Consolidated Balance Sheets

Index Company Profile Financial Highlights Dear Fellow Shareholders Question and Answer with the CEO ASP Solutions HealtheWare HealthWeb Complementary Business Milestones Form 10-K Report of Independent Accountants Balance Sheets Statements of Operations Statements of Comprehensive Loss Statement of Stockholders' Equity (Deficit) Statements of Cash Flows Notes to Consolidated Financial Statements Valuation and Qualifying Accounts Corporate Information

(IN THOUSANDS) DECEMBER 31, ------------------- 2000 1999 -------- ------- ASSETS Current assets: Cash and cash equivalents................................. $ 23,865 $18,849 Short-term investments.................................... 3,019 5,957 Restricted cash........................................... 1,500 -- Accounts receivable, less allowance for doubtful accounts of $1,220 and $597, respectively........................ 18,102 8,228 Current portion of note receivable........................ 2,263 -- Notes receivable from related parties..................... 277 25 Prepaid expenses and other current assets................. 4,444 1,776 Income tax receivable..................................... 449 440 -------- ------- Total current assets.................................... 53,919 35,275 Property and equipment, net............................... 25,623 10,797 Capitalized software products, net........................ 479 -- Long-term investments..................................... -- 1,230 Note receivable from related party........................ 25 525 Notes receivable.......................................... 313 -- Goodwill and other intangible assets, net................. 281,607 20,326 Other assets.............................................. 1,785 265 -------- ------- Total assets............................................ $363,751 $68,418 ======== ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Note payable.............................................. $ 343 $ 623 Equipment lease and revolving lines of credit............. 12,089 293 Capital lease obligations................................. 2,123 941 Accounts payable.......................................... 9,502 3,102 Accrued liabilities....................................... 19,967 9,172 Income taxes payable...................................... 482 22 Deferred revenue.......................................... 16,991 241 Other liabilities......................................... 263 -- -------- ------- Total current liabilities............................... 61,760 14,394 Notes payable............................................. 264 504 Other long-term liabilities............................... 1,146 -- Capital lease obligations................................. 3,303 1,544 Equipment lease line of credit............................ 873 680 Deferred revenue.......................................... 1,834 -- Deferred taxes............................................ 25,141 -- -------- ------- Total liabilities....................................... 94,321 17,122 -------- ------- Commitments and contingencies (Note 8) Stockholders' equity: Preferred stock, $0.001 par value, shares authorized: 4,000 (5,000 authorized net of 1,000 designated as Series A Junior Participating Preferred), shares issued and outstanding: zero in 2000 and 1999.................. -- -- Series A Junior Participating Preferred stock: $0.001 par value; shares authorized 1,000: shares issued and outstanding: zero in 2000 and 1999...................... -- -- Common stock: $0.001 par value; Shares authorized: 95,000 Shares issued and outstanding: 36,597 in 2000 and 20,923 in 1999................................................. 35 20 Additional paid-in capital.................................. 330,061 66,215 Notes receivable from stockholders.......................... (41) (41) Deferred stock compensation................................. (9,263) (5,786) Accumulated other comprehensive income...................... 8 -- Accumulated deficit......................................... (51,370) (9,112) -------- ------- Total stockholders' equity................................ 269,430 51,296 -------- ------- Total liabilities and stockholders' equity.......... $363,751 $68,418 ======== ======= The accompanying notes are an integral part of these consolidated financial statements.