Valuation and Qualifying Accounts

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) BALANCE AT ADDITIONS BEGINNING CHARGED TO COSTS BALANCE AT OF PERIOD AND EXPENSES DEDUCTIONS ENDING PERIOD ---------- ---------------- ---------- ------------- ALLOWANCE FOR DOUBTFUL ACCOUNTS Year Ended December 31, 1998....... $ 154 $ 203 $ 153(1) $ 204 Year Ended December 31, 1999....... $ 204 $ 505 $ 112(1) $ 597 Year Ended December 31, 2000....... $ 597 $1,357 $ 734(1) $1,220 DEFERRED TAX VALUATION ALLOWANCE Year Ended December 31, 1998....... -- -- -- -- Year Ended December 31, 1999....... -- $1,408 -- $1,408 Year Ended December 31, 2000....... $1,408 $7,393 $1,408(2) -- (1) Deductions include the write off of uncollectible amounts with respect to accounts receivable. (2) Utilization of the deferred tax valuation allowance to offset deferred tax liabilities generated in the acquisition of ERISCO Managed Care Technologies, Inc. in 2000.