The Company leases distribution and office facilities in Reno, Nevada under an operating lease expiring in June 2002, with a three-year renewal option upon expiration.

Effective April 1, 2001, the Company entered into a lease for additional distribution and office facilities in Hunt Valley, Maryland at its new Solution Development Center. This lease expires in March 2006.

Rent expense for fiscal years 2001, 2000 and 1999 totaled $125,200, $113,100 and $230,700, respectively.

As of April 1, 2001, future minimum lease payments are as follows:

FISCAL YEAR:
2002	$   624,000
2003	546,200
2004	540,500
2005	551,400
2006	562,400
	$2,824,500

During fiscal 1999, the Company recorded a restructuring charge relating to the closure of its Miami and Cincinnati sales offices. Included in the restructuring charge were certain lease termination costs (see Note 12).