PART I
ITEM 2: PROPERTIES

  The Company's corporate headquarters and primary distribution center, its Global Logistics Center, are located in a Company-owned 184,000 square-foot facility located north of Baltimore in Hunt Valley, Maryland. Certain long-term debt is secured by the property, as described in Note 6 to the Consolidated Financial Statements. As of April 1, 2001, the Company entered into a lease expiring March 2006, for an additional 65,000 square feet of space located in Hunt Valley, Maryland to house the Company's Solution Development Center. Marketing and new product and service solutions are developed at the Solution Development Center. West Coast sales and fulfillment are facilitated by a 15,000 square-foot distribution center in Reno, Nevada which is leased by the Company pursuant to a lease expiring June 2002, with a three-year renewal option upon expiration.