NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2000, DECEMBER 31, 1999 AND DECEMBER 31, 1998
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

Note 14. Segment Reporting

The Company operates in two business segments – company-owned training centers and franchising operations. The company-owned training centers segment operates wholly-owned computer training centers in the United States and derives its revenues from the operating revenues of those centers. The franchising segment franchises computer training centers domestically and internationally and supplies systems of instruction and sales and management concepts concerning computer training to independent franchisees. The franchising segment revenues are from the initial franchise fees and royalties from the franchise operations and other revenue such as from Nova Vista and the CES program. The two segments are managed separately because of the differences in the source of revenues and the services offered. Information on the Company’s segments is as follows: