Vocus Announces Results for First Quarter 2009

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Company Achieves 14% Growth in Revenue, 27% Growth in Non-GAAP Operating Income and 76% Growth in Free Cash Flow

Vocus, Inc.

To view Reconciliation of non-GAAP Measures, view the full release here:

Vocus, Inc. (NASDAQ: VOCS), a leading provider of on-demand software for public relations management, announced today financial results for the first quarter ended March 31, 2009.

"Given the difficult macro-economic environment, I'm pleased with our growth in revenue, earnings and free cash flow for the quarter," said Rick Rudman, President and CEO of Vocus, Inc. "Looking ahead in 2009, we remain focused on growing revenue, increasing our operating margin and expanding our sales force to better position us for continued success and growth in the PR marketplace."

Financial Highlights

  •     Revenues for the quarter were $20.41 million, a 14% increase over the same period last year;
  •     GAAP income from operations was $296,000 for first quarter of 2009, compared to a loss from operations of $(297,000) for the same period last year. GAAP net loss was $(478,000), or $(0.03) per diluted share, for the first quarter of 2009 compared to $(403,000), or $(0.02) per diluted share, for the same period last year;
  •     Non-GAAP income from operations for the first quarter of 2009 was $3.65 million compared to $2.88 million for the same period last year. Non-GAAP net income for the first quarter of 2009 was $2.87 million, or $0.15 per diluted share, compared to $2.77 million, or $0.14 per diluted share, for the same period last year. See Other Supplemental Information for further discussion of non-GAAP measures;
  •     Total deferred revenue as of March 31, 2009 was $41.05 million, compared to $35.78 million at March 31, 2008;
  •     Cash flow from operations for the first quarter of 2009 was $8.68 million, a 46% increase over the same period last year;
  •     Free cash flow for the first quarter of 2009 was $9.00 million, a 76% increase over the same period last year. See Other Supplemental Information for further discussion of non-GAAP measures;
  •     224,192 shares of common stock were repurchased in the first quarter of 2009 under the stock repurchase program at an aggregate cost of $3.50 million.

Business Highlights

  •     Added 179 net new subscription customers during the quarter compared to 219 net new subscription customers added during the same period last year and ended the first quarter of 2009 with 3,558 total active subscription customers;
  •     Signed subscription agreements with new and existing customers including British Dental Health Foundation, Burton Snowboards, Del Monte Foods, Duke University, Federal Reserve Bank of Philadelphia, FavorPals, Hendrick Motorsports, London School of Business, Metropolitan Planning Counsel, Radio Shack, The Refined Feline, The Rooster Crows and Warner Bros. Home Entertainment;
  •     Launched Vocus Spring '09, which includes a new easy-to-use design of journalist and blogger profiles, enhanced reporting capabilities and integrated social media monitoring;
  •     Extended the distribution of the PRWeb platform to include several new top-tier online publishers;
  •     Launched PRWeb in the UK and announced the availability of its award-winning public relations software in Chinese;
  •     Earned several corporate awards and distinctions including recognition as one of America's 25 Fastest Growing Tech Companies in North America for the second year by Forbes Magazine and a finalist in the Best Online News Category for the prestigious Software & Information Industry Association's (SIIA) 2009 CODiE Awards.

Guidance

Vocus is providing, for the first time, guidance for the second quarter and revising guidance for the full year 2009 based on information as of April 21, 2009:

  •     For the second quarter of 2009, revenue is expected to be in the range of approximately $20.6 million to $20.8 million. Non-GAAP EPS is expected to be in the range of $0.15 to $0.16 assuming an estimated non-GAAP weighted average 19.7 million diluted shares outstanding and an estimated non-GAAP effective tax rate of 15%. Amortization of intangible assets and stock-based compensation, reflecting SFAS No. 123R, is expected to be $0.20 per share. GAAP EPS is expected to be in the range of $(0.05) to $(0.04) assuming an estimated weighted average 18.0 million basic and diluted shares outstanding;
  •     For the full year of 2009, revenue is expected to be in the range of $84 million to $85 million. Non-GAAP EPS is expected to be in the range of $0.63 to $0.65 assuming an estimated non-GAAP weighted average 19.7 million diluted shares outstanding and an estimated non-GAAP effective tax rate of 19%. Amortization of intangible assets and stock-based compensation, reflecting SFAS No. 123R, is expected to be $0.76 per share. GAAP EPS is expected to be in the range of $(0.13) to $(0.11) assuming an estimated weighted average 18.1 million basic and diluted shares outstanding. Free cash flow is expected to range from $20 million to $21 million. Our non-GAAP cash tax rate for 2009 is expected to be at 3%;
  •     The guidance reflects the strengthening of the U.S. dollar which unfavorably impacts expected revenues by approximately $1.5 million for the full year 2009 assuming 2008 average foreign exchange rates. In addition, the guidance does not reflect the future impact of any additional stock repurchases under our stock repurchase program.

Conference Call Information
Vocus will discuss the financial results and business highlights of the first quarter 2009 in a conference call at 4:30 p.m. ET, or 1:30 p.m. PT, today. Investors are invited to listen to a live audio web cast of the conference call on the Investor Relations section of the Company's website at http://onlinepressroom.net/vocus/ir/webcast/. A replay of the webcast will be available approximately one hour after the conclusion of the call and will remain available for 30 calendar days following the conference call. An audio replay of the conference call will also be available approximately two hours after the conclusion of the call. The audio replay will be available until May 5, 2009 at 11:59 p.m. ET and can be accessed by dialing (888) 203-1112 or (719) 457-0820 and entering conference number 8641782.

About Vocus, Inc.

Vocus, Inc. (NASDAQ: VOCS) is a leading provider of on-demand software for public relations management. Our web-based software suite helps organizations of all sizes to fundamentally change the way they communicate with both the media and the public, optimizing their public relations and increasing their ability to measure its impact. Our on-demand software addresses the critical functions of public relations including media relations, news distribution and news monitoring. We deliver our solutions over the Internet using a secure, scalable application and system architecture, which allows our customers to eliminate expensive up-front hardware and software costs and to quickly deploy and adopt our on-demand software. Vocus is used by over 3,500 organizations worldwide and is available in seven languages. Vocus is based in Lanham, MD with offices in North America, Europe and Asia. For more information, please visit http://www.vocus.com or call (800) 345-5572.

This release contains "forward-looking" statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These are statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may," "will," "expects," "projects," "anticipates," "estimates," "believes," "intends," "plans," "should," "seeks," and similar expressions. This press release contains forward-looking statements relating to, among other things, Vocus' expectations and assumptions concerning future financial performance. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual future results to differ materially from those projected or contemplated in the forward-looking statements. Forward-looking statements may be significantly impacted by certain risks and uncertainties described in Vocus' filings with the Securities and Exchange Commission.

The risks and uncertainties referred to above include, but are not limited to, risks associated with possible fluctuations in our operating results and rate of growth, our history of operating losses, interruptions or delays in our service or our Web hosting, our business model, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, successful customer deployment and utilization of our services, fluctuations in the number of shares outstanding, foreign currency exchange rates and interest rates.

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<p class=MsoNormal><b><span style='font-size:8.0pt' align="center">Vocus, Inc. and

Subsidiaries</span></b><br />

<b><span style='font-size:8.0pt' align="center">Condensed Consolidated

Balance Sheets</span></b></br>

<span style='font-size:8.0pt' align="center">(dollars in thousands)</span></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=576

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<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>December 31,</span></b></p>

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<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>March 31,</span></b></p>

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<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

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</td>

<td width=106 colspan=2 valign=top style='width:79.25pt;border:none;

border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>2008</span></b></p>

</td>

<td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'> </span></b></p>

</td>

<td width=106 colspan=2 valign=top style='width:79.25pt;border:none;

border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>2009</span></b></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=top style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;border-top:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><b><span style='font-size:8.0pt'> </span></b></p>

</td>

<td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><b><span style='font-size:8.0pt'> </span></b></p>

</td>

<td width=18 valign=top style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><b><span style='font-size:8.0pt'> </span></b></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;border-top:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>(unaudited)</span></b></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Assets</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Current assets:</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>    Cash and cash equivalents</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>$</span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>65,429</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>73,777</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>    Short-term investments</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>21,758</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>15,149</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>    Accounts receivable, net</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>14,739</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>9,705</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>    Current portion of deferred income taxes</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>394</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>394</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>    Other current assets</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>3,340</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,630</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Total current assets</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>105,660</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>101,655</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Property, equipment and

software, net</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>4,615</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>4,650</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Long-term investments</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>––</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>3,902</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Intangible assets, net</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>5,906</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>5,416</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Goodwill</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>17,090</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>17,090</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Deferred income taxes, net

of current portion</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>6,097</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>5,134</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Other assets</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>611</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>635</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Total assets</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>$</span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;border:none;border-bottom:

double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>139,979</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;border:none;border-bottom:

double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>138,482</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Liabilities and

stockholders’ equity</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Current liabilities:</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>    Accounts payable and accrued expenses</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>$</span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>5,273</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>6,410</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Current portion of notes payable and capital

lease obligations</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>185</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=bottom style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>207</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Current portion of deferred revenue</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>41,775</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>40,117</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Total current liabilities</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>47,233</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>46,734</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Notes payable and capital

lease obligations, net of current portion</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>188</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>104</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Other liabilities</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>71</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>57</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Deferred revenue, net of

current portion</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>1,079</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>928</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Total liabilities</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>48,571</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>47,823</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Commitments and

contingencies</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Stockholders’ equity:</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Common stock</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>194</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>197</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Additional paid-in capital</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>129,897</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>133,759</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Treasury stock</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(10,783)</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(14,900)</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Accumulated other comprehensive income</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>564</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>545</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Accumulated deficit</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(28,464)</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(28,942)</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Total stockholders’ equity</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>91,408</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>90,659</span></p>

</td>

</tr>

<tr>

<td width=329 valign=top style='width:246.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Total liabilities and

stockholders’ equity</span></p>

</td>

<td width=18 valign=top style='width:13.45pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>$</span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>139,979</span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=18 valign=bottom style='width:13.5pt;border:none;border-bottom:

double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=88 valign=top style='width:65.75pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>138,482</span></p>

</td>

</tr>

</table>

<p class=MsoNormal><b><span style='font-size:8.0pt'> </span></b></p>

<p class=MsoNormal><b><span style='font-size:8.0pt'> </span></b></p>

<p class=MsoNormal><b><span style='font-size:8.0pt'>Vocus, Inc. and

Subsidiaries</span></b><br />

<b><span style='font-size:8.0pt'>Consolidated Statements of

Operations</span></b><br />

<span style='font-size:8.0pt'>(dollars in thousands, except

per share data)</span></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=571

style='width:5.95in;border-collapse:collapse' align="center">

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=216 colspan=5 valign=top style='width:2.25in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>Three Months Ended</span></b></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=216 colspan=5 valign=top style='width:2.25in;border:none;

border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>March 31,</span></b></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=100 colspan=2 valign=top style='width:75.2pt;border:none;

border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>2008</span></b></p>

</td>

<td width=32 valign=top style='width:23.8pt;border:none;border-top:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 colspan=2 valign=top style='width:63.0pt;border-top:solid windowtext 1.0pt;

border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;

padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>2009</span></b></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=100 colspan=2 valign=top style='width:75.2pt;border:none;

padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>(unaudited)</span></b></p>

</td>

<td width=32 valign=top style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 colspan=2 valign=top style='width:63.0pt;border:none;padding:

0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>(unaudited)</span></b></p>

</td>

</tr>

<tr style='height:10.6pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Revenues</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>17,867</span></p>

</td>

<td width=32 valign=top style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>20,411</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Cost of revenues, including

amortization of intangible assets of $30 for the three months ended March

31, 2008</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>3,432</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>3,907</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Gross profit</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;border:none;border-top:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;border:none;border-top:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>14,435</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;border:none;border-top:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;border:none;border-top:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>16,504</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Operating expenses:</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr style='height:10.6pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Sales and marketing</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>8,176</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>9,516</span></p>

</td>

</tr>

<tr style='height:10.6pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Research and development</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>1,213</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>1,157</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     General and administrative</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>4,638</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>5,045</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Amortization of intangible assets</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>705</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>490</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Total operating expenses</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;border:none;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;border:none;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>14,732</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>16,208</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Income (loss) from

operations</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(297)</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>296</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Other income (expense):</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Interest and other income</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>595</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>225</span></p>

</td>

</tr>

<tr style='height:10.6pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Interest expense</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt;height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt;height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(5)</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.6pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>(6)</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Income before provision for

income taxes</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;border:none;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;border:none;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>293</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>515</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Provision for income taxes</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>696</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>993</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Net loss</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=84 valign=top style='width:63.35pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(403)</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;border:none;border-bottom:

double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;border:none;border-bottom:

double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>(478)</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.85pt;border:none;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.35pt;border:none;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=32 valign=top style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:12.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=top style='width:51.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Net loss per share:</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=32 valign=top style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=top style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Basic</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(0.02)</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>(0.03)</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Diluted</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(0.02)</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>(0.03)</span></p>

</td>

</tr>

<tr style='height:10.6pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.6pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr style='height:20.6pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:20.6pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Weighted average shares

outstanding used in computing

            per share amounts:

</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:20.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:20.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:20.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:20.6pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:20.6pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Basic</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>17,682,504</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>18,026,397</span></p>

</td>

</tr>

<tr style='height:10.05pt'>

<td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Diluted</span></p>

</td>

<td width=16 valign=top style='width:11.85pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.35pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>17,682,504</span></p>

</td>

<td width=32 valign=bottom style='width:23.8pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:12.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:51.0pt;padding:0in 5.4pt 0in 5.4pt;

height:10.05pt'>

<p class=MsoNormal align=right style='margin-right:-2.5pt;text-align:right'><span

style='font-size:8.0pt'>18,026,397</span></p>

</td>

</tr>

</table>

<p class=MsoNormal style='line-height:11.25pt'><span style='font-size:10.0pt;

color:black'> </span></p>

<p class=MsoNormal style='line-height:11.25pt'><span style='font-size:10.0pt;

color:black'> </span></p>

<p class=MsoNormal><b><span style='font-size:8.0pt'>Vocus, Inc. and

Subsidiaries</span></b><br />

<b><span style='font-size:8.0pt'>Condensed Consolidated

Statements of Cash Flows</span></b><br />

<span style='font-size:8.0pt'>(dollars in thousands)</span></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=595

style='width:445.95pt;border-collapse:collapse' align="center">

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=215 colspan=5 valign=top style='width:161.55pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>Three Months Ended</span></b></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=215 colspan=5 valign=top style='width:161.55pt;border:none;

border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>March 31,</span></b></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=100 colspan=2 valign=top style='width:74.8pt;border:none;

border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>2008</span></b></p>

</td>

<td width=32 valign=top style='width:24.2pt;border:none;border-top:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=83 colspan=2 valign=top style='width:62.55pt;border-top:solid windowtext 1.0pt;

border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>2009</span></b></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=100 colspan=2 valign=top style='width:74.8pt;border:none;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>(unaudited)</span></b></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=83 colspan=2 valign=top style='width:62.55pt;border:none;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>(unaudited)</span></b></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Cash flows from operating

activities:</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=top style='width:50.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Net loss</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=84 valign=top style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(403)</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(478)</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Adjustments to reconcile net

loss to net cash provided by operating activities:</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Depreciation and amortization</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>1,138</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>910</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Other non-cash charges, net</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,627</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>3,293</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Changes in operating assets and liabilities</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,581</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>4,958</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Net cash provided by

operating activities</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=top style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>5,943</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>8,683</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Cash flows from investing

activities:</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Net

change in investments</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(9,680)</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,666</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Purchases

of property and equipment, net</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(823)</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(339)</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Software

development costs</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>––</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(43)</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Net cash provided by (used

in) investing activities</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-top:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;border:none;border-top:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(10,503)</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-top:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;border:none;border-top:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,284</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Cash flows from financing

activities:</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Purchases

of common stock</span></p>

</td>

<td width=16 valign=bottom style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>––</span></p>

</td>

<td width=32 valign=bottom style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(4,117)</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Proceeds

from exercise of stock options</span></p>

</td>

<td width=16 valign=bottom style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>605</span></p>

</td>

<td width=32 valign=bottom style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>964</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Tax

benefit from exercise of stock options</span></p>

</td>

<td width=16 valign=bottom style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>––</span></p>

</td>

<td width=32 valign=bottom style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>703</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Payments

on notes payable and capital lease obligations</</span></p>

</td>

<td width=16 valign=bottom style='width:11.8pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(83)</span></p>

</td>

<td width=32 valign=bottom style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=bottom style='width:11.8pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(138)</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Net cash provided by (used

in) financing activities</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>522</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(2,588)</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Effect of exchange rate

changes on cash and cash equivalents</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>––</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(31)</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>Net increase (decrease) in cash and cash equivalents</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(4,038)</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>8,348</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>Cash and cash equivalents, beginning of period</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>56,541</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>65,429</span></p>

</td>

</tr>

<tr>

<td width=379 valign=top style='width:3.95in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Cash and cash equivalents,

end of period</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=84 valign=bottom style='width:63.0pt;border:none;border-bottom:

double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>52,503</span></p>

</td>

<td width=32 valign=top style='width:24.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=68 valign=bottom style='width:50.75pt;border:none;border-bottom:

double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>73,777</span></p>

</td>

</tr>

</table>

</td>

</tr>

</table>

</a>

Other Supplemental Information

We define non-GAAP income from operations as income from operations excluding amortization of acquired intangible assets and stock-based compensation. We define non-GAAP net income as net income excluding amortization of acquired intangible assets and stock-based compensation. Amortization of intangible assets recorded in connection with our acquisitions consist of non-compete agreements, trade names, purchased technology and customer relationships that are not expected to be replaced when fully amortized, as a depreciable tangible asset might. Companies record stock-based compensation under SFAS No. 123R by applying varying valuation methodologies and subjective assumptions to different types of equity awards. Management uses non-GAAP income from operations and non-GAAP net income to evaluate operating performance, to determine incentive compensation and to prepare operating budgets and determine the appropriate levels of capital investments. Management believes the exclusion of amortization of acquired intangible assets and stock-based compensation under SFAS No. 123R allows management and investors to make meaningful comparisons between our operating results and those of other companies, as well as providing a consistent comparison of our relative historical financial performance. However, management believes that non-GAAP income from operations and non-GAAP net income are subject to material limitations since they may not be indicative of ongoing operating results.

We define free cash flow as cash flow from operations less net capital expenditures and capitalized software development costs plus tax benefits from stock-based compensation. Management considers free cash flow to be a liquidity measure which provides useful information to management and investors regarding our ability to generate cash from operations that is available for acquisitions and other investments. Management also uses free cash flow as a measure to evaluate performance and determine incentive compensation. Our definition of free cash flow may be different from definitions used by other companies.

Management compensates for the limitations in the use of non-GAAP financial measures by also utilizing GAAP financial measures and by providing investors with a detailed reconciliation between our GAAP and non-GAAP financial results. Investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in our SEC filings.

<a name='q308_table2' style='color:#000000;text-decoration:none;'><table border="0" cellspacing="0" align="center" width="640">

<tr>

<td>

<p class=MsoNormal><b><span style='font-size:8.0pt'>Vocus, Inc. and

Subsidiaries</span></b><br />

<b><span style='font-size:8.0pt'>Reconciliation of Non-GAAP

Measures</span></b><br />

<span style='font-size:8.0pt'>(dollars in thousands, except

per share data)</span></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=631

style='width:473.4pt;border-collapse:collapse'>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=212 colspan=5 valign=top style='width:159.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>Three Months Ended</span></b></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=212 colspan=5 valign=top style='width:159.2pt;border:none;

border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>March 31,</span></b></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=96 colspan=2 valign=top style='width:1.0in;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>2008</span></b></p>

</td>

<td width=24 valign=top style='width:.25in;border:none;border-top:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=92 colspan=2 valign=top style='width:69.2pt;border-top:solid windowtext 1.0pt;

border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>2009</span></b></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=96 colspan=2 valign=top style='width:1.0in;border:none;padding:

0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>(unaudited)</span></b></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=92 colspan=2 valign=top style='width:69.2pt;border:none;padding:

0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><b><span

style='font-size:8.0pt'>(unaudited)</span></b></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Reconciliation of GAAP

income (loss) from operations to non-GAAP income from operations:</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=top style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.4in;text-indent:-.2in'><span

style='font-size:8.0pt'>Income (loss) from operations</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=80 valign=top style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(297)</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>$</span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>296</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>     Amortization of intangible assets (including

$30 in cost of revenues for the three months ended March 31, 2008)</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=top style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>735</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>490</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Stock-based

compensation</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=top style='width:60.2pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,437</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,860</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Non-GAAP income from

operations</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=80 valign=top style='width:60.2pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,875</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=72 valign=bottom style='width:.75in;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>3,646</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Reconciliation of GAAP net loss

to non-GAAP net income:</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Net

loss</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(403)</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(478)</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>Amortization of intangible assets (including

$30 in cost of revenues for the three months ended March 31, 2008)</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>735</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>490</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Stock-based

compensation</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,437</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,860</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Non-GAAP net income</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;border:none;border-bottom:

double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,769</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=72 valign=bottom style='width:.75in;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,872</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Non-GAAP net income per

share:</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Non-GAAP

diluted</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>0.14</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>0.15</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Weighted average shares

outstanding used in computing per share amounts:</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Non-GAAP

diluted</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=top style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>19,708,202</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>19,246,131</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr style='height:31.5pt'>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt;

height:31.5pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Reconciliation of GAAP

diluted weighted average shares outstanding to non-GAAP diluted weighted average shares outstanding:</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;

height:31.5pt'>

<p class=MsoNormal align=center style='text-align:center'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt;

height:31.5pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt;

height:31.5pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt;

height:31.5pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt;

height:31.5pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;

height:31.5pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Diluted

weighted average shares outstanding</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=center style='text-align:center'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=top style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>17,682,504</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>18,026,397</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Treasury

stock effect on outstanding equity securities</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=top style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='margin-left:.2in;text-align:right'><span

style='font-size:8.0pt'>926,151</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>376,530</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='margin-left:.2in;text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in'><span style='font-size:8.0pt'>Treasury

stock effect on outstanding equity securities of SFAS No. 123R</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='margin-left:.2in;text-align:right'><span

style='font-size:8.0pt'>1,099,547</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>843,204</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='margin-left:.2in;text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Non-GAAP diluted weighted

average shares outstanding</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=top style='width:60.2pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>19,708,202</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>19,246,131</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal style='margin-left:.2in;text-indent:-.2in'><span

style='font-size:8.0pt'>Supplemental information of stock-based compensation

included in:</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>     Cost of revenues</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=80 valign=top style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>265</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>345</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>     Sales and marketing</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=top style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>669</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>857</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>     Research and

development</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=top style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>181</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>215</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>     General and

administrative</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=top style='width:60.2pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>1,322</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=top style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>1,443</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr style='height:4.0pt'>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt;

height:4.0pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Total stock-based

compensation </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt;height:4.0pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=80 valign=top style='width:60.2pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt;height:4.0pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,437</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt;

height:4.0pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt;height:4.0pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=72 valign=top style='width:.75in;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt;height:4.0pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>2,860</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;

height:4.0pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=top style='width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Reconciliation of cash flow

from operations to free cash flow:</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>     Net cash provided by

operating activities</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>5,943</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>8,683</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>     Purchases of property

and equipment, net</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(823)</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(339)</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>     Software development

costs</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>––</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>(43)</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>     Tax benefit from

exercise of stock options</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;border:none;border-bottom:

solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>––</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=72 valign=bottom style='width:.75in;border:none;border-bottom:solid windowtext 1.0pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>703</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

<tr>

<td width=403 valign=top style='width:4.2in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal><span style='font-size:8.0pt'>Free cash flow </span></p>

</td>

<td width=16 valign=top style='width:11.8pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=80 valign=bottom style='width:60.2pt;border:none;border-bottom:

double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>5,120</span></p>

</td>

<td width=24 valign=top style='width:.25in;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

<td width=20 valign=top style='width:15.2pt;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>$</span></p>

</td>

<td width=72 valign=bottom style='width:.75in;border:none;border-bottom:double windowtext 1.5pt;

padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'>9,004</span></p>

</td>

<td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

<p class=MsoNormal align=right style='text-align:right'><span

style='font-size:8.0pt'> </span></p>

</td>

</tr>

</table>

</td>

</tr>

</table>

</a>

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Robin Lane
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