy&rsquo;&rsquo;), also covering
the period from January 22, 2001 to January 22, 2002. On or around
January 22, 2002, TeamStaff purchased from TCIC and RSKCo an extension
of the Program (the &lsquo;&lsquo;Program Extension&rsquo;&rsquo;).
The Program Extension provided TeamStaff with workers'
compensation insurance coverage and claims services for all covered
claims incurred during the period from January 22, 2002 to March 22,
2002 (the &lsquo;&lsquo;Extended Policy Term&rsquo;&rsquo;).</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff contested the CNA Entities' accounting of the
amount due and owing under the Program, the Program Extension and the
Exposure Buyback Policy, and of the ultimate losses projected to be due
from TeamStaff. TeamStaff additionally asserted that the CNA Entities
committed certain errors in claims management which unjustifiably
increased the losses incurred under the Program and the Program
Extension, and inappropriately included certain non-recoverable items
in the premium calculations for both the Program and the Program
Extension, thereby entitling TeamStaff to a credit against the amounts
ultimately due and owing under the Program, the Program Extension and
the Exposure Buyback Policy. The CNA Entities maintained that there was
due and owing from TeamStaff the sum of $1,824,975 in premiums,
deductibles, claims services fees, losses and allocated loss adjustment
expenses under the Program and the Program Extension, and $835,596 in
premiums and losses under the Exposure Buyback Policy. The CNA Entities
projected that TeamStaff would be liable for an additional $1,181,301
of losses under the Program and the Program Extension, and an
additional $556,176 of losses under the Exposure Buyback Policy. The
aggregate amounts totaled $4,398,048.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The settlement
fully and completely resolves, without litigation, all of the issues
addressed above on the material terms described below and in the
Agreement, without admitting and, in fact, expressly denying, the
allegations and claims each party could have made against the other.
TeamStaff will pay the CNA Entities the sum of $2,050,000, plus
interest at a rate of 6.0%, as follows: (1) $300,000 upon
execution of the Agreement; (2) $250,000 every 90 days thereafter, plus
interest on the unpaid sum at a rate of 6.0% from the date of
the preceding payment, for a total of eight (8) payments. The first
$300,000 payment is in settlement of the outstanding premiums,
deductibles, claims services fees, losses and allocated loss adjustment
expenses due and owing under the Program, the Program Extension and the
Exposure Buyback Policy. The second through eighth payments are in
settlement of liabilities that become due and/or may become due under
the Program, the Program Extension and the Exposure Buyback Policy,
including but not limited to, premiums, deductibles, claims services
fees, losses and allocated loss adjustment expenses. It was also agreed
that the payment schedule would be accelerated by and in the amount of
any and all payments TeamStaff receives from Zurich North American in
settlement of the receivable TeamStaff is carrying from its prior
years' workers compensation insurance programs, up and to the
then outstanding balance due the CNA Entities.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Payroll
Taxes</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff has received notices from the IRS
claiming taxes, interest and penalties due related to payroll taxes
predominantly from its former PEO operations. TeamStaff has also
received notices from the IRS reporting overpayments of taxes.
Management believes that these notices are </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-22</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
predominantly the result of misapplication
of payroll tax payments between its legal entities. If not resolved
favorably, the Company may incur interest and penalties. Until the sale
of certain assets as described in Note 4, TeamStaff operated through 17
subsidiaries, and management believes that the IRS has not correctly
identified payments made through certain of the different entities,
therefore leading to the notices. To date, TeamStaff has been working
with the IRS to resolve these discrepancies and has had certain
interest and penalty claims abated. TeamStaff has also received notices
from the Social Security Administration claiming variances in wage
reporting compared to IRS transcripts. TeamStaff believes the notices
from the Social Security Administration are directly related to the IRS
notices received. TeamStaff has retained the services of Ernst &amp;
Young LLP as a consultant to assist it in resolving certain of these
matters with the IRS and Social Security Administration. TeamStaff
believes that after the IRS applies all the funds correctly, any
significant interest and penalties will be abated; however, there can
be no assurance that each of thesematters will be resolved
favorably.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Legal Proceedings</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In July
2000, TeamStaff made claims for indemnification against the selling
shareholders of the TeamStaff Companies (the Sellers), which were
acquired by TeamStaff in January 1999. The claims consisted of various
potential liabilities and expenses incurred based on breaches of
representations and warranties contained in the acquisition agreement.
The Sellers disputed these claims and attempted to assert claims of
their own. On January 12, 2001, TeamStaff entered into a settlement
agreement with the Sellers. Under the settlement agreement, the Sellers
agreed to be liable and responsible for certain potential liabilities
estimated at approximately $0.5 million and agreed that 55,000 shares
of TeamStaff common stock, which had been held in escrow since the
acquisition, were to be cancelled. TeamStaff also agreed to release
29,915 escrow shares to the Sellers. TeamStaff retains 75,000 shares in
escrow to provide security for the Seller&rsquo;s obligations. Each
party agreed to release each other from all other claims under the
acquisition agreements. No third parties have contacted TeamStaff
seeking payment in the last fiscal year for these potential
liabilities. In the event that TeamStaff incurs liability to third
parties with respect to the claims, TeamStaff would declare an event of
default under the settlement agreement and seek collection from the
Sellers.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff&rsquo;s subsidiary, BrightLane, is
party to a suit brought by one of its former shareholders (<u>Atomic
Fusion, Inc. v. BrightLane.com, Inc. Civil Action No ONS02246OE, Fulton
County State Court, Georgia</u>). The plaintiff seeks damages for
alleged unpaid contractual services provided to BrightLane, alleging
that the shares (both in number and value) of BrightLane stock provided
to the plaintiff in payment of services were inadequate to pay for the
alleged agreed upon value of services. In connection with
TeamStaff&rsquo;s acquisition of BrightLane, the former shareholders
of BrightLane were required to place approximately 158,000 shares in
escrow to provide indemnification for any claims made by TeamStaff
under the acquisition agreement, subject to a $0.3 million threshold.
Some or all of these shares may be canceled in an amount equal to the
amount of any claim or expense in excess of the threshold. Under the
terms of the agreements between TeamStaff and BrightLane, the value of
the shares held in escrow is $8.10 per share. On November 20, 2003, the
Fulton County Superior Court (to which the action was transferred)
awarded summary judgment in BrightLane&rsquo;s favor on all counts of
Atomic Fusion&rsquo;s complaint except for a beach of contract claim.
In August, 2004, a trial was held on Atomic Fusion&rsquo;s breach of
contract claim before a jury. The jury returned a verdict in Atomic
Fusion&rsquo;s favor, awarding $534,246 in damages and $116,849 in
attorney&rsquo;s fees, for a total verdict of $651,095, including
interest and costs. BrightLane filed a motion for judgment
notwithstanding the verdict, which was denied by the court. BrightLane
believes that the jury&rsquo;s award of damages and attorney's
fees is not supported by Georgia law, and BrightLane also believes the
trial court erred in denying its motion for judgment notwithstanding
the verdict. Therefore, BrightLane has filed appeals on both the
jury&rsquo;s verdict on liability and damages and the denial of the
motion for judgment notwithstanding the verdict. BrightLane also has
filed a motion to recover certain of its attorneys&rsquo; fees
expended in pursuing its motion for summary judgment. This motion also
is pending before the court. BrightLane is no longer an operating
entity and has minimal assets.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-23</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In connection with
TeamStaff&rsquo;s acquisition of BrightLane effective as of August 31,
2001, persons holding BrightLane options to acquire approximately 2.1
million BrightLane shares (the equivalent of approximately 481,000
TeamStaff shares) exercised their options. BrightLane made recourse
loans of approximately $1.0 million principal amount to the holders of
these options to assist them in payment of tax obligations incurred
with exercise of the options. The loans were repayable upon the earlier
of (i) sale of the TeamStaff shares or (ii) three years. The shares
that were received for the option exercise secured the loans. As of
September 30, 2005 all of these loans have been repaid or forgiven. All
loans were to be repaid in cash with the exception of one loan. Under
the terms of TeamStaff&rsquo;s employment agreement with a former
executive officer of TeamStaff&rsquo;s BrightLane subsidiary, the loan
($131,000) was forgiven over a two-year period of time. We previously
commenced litigation against two of the persons who received loans, and
these persons filed counterclaims against BrightLane and our Chairman.
Both of the actions were settled. Pursuant to one of the settlements,
the shareholder returned all shares of TeamStaff stock and the note was
forgiven. This settlement has been completed. The other action was
settled on identical terms. However, TeamStaff is awaiting delivery of
the shares to be returned and at that time the accounting with respect
to the return of the shares will be completed. TeamStaff recognized an
expense in the amount of $190,000 in the second fiscal quarter of 2005,
representing a partial write-down of the original principal amount of
the loan.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As a commercial enterprise and employer and with
respect to its employment-related businesses in particular, TeamStaff
is engaged in litigation from time to time during the ordinary course
of business in connection with employment-relations issues,
workers&rsquo; compensation and other matters. Generally, TeamStaff is
entitled to indemnification or repayment from its former PEO clients
for claims brought by worksite employees related to their employment.
However, there can be no assurance that the client employer will have
funds or insurance in amounts to cover any damages or awards, and as
co-employer, TeamStaff may be subject to liability. Additionally, in
connection with its medical staffing business, TeamStaff is exposed to
potential liability for the acts, errors or omissions of its temporary
medical employees. The professional liability insurance policy provides
up to $5,000,000 aggregate coverage with a $2,000,000 per occurrence
limit. Although TeamStaff believes the liability insurance is
reasonable under the circumstances to protect it from liability for
such claims, there can be no assurance that such insurance will be
adequate to cover all potential claims.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff is
engaged in no other litigation, the effect of which would be
anticipated to have a material adverse impact on TeamStaff&rsquo;s
financial condition or results of operations.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>Employment
Agreements</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Effective as of June 18, 2003, TeamStaff
entered into an employment agreement with T. Kent Smith pursuant to
which Mr. Smith serves as TeamStaff's President and Chief
Executive Officer. The agreement expired on September 30, 2005. Under
the terms of the agreement, Mr. Smith was paid an annual base salary of
$250,000 and was eligible to receive a bonus of up to 50% of his
base salary based on the achievement of revenue, income and other
objectives established by the Management Resources and Compensation
Committee. Pursuant to the Agreement, Mr. Smith also was granted an
option to purchase 400,000 shares of TeamStaff common stock, one-fourth
of which vested on June 18, 2003, one-fourth of which vested on June
18, 2004 and the remainder of which vested on June 18, 2005. Mr. Smith
also received four weeks annual vacation and was offered welfare
benefit plans, 401(k) and fringe benefits generally made available to
other TeamStaff employees. The agreement provided, among other things,
that Mr. Smith would be paid a severance payment of three months of his
base salary if Mr. Smith and TeamStaff did not enter into a new
employment agreement by September 30, 2005. Additionally, the agreement
provided for certain post-termination payments depending upon the
reason for the termination of Mr. Smith's employment. The
agreement also provided for the payment of nine months of base salary
and the provision of certain other benefits should Mr. Smith's
employment have terminated in connection with a change in control, as
defined in the agreement.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On June 30, 2005 TeamStaff
entered into a new two-year employment agreement with Mr. T. Kent
Smith, its President and Chief Executive Officer. The term of the
agreement commenced on</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-24</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
October  1, 2005 and terminates on
September 30, 2007. The material terms of Mr. Smith's employment
agreement provide for a base salary of $250,000 per annum and standard
Company executive benefits. In addition, Mr. Smith is eligible to
receive a bonus equal to up to 70% of his base salary upon
satisfaction of performance based criteria. Mr. Smith will be
considered for future salary increases as may be determined by the
Management Resources and Compensation Committee of the Board of
Directors. Mr. Smith will be eligible to participate in the
Company's incentive stock ownership plan as may be determined by
the Management Resources and Compensation Committee of the Board of
Directors. The agreement also includes provisions for payment of all
compensation otherwise payable under the agreement in the event that
Mr. Smith is terminated without cause and one year of severance in all
circumstances other than for termination &lsquo;&lsquo;for
cause.&rsquo;&rsquo; In the event that there is a change of control
of TeamStaff and Mr. Smith's employment is terminated (or his
position is changed), Mr. Smith will be entitled to acceleration of all
incentive compensation, all compensation otherwise due under the
agreement and an additional twelve (12) months of his then in-effect
base salary. A &lsquo;&lsquo;change of control&rsquo;&rsquo; is
defined generally to constitute a change of 20% of more of the
beneficial ownership of the Company's outstanding Common Stock,
or a change in two thirds of the Board of Directors, subject to certain
exceptions.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">On June 30, 2005 TeamStaff entered into a
twenty seven month employment agreement with Mr. Rick J. Filippelli,
its Vice President and Chief Financial Officer. The term of the
agreement commenced on June 30, 2005 and terminates on September 30,
2007. The material terms of Mr. Filippelli's employment agreement
provide for a base salary of $225,000 per annum, a potential bonus of
up to 70% and standard Company executive benefits, upon
substantially the same terms as provided for Mr. Smith. Mr. Filippelli
will be considered for future compensation increases as may be
determined by the Management Resources and Compensation Committee of
the Board of Directors. Mr. Filippelli will be eligible to participate
in the Company's incentive stock ownership plan as may be
determined by the Management Resources and Compensation Committee of
the Board of Directors. The agreement also includes provisions for
payment of all compensation otherwise payable under the agreement in
the event that Mr. Filippelli is terminated without cause and one year
of severance in all circumstances other than for termination
&lsquo;&lsquo;for cause.&rsquo;&rsquo; In the event that there is a
change of control of TeamStaff and Mr. Filippelli's employment is
terminated (or his position is changed), Mr. Filippelli will be
entitled to acceleration of all incentive compensation, all
compensation otherwise due under the agreement and an additional twelve
(12) months of his then in-effect base salary. A &lsquo;&lsquo;change
of control&rsquo;&rsquo; is defined generally to constitute a change
of 20% of more of the beneficial ownership of the
Company's outstanding Common Stock, or a change in two thirds of
the Board of Directors, subject to certain
exceptions.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Pursuant to the RS Staffing Services, Inc.
acquisition, the Company entered into an employment agreement with
Roger Staggs to be employed as President of RS Staffing Services, Inc.
The material terms of Mr. Staggs&rsquo; agreement are for a period of
one (1) year from on or about June 4, 2005 and provide for a base
salary of $150,000 per annum, a potential bonus at the discretion of
the Board of Directors and standard Company executive benefits.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Pursuant to the RS Staffing Services, Inc. acquisition, the
Company entered into an employment agreement with Barry Durham to be
employed as Vice-President of RS Staffing Services, Inc. The material
terms of Mr. Durham's agreement are for a period of one (1) year
from on or about June 4, 2005 and provide for a base salary of $150,000
per annum, a potential bonus at the discretion of the Board of
Directors and standard Company executive benefits.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Government
Assignment of Contracts</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Availability under the PNC line
of credit is directly related to the successful assignment of certain
accounts receivable. Certain government accounts of RS Staffing
Services are required to execute &lsquo;&lsquo;Acknowledgements of
Assignment.&rsquo;&rsquo; There can be no assurance that every RS
Staffing government account will execute the documentation to
effectuate the assignment and secure availability. The failure of
government third parties to sign the required documentation could
result in a decrease in availability under the line of
credit.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-25</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Related Party
Transactions</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff entered into a one year,
automatically renewable marketing agreement with Directo, Inc.
effective as of February 1, 2004. Directo provides financial and direct
deposit services to companies and their employees. Pursuant to the
terms of the agreement, TeamStaff is compensated based on its sales of
Directo pay card services. TeamStaff offers these services primarily
through its payroll services division. For the fiscal years ended
September 30, 2005 and 2004, TeamStaff has not earned any commissions
from its sales of Directo&rsquo;s services. T. Stephen Johnson,
TeamStaff&rsquo;s Chairman, is also Chairman of Directo.
TeamStaff&rsquo;s entry into the marketing agreement with Directo was
approved by the disinterested members of the Board.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">During the year ended September 30, 2004, the company shared
a portion of its leased office space in Alpharetta, Georgia with an
affiliated entity of the Chairman of the Board of Directors, T. Stephen
Johnson &amp; Associates, Inc. As part of the agreement, TeamStaff
shared the cost of a receptionist, phone service, and leased common
area furniture. During the fiscal year ended September 30, 2004,
TeamStaff paid $28,000 in shared costs. TeamStaff was responsible for
payment of the monthly lease obligation and T. Stephen Johnson &amp;
Associates reimbursed TeamStaff in the amount of $34,000 in fiscal year
ended September 30, 2004 for their prorated portion of the space. We no
longer use these facilities.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(11)&nbsp;&nbsp;&nbsp;&nbsp;<u>SHAREHOLDERS&rsquo;
EQUITY</u>:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Stock Warrants-</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The following
is a summary of the outstanding warrants to purchase TeamStaff's
common stock at September 30,
2005:</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="112"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="140"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="98"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="106"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Exercise
Period From</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Exercise Period
To</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Exercise Price Per<br>Common Share</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Number of Shares
of<br> Common Stock
Reserved</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">December
2000</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">December
2005</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3.20</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">10,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">September
2001</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">September
2006</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">5.16</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">16,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">November
2004</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">November
2007</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2.50</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">598,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">624,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">During
the fiscal year ending September 31, 2005, TeamStaff issued 598,000
warrants as part of a private placement offering. During 2005, no
warrants expired unexercised and no warrants were exercised. During the
fiscal year ending September 30, 2004, TeamStaff granted no warrants
and 21,428 warrants expired unexercised. During 2004, no warrants were
exercised. During the fiscal year ended September 30, 2003, TeamStaff
granted no warrants and 58,856 warrants expired unexercised. During
2003, no warrants were exercised.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Stock Option Plans
- -</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The 1990 Employees Stock Option Plan (the
&lsquo;&lsquo;1990 Plan&rsquo;&rsquo;) provided for the grant of
options to purchase up to 285,714 shares of TeamStaff's common
stock. Under the terms of the 1990 Plan, options granted thereunder may
be designated as options which qualify for incentive stock option
treatment (&lsquo;&lsquo;ISOs&rsquo;&rsquo;) under Section 422A of
the Code, or options which do not so qualify
(&lsquo;&lsquo;Non-ISO's&rsquo;&rsquo;).</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
1990 Non-Executive Director Stock Option Plan (the
&lsquo;&lsquo;Director Plan&rsquo;&rsquo;) provided for issuance of
a maximum of 142,857 shares of common stock upon the exercise of stock
options arising under the Director Plan.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The 1990 Senior
Management Incentive Plan (the &lsquo;&lsquo;Management
Plan&rsquo;&rsquo;) provided for the issuance of stock, options and
other stock purchase rights to executive officers and other key
employees and consultants who render significant services to TeamStaff
and its subsidiaries. A total of 1,428,571 shares of common stock were
reserved for issuance under the Management Plan.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-26</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The forgoing plans have expired
and options are no longer being granted under these plans.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">2000
Employee Stock Option Plan</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">During 2000, the Board of
Directors and shareholders approved the adoption of the 2000 Employees
Stock Option Plan (the &lsquo;&lsquo;2000 Plan&rsquo;&rsquo;) to
provide for the grant of options to purchase up to 1,714,286 shares of
TeamStaff's common stock to all employees, including senior
management. The 2000 Plan replaces the 1990 Employee Plan and Senior
Management Plans, both of which expired. Under the terms of the 2000
Plan, options granted thereunder may be designated as options which
qualify for incentive stock option treatment
(&lsquo;&lsquo;ISOs&rsquo;&rsquo;) under Section 422A of the Code,
or options which do not so qualify
(&lsquo;&lsquo;Non-ISO's&rsquo;&rsquo;). As of September 30,
2005, there were 1,193,000 options outstanding under the 2000
Plan.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The 2000 Plan is administered by the Management
Resources and Compensation Committee designated by the Board of
Directors. The Management Resources and Compensation Committee has the
discretion to determine the eligible employees to whom, and the times
and the price at which, options will be granted; whether such options
shall be ISOs or Non-ISOs, subject to applicable law; the periods
during which each option will be exercisable; and the number of shares
subject to each option. The Committee has full authority to interpret
the 2000 Plan and to establish and amend rules and regulations relating
thereto.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Under the 2000 Plan, the exercise price of an
option designated as an ISO shall not be less than the fair market
value of the common stock on the date the option is granted. However,
in the event an option designated as an ISO is granted to a ten percent
(10%) shareholder, as defined, such exercise price shall be at
least 110% of such fair market value. Exercise prices of Non-ISO
options may be less than such fair market value.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
aggregate fair market value of shares subject to options granted to a
participant, which are designated as ISOs and which become exercisable
in any calendar year shall not exceed $100,000.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
Management Resources and Compensation Committee may, in its sole
discretion, grant bonuses or authorize loans to or guarantee loans
obtained by an optionee to enable such optionee to pay the exercise
price or any taxes that may arise in connection with the exercise or
cancellation of an option. The Management Resources and Compensation
Committee can also permit the payment of the exercise price in the
common stock of the Corporation held by the optionee for at least six
months prior to exercise.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Non-Executive Director Plan</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">In fiscal 2000, the Board of Directors and stockholders
approved the adoption of the 2000 Non-Executive Director Stock Option
Plan (the &lsquo;&lsquo;Director Plan&rsquo;&rsquo;) to provide for
the grant of options to non-employee directors of TeamStaff. Under the
terms of the Director Plan, each non-executive director is
automatically granted an option to purchase 5,000 shares upon joining
the Board and each September lst, pro rata, based on the time the
director has served in such capacity during the previous year. The
Directors' Plan also provides that directors, upon joining the
Board, and for one (1) year thereafter, will be entitled to purchase
restricted stock from TeamStaff at a price equal to 80% of the
closing bid price on the date of purchase up to an aggregate purchase
price of $50,000. The Director Plan replaced the previous Director Plan
that expired in April 2000. As of September 30, 2005, there were
125,000 options held by directors outstanding under the Director
Plan.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Under the Director Plan, the exercise price for
options granted under the Director Plan shall be 100% of the
fair market value of the common stock on the date of grant. Until
otherwise provided, the exercise price of options granted under the
Director Plan must be paid at the time of exercise, either in cash, by
delivery of shares of common stock of TeamStaff or by a combination of
each. The term of each option commences on the date it is granted and
unless terminated sooner as provided in the Director Plan, expires five
(5) years from the date of grant. The Compensation Committee has no
discretion to determine which non-executive director will receive
options or the number of shares subject to the option, the term of the
option or the exercisability of the option. However, the </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-27</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
Committee will make all determinations of
the interpretation of the Director Plan. Options granted under the
Director Plan are not qualified for incentive stock option
treatment.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The following tables summarize the activity in
TeamStaff's stock option plans for the years ended September 30,
2005, 2004, and
2003:</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="248"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="55"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="80"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="73"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Number<br>Of
Shares</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Weighted Average<br>Exercise Price</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Weighted
Average<br>Fair Value</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Options outstanding,
September 30,
2002</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">992,642</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">4.94</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Granted</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">558,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2.96</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1.42</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Exercised</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Cancelled</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(141,170</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">5.15</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Options
outstanding, September 30,
2003</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,409,472</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3.97</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Granted</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">225,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2.24</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1.21</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Exercised</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Cancelled</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(407,531</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">4.81</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Options
outstanding, September 30,
2004</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,226,941</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3.59</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Granted</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">315,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1.89</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0.84</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Exercised</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Cancelled</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(223,941</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">4.27</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Options
outstanding, September 30,
2005</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,318,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3.07</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As
of September 30, 2005, 2004, and 2003, 1,283,000, 759,941, and 917,472
options, respectively, were
exercisable.</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="102"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="80"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="75"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="70"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="77"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="52"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Range
of<br>Exercise<br>Prices</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Options<br>Outstanding<br>at
9/30/05</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Weighted<br>
Average<br>Remaining<br>Life</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Weighted<br>Average<br>Exercise<br>Price</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Options<br>Exercisable<br>at
9/30/05</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Weighted<br>Average<br>Exercise<br>Price</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$2.08
&ndash;
4.10</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">998,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3.5</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2.60</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">963,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2.63</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$4.11
&ndash;
6.13</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">305,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0.6</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">4.63</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">305,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">4.63</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$6.14
&ndash;
8.15</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$8.16
&ndash;
10.18</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">15,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0.9</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">9.83</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">15,000</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">9.83</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">During
2005 and 2004, TeamStaff did not repurchase any of its common stock.
During 2003, TeamStaff repurchased 251,214 shares of its common stock
for $781,341. As of September 30, 2004, TeamStaff retired a total of
574,470 shares of treasury stock.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(12)&nbsp;&nbsp;&nbsp;&nbsp;<u>SEGMENT
REPORTING:</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As a part of continuing operations,
TeamStaff operates two different lines of business: staffing
(principally medical staffing) and payroll services. TeamStaff provides
nursing and allied healthcare professionals and operates through three
medical staffing units. TeamStaff&rsquo;s RS Staffing subsidiary
specializes in providing medical and office administration/technical
professionals through nationwide schedule contracts with both the
General Services Administration and Veterans Affairs, among other
customers. The TeamStaff Rx subsidiary operates throughout the US and
specializes in the supply of allied medical employees and nurses,
especially &lsquo;&lsquo;travel&rsquo;&rsquo; staff (typically 13
week assignments). Allied medical staff includes MRI technicians,
mammographers, dosimetrists, ultrasound staff and physicists.
TeamStaff&rsquo;s Nursing Innovations unit provides travel nursing,
per diem nursing, temporary-to-permanent nursing and permanent nursing
placement services. All TeamStaff Rx and Nursing Innovations revenues,
and approximately 70 percent of RS Staffing revenues, are derived from
medical staffing.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Through its DSI Payroll Services
division, TeamStaff provides customized payroll management and tax
services, primarily to the construction industry. DSI&rsquo;s service
offerings include payroll check processing via web, phone or fax,
federal and state quarterly and year-end tax compliance reports, W-2
processing and financial management reports, including certified
payroll reports and custom software interfaces. DSI processes payrolls
for approximately 700 clients that have more than 30,000 employees.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-28</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">All corporate expenses, interest
expense, as well as depreciation on corporate assets and miscellaneous
charges, are reflected in a separate unit called Corporate. The
accounting policies of the segments are the same as those described in
the summary of significant accounting policies. TeamStaff evaluates the
performance of its business lines based on pre-tax income. TeamStaff
has no revenue derived from outside the United
States.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-29</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>






<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The
following table represents the financial results for each of
TeamStaff&rsquo;s segments:<br>
</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="186"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="69"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="65"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="72"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="64"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">(Amounts
in thousands)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Staffing<br>
Services</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Payroll<br>
Services</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Corporate</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Consolidated</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><u><b>2005</b></u></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Revenues</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">51,179</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">4,625</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">55,804</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Depreciation
and
amortization</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">250</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">135</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">176</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">561</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Income/(loss)
from
operations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,999</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,649</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(6,387</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(2,739</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Interest
income</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">47</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">48</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Interest
expense</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(29</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(11</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(182</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(222</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Other
income</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">162</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">18</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">180</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Income/(loss)
from continuing operations before income taxes
</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2,133</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,638</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(6,504</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(2,733</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Capital
spending</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">83</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">16</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">30</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">129</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Total
assets from continuing
operations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">20,498</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">986</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">28,570</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">50,054</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><u><b>2004</b></u></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Revenues</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">32,856</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">4,432</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">37,288</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Depreciation
and
amortization</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">154</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">67</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">188</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">409</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Income/(loss)
from
operations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,108</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,705</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(5,850</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(3,037</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Interest
income</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">38</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">38</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Interest
expense</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(81</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(81</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Other
income</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">224</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">8</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">232</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Income/(loss)
from continuing operations before income taxes
</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,333</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,706</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(5,887</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(2,848</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Capital
spending</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">14</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">5</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">19</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Total
assets from continuing
operations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">6,121</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2,909</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">28,399</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">37,429</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;"><u><b>2003</b></u></font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Revenues</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">58,119</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">4,686</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">62,805</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Depreciation
and
amortization</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">138</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">9</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">182</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">329</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Income/(loss)
from
operations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">3,805</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,580</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(8,118</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(2,733</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Interest
income</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">63</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">63</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Interest
expense</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(25</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(195</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(220</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Other
income</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">525</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">13</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">538</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Income/(loss)
from continuing operations before income taxes
</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">4,305</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,580</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(8,237</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(2,352</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Capital
spending</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">170</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">215</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">140</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">525</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Total
assets from continuing
operations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">18,353</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">2,252</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">17,652</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">38,257</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff
has no revenue derived outside of the United States.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-30</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">(13) Q<u>UARTERLY FINANCIAL DATA
(UNAUDITED):</u>
<br>
</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="178"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="67"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="76"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="70"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="65"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">(Amounts
in thousands, except per share data)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">First
Quarter</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Second Quarter</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Third Quarter</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Fourth
Quarter</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Fiscal
2005</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Net
revenues</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">10,201</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">10,899</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">13,516</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">21,188</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Gross
profit</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,589</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,626</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,763</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">4,174</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">(Loss)
income from continuing
operations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(394</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(585</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(718</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">3</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Loss
from discontinued operations net of
tax</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(185</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(36</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(532</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(42</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Net
loss</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(579</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(621</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(1,250</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(39</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Loss
per share &ndash; Basic and Diluted
</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.03</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.03</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.07</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.00</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="178"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="67"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="76"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="70"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="65"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">First
Quarter</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Second
Quarter</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Third
Quarter</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Fourth
Quarter</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Fiscal
2004</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Net
revenues</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">9,738</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">8,798</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">9,642</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">9,110</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Gross
profit</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,230</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,923</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,309</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,281</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Loss
from continuing
operations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(538</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(651</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(431</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(145</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Loss
from discontinued operations net of
tax</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(1,309</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(333</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(425</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(247</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Net
loss</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(1,847</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(984</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(856</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(392</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Loss
per share &ndash; Basic and Diluted
</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.12</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.06</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.05</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.03</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="178"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="67"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="76"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="70"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="65"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">First
Quarter</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Second
Quarter</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Third
Quarter</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Fourth
Quarter</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Fiscal
2003</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Net
revenues</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">18,457</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">16,378</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">14,654</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">13,316</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Gross
profit</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3,523</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3,163</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,901</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">2,603</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Income
(loss) from continuing
operations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">299</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(764</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(861</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(165</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">(Loss)
from discontinued operations net of
tax</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(214</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(25,193</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(1,403</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(584</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Net
income
(loss)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">85</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(25,957</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(2,264</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(749</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Earnings
(loss) per share &ndash; Basic and Diluted
</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0.01</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(1.65</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.14</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(0.05</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(14)
<u>EMPLOYEE BENEFIT PLANS:</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">During the fiscal year
ended September 30, 2005, TeamStaff and its subsidiaries maintained
five defined contribution pension plans for the benefit of its
non-worksite and former worksite employees. The Digital Solutions, Inc.
and Affiliated Corporations 401(k) Savings Plan, was
&lsquo;&lsquo;frozen&rsquo;&rsquo; by TeamStaff as of January 1,
1999, and terminated effective as of December 31, 2002 in accordance
with the provisions of Rev. Proc. 2002-21, providing a method for the
termination of single employer plans maintained by professional
employer organizations. No deferrals or other contributions currently
are made to that plan. All assets of the frozen plan were transferred
to the Digital Solutions, Inc. &amp; Affiliated Corporations Spinoff
401(k) Savings Plan, which became effective as of August 1, 2003, in
accordance with the provisions of Rev. Proc. 2002-21. The spinoff plan
was terminated as of December 31, 2003 and all assets that were not
otherwise transferred to former PEO client plans will be distributed to
participants.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff also maintained The TeamStaff
Retirement Savings Plan. This plan was assumed by Gevity HR, Inc.,
effective as of November 17, 2003, as part of Gevity&rsquo;s purchase
of the PEO operating segment. This plan was designed to qualify as a
multiple employer plan as described in Section 413(c) of the Internal
Revenue Code, and TeamStaff was an adopting employer under that plan.
As of January 1, 2004, TeamStaff adopted the TeamStaff 401(k) Plan for
the benefit of its internal and </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-31</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
temporary staffing employees and all assets
attributable to TeamStaff&rsquo;s internal and staffing employees
under the plan assumed by Gevity were ultimately transferred to the
TeamStaff 401(k) Plan. Because plan participants have their own
account, manage their own plan investments and make their own
investment decisions from a broad range of investment options,
TeamStaff believes that it is afforded protection from liability for
participants' investment decisions under Section 404(c) of the
Code under the prior plan assumed by Gevity and the TeamStaff 401(k)
Plan. Any TeamStaff corporate employee (including its medical temporary
staffing employees), is eligible for participation in the TeamStaff
401(k) Plan upon completing three months of service with TeamStaff.
TeamStaff provides a discretionary matching contribution of 25%
of each of the first 4% of a participant's elective
contributions under the TeamStaff 401(k) Plan and did so under the plan
assumed by Gevity. TeamStaff recorded expense for this matching of
$76,000 in fiscal 2005 and $99,000 in fiscal 2004. A participant is
always fully vested in his elective contributions. A
participant's interest in TeamStaff discretionary matching
contributions vests in accordance with the following
schedule:</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="317" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="164"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="76"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Years
of Service:</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Vested
Interest:</font></td>
</tr>
<tr>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Less than 1 Year of
Service</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">0%</font></td>
</tr>
<tr>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">1
Year, but less than 2 Years</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">25%</font></td>
</tr>
<tr>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2
Years, but less than 3 Years</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">50%</font></td>
</tr>
<tr>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">3
Years, but less than 4 Years</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">75%</font></td>
</tr>
<tr>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">4
Years or more</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">100%</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">RS
Staffing Services maintains a 401(k) retirement plan for the benefit of
its internal and staffing employees. Employees are eligible to
participate upon meeting certain length of service and minimum
compensation requirements. RS Staffing does not provide a discretionary
matching contribution.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff received favorable
determination letters regarding the tax qualified status of the plan
assumed by Gevity on June 25, 1999 and November 23, 2003. The frozen
Digital Solutions plan was audited by independent auditors for the plan
years ended December 31, 2003 and December 31, 2002, in connection with
their required From 5500 Annual Report filed with the Pension and
Welfare Benefits Administration for the plan year ended December 31,
2003. The spinoff plan did not require a plan audit in connection with
the Form 5500 Annual Report filed with the PWBA for the plan year ended
December 31, 2003. Gevity assumed responsibility for obtaining an audit
of and filing the Form 5500 Annual Report for the TeamStaff plan
assumed by Gevity. Because calendar year 2004 is the first plan year of
the TeamStaff 401(k) Plan (the &lsquo;&lsquo;Plan&rsquo;&rsquo;), a
Form 5500 Annual Report and plan audit was not due for the Plan until
calendar year 2005. Compliance testing for calendar year 2004 was
undertaken by Principal Financial Group, the Plan's record keeper
(&lsquo;&lsquo;Principal&rsquo;&rsquo;). Initially, the Company did
not pass the &lsquo;&lsquo;coverage test.&rsquo;&rsquo; Principal
is in the process of running an &lsquo;&lsquo;average benefits
test.&rsquo;&rsquo; If the Company passes the average benefits test,
nothing further is required. If the Company fails the average benefits
test it could be required to provide additional funding to the Plan. As
of December 16, 2005, the Company had no knowledge as to (a) whether or
not it has passed or will pass the average benefits test; or (b) if it
does not pass the average benefits test, how much additional funding
will be required.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Effective October 1, 2000, TeamStaff
adopted a non-qualified, supplemental retirement plan covering certain
corporate officers of TeamStaff (the
&lsquo;&lsquo;SERP&rsquo;&rsquo;). Under the terms of the SERP, a
participant received a benefit sufficient to provide lump sum annual
payments equal to approximately one-third of the participant&rsquo;s
base salary on the date the participant became a participant. Payment
of benefits was to commence when the participant reached 65 years of
age. The benefit under the SERP was subject to a seven-year vesting
schedule (0%, 0%, 20%, 40%, 60%,
80%, 100%), based on the participant&rsquo;s original
date of employment with TeamStaff and was contingent on the
participant&rsquo;s reaching age 55; provided, however, a
participant&rsquo;s benefit became fully vested upon a change of
control, as defined in the SERP, if within two years of the change of
control there was a material change in the participant&rsquo;s job
title or responsibilities or if the participant&rsquo;s employment was
terminated by TeamStaff for any reason other than conviction for theft
or embezzlement from TeamStaff. Additionally, if a participant retired
by means of total disability (as defined in the SERP), the
participant&rsquo;s benefit became fully vested and benefit payments
would have commenced as of the </p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-32</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: pt; background-color: #ffffff">
disability retirement date. The SERP did not
provide a death benefit. TeamStaff&rsquo;s former Chief Executive
Officer and its former Chief Financial Officer were the only SERP
participants.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 13pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">SERP participants were also provided with a
split dollar life insurance policy
(&lsquo;&lsquo;Policy&rsquo;&rsquo;), insuring the life of the
participant until the participant reached age 65. Although the
participant was the owner of the Policy, TeamStaff paid all Policy
premiums. Each participant collaterally assigned the Policy to
TeamStaff to secure repayment of the premiums through either its cash
surrender value or the Policy proceeds. The participant&rsquo;s right
to the Policy vested in accordance with the same schedule as the SERP
and with similar change of control provisions. Upon the
participant&rsquo;s 65<sup>th</sup> birthday (and in certain other
circumstances provided by the Policy agreement), TeamStaff was to
release the collateral assignment of the Policy provided the
participant released TeamStaff from all obligations the Corporation may
have had with respect to the participant (including those under the
SERP).</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">The following table illustrates TeamStaff&rsquo;s
changes in benefit costs and pension benefit obligations for the fiscal
years ending September 30, 2005 and September 30, 2004 under the
SERP.</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="288"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="100"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="68"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="7"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Fiscal
Year</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">(Amounts in
thousands)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Change
in benefit
obligation</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Benefit
obligation at beginning of
year</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,428</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,724</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Service
cost</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Interest
Cost</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">32</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">82</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Benefits
paid</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(588</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">(777</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Actuarial
(gain)/loss</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">399</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Benefit
obligation at end of
year</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">872</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">1,428</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Change
in plan assets</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Employer
contribution</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">588</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">777</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Benefits
paid</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(588</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">(777</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Fair
value of plan assets at end of
year</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Reconciliation
of funded status</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Funded
status</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(872</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(1,428</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Unrecognized
net actuarial
(gain)/loss</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">263</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">519</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Net
amount
recognized</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(609</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(909</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Amounts
recognized in the statement of financial position consist
of:</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Accrued benefit
liability</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(872</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(1,428</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Accumulated
other comprehensive
income</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">263</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">519</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Net
amount
recognized</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(609</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(909</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Assumptions
used to determine benefit obligations at September
30:</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Discount rate used to
determine net periodic<br>benefit
costs</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">3.00</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">%&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">5.50</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">%&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Discount
rate used to determine benefit
obligations</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">3.00</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">%&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">3.00</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">%&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Components
of net periodic benefit
cost</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Service
cost</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Interest
cost</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">32</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">82</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Amortization of
prior service
cost</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Recognized actuarial
(gain)/loss</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">63</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">59</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Net
periodic benefit
cost</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">95</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">141</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Curtailment
charges</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-33</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>
<page>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 0px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="288"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="100"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="68"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="7"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Fiscal
Year</font></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">(Amounts in
thousands)</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">2004</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Settlement
charges</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">193</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px solid #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">276</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 1px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Total
benefit
cost</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">288</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">417</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Other
disclosure items at end of
year:</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Accumulated benefit
obligation</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">872</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">1,428</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Fair
value of plan
assets</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&mdash;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">Increase
in minimum liability included in other comprehensive
income</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(255</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">64</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">For
unfunded plans, contributions to the plan are the benefit payments made
to participants. TeamStaff, Inc. made $588,000 in benefit payments
during fiscal 2005. The following benefit payments are expected to be
paid in future fiscal
years:</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 6px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="348" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="174"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="90"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Fiscal
year ending</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">Pension
Benefits</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2006</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">294,285</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2007</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">209,605</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2008</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">209,605</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2009</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">70,590</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2010</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">70,590</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">2011</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">70,590</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">2012
and thereafter</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:30pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">During
fiscal 2004, TeamStaff, Inc. and plan participants agreed on optional
payment forms effectively accelerating benefit payments. Beginning in
fiscal 2004 and ending in fiscal 2011, this plan will settle
liabilities by paying benefit obligations to participants. Each
quarter, a settlement charge will be recognized in accordance with SFAS
No. 88 to account for settling of liabilities. During fiscal 2005 and
2004, a settlement charge of $193,000 and $276,000, respectively, was
recognized.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:30pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">During fiscal 2003, two events were
recognized as curtailments under SFAS No. 88. Donald Kelly was relieved
of his duties as Chief Financial Officer. A curtailment charge related
to this event of $254,000 was recognized during the second quarter of
fiscal 2003. Donald Kappauf relinquished his positions as President and
Chief Executive Officer. A curtailment charge related to this event of
$445,000 was taken during the third quarter of fiscal 2003. TeamStaff
is not aware of any other events that might constitute settlement or
curtailment under SFAS No. 88. Total curtailment during fiscal 2003 was
$699,000.</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">(15) <u>ECONOMIC DEPENDENCY:</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">A
major customer is defined as a customer from which the Company derives
at least 10% of its sales. For fiscal year ended September 30,
2005, no one customer represents 10% or more of the
Company&rsquo;s overall consolidated revenues. Since the date of
acquisition effective June 4, 2005 to September 30, 2005, RS Staffing
Services had three customers who each individually comprised greater
than 10% of the division&rsquo;s revenue, and collectively
comprised 50.1% of the division&rsquo;s revenue. Since the date
of acquisition effective June 4, 2005 to September 30, 2005, RS
Staffing Services generated approximately 94% of its revenues
from the United States Government. Since the date of acquisition
effective November 14, 2004 to September 30, 2005, the Nursing
Innovations division of TeamStaff Rx had two customers who each
individually comprised greater than 10% of the division&rsquo;s
revenue and collectively comprised 24.2% of the
division&rsquo;s revenue.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">F-34</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>






<page>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: right; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">SCHEDULE
I</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>TEAMSTAFF, INC. AND
SUBSIDIARIES</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>VALUATION AND QUALIFYING
ACCOUNTS</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 6pt; background-color: #ffffff;">
<u>FOR THE YEARS ENDED SEPTEMBER 30,
2005, 2004, AND 2003</u>
<br>
<font style="font-weight: normal; font-style: normal"><u>(Amounts in
thousands)</u></font>
</p>
<img src="spacer.gif" height="10" width="1"><br>
<div style="border: 1px solid #FFFFFF; width: 602px; padding-top: 12px" align="left">
<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="131"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="87"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="93"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="83"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="62"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
<tr>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">(a)
Description</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">(b) Balance at<br>Beginning of Year</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">(c)
Additions<br>Charged to<br>(reversed from)<br>Costs and
Expenses</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">(d) Deductions &ndash;<br>Net Write-Offs</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 1px solid #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 8pt; color: #000000; border-bottom: 1px solid #000000 ;padding-top: 0pt; background-color: #ffffff;" align="center" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 8pt; color: #000000; font-weight: bold; font-style: normal;background-color: #ffffff;">(e)
Balance at<br> End of Year</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 10pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">Allowance for
doubtful accounts, year
ended&ndash;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">&nbsp;</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff ; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">September 30,
2005</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">39</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">30</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(28</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">41</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #cceeff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">September
30,
2004</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">142</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(55</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">
														(48</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #cceeff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #cceeff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #cceeff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #cceeff;">39</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #cceeff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #cceeff;">&nbsp;</font></td>
</tr>
<tr>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 20pt; text-indent: -10pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="bottom" colspan="3"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">September
30,
2003</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">17</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">125</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">
														(0</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">)&nbsp;</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ;padding-top: 0pt; background-color: #ffffff;" align="right" valign="bottom" colspan="1"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">$</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #000000 ; padding-left: 0pt; text-indent: 0pt;  padding-top: 0pt;background-color: #ffffff;" align="right" valign="bottom" colspan="1" nowrap="nowrap"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; background-color: #ffffff;">142</font></td>
<td style="font-size: 10pt; color: #000000; border-bottom: 3px double #ffffff; padding-top: 0pt ;background-color: #ffffff;white-space:nowrap;" align="left" valign="bottom"><font style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;">&nbsp;</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
</div>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt; text-align: center; width: 456pt;">S-1</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
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<PRE>


<PAGE>



                              EMPLOYMENT AGREEMENT


         AGREEMENT made as of the ___ day of June, 2005 by and between Roger
Staggs, residing at ________________ (hereinafter referred to as the "Employee")
and RS STAFFING SERVICES, INC., a Georgia corporation with principal offices
located at 533 Plaza Drive, Monroe, GA 30655 (hereinafter referred to as the
"Company").

                              W I T N E S S E T H :

         WHEREAS, the Company is engaged in the business of contract staffing
and specializes in administrative, professional, medical, technical and
consulting staffing, including staffing provided to the United States General
Administrative Services department and the Department of Veterans
Administration;

         WHEREAS, pursuant to the terms of a Stock Purchase Agreement dated as
of May 26, 2005 (the "Acquisition Agreement"), by and among the Company, the
shareholders of the Company named therein and TeamStaff, Inc., a New Jersey
corporation ("TeamStaff"), all of the outstanding capital stock of the Company
has been acquired by TeamStaff;

         WHEREAS, it is a condition to the Acquisition Agreement that the
Company and the Employee enter into this Agreement and that the Company continue
to employ the Employee for the purpose of securing for the Company the
experience, ability and services of the Employee; and

         WHEREAS, the Employee desires to be employed with the Company, pursuant
to the terms and conditions herein set forth.

         NOW, THEREFORE, it is mutually agreed by and between the parties hereto
as follows:

                                    ARTICLE I
                                EMPLOYMENT/DUTIES

         1.1   Subject to and upon the terms and conditions of this Agreement,
the Company hereby employs the Employee, and the Employee hereby accepts such
employment in his capacity as President of the Company.

         1.2   The Employee shall, during the term of his employment with the
Company, and subject to the direction and control of the Chairman of the Company
and the Chief Executive Officer of Teamstaff ("Executive Management"), perform
such duties and functions as he may be


<PAGE>



called upon to perform during the term of this Agreement.

         1.3   The Employee agrees to devote his full business time to the
performance of his duties for the Company. It shall not be a violation of this
Agreement for the Employee to (i) serve on corporate, civil or charitable boards
or committees and (ii) manage personal investment so long as such activities do
not significantly interfere with the performance of the Employee's duties in
accordance with this Agreement.

         1.4   The Employee shall perform, in conjunction with the Company's
Executive Management, to the best of his ability the following services and
duties for the Company and its subsidiary corporations (by way of example, and
not by way of limitation):

               (i)    Those duties attendant to the position with the
                      Company for which he is hired;

               (ii)   Establish and implement current and long range
                      objectives, plans, and policies, subject to the
                      approval of the Executive Management;

               (iii)  Promotion of the relationships of the Company and its
                      subsidiaries with their respective employees,
                      customers, suppliers and others in the business
                      community.

         1.5   Employee shall be based in the Monroe, Georgia and shall
undertake such occasional travel, within or without the United States as is or
may be reasonably necessary in the interests of the Company and the performance
of his duties.

                                   ARTICLE II
                                  COMPENSATION

         2.1   Commencing the date hereof and during the term hereof, Employee
shall be compensated at the rate of $150,000 per annum, (the "Base Salary"),
which shall be paid to Employee as in accordance with the Company's regular
payroll periods.

         2.2   Employee may be entitled to receive a discretionary bonus (the
"Bonus") in accordance with the determination of the Company's Board of
Directors

         2.3   The Company shall deduct from Employee's compensation all
federal, state, and local taxes which it may now or may hereafter be required to
deduct.

                                   ARTICLE III
                                    BENEFITS


<PAGE>



         3.1   During the term hereof, the Company shall: provide Employee with
group health care and insurance benefits, any long-term disability insurance
programs and retirement programs, stock option and other incentive compensation
programs, and other fringe benefit programs as generally made available to the
Company's and TeamStaff's senior management; and reimburse the Employee, upon
presentation of appropriate vouchers, for all reasonable business expenses
incurred by the Employee on behalf of the Company in accordance with the
Company's policies.

         3.2   For each year of the term hereof, Employee shall be entitled to 4
weeks paid vacation on the same basis as other senior management of the Company
and TeamStaff and any unused vacation up to the a maximum of 4 weeks will be
paid by the Company in addition to the regular salary at the annual rate in
effect during the period of this Agreement.

                                   ARTICLE IV
                                 NON-DISCLOSURE

         4.1   The Employee shall not, at any time during the term of this
Agreement or for a period of two (2) years after the termination of his
employment hereunder, except when acting on behalf of and with the authorization
of the Company, make use of or disclose to any person, corporation, or other
entity, for any purpose whatsoever, any trade secret or other confidential
information concerning the Company's or its affiliates' business, finances,
marketing, insurance arrangements, computerized payroll and accounting business,
personnel and/or employee leasing or staffing businesses of the Company and its
affiliates, including non public information relating to any customer of the
Company or pool of temporary employees, terms of contracts, customer pricing or
any other nonpublic business information of the Company and/or its subsidiaries
learned as a consequence of Employee's employment with the Company (collectively
referred to as the "Proprietary Information"). For the purposes of this
Agreement, trade secrets and confidential information shall mean information
disclosed to the Employee or known by him as a consequence of his employment by
the Company, whether or not pursuant to this Agreement, provided however that
Employee shall have no obligation with respect to any such information which:

               (i)    was generally known to the public prior to the disclosure;

               (ii)   is or becomes publicly known through no wrongful act of
                      the Employee; or

               (iii)  is received by a third party without breach of this
                      Agreement or any other obligation to maintain the
                      confidentiality of such information;



<PAGE>



               (iv)   is approved for release by written authorization of the
                      Company.

The Employee acknowledges that trade secrets and other items of confidential
information, as they may exist from time to time, are valuable and unique assets
of the Company, and that disclosure of any such information would cause
substantial injury to the Company.

                                    ARTICLE V
                              RESTRICTIVE COVENANT

         5.1   In the event of the voluntary termination of employment with the
Company prior to the expiration of the term hereof, or Employee's discharge in
accordance with Article VIII, or the expiration of the term hereof without
renewal, Employee agrees that he will not, for a period of three (3) years
following such termination (or expiration, as the case may be) directly or
indirectly enter into or become associated with or engage in any other business
(whether as a partner, officer, director, shareholder, employee, consultant, or
otherwise), and such business is involved in the businesses in which the Company
is engaged in as of the date of termination, or is otherwise engaged in the same
or similar business as the Company shall be engaged, , during the tenure of
Employee's employment by the Company. Notwithstanding the foregoing, the
ownership by Employee of less than 2% percent of the shares of any publicly held
corporation shall not violate the provisions of this Article V.

         5.2   In furtherance of the foregoing, Employee shall not during the
aforesaid period of non-competition, directly or indirectly, in connection with
any computerized payroll, employee leasing, or permanent or temporary personnel
business, or any business similar to the business in which the Company was
engaged, solicit any customer or employee of the Company who was a customer or
employee of the Company during the tenure of his employment.

         5.3   In the event of a default pursuant to the Note (as defined in the
Acquisition Agreement dated the 26th day of May, 2005, and attached hereto, the
provisions of this Article IV shall not apply to Employee, and Employee shall be
entitled to directly or indirectly (whether as a partner, officer, director,
shareholder, employee, consultant, or otherwise) operate a business to service
any contracts which may be assigned to Employee following a default under the
Note, and Employee may solicit any customer of the Company with respect to any
contract which is assigned to Employee as a result of such default in the Note.

         5.4   If any court shall hold that the duration of non-competition or
any other restriction contained in this Article is unenforceable, it is our
intention that same shall not thereby be terminated but shall be deemed amended
to delete therefrom such provision or portion adjudicated to be invalid or
unenforceable or, in the alternative, such judicially substituted term


<PAGE>



may be substituted therefor.

                                   ARTICLE VI
                                      TERM

         6.1   This Agreement shall be for a term of one (1) year commencing on
the date hereof unless sooner terminated as provided in Section 8 hereof (the
"Expiration Date").

                                   ARTICLE VII
                             DISABILITY DURING TERM

         7.1   In the event Employee becomes totally disabled so that he is
unable or prevented from performing of the essential functions of his usual
duties hereunder for a period of 6 consecutive months or 6 months within any one
year period, the Company shall have the option, in its discretion to terminate
this Agreement without further obligation hereunder.

                                  ARTICLE VIII
                                   TERMINATION

         8.1   The Company may terminate this Agreement:

               a.   Upon the death of Employee during the term hereof, except
that the Employee's legal representatives, successors, assigns, and heirs shall
have those rights and interests as otherwise provided in this Agreement,
including the right to receive accrued but unpaid incentive compensation and
special bonus compensation on a pro rata basis.

               b.   Subject to the terms of Article VIII, upon written notice
from the Company to the Employee, if Employee becomes totally disabled and as a
result of such total disability, has been prevented from and unable to perform
all of his duties hereunder for a consecutive period of 6months or for 6 months
in any one year period.

               c.   Upon written notice from the Company to the Employee, at
any time for "Cause." For purposes of this Agreement, "Cause" shall be defined
as: (i) willful disobedience by the Employee of a material and lawful
instruction of the Executive Management; (ii) conviction of the Employee of any
misdemeanor involving fraud or embezzlement or similar crime, or any felony;
(iii) breach by the Employee of any material provision of this Agreement or any
material provisions of the Company's or TeamStaff's employment manual or code of
ethics applicable to all employees; (iv) conduct amounting to fraud, dishonesty,
gross negligence or willful misconduct, recurring insubordination, inattention
to or unsatisfactory performance of


<PAGE>



duties by Employee which adversely and materially affects the operations of the
Company, is done in bad faith and without a reasonable belief that such act or
failure to act was in the best interests of the Company; or (v) violation of any
state or federal securities or employee labor laws or regulations relating to
sexual harassment or discrimination, as determined in good faith by the Board of
Directors or a governmental entity or court of law and which adversely and
materially affects the operations of the Company, or (vi) refusal by the
Employee to comply with or cooperate with any Company internal investigation or
investigation commenced by a governmental agency; provided that the Company
shall not have the right to terminate the employment of Employee pursuant to the
foregoing clauses (i), (iii), (iv) or (v) above unless written notice specifying
such breach shall have been given to the Employee and, in the case of breach
which is capable of being cured, the Employee shall have failed to cure such
breach within 30 days after his receipt of such notice.

         8.2   Employee may terminate this agreement at any time upon 10 days
notice with or without cause.

         8.3   In the event of the termination of this Agreement and the
discharge of Employee by the Company in breach and violation of this Agreement,
Employee shall not be obligated to mitigate damages by seeking or obtaining
alternate employment.

         8.4   In the event of the termination of this Agreement for any reason,
all rights and obligations of the parties provided herein shall immediately
cease except for those provisions contained in Articles 4 and 8.1(a) hereof.

                                   ARTICLE IX
                         TERMINATION OF PRIOR AGREEMENTS

         9.1   This Agreement sets forth the entire agreement between the
parties and supersedes all prior agreements between the parties concerning the
subject matter hereof, whether oral or written, prior to the effective date of
this Agreement.











<PAGE>



                                    ARTICLE X
                         ARBITRATION AND INDEMNIFICATION

         10.1  Any dispute arising out of the interpretation, application, and/
or performance of this Agreement with the sole exception of any claim, breach,
or violation arising under Articles IV or V hereof shall be settled through
final and binding arbitration before a single arbitrator in Atlanta, Georgia in
accordance with the Rules of the American Arbitration Association. The
arbitrator shall be selected by the Association and shall be an attorney-at-law
experienced in the field of corporate and/or employment law. Any judgment upon
any arbitration award may be entered in any court, federal or state, having
competent jurisdiction of the parties. With respect to and dispute or claim
arising under Articles IV or V herein, the Company shall have the right to bring
suit or seek enforcement of its rights thereunder in any court of competent
jurisdiction.

         10.2  The Company hereby agrees to indemnify, defend, and hold harmless
the Employee for any and all claims arising from or related to his employment by
the Company at any time asserted, at any place asserted, to the fullest extent
legally permitted or authorized by the Company's Articles of incorporation or
Bylaws or resolutions of the Company's Board of Directors or, if greater, by the
laws of the State of Georgia against all cost, expense, liability and loss
(including, without limitation, attorneys' fees, judgments, fines, ERISA excise
taxes or other liabilities or penalties and amounts paid or to be paid in
settlement) reasonably incurred or suffered by the Employee in connection
therewith . The Company shall maintain such insurance as is necessary and
reasonable to protect the Employee from any and all claims arising from or in
connection with his employment by the Company, provided such insurance can be
obtained without unreasonable expense.

                                   ARTICLE XI
                                  SEVERABILITY

         11.1  If any provision of this Agreement shall be held invalid and
unenforceable, the remainder of this Agreement shall remain in full force and
effect. If any provision is held invalid or unenforceable with respect to
particular circumstances, it shall remain in full force and effect in all other
circumstances.

                                   ARTICLE XII
                                     NOTICE

         12.1  All notices required to be given under the terms of this
Agreement shall be in writing and shall be deemed to have been duly given only
if delivered to the addressee either (i) in person, or (ii) mailed by United
States Postal certified mail, return receipt requested, or (iii) by overnight
courier service as follows:


<PAGE>



               IF TO THE COMPANY:

               RS Staffing Services, Inc.
               c/o 300 Atrium Drive
               Somerset, NJ 08873
               Attn: Chairman

               IF TO THE EMPLOYEE:

               Roger Staggs

or to any such other address as the party to receive the notice shall advise by
due notice given in accordance with this paragraph. Notice shall be effective
either when received under clauses (i) or (iii) or five (5) days after delivery
by certified mail.

                                  ARTICLE XIII
                                  MISCELLANEOUS

         13.1  This Agreement shall inure to, and shall be binding upon, the
parties hereto, the successors and assigns of the Company, and the heirs and
personal representatives of the Employee.

         13.2. The waiver by either party of any breach or violation of any
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach of construction and validity.

         13.3. This Agreement has been negotiated and executed in the State of
Georgia and the laws of the State of Georgia shall govern its construction and
validity.

         13.4  This Agreement contains the entire agreement between the parties
hereto regarding the subject matter hereof. No change, addition, or amendment
shall be made hereto, except by written agreement signed by the parties hereto.

         13.5  Each of the Company and Employee has been represented by their
own separate counsel. Employee hereby expressly acknowledges that he has been
advised that he has not been represented by the Company's counsel in this matter
and has been advised and urged to seek


<PAGE>



separate legal counsel for advice in this matter.

         13.6. This Agreement may be executed in several counterparts and all so
executed shall constitute one Agreement, binding on all the parties hereto even
though all the parties are not signatories to the original or the same
counterpart.

         13.7. If any provision of this Agreement, or the application of such
provision to any person or circumstance, shall be held invalid, the remainder of
this Agreement, or the application of such provision to persons or circumstances
other than those as to which it is held invalid, shall not be affected thereby.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement and
affixed their signatures effective the day and year first above written.

                                    RS STAFFING SERVICES, INC.



                                    By:
                                       ----------------------------------
                                    Name:
                                    Title:


                                    EMPLOYEE



                                    -------------------------------------
                                    Roger Staggs








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<FILENAME>file003.htm
<DESCRIPTION>BARRY DURHAM EMPLOYMENT AGREEMENT
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<PAGE>

                              EMPLOYMENT AGREEMENT


         AGREEMENT made as of the ___ day of June, 2005 by and between E. Barry
Durham, residing at ________________ (hereinafter referred to as the "Employee")
and RS STAFFING SERVICES, INC., a Georgia corporation with principal offices
located at 533 Plaza Drive, Monroe, GA 30655 (hereinafter referred to as the
"Company").

                              W I T N E S S E T H :

         WHEREAS, the Company is engaged in the business of contract staffing
and specializes in administrative, professional, medical, technical and
consulting staffing, including staffing provided to the United States General
Administrative Services department and the Department of Veterans
Administration;

         WHEREAS, pursuant to the terms of a Stock Purchase Agreement dated as
of May 26, 2005 (the "Acquisition Agreement"), by and among the Company, the
shareholders of the Company named therein and TeamStaff, Inc., a New Jersey
corporation ("TeamStaff"), all of the outstanding capital stock of the Company
has been acquired by TeamStaff;

         WHEREAS, it is a condition to the Acquisition Agreement that the
Company and the Employee enter into this Agreement and that the Company continue
to employ the Employee for the purpose of securing for the Company the
experience, ability and services of the Employee; and

         WHEREAS, the Employee desires to be employed with the Company, pursuant
to the terms and conditions herein set forth.

         NOW, THEREFORE, it is mutually agreed by and between the parties hereto
as follows:

                                    ARTICLE I
                                EMPLOYMENT/DUTIES

         1.1 Subject to and upon the terms and conditions of this Agreement, the
Company hereby employs the Employee, and the Employee hereby accepts such
employment in his capacity as a Vice President of the Company.

         1.2 The Employee shall, during the term of his employment with the
Company, and subject to the direction and control of the Chairman of the Company
and the Chief Executive Officer of Teamstaff ("Executive Management"), perform
such duties and functions as he may be


<PAGE>

called upon to perform during the term of this Agreement.

         1.3 The Employee agrees to devote his full business time to the
performance of his duties for the Company. It shall not be a violation of this
Agreement for the Employee to (i) serve on corporate, civil or charitable boards
or committees and (ii) manage personal investment so long as such activities do
not significantly interfere with the performance of the Employee's duties in
accordance with this Agreement.

         1.4 The Employee shall perform, in conjunction with the Company's
Executive Management, to the best of his ability the following services and
duties for the Company and its subsidiary corporations (by way of example, and
not by way of limitation):

             (i)   Those duties attendant to the position with the Company for
                   which he is hired;
             (ii)  Establish and implement current and long range objectives,
                   plans, and policies, subject to the approval of the Executive
                   Management;
             (iii) Promotion of the relationships of the Company and its
                   subsidiaries with their respective employees, customers,
                   suppliers and others in the business community.

         1.5 Employee shall be based in the Decatur, Georgia and shall undertake
such occasional travel, within or without the United States as is or may be
reasonably necessary in the interests of the Company and the performance of his
duties.

                                   ARTICLE II
                                  COMPENSATION

         2.1 Commencing the date hereof and during the term hereof, Employee
shall be compensated at the rate of $150,000 per annum, (the "Base Salary"),
which shall be paid to Employee as in accordance with the Company's regular
payroll periods.

         2.2 Employee may be entitled to receive a discretionary bonus (the
"Bonus") in accordance with the determination of the Company's Board of
Directors

         2.3 The Company shall deduct from Employee's compensation all federal,
state, and local taxes which it may now or may hereafter be required to deduct.

                                   ARTICLE III
                                    BENEFITS
<PAGE>

         3.1 During the term hereof, the Company shall: provide Employee with
group health care and insurance benefits, any long-term disability insurance
programs and retirement programs, stock option and other incentive compensation
programs, and other fringe benefit programs as generally made available to the
Company's and TeamStaff's senior management; and reimburse the Employee, upon
presentation of appropriate vouchers, for all reasonable business expenses
incurred by the Employee on behalf of the Company in accordance with the
Company's policies.

         3.2 For each year of the term hereof, Employee shall be entitled to 2
weeks paid vacation on the same basis as other senior management of the Company
and TeamStaff and any unused vacation up to the a maximum of 2 weeks will be
paid by the Company in addition to the regular salary at the annual rate in
effect during the period of this Agreement.

                                   ARTICLE IV
                                 NON-DISCLOSURE

         4.1 The Employee shall not, at any time during the term of this
Agreement or for a period of two (2) years after the termination of his
employment hereunder, except when acting on behalf of and with the authorization
of the Company, make use of or disclose to any person, corporation, or other
entity, for any purpose whatsoever, any trade secret or other confidential
information concerning the Company's or its affiliates' business, finances,
marketing, insurance arrangements, computerized payroll and accounting business,
personnel and/or employee leasing or staffing businesses of the Company and its
affiliates, including non public information relating to any customer of the
Company or pool of temporary employees, terms of contracts, customer pricing or
any other nonpublic business information of the Company and/or its subsidiaries
learned as a consequence of Employee's employment with the Company (collectively
referred to as the "Proprietary Information"). For the purposes of this
Agreement, trade secrets and confidential information shall mean information
disclosed to the Employee or known by him as a consequence of his employment by
the Company, whether or not pursuant to this Agreement, provided however that
Employee shall have no obligation with respect to any such information which:

         (i) was generally known to the public prior to the disclosure;

         (ii) is or becomes publicly known through no wrongful act of the
         Employee; or

         (iii) is received by a third party without breach of this Agreement or
         any other obligation to maintain the confidentiality of such
         information;
<PAGE>

         (iv) is approved for release by written authorization of the Company.

 The Employee acknowledges that trade secrets and other items of confidential
information, as they may exist from time to time, are valuable and unique assets
of the Company, and that disclosure of any such information would cause
substantial injury to the Company.

                                    ARTICLE V
                              RESTRICTIVE COVENANT

         5.1 In the event of the voluntary termination of employment with the
Company prior to the expiration of the term hereof, or Employee's discharge in
accordance with Article VIII, or the expiration of the term hereof without
renewal, Employee agrees that he will not, for a period of three (3) years
following such termination (or expiration, as the case may be) directly or
indirectly enter into or become associated with or engage in any other business
(whether as a partner, officer, director, shareholder, employee, consultant, or
otherwise), and such business is involved in the businesses in which the Company
is engaged in as of the date of termination, or is otherwise engaged in the same
or similar business as the Company shall be engaged, , during the tenure of
Employee's employment by the Company. Notwithstanding the foregoing, the
ownership by Employee of less than 2% percent of the shares of any publicly held
corporation shall not violate the provisions of this Article V.

         5.2 In furtherance of the foregoing, Employee shall not during the
aforesaid period of non-competition, directly or indirectly, in connection with
any computerized payroll, employee leasing, or permanent or temporary personnel
business, or any business similar to the business in which the Company was
engaged, solicit any customer or employee of the Company who was a customer or
employee of the Company during the tenure of his employment.

         5.3 In the event of a default pursuant to the Note (as defined in the
Acquisition Agreement dated the 26th day of May, 2005, and attached hereto, the
provisions of this Article IV shall not apply to Employee, and Employee shall be
entitled to directly or indirectly (whether as a partner, officer, director,
shareholder, employee, consultant, or otherwise) operate a business to service
any contracts which may be assigned to Employee following a default under the
Note, and Employee may solicit any customer of the Company with respect to any
contract which is assigned to Employee as a result of such default in the Note.

         5.4 If any court shall hold that the duration of non-competition or any
other restriction contained in this Article is unenforceable, it is our
intention that same shall not thereby be terminated but shall be deemed amended
to delete therefrom such provision or portion adjudicated to be invalid or
unenforceable or, in the alternative, such judicially substituted term




<PAGE>


may be substituted therefor.

                                   ARTICLE VI
                                      TERM

         6.1 This Agreement shall be for a term of six (6) months commencing on
the date hereof unless sooner terminated as provided in Section 8 hereof (the
"Expiration Date").

                                   ARTICLE VII
                             DISABILITY DURING TERM

         7.1 In the event Employee becomes totally disabled so that he is unable
or prevented from performing of the essential functions of his usual duties
hereunder for a period of 3 consecutive months or 3 months within any one year
period, the Company shall have the option, in its discretion to terminate this
Agreement without further obligation hereunder.

                                  ARTICLE VIII
                                   TERMINATION

         8.1      The Company may terminate this Agreement:

                  a. Upon the death of Employee during the term hereof, except
that the Employee's legal representatives, successors, assigns, and heirs shall
have those rights and interests as otherwise provided in this Agreement,
including the right to receive accrued but unpaid incentive compensation and
special bonus compensation on a pro rata basis.

                  b. Subject to the terms of Article VIII, upon written notice
from the Company to the Employee, if Employee becomes totally disabled and as a
result of such total disability, has been prevented from and unable to perform
all of his duties hereunder for a consecutive period of 3 months or for 3 months
in any one year period.

                  c. Upon written notice from the Company to the Employee, at
any time for "Cause." For purposes of this Agreement, "Cause" shall be defined
as: (i) willful disobedience by the Employee of a material and lawful
instruction of the Executive Management; (ii) conviction of the Employee of any
misdemeanor involving fraud or embezzlement or similar crime, or any felony;
(iii) breach by the Employee of any material provision of this Agreement or any
material provisions of the Company's or TeamStaff's employment manual or code of
ethics applicable to all employees; (iv) conduct amounting to fraud, dishonesty,
gross negligence or willful misconduct, recurring insubordination, inattention
to or unsatisfactory performance of



<PAGE>


duties by Employee which adversely and materially affects the operations of the
Company, is done in bad faith and without a reasonable belief that such act or
failure to act was in the best interests of the Company; or (v) violation of any
state or federal securities or employee labor laws or regulations relating to
sexual harassment or discrimination, as determined in good faith by the Board of
Directors or a governmental entity or court of law and which adversely and
materially affects the operations of the Company, or (vi) refusal by the
Employee to comply with or cooperate with any Company internal investigation or
investigation commenced by a governmental agency; provided that the Company
shall not have the right to terminate the employment of Employee pursuant to the
foregoing clauses (i), (iii), (iv) or (v) above unless written notice specifying
such breach shall have been given to the Employee and, in the case of breach
which is capable of being cured, the Employee shall have failed to cure such
breach within 30 days after his receipt of such notice.

         8.2 Employee may terminate this agreement at any time upon 10 days
notice with or without cause.

         8.3 In the event of the termination of this Agreement and the discharge
of Employee by the Company in breach and violation of this Agreement, Employee
shall not be obligated to mitigate damages by seeking or obtaining alternate
employment.

         8.4 In the event of the termination of this Agreement for any reason,
all rights and obligations of the parties provided herein shall immediately
cease except for those provisions contained in Articles 4 and 8.1(a) hereof.

                                   ARTICLE IX
                         TERMINATION OF PRIOR AGREEMENTS

         9.1 This Agreement sets forth the entire agreement between the parties
and supersedes all prior agreements between the parties concerning the subject
matter hereof, whether oral or written, prior to the effective date of this
Agreement.
<PAGE>

                                    ARTICLE X
                         ARBITRATION AND INDEMNIFICATION

         10.1 Any dispute arising out of the interpretation, application, and/or
performance of this Agreement with the sole exception of any claim, breach, or
violation arising under Articles IV or V hereof shall be settled through final
and binding arbitration before a single arbitrator in Atlanta, Georgia in
accordance with the Rules of the American Arbitration Association. The
arbitrator shall be selected by the Association and shall be an attorney-at-law
experienced in the field of corporate and/or employment law. Any judgment upon
any arbitration award may be entered in any court, federal or state, having
competent jurisdiction of the parties. With respect to and dispute or claim
arising under Articles IV or V herein, the Company shall have the right to bring
suit or seek enforcement of its rights thereunder in any court of competent
jurisdiction.

         10.2 The Company hereby agrees to indemnify, defend, and hold harmless
the Employee for any and all claims arising from or related to his employment by
the Company at any time asserted, at any place asserted, to the fullest extent
legally permitted or authorized by the Company's Articles of incorporation or
Bylaws or resolutions of the Company's Board of Directors or, if greater, by the
laws of the State of Georgia against all cost, expense, liability and loss
(including, without limitation, attorneys' fees, judgments, fines, ERISA excise
taxes or other liabilities or penalties and amounts paid or to be paid in
settlement) reasonably incurred or suffered by the Employee in connection
therewith . The Company shall maintain such insurance as is necessary and
reasonable to protect the Employee from any and all claims arising from or in
connection with his employment by the Company, provided such insurance can be
obtained without unreasonable expense.

                                   ARTICLE XI
                                  SEVERABILITY

         11.1 If any provision of this Agreement shall be held invalid and
unenforceable, the remainder of this Agreement shall remain in full force and
effect. If any provision is held invalid or unenforceable with respect to
particular circumstances, it shall remain in full force and effect in all other
circumstances.

                                   ARTICLE XII
                                     NOTICE

         12.1 All notices required to be given under the terms of this Agreement
shall be in writing and shall be deemed to have been duly given only if
delivered to the addressee either (i) in person, or (ii) mailed by United States
Postal certified mail, return receipt requested, or (iii) by overnight courier
service as follows:


<PAGE>



                  IF TO THE COMPANY:

                  RS Staffing Services, Inc.
                  c/o 300 Atrium Drive
                  Somerset, NJ 08873
                  Attn: Chairman

                  IF TO THE EMPLOYEE:

                  E. Barry Durham

or to any such other address as the party to receive the notice shall advise by
due notice given in accordance with this paragraph. Notice shall be effective
either when received under clauses (i) or (iii) or five (5) days after delivery
by certified mail.

                                  ARTICLE XIII
                                  MISCELLANEOUS

         13.1 This Agreement shall inure to, and shall be binding upon, the
parties hereto, the successors and assigns of the Company, and the heirs and
personal representatives of the Employee.

         13.2. The waiver by either party of any breach or violation of any
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach of construction and validity.

         13.3. This Agreement has been negotiated and executed in the State of
Georgia and the laws of the State of Georgia shall govern its construction and
validity.

         13.4 This Agreement contains the entire agreement between the parties
hereto regarding the subject matter hereof. No change, addition, or amendment
shall be made hereto, except by written agreement signed by the parties hereto.

         13.5 Each of the Company and Employee has been represented by their own
separate counsel. Employee hereby expressly acknowledges that he has been
advised that he has not been represented by the Company's counsel in this matter
and has been advised and urged to seek



<PAGE>



separate legal counsel for advice in this matter.

         13.6. This Agreement may be executed in several counterparts and all so
executed shall constitute one Agreement, binding on all the parties hereto even
though all the parties are not signatories to the original or the same
counterpart.

         13.7. If any provision of this Agreement, or the application of such
provision to any person or circumstance, shall be held invalid, the remainder of
this Agreement, or the application of such provision to persons or circumstances
other than those as to which it is held invalid, shall not be affected thereby.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement and
affixed their signatures effective the day and year first above written.

                           RS STAFFING SERVICES, INC.


                           By:___________________________________
                           Name:
                           Title:

                           EMPLOYEE

                           -------------------------------------
                           E Barry Durham



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<TYPE>EX-10.20
<SEQUENCE>8
<FILENAME>file004.htm
<DESCRIPTION>FORM OF DIRECTOR STOCK OPTION AGREEMENT
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<PAGE>


                                 TEAMSTAFF, INC.

                            2000 DIRECTOR PLAN OPTION
                      NON-QUALIFIED STOCK OPTION AGREEMENT


Name:
Date of Grant:  9/1/05
Option No.:
Number of Options:
Exercise Price Per Share: $1.36

                                 ---------------

         We are pleased to notify you that in accordance with the terms of the
2000 Non-Executive Director Stock Option Plan (the "Plan") of TEAMSTAFF, INC.
(the "Company") a stock option to purchase 5,000 shares of the Common Stock
$.001 par value per share of the Company has been granted to you under the Plan.
This option may be exercised only upon the terms and conditions set forth below.
The following is a brief summary of the Plan and this Option is subject to all
of the terms and conditions of the Plan.

         1.       Purpose of Option

                  The purpose of the Plan under which this stock option has been
granted is to enable the Company to attract and retain the services of qualified
independent persons to serve on the Company's Board of Directors by providing an
opportunity to acquire a proprietary interest in the Company.

         2.       Acceptance of Option Agreement

                  Your acceptance of this stock option agreement will indicate
your acceptance of and your agreement to be bound by its terms and the terms of
the Plan. It imposes no obligation upon you to purchase any of the shares
subject to the option. Your obligation to purchase shares can arise only upon
your exercise of the option in the manner set forth in paragraph 4 hereof. This
stock option agreement shall be subject in all respects to the terms and
conditions of the Plan and in the event of any question or controversy relating
to the terms of the Plan, the decision of the Board of Directors shall be final.



<PAGE>

         3.       When Option May Be Exercised; Vesting

                  Except as otherwise provided herein, THIS OPTION SHALL BE
EXERCISABLE AT ANY TIME AFTER THE FIRST ANNIVERSARY OF THE DATE OF GRANT AND
PRIOR TO THE EXPIRATION DATE, as hereafter defined and except as provided in
Sections 7 and 8 hereof. This option may not be exercised for less than ten
shares at any one time (or the remaining shares then purchasable if less than
ten) and expires at 5:00 pm (eastern standard time) on September 1, 2010 (the
"Expiration Date") whether or not it has been duly exercised, unless sooner
terminated as provided in paragraphs 7, 9 or 13 hereof. This option does not
vest, and therefore may not be exercised (except as otherwise provided in
Sections 7, 8 and 9 hereof) until one year from the date of issuance.

         4.       Exercise Procedure

                  This option is exercisable by a written notice signed by you
and delivered to the Company at its executive offices, signifying your election
to exercise the option. The notice must state the number of shares of Common
Stock you are exercising under this option and must contain a statement by you
(in the form annexed to this option) that such shares are being acquired by you
for investment and not with a view to their distribution or resale (unless a
Registration Statement covering the shares purchasable has been declared
effective by the Securities and Exchange Commission)..

         Payment shall be either (i) in cash, or by certified or bank cashier's
check payable to the order of the Company, free from all collection charges;
(ii) by delivery of shares of Common Stock of the Company already owned by the
optionee for at least six months prior to the date of exercise, which Common
Stock shall be valued at fair market value on the date of exercise; or (iii) by
a combination of the methods of payment specified in (i) and (ii) above.

          For purposes of this Section 4, the fair market value per share of
Stock shall be: (i) if the Common Stock is traded on a national securities
exchange or on the NASDAQ National Market System ("NMS"), the per share closing
price of the Common Stock on the principal securities exchange on which they are
listed or on NMS, as the case may be, on the date of exercise (or if there is no
closing price for such date of exercise, then the last preceding business day on
which there was a closing price); or (ii) if the Common Stock is traded in the
over-the-counter market



<PAGE>

and quotations are published on the NASDAQ quotation system (but not on NMS),
the closing bid price of the Common Stock on the date of exercise as reported by
NASDAQ (or if there are no closing bid prices for such date of exercise, then
the last preceding business day on which there was a closing bid price); or
(iii) if the Common Stock is traded in the over-the-counter market but bid
quotations are not published on NASDAQ, the closing bid price per share for the
Common Stock as furnished by a broker-dealer which regularly furnishes price
quotations for the Common Stock.

                  If notice of the exercise of this option is given by a person
or persons other than you, the Company may require, as a condition to the
exercise of this option, the submission to the Company of appropriate proof of
the right of such person or persons to exercise this option.

         5.       Issuance of Shares

                  Certificate for shares of the Common Stock so purchased will
be issued as soon as practicable. The Company, however, shall not be required to
issue or deliver a certificate for any shares until it has complied with all
requirements of the Securities Act of 1933, the Securities Exchange Act of 1934,
any stock exchange on which the Company's Common Stock may then be listed and
all applicable state laws in connection with the issuance or sale of such shares
or the listing of such shares on said exchange.

         6.       No Rights as Shareholder.

                  Until the date that the conditions to exercise are, in the
Company's sole determination, satisfied, you (or such other person as may be
entitled to exercise this option) shall have none of the rights of a shareholder
with respect to Common Stock upon exercise of this option.

         7.       Termination of Directorship and Options

                  Nothing in this option agreement shall entitle you to continue
to serve as a director. If your service as a member of the Board of Directors of
the Company is terminated for any reason other than by death or retirement, this
option shall lapse and expire the earlier of seven months from the date such
termination or the Expiration Date; provided, however, in the event that the
directorship is terminated prior to the date that the option may be first
exercised as set forth in Section 3 hereof, the option shall be exercisable
commencing on the date of



<PAGE>

termination until a date which is seven months after termination.

         8.       Acceleration of Options

                  Notwithstanding any contrary installment period with respect
to this option and unless the Board of Directors determine other wise, this
outstanding option shall become exercisable in full for the aggregate number of
shares covered thereby in the event: (i) the Board of Directors (or, if approval
of the stockholders is required as a matter of law, the stockholders of the
Company) shall approve (a) any consolidation or merger of the Company in which
the Company is not the continuing or surviving corporation or pursuant to which
shares of Common Stock would be converted into cash, securities or other
property, other than a merger of the Company in which the holders of Common
Stock immediately prior to the merger have the same proportionate ownership of
common stock of the surviving corporation immediately after the merger, or (b)
any sale, lease, exchange, or other transfer (in one transaction or a series of
related transactions) of all, or substantially all, of the assets of the
Company, or (c) the adoption of any plan or proposal for the liquidation or
dissolution of the Company; or (ii) any person (as such term is defined in
Sections 13(d)(3) and 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the "Exchange Act")), corporation or other entity (other than the
Company or any employee benefit plan sponsored by the Company or any Subsidiary)
(a) shall purchase any Common Stock (or securities convertible into the
Company's Common Stock) for cash, securities or any other consideration pursuant
to a tender offer or exchange offer, without the prior consent of the Board of
Directors, or (b) shall become the "beneficial owner" (as such term is defined
in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Company representing twenty-five percent (25%) or more of the combined
voting power of the then outstanding securities of the Company ordinarily (and
apart from rights accruing under special circumstances) having the right to vote
in the election of Directors (calculated as provided in paragraph (d) of such
Rule 13(d)(3) in the case of rights to acquire the Company's Securities); or
(iii) during any period of two consecutive years or less, individuals who at the
beginning of such period constitute the entire Board of Directors shall cease
for any reason to constitute a majority thereof unless the election, or the
nomination for election by the Company's stockholders, of each new director was
approved by a vote of at least a majority of the directors then still in




<PAGE>

office. Notwithstanding the foregoing, if the acceleration of this option,
either alone or together with other payments which the holder has the right to
receive from the Company, would constitute an "excess parachute payment" as
defined in Section 280G of the Code , such acceleration shall be reduced to the
largest amount as will result in no portion of the acceleration under this
Section 8 being subject to the excise tax imposed by Section 4999 of the Code.

         9.       Death

                  If you die while serving as a member of the Board of Directors
of the Company, any option which was exercisable by you at the date of your
death may be exercised by your legatee or legatees under your Will, or by your
personal representatives or distributees, within one year from the date of your
death, but in no event after the Expiration Date.

         10.      Non-Transferability of Option

                  This option shall not be transferable except by will or the
laws of descent and distribution, and may be exercised during your lifetime only
by you. Notwithstanding the foregoing, any proposed transfer shall be subject to
the Internal Revenue Code, the rules and regulations promulgated thereunder and
the federal securities laws and regulations.

         11.      Adjustments Upon Changes in Capitalization

                  If at any time after the date of grant of this option, the
Company shall, by stock dividend, split-up, combination, reclassification or
exchange, or through merger or consolidation, or otherwise, change its shares of
Common Stock into a different number or kind or class of shares or other
securities or property, then the number of shares covered by this option and the
price of each such share shall be proportionately adjusted for any such change
by the Board of Directors whose determination shall be conclusive. Any fraction
of a share resulting from any adjustment shall be eliminated through the payment
of cash based upon the fair market value (determined in accordance with the
definition in Section 4) of the Common Stock.

         13. Withholding. The Company shall have the power and the right to
deduct or withhold, or require an Optionee to remit to the Company as a
condition precedent for the fulfillment of any Option Exercise, an amount
sufficient to satisfy Federal, state, and local taxes, domestic or foreign,
required by law or regulation to be withheld with respect to any taxable event
arising as a result of the exercise of Options. Whenever Shares are to be issued
or cash



<PAGE>

paid to a Optionee upon exercise of an Option, the Company shall have the right
to require the Optionee to remit to the Company, as a condition of exercise of
the Option, an amount sufficient to satisfy federal, state and local withholding
tax requirements at the time of exercise.

         14.      Tax Treatment.

                  This option is not intended to qualify for "incentive stock
option" treatment under the provisions of Section 422A of the Internal Revenue
Code of 1986, as amended. You are urged to consult with your individual tax
advisor prior to exercising this option. As a condition to the exercise of this
option, you agree to notify TeamStaff promptly upon the sale or other
disposition of the shares of Common Stock you received upon exercise of this
option.

                                           Sincerely yours,
                                           TEAMSTAFF, INC.


                                           By:_________________________
                                           T. Kent Smith
                                           President and Chief Executive Officer


Corporate Seal



_________________________
Rick J. Filippelli
Vice President, Finance and Chief Financial Officer



<PAGE>


                              OPTION EXERCISE FORM


TO:      TeamStaff, Inc.
         300 Atrium Drive
         Somerset, NJ 08873
         Attn: Chief Financial Officer

Gentlemen:
                  The undersigned holder hereby irrevocably elects to exercise
the right to purchase _________ shares of Common Stock covered by this Option
Agreement according to the conditions hereof and herewith makes full payment of
the Exercise Price of such shares as follows (PLEASE CHOOSE FORM OF PAYMENT).

         ___. CASH PURCHASE. The undersigned hereby elects to pay the exercise
price in cash, and encloses a CERTIFIED CHECK OR BANK CASHIER'S CHECK (or has
wired payment) in the amount of $____________.

         ___. CASHLESS EXERCISE. The undersigned hereby delivers _________
shares of Common Stock of TeamStaff, Inc. in accordance with Section 4 of the
Option Agreement. The undersigned represents that he/she has owned the shares
being delivered for at least six months prior to the date of exercise.

         ___. COMBINATION OF CASH AND CASHLESS. The undersigned hereby elects to
pay the exercise price in cash and stock, and encloses a CERTIFIED CHECK BANK
CASHIER'S CHECK (or has wired payment) in the amount of $____________ and hereby
delivers _________ shares of Common Stock of TeamStaff, Inc. in accordance with
Section 4 of the Option Agreement. The undersigned represents that he/she has
owned the shares being delivered for at least six months prior to the date of
exercise.

         The undersigned understands and agrees that the Company shall have the
power and the right to deduct or withhold, or require a Optionee to remit to the
Company as a condition precedent for the fulfillment of any Option exercise, an
amount sufficient to satisfy Federal, state, and local taxes, domestic or
foreign, required by law or regulation to be withheld with respect to any
taxable event arising as a result of this Option. Whenever Shares are to be
issued



<PAGE>

or cash paid to a Optionee upon exercise of an Option, the Company shall have
the right to require the Optionee to remit to the Company, as a condition of
exercise of the Option, an amount sufficient to satisfy federal, state and local
withholding tax requirements at the time of exercise.

         Further, the undersigned hereby covenants and agrees to promptly notify
the Company of the sale of any Shares during the one year period commencing on
the date hereof.

         The Shares are being acquired by the undersigned for investment
purposes, and not with a view to their distribution or resale unless otherwise
permitted under law.

         Kindly deliver to the undersigned a certificate representing the Shares
as follows.

INSTRUCTIONS FOR DELIVERY


Name:  ____________________________________________________________
            (please type or print in block letters)

Address:          ____________________________________

                  ____________________________________

                  ____________________________________

Social Security No.: ____________________________

Dated: _________________________


                                    Signature ________________________________

                                    Print Name:______________________________



</PRE>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21.0
<SEQUENCE>9
<FILENAME>file005.htm
<DESCRIPTION>TEAMSTAFF, INC. SUBSIDIARIES OF REGISTRANT
<TEXT>
<HTML>
<HEAD>
<TITLE>
</TITLE>
</HEAD>
<BODY>


<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: right; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">EXHIBIT
21.0</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">TEAMSTAFF, INC. SUBSIDIARIES OF
REGISTRANT</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff Rx, Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">RS Staffing
Services, Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">DSI Staff ConnXions Northeast,
Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">DSI Staff ConnXions Southwest, Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff Solutions, Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff I,
Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff II, Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff III,
Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff IV, Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff V,
Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff VI, Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff VIII,
Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff IX, Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">TeamStaff Insurance
Services, Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Employer Support Services,
Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Digital Insurance Services, Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">HR2,
Inc.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">BrightLane.com,
Inc.</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>10
<FILENAME>file006.htm
<DESCRIPTION>CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
<TEXT>
<HTML>
<HEAD>
<TITLE>
</TITLE>
</HEAD>
<BODY>


<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: right; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">EXHIBIT
23.1</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: center; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">As
independent public accountants, we hereby consent to the incorporation
of our report dated November 23, 2005 included in this Form 10-K for
year ended September 30, 2005, into TeamStaff, Inc.&rsquo;s previously
filed Registration Statements on Form S-3 File Nos. 33-85526, 33-70928,
33-91700, 33-09313, 333-74478 and Form S-8 File No.
333-73426.</p>
<div style="width: 593;">
<table border="0" cellpadding="0" cellspacing="0" width="593">
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 6pt;" valign="top" align="left" width="317"><img src="spacer.gif" height="1" width="317"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 6pt;" valign="top" align="left"><u>/s/ Lazar Levine and Felix
LLP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lazar Levine and Felix
LLP</td>
</tr>
</table>
</div>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">New York, NY<br>December 16,
2005</p>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>



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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>11
<FILENAME>file007.htm
<DESCRIPTION>CERTIFICATION PURSUANT TO SECTION 302
<TEXT>
<HTML>
<HEAD>
<TITLE>
</TITLE>
</HEAD>
<BODY>


<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">EXHIBIT
31.1</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>CERTIFICATIONS</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">I, T. Kent Smith,
certify that:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">1.&emsp;I have reviewed this annual report
on Form 10-K of TeamStaff, Inc. for the year ended September 30,
2005;</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">2.&emsp;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;</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">3.&emsp;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;</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">4.&emsp;The
registrant&rsquo;s other certifying officers 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:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">a)&emsp;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;</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">b)&emsp;[Intentionally omitted];</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">c)&emsp;evaluated the effectiveness of the
registrant&rsquo;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 on such evaluation; and</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">d)&emsp;disclosed
in this report any change in the registrant&rsquo;s internal control
over financial reporting that occurred during the registrant&rsquo;s
most recent fiscal quarter (the registrant&rsquo;s fourth fiscal
quarter in the case of an annual report) that has materially affected,
or is reasonably likely to materially affect the registrant&rsquo;s
internal control over financial reporting; and</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">5.&emsp;The registrant&rsquo;s other certifying officer(s)
and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the registrant&rsquo;s auditors
and the audit committee of registrant&rsquo;s board of directors (or
persons performing the equivalent
functions):</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">a)&emsp;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&rsquo;s ability to record, process, summarize and report
financial information; and</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">b)&emsp;any fraud, whether or
not material, that involves management or other employees who have a
significant role in the registrant&rsquo;s internal control over
financial reporting.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Date: December 16,
2005</p>
<div style="width: 593;">
<table border="0" cellpadding="0" cellspacing="0" width="593">
<tr>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 6pt;" valign="top" align="left" width="317"><img src="spacer.gif" height="1" width="317"></td>
<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 6pt;" valign="top" align="left"><u>/s/ T. Kent Smith</u>
<br>T. Kent
Smith<br>President and Chief Executive
Officer</td>
</tr>
</table>
</div>
<br>
<hr width="760" style="padding-left: 0pt;" align="left">
<br>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>12
<FILENAME>file008.htm
<DESCRIPTION>CERTIFICATION PURSUANT TO SECTION 302
<TEXT>
<HTML>
<HEAD>
<TITLE>
</TITLE>
</HEAD>
<BODY>


<page>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">EXHIBIT
31.2</p>
<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">
<u>CERTIFICATIONS</u>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">I, Rick J.
Filippelli, certify that:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">1.&emsp;I have reviewed this
annual report on Form 10-K of TeamStaff, Inc. for the year ended
September 30, 2005;</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">2.&emsp;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;</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">3.&emsp;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;</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">4.&emsp;The
registrant&rsquo;s other certifying officers 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:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">a)&emsp;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;</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">b)&emsp;[Intentionally omitted];</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">c)&emsp;evaluated the effectiveness of the
registrant&rsquo;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 on such evaluation; and</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">d)&emsp;disclosed
in this report any change in the registrant&rsquo;s internal control
over financial reporting that occurred during the registrant&rsquo;s
most recent fiscal quarter (the registrant&rsquo;s fourth fiscal
quarter in the case of an annual report) that has materially affected,
or is reasonably likely to materially affect the registrant&rsquo;s
internal control over financial reporting; and</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">5.&emsp;The registrant&rsquo;s other certifying officer(s)
and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the registrant&rsquo;s auditors
and the audit committee of registrant&rsquo;s board of directors (or
persons performing the equivalent
functions):</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">a)&emsp;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&rsquo;s ability to record, process, summarize and report
financial information; and</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">b)&emsp;any fraud, whether or
not material, that involves management or other employees who have a
significant role in the registrant&rsquo;s internal control over
financial reporting.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Date: December 16,
2005</p>
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<td style="font-family: serif; font-size: 10pt; color: #000000; font-weight: normal; font-style: normal; padding-top: 6pt;" valign="top" align="left"><u>/s/ Rick J. Filippelli</u>
<br>Rick J.
Filippelli<br>Vice President, Finance and Chief Financial
Officer<br>Principal Accounting
Officer</td>
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<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>13
<FILENAME>file009.htm
<DESCRIPTION>CERTIFICATION PURSUANT TO SECTION 906
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<p style="font-family:serif;font-weight:bold;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top: 12pt; padding-left:0pt; padding-right:0pt; margin: 0pt; text-indent: 0pt; padding-bottom: 0pt; background-color: #ffffff;">Exhibit
32.1</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">
<b>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF
2002</b>
</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 20pt; background-color: #ffffff">In connection with the Fiscal Year End Report of
TeamStaff, Inc (the Company) on Form 10-K for the period ending
September 30, 2005 as filed with the Securities and Exchange Commission
on the date hereof (the &lsquo;&lsquo;Report&rsquo;&rsquo;), the
undersigned, being, T. Kent Smith, Chief Executive Officer of the
Company, and Rick J. Filippelli, Chief Financial Officer and Principal
Accounting Officer of the Company, respectfully, certify, pursuant to
18 U.S.C. ss.1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(1) The Report fully
complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 0pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">(2) The information
contained in the Report fairly presents, in all material respects, the
financial condition and result of operations of the Company.</p>
<p style="font-family:serif;font-weight:normal;color:#000000;font-size:10pt;  width: 456pt; text-align: left; font-style: normal; line-height: 12pt; padding-top:6pt; padding-left:0pt; padding-right:0pt; padding-bottom: 6pt; margin: 0pt; text-indent: 0pt; background-color: #ffffff">Dated: December 16,
2005</p>
<img src="spacer.gif" height="10" width="1"><br>
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<div style="padding:0;margin:0;text-align:center">
<table cellpadding="0" cellspacing="0" border="0" width="602" bgcolor="#ffffff">
<tr>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="243"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="6"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
<td><img src="spacer.gif" height="1" width="219"></td>
<td><img src="spacer.gif" height="1" width="1"></td>
</tr>
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<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><u>/s/
T. Kent Smith&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
<br>Chief Executive
Officer</font></td>
<td style="padding-top: 0pt;background-color: #ffffff; border-bottom: 3px double #ffffff;"><img src="spacer.gif" height="1" width="2"></td>
<td style="font-size: 9pt; color: #000000; border-bottom: 3px double #ffffff;padding-left: 0pt; text-indent: 0pt;padding-top: 0pt; background-color: #ffffff;" align="left" valign="top" colspan="3"><font style="font-family: serif; font-size: 9pt; color: #000000; font-weight: normal; font-style: normal;background-color: #ffffff;"><u>/s/ Rick J.
Filippelli&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
<br>Chief Financial
Officer, Principal<br> Accounting
Officer</font></td>
</tr>
<tr>
<td><img src="spacer.gif" height="10" width="1"></td>
</tr>
</table>
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