Consolidated Statement of Stockholders' Equity (Deficit)

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

FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998 (IN THOUSANDS) NOTES COMMON STOCK ADDITIONAL RECEIVABLE --------------- PAID-IN FROM SHARES AMOUNT CAPITAL STOCKHOLDERS ------ ------ ---------- ------------ Balance, December 31, 1997........................ 9,693 $10 $ 463 $ (13) Issuance of common stock.......................... 75 -- 9 -- Issuance of common stock for note receivable...... 390 -- 53 (53) Repurchase of common stock........................ (941) (1) (67) -- Payments on notes receivable...................... -- -- -- 25 Notes issued to stockholders...................... -- -- -- (700) Deferred stock compensation related to employee stock options.................................... -- -- 482 -- Amortization of deferred stock compensation....... -- -- -- -- Net income........................................ -- -- -- -- ------ --- -------- ----- Balance, December 31, 1998........................ 9,217 9 940 (741) Issuance of common stock to purchase Creative Business Solutions, Inc. and HealthWeb Systems, Ltd. ............................................ 655 1 1,145 -- Issuance of common stock to purchase assets of Management & Technology Solutions, Inc. ......... 60 -- 140 -- Issuance of common stock for purchase of Novalis Corporation...................................... 549 1 8,999 -- Issuance of common stock for purchase of Finserv Health Care Systems, Inc. ....................... 49 -- 1,499 -- Repurchase of common stock in exchange for notes receivable from stockholders..................... (563) (1) (3) 700 Deferred stock compensation related to employee stock options.................................... -- -- 6,383 -- Amortization of deferred stock compensation....... -- -- -- -- Stock compensation................................ -- -- 53 -- Repurchase common stock........................... (6) -- -- -- Exercise of common stock options and warrants..... 206 -- 141 -- Issuance of common stock related to initial public offering, net of offering costs of $4,324........ 4,480 4 35,992 -- Conversion of preferred stock to common stock..... 6,276 6 10,926 -- Net loss.......................................... -- -- -- -- ------ --- -------- ----- Balance, December 31, 1999........................ 20,923 20 66,215 (41) Issuance of common stock to purchase Healthcare Media Enterprises, Inc. ......................... 223 -- 5,189 -- Issuance of common stock to purchase Erisco Managed Care Technologies, Inc. ................. 12,143 12 192,911 -- Issuance of common stock to purchase Resource Information Management Systems, Inc. ............ 2,588 3 54,862 -- Issuance of common stock in exchange for services......................................... 4 -- 99 -- Value of options assumed for Resource Information Management Systems, Inc. acquisition............. -- -- 4,718 -- Issuance of stock warrants........................ -- -- 1,716 -- Cancellation of Novalis Corporation escrowed shares........................................... (114) -- (2,206) -- Deferred stock compensation related to restricted stock grants..................................... 325 -- 5,070 -- Deferred stock compensation related to employee stock options.................................... -- -- 341 -- Amortization of deferred stock compensation....... -- -- -- -- Exercise of common stock options.................. 443 -- 316 -- Employee purchase of common stock................. 62 -- 830 -- Foreign currency translation gain................. -- -- -- -- Net loss.......................................... -- -- -- -- ------ --- -------- ----- Balance, December 31, 2000........................ 36,597 $35 $330,061 $ (41) ====== === ======== ===== ACCUMULATED RETAINED TOTAL DEFERRED OTHER EARNINGS STOCKHOLDERS' STOCK COMPREHENSIVE (ACCUMULATED EQUITY COMPENSATION INCOME DEFICIT) (DEFICIT) ------------ ------------- ------------ ------------- Balance, December 31, 1997........................ $ -- $-- $ 103 $ 563 Issuance of common stock.......................... -- -- -- 9 Issuance of common stock for note receivable...... -- -- -- -- Repurchase of common stock........................ -- -- (652) (720) Payments on notes receivable...................... -- -- -- 25 Notes issued to stockholders...................... -- -- -- (700) Deferred stock compensation related to employee stock options.................................... (482) -- -- -- Amortization of deferred stock compensation....... 22 -- -- 22 Net income........................................ -- -- 60 60 ------- --- -------- -------- Balance, December 31, 1998........................ (460) -- (489) (741) Issuance of common stock to purchase Creative Business Solutions, Inc. and HealthWeb Systems, Ltd. ............................................ -- -- -- 1,146 Issuance of common stock to purchase assets of Management & Technology Solutions, Inc. ......... -- -- -- 140 Issuance of common stock for purchase of Novalis Corporation...................................... -- -- -- 9,000 Issuance of common stock for purchase of Finserv Health Care Systems, Inc. ....................... -- -- -- 1,499 Repurchase of common stock in exchange for notes receivable from stockholders..................... -- -- (696) -- Deferred stock compensation related to employee stock options.................................... (6,383) -- -- -- Amortization of deferred stock compensation....... 1,057 -- -- 1,057 Stock compensation................................ -- -- -- 53 Repurchase common stock........................... -- -- -- -- Exercise of common stock options and warrants..... -- -- -- 141 Issuance of common stock related to initial public offering, net of offering costs of $4,324........ -- -- -- 35,996 Conversion of preferred stock to common stock..... -- -- -- 10,932 Net loss.......................................... -- -- (7,927) (7,927) ------- --- -------- -------- Balance, December 31, 1999........................ (5,786) -- (9,112) 51,296 Issuance of common stock to purchase Healthcare Media Enterprises, Inc. ......................... -- -- -- 5,189 Issuance of common stock to purchase Erisco Managed Care Technologies, Inc. ................. -- -- -- 192,923 Issuance of common stock to purchase Resource Information Management Systems, Inc. ............ -- -- -- 54,865 Issuance of common stock in exchange for services......................................... -- -- -- 99 Value of options assumed for Resource Information Management Systems, Inc. acquisition............. -- -- -- 4,718 Issuance of stock warrants........................ -- -- -- 1,716 Cancellation of Novalis Corporation escrowed shares........................................... -- -- -- (2,206) Deferred stock compensation related to restricted stock grants..................................... (5,070) -- -- -- Deferred stock compensation related to employee stock options.................................... (341) -- -- -- Amortization of deferred stock compensation....... 1,934 -- -- 1,934 Exercise of common stock options.................. -- -- -- 316 Employee purchase of common stock................. -- -- -- 830 Foreign currency translation gain................. -- 8 -- 8 Net loss.......................................... -- -- (42,258) (42,258) ------- --- -------- -------- Balance, December 31, 2000........................ $(9,263) $ 8 $(51,370) $269,430 ======= === ======== ======== The accompanying notes are an integral part of these consolidated financial statements.