Notes to Consolidated Financial Statements

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NOTE 3 Property and Equipment    Property and equipment, net, consists of the following: DECEMBER 31, -------------------- 2000 1999 ------- ------- (IN THOUSANDS) PROPERTY AND EQUIPMENT Computer equipment........................................ $16,198 $ 7,166 Furniture and fixtures.................................... 4,197 1,607 Equipment................................................. 2,026 841 Software.................................................. 6,331 2,401 Leasehold improvements.................................... 2,838 187 ------- ------- 31,590 12,202 Less: Accumulated depreciation.............................. (5,967) (1,405) ------- ------- $25,623 $10,797 ======= =======

Depreciation expense for the years ended December 31, 2000, 1999 and 1998 was $4.6 million, $1.1 million and $118,000, respectively. Included in property and equipment at December 31, 2000 and December 31, 1999 is equipment acquired under capital leases totaling approximately $10.0 million and $4.1 million, respectively, and related accumulated depreciation of $3.0 million and $538,000, respectively.