<table>
<tbody><tr style="vertical-align: bottom">
    <td style="text-align: center">&nbsp;</td><td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="6" nowrap="" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center">&nbsp;</td><td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt; font-weight: bold">&nbsp;</td><td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</td><td style="padding-bottom: 1pt; font-weight: bold">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
    <td style="font-weight: bold; text-align: left">Operations Data:</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="width: 54%">Sales</td><td style="width: 3%">&nbsp;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">30,801,000</td><td style="width: 1%; text-align: left">&nbsp;</td><td style="width: 3%">&nbsp;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">35,437,000</td><td style="width: 1%; text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
    <td style="text-align: left">Reimbursable program costs and expenses</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">6,325,000</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">6,277,000</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1pt">Outside production and other program expenses</td><td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td><td style="border-bottom: Black 1pt solid; text-align: right">14,555,000</td><td style="padding-bottom: 1pt; text-align: left">&nbsp;</td><td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td><td style="border-bottom: Black 1pt solid; text-align: right">18,119,000</td><td style="padding-bottom: 1pt; text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
    <td style="text-align: left">Operating revenue</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">9,921,000</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">11,041,000</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Compensation expense</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">7,728,000</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">7,731,000</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
    <td style="text-align: left; padding-bottom: 1pt">General and administrative expenses</td><td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td><td style="border-bottom: Black 1pt solid; text-align: right">1,875,000</td><td style="padding-bottom: 1pt; text-align: left">&nbsp;</td><td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td><td style="border-bottom: Black 1pt solid; text-align: right">1,796,000</td><td style="padding-bottom: 1pt; text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Operating income</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">318,000</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">1,514,000</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
    <td style="text-align: left">Interest expense, net</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">—</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">—</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1pt">Fair value adjustments to compound embedded derivatives</td><td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td><td style="border-bottom: Black 1pt solid; text-align: right">314,000</td><td style="padding-bottom: 1pt; text-align: left">&nbsp;</td><td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td><td style="border-bottom: Black 1pt solid; text-align: right">(611,000</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
    <td style="text-align: left">Income before provision for income taxes</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">632,000</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">903,000</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1pt">Provision for income taxes</td><td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td><td style="border-bottom: Black 1pt solid; text-align: right">126,000</td><td style="padding-bottom: 1pt; text-align: left">&nbsp;</td><td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td><td style="border-bottom: Black 1pt solid; text-align: right">646,000</td><td style="padding-bottom: 1pt; text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
    <td style="text-align: left; padding-bottom: 2.5pt">Net income</td><td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">506,000</td><td style="padding-bottom: 2.5pt; text-align: left">&nbsp;</td><td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">257,000</td><td style="padding-bottom: 2.5pt; text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold">Per Share Data:</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
    <td style="padding-bottom: 2.5pt">Basic earnings per share</td><td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.06</td><td style="padding-bottom: 2.5pt; text-align: left">&nbsp;</td><td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">.03</td><td style="padding-bottom: 2.5pt; text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt">Diluted earnings per share</td><td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.03</td><td style="padding-bottom: 2.5pt; text-align: left">&nbsp;</td><td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">.02</td><td style="padding-bottom: 2.5pt; text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
    <td style="font-weight: bold">Weighted Average Number of Shares Outstanding:</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">&nbsp;</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td>Basic</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">8,196,635</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">8,202,076</td><td style="text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,204)">
    <td>Diluted</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">17,294,985</td><td style="text-align: left">&nbsp;</td><td>&nbsp;</td>
    <td style="text-align: left">&nbsp;</td><td style="text-align: right">16,069,314</td><td style="text-align: left">&nbsp;</td></tr>
</tbody></table>
<table>
<tbody><tr>
<td> </td><td> </td>
<td>Three Months Ended June 30,</td><td> </td></tr>
<tr>
<td> </td><td> </td>
<td>2013</td><td> </td><td> </td>
<td>2012</td><td> </td></tr>
<tr>
<td>Operations Data:</td><td> </td>
<td> </td><td> </td><td> </td><td> </td>
<td> </td><td> </td><td> </td></tr>
<tr>
<td>Sales</td><td> </td>
<td>$</td><td>30,801,000</td><td> </td><td> </td>
<td>$</td><td>35,437,000</td><td> </td></tr>
<tr>
<td>Reimbursable program costs and expenses</td><td> </td>
<td> </td><td>6,325,000</td><td> </td><td> </td>
<td> </td><td>6,277,000</td><td> </td></tr>
<tr>
<td>Outside production and other program expenses</td><td> </td>
<td> </td><td>14,555,000</td><td> </td><td> </td>
<td> </td><td>18,119,000</td><td> </td></tr>
<tr>
<td>Operating revenue</td><td> </td>
<td> </td><td>9,921,000</td><td> </td><td> </td>
<td> </td><td>11,041,000</td><td> </td></tr>
<tr>
<td>Compensation expense</td><td> </td>
<td> </td><td>7,728,000</td><td> </td><td> </td>
<td> </td><td>7,731,000</td><td> </td></tr>
<tr>
<td>General and administrative expenses</td><td> </td>
<td> </td><td>1,875,000</td><td> </td><td> </td>
<td> </td><td>1,796,000</td><td> </td></tr>
<tr>
<td>Operating income</td><td> </td>
<td> </td><td>318,000</td><td> </td><td> </td>
<td> </td><td>1,514,000</td><td> </td></tr>
<tr>
<td>Interest expense, net</td><td> </td>
<td> </td><td>—</td><td> </td><td> </td>
<td> </td><td>—</td><td> </td></tr>
<tr>
<td>Fair value adjustments to compound embedded derivatives</td><td> </td>
<td> </td><td>314,000</td><td> </td><td> </td>
<td> </td><td>(611,000</td><td>)</td></tr>
<tr>
<td>Income before provision for income taxes</td><td> </td>
<td> </td><td>632,000</td><td> </td><td> </td>
<td> </td><td>903,000</td><td> </td></tr>
<tr>
<td>Provision for income taxes</td><td> </td>
<td> </td><td>126,000</td><td> </td><td> </td>
<td> </td><td>646,000</td><td> </td></tr>
<tr>
<td>Net income</td><td> </td>
<td>$</td><td>506,000</td><td> </td><td> </td>
<td>$</td><td>257,000</td><td> </td></tr>
<tr>
<td> </td><td> </td>
<td> </td><td> </td><td> </td><td> </td>
<td> </td><td> </td><td> </td></tr>
<tr>
<td>Per Share Data:</td><td> </td>
<td> </td><td> </td><td> </td><td> </td>
<td> </td><td> </td><td> </td></tr>
<tr>
<td>Basic earnings per share</td><td> </td>
<td>$</td><td>0.06</td><td> </td><td> </td>
<td>$</td><td>.03</td><td> </td></tr>
<tr>
<td>Diluted earnings per share</td><td> </td>
<td>$</td><td>0.03</td><td> </td><td> </td>
<td>$</td><td>.02</td><td> </td></tr>
<tr>
<td> </td><td> </td>
<td> </td><td> </td><td> </td><td> </td>
<td> </td><td> </td><td> </td></tr>
<tr>
<td>Weighted Average Number of Shares Outstanding:</td><td> </td>
<td> </td><td> </td><td> </td><td> </td>
<td> </td><td> </td><td> </td></tr>
<tr>
<td>Basic</td><td> </td>
<td> </td><td>8,196,635</td><td> </td><td> </td>
<td> </td><td>8,202,076</td><td> </td></tr>
<tr>
<td>Diluted</td><td> </td>
<td> </td><td>17,294,985</td><td> </td><td> </td>
<td> </td><td>16,069,314</td><td> </td></tr>
</tbody></table>