Effects of Accounting Pronouncements

In June 1998, the Financial Accounting Standards Board issued Statement No. 133, Accounting for Derivative Instruments and Hedging Activities. Its amendments Statements No. 137, Accounting for Derivative Instruments and Hedging Activities-Deferral of the Effective Date of FASB Statement No. 133 and 138, Accounting for Derivative Instruments and Certain Hedging Activities, were issued in June, 1999 and June, 2000, respectively. Collectively these are referred to as Statement 133. Statement No. 133 establishes accounting and reporting standards for derivative instruments and is effective for fiscal years beginning after June 15, 2000. Because of the minimal use of derivatives, Management does not anticipate that the adoption will have a significant effect on earnings or the financial position of the Company.