Year 2000

We have not experienced any material problems as a result of the Year 2000 turnover or in connection with February 29, 2000. We do not believe that any Year 2000 related issues will affect our business, results of operations or financial condition in the future.

Recent accounting pronouncements

In June 1998, the Financial Accounting Standards Board issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities." This statement establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. SFAS No. 133 is effective for all fiscal quarters beginning with the quarter ending March 31, 2000. In July 1999, the FASB issued SFAS No. 137, "Accounting for Derivative Instruments and Hedging Activities--Deferral of the Effective Date of FASB Statement No. 133," which deferred the effective date until January 1, 2001. We believe that the adoption of SFAS 133 will not have a material impact on our financial statement position or results of operations.

In December 1999, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin 101, "Revenue Recognition in Financial Statements" ("SAB 101"), which summarizes certain of the SEC Staff views in applying U.S. GAAP to revenue recognition to financial statements. We adopted SAB 101 in these consolidated financial statements. Such adoption has no impact on our consolidated financial statements.