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Our original Year 2000 compliance efforts included:

Reviewing and updating the Year 2000 compliance status of the software and systems used in our internal business processes
Obtaining appropriate assurances of compliance from the manufacturers of these products and agreements, as necessary, to modify or replace all non-compliant products

This program was substantially completed by December 31, 1999.

In addition, we converted certain of our software and systems to commercial products from third parties that were known to be Year 2000 compliant. This conversion required:

The dedication of substantial time from our administrative and management information personnel
The assistance of consulting personnel from third party software vendors
The training of our personnel using such systems

Based on the information available to date, we believe that we were able to complete our Year 2000 compliance review and make necessary modifications prior to the end of 1999. To the extent that we will continue to rely on the products of other vendors to resolve Year 2000 issues, there can be no guarantee that we will not experience delays in implementing such products. We could incur substantial costs and disruption of our business if key systems, or a significant number of systems, were to fail as a result of Year 2000 problems or if we were to experience delays in implementing Year 2000 compliant software products.

State of Readiness. Our Year 2000 project was divided into four major sections:

Product Readiness
Information Systems Operations & Applications Software (IS Systems)
Third-party Suppliers
Global Business Processes (includes Facilities, Legal, Manufacturing, Technical Support, Sales, Product Management and Development, Marketing and Finance)

There were five general phases of our Year 2000 Project applicable to each of the four sections:

Awareness Phase. Increasing employee awareness through various forms of communication
Mission Critical Inventory Phase. Taking an inventory of mission critical items relevant to Year 2000 (including computer hardware, software, telecommunications equipment, embedded controllers within our facilities, and other non-computer related equipment), assigning priorities to identified items for assessment and possible renovation, and assessing the status of Year 2000 compliance of items which we have determined to be material to our business
Repair or Replace Phase. Repairing or replacing material items that are not Year 2000 compliant. Material items are those items that we believe have a significant negative impact on customer service, involve a risk to the safety of individuals, may cause damage to property or the environment, or may significantly affect revenue
Update Testing Phase. Testing of updates given by third party suppliers
Business Contingency Phase. Designing and implementing contingency plans for each internal organization and critical location during the Year 2000 rollover period

As of December 31, 1999 we had substantially completed all of the phases for each of the four sections of the project.

Product Readiness. All of our currently supported products are Year 2000 compliant, meaning that the use or occurrence of dates on or after January 1, 2000 will not adversely affect the performance or functionality of our products with respect to four-digit year dates or the ability of our products to correctly create, store, process, and output information related to such date data, including Leap Year calculations. However, Year 2000 compliance of our products may be affected by other parts of the system in which they are being used, as discussed below.

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