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If we had adopted the provisions of SFAS No. 123 to our option grants and ESPP as of January 1, 2002, our net income to common shareholders and related basic and diluted earnings per share would be as follows: 

<img src='content_image/34721.jpg'>

The effects of applying SFAS No. 123 in this pro forma disclosure are not indicative of future amounts. 

## Recent Accounting Pronouncements 

In June 2004, the Emerging Issues Task Force (“EITF”) issued EITF 03-01, “The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments”, which provides guidance to determine when an investment is considered impaired, whether the impairment is other than temporary, and the measurement of an impairment loss. EITF 03-01 was effective for the first interim period beginning after June 15, 2004. The adoption of EITF 03-01 did not have a material impact on our financial position, results of operations or cash flows. 

In December 2004, FASB issued SFAS No.123(R) “Share-Based Payment”, which replaces SFAS No.123, “Accounting for Stock-Based Compensation”, and supersedes APB Opinion No. 25, “Accounting for Stock Issued to Employees”. SFAS No. 123(R) requires an entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. SFAS No. 123(R) is effective beginning July 1, 2005, and is required to be adopted using a “modified prospective” method. Under the modified prospective method, SFAS No. 123(R) applies to new awards and to awards modified, repurchased or cancelled after the effective date. Additionally, compensation cost for the unvested portion of awards as of the effective date is required to be recognized as the awards vest after the effective date. The adoption of SFAS No. 123(R) will not have a material impact on our financial position, results of operations or cash flows. 

In December 2004, FASB issued SFAS No. 153, “Exchange of Nonmonetary Assets, an amendment of APB Opinion No. 29”, which addresses the measurement of exchanges of nonmonetary assets. SFAS No. 153 eliminates the exception for nonmonetary exchanges of similar productive assets and replaces it with a general exception for exchange of nonmonetary assets that do not have commercial substance. It also specifies that a nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange. SFAS No. 153 is effective beginning July 1, 2005. The adoption of SFAS No. 153 will not have a material impact on our financial position, results of operations or cash flows. 

## Reclassifications 

Certain reclassifications have been made to amounts in prior year financial statements to conform with current year presentations. 

