YEAR ENDED
                                                                SIX MONTHS ENDED      DECEMBER 31,
                                                                ----------------------------------
                                                                 JUNE 30, 1999           1998
                                                                ----------------------------------
Cash flows for operating activities:
     Net loss                                                       $ (2,060)          $   (310)
     Adjustments to reconcile net loss to net cash used in
     operating activities:
         Depreciation and amortization                                    72                680
         Write-off of leasehold improvements                           1,446                201
         Shares issued for 401(k) employer match                          11                 48
         Gain on sale of equipment                                       (14)               (70)
Changes in assets and liabilities:
     Prepaid expenses and other assets                                   219             (2,790)
     Accounts payable and accrued expenses                               331             (3,082)
      Reduction in deferred rent                                        (616)                --
     Other current and long-term liabilities                            (325)               (50)
                                                                    --------           --------
         Total adjustments                                             1,124             (5,064)
                                                                    --------           --------
Net cash used in operating activities                                   (936)            (5,373)
Cash flows from investing activities:
      Purchase of Cantab stock                                        (6,000)                --
      Rent received for leasehold improvements                           463                480
     Proceeds from sale of equipment                                     133              1,227
     Purchase of short-term investments                                   --            (23,934)
     Redemption of short-term investments                              8,219             34,783
     Purchase of long-term investments                                    --             (2,871)
     Redemption of long-term investments                               4,142              6,107
                                                                    --------           --------
Net cash provided by investing activities                              6,957             15,792
Cash flows from financing activities:
     Proceeds from exercise of stock options                               1                 --
                                                                    --------           --------
Net cash provided by financing activities                                  1                 --
                                                                    --------           --------
Net increase (decrease) in cash and cash equivalents                   6,022             10,419
Cash and cash equivalents at beginning of period                      18,856              8,437
                                                                    --------           --------
Cash and cash equivalents at end of period                          $ 24,878           $ 18,856
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