## RECENT ACCOUNTING PRONOUNCEMENTS 

In June 2001, the Financial Accounting Standards Board (FASB) issued SFAS No. 143, “Accounting for Asset Retirement Obligations,” which applies to legal obligations associated with the retire- ment of long-lived assets and the associated asset retirement costs.The Statement is effective for the Company in the first quarter of 2003. The Company does not expect the adoption of SFAS No. 143 to have a significant impact on its financial position or results of operations. 

In July 2002, the FASB issued SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities.” This Statement addresses financial accounting and reporting for costs associated with exit or disposal activities and nullifies Emerging Issues Task Force (EITF) Issue No. 94-3, “Liability Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred in a Restructuring).” This Statement requires that a liability for costs associated with an exit or disposal activ- ity be recognized and measured initially at fair value only when the liability is incurred.The provisions of this Statement are effective for exit or disposal activities that are initiated after December 31, 2002.The Company does not expect the impact of adopting SFAS No. 146 to have a significant impact on the Company’s financial position, results of operations, or cash flows. 

In November 2002, the FASB issued Interpretation No. 45, “Guarantors Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others.” Interpretation No. 45 requires a liability to be recognized at the time a company issues a guarantee for the fair value of the obligations assumed under certain guarantee agreements. Additional disclosures about guar- antee agreements are also required in the interim and annual financial statements.The Company does not believe adoption of Interpretation No. 45 will have a material impact on the Company’s results of operations or financial position.The recognition and measurement provision of FIN 45 are effective for the years begin- ning after December 31, 2002.The disclosure requirements are effective for December 31, 2002, financial statements; however, the Company is not a party to any guarantees at this time. 

In December 2002, the FASB issued Statement No. 148, “Accounting for Stock-Based Compensation, Transition and Disclosure.” This statement provides alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation. It also requires that disclosure of the pro forma effect of using the fair-value method of accounting for stock-based employee compensation be displayed more prominently and in a table in annual financial statements. Additionally, the statement requires disclosure of the pro forma effect in interim financial statements. The transition and annual disclosure requirements of Statement No. 148 are effective for the Company for 2002. The interim disclosure requirements are effective for the Company’s first quarter of 2003. The Company does not expect Statement No. 148 to have a material effect on its results of opera- tions or financial condition. 

