To supplement theconsolidated financial statements presented in accordance with U

To supplement theconsolidated financial statements presented in accordance with U.S. generallyaccepted accounting principles (GAAP), the Company has included non-GAAP dilutedearnings per share in this press release. This non-GAAP financial measure isadjusted from results based on GAAP to exclude certain expenses and gains. Amongother things, the Company uses such non-GAAP financial measures in addition toand in conjunction with corresponding GAAP measures to help analyze theperformance of its core business, in connection with the preparation of annualbudgets, and in measuring performance for some forms of compensation. Inaddition, the Company believes that non-GAAP financial information is used byanalysts and others in the investment community to analyze the Company'shistorical results and in providing estimates of future performance and thatfailure to report these non-GAAP measures, could result in confusion amonganalysts and others and a misplaced perception that the Company's results haveunderperformed or exceeded expectations.These non-GAAP financial measures reflect an additional way of viewing aspectsof the Company's operations that, when viewed with the GAAP results and thereconciliations to corresponding GAAP financial measures, provide a morecomplete understanding of the Company's results of operations and the factorsand trends affecting the Company's business. However, these non-GAAP measuresshould be considered as a supplement to, and not as a substitute for, orsuperior to, the corresponding measures calculated in accordance with GAAP.The non-GAAP disclosures and the non-GAAP adjustments, including the basis forexcluding such adjustments and the impact on the Company's operations, areoutlined below:Preliminary Non-GAAP diluted earnings per share. Non-GAAP diluted earnings pershare exclude the effects of (i) amortization of intangibles and (ii)stock-based compensation expense.

In addition, non-GAAP diluted earnings pershare reflect an adjustment of income tax expense associated with exclusion ofthe foregoing expense items.At the time of an acquisition, the intangible assets of the acquired company arerecorded at fair value and amortized over their estimated useful lives. TheCompany believes that such intangibles do not constitute part of its corebusiness because they generally represent costs incurred by the acquired companyto build value prior to acquisition and as such they are effectively part oftransaction costs rather than ongoing costs of operating the Company's corebusiness. In this regard, the Company notes that (1) once the intangibles arefully amortized, the intangibles will not be replaced with cash costs andtherefore, the exclusion of these costs provides management and investors withbetter visibility into the actual costs required to generate revenues over time,and (2) although the Company sets the amortization expense based on useful lifeof the various assets at the time of the transaction, the Company cannotinfluence the timing and amount of the future amortization expense recognitiononce the lives are established. As a result, the Company believes that exclusionof these costs in presenting non-GAAP gross margin and other non-GAAP financialmeasures provides management and investors a more effective means of evaluatingits historical performance and projected costs and the potential for realizingcost efficiencies within its core business.

Similarly, the Company believes thatpresentation of diluted earnings per share that excludes the impact ofstock-based compensation expense assists management and investors in evaluatingthe period over period performance of the Company's ongoing core businessoperations because the expenses are non-cash in nature and, although the size ofthe grants is within the Company's control, the amount of expense variesdepending on factors such as short-term fluctuations in stock price andvolatility which can be unrelated to the operational performance of the Companyduring the period in question and generally is outside the control of managementduring the period in which the expense is recognized. Moreover, the Companybelieves that the exclusion of stock-based compensation in presenting non-GAAPdiluted earnings per share is useful to investors to understand the impact ofthe expensing of stock-based compensation to the Company's diluted earnings pershare in comparison to both prior periods as well as to its competitors. Theadjustment of income taxes is required in order to provide management andinvestors a more accurate assessment of the taxes that would have been payableon net income, as adjusted by exclusion of the effects of the above listeditems.The Company believes disclosure of non-GAAP diluted earnings per share haseconomic substance because the excluded expenses are infrequent in nature, donot represent current cash expenditures, or are unlikely to be recurring and arevariable in nature. A material limitation associated with the use of thismeasure as compared to the GAAP measures of net income and diluted earnings pershare is that they may not be comparable with the calculation of net income anddiluted earnings per share for other companies in the Company's industry. TheCompany compensates for these limitations by providing full disclosure of theeffects of this non-GAAP measure, by presenting the corresponding GAAP financialmeasure in this release and in the Company's financial statements and byproviding a reconciliation to the corresponding GAAP measure to enable investorsto perform their own analysis."Safe Harbor" Statement under the Private Securities Litigation Reform Act of1995: The statements and financial information set forth above are preliminaryand contain forward-looking statements that involve risk and uncertainties. Weexpressly disclaim any obligation or undertaking to release publicly any updatesor changes to these forward-looking statements that may be made to reflect anyfuture events or circumstances. The Company wishes to caution readers that anumber of important factors could cause actual results to differ materially fromthose in the forward-looking statements.