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<TITLE>FORM S-1</TITLE>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">As filed with the Securities and Exchange
Commission on April&nbsp;12, 2004</FONT></B>
</DIV>

<DIV align="right">
<B><FONT size="2">Registration
No.&nbsp;333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B>
</DIV>

<DIV align="left">
<HR size="4" noshade color="#000000" style="margin-top: -5px">
</DIV>

<DIV align="left">
<HR size="1" noshade color="#000000" style="margin-top: -10px">
</DIV>

<P align="center">
<B><FONT size="4">UNITED STATES SECURITIES AND EXCHANGE
COMMISSION</FONT></B>

<DIV align="center">
<B>Washington,&nbsp;D.C. 20549</B>
</DIV>

<DIV align="center">
<B><FONT size="5">Form S-1</FONT></B>
</DIV>

<DIV align="center">
<B>REGISTRATION STATEMENT UNDER</B>
</DIV>

<DIV align="center">
<B>THE SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center">
<B><FONT size="6">Greenfield Online,&nbsp;Inc.</FONT></B>
</DIV>

<DIV align="center">
<I><FONT size="2">(Exact name of registrant as specified in its
charter)</FONT></I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="33%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="29%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT size="2">Delaware</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">8742</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">91-0640369</FONT></B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I><FONT size="2">(State or other jurisdiction of<BR>
    incorporation or organization)</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <I><FONT size="2">(Primary Standard Industrial<BR>
    Classification Code Number)</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <I><FONT size="2">(I.R.S. Employer<BR>
    Identification Number)</FONT></I></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B><FONT size="2">21 River Road</FONT></B>

<DIV align="center">
<B><FONT size="2">Wilton, CT 06897</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(203)&nbsp;834-8585</FONT></B>
</DIV>

<DIV align="center">
<I><FONT size="2">(Address, including zip code and telephone
number, including area code, of Registrant&#146;s principal
executive offices)</FONT></I>
</DIV>

<P align="center">
<B><FONT size="2">Dean A. Wiltse</FONT></B>

<DIV align="center">
<B><FONT size="2">President and Chief Executive
Officer</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Greenfield Online,&nbsp;Inc.</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">21 River Road</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Wilton, CT 06897</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(203)&nbsp;834-8585</FONT></B>
</DIV>

<DIV align="center">
<I><FONT size="2">(Name, address, including zip code and
telephone number, including area code, of agent for
service)</FONT></I>
</DIV>

<P align="center">
<B><I><FONT size="2">Copies to:</FONT></I></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT size="2">Gary J. Kocher, Esq.<BR>
    Michael W. Moyer, Esq.<BR>
    Preston Gates&nbsp;&#38; Ellis LLP<BR>
    925 Fourth Avenue<BR>
    Seattle, WA 98104<BR>
    (206) 623-7580</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <B><FONT size="2">Jonathan A. Flatow,&nbsp;Esq.<BR>
    Vice President and General Counsel<BR>
    Greenfield Online,&nbsp;Inc.<BR>
    21 River Road<BR>
    Wilton, CT 06897<BR>
    (203) 834-8585</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <B><FONT size="2">Raphael M. Russo,&nbsp;Esq.<BR>
    Paul, Weiss, Rifkind,&nbsp;Wharton&nbsp;&#38; Garrison LLP<BR>
    1285 Avenue of the Americas<BR>
    New&nbsp;York, NY 10019<BR>
    (212) 373-3000</FONT></B></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Approximate date
of commencement of proposed sale to the public:</B> As soon as
practicable after the effective date of this Registration
Statement.
</FONT>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the
securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule&nbsp;415 under the
Securities Act of 1933, check the following
box:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is
filed to register additional securities for an offering pursuant
to Rule&nbsp;462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement
number of the earlier effective registration statement for the
same
offering:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a
post-effective amendment filed pursuant to Rule&nbsp;462(c)
under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier
effective registration statement for the same
offering:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a
post-effective amendment filed pursuant to Rule&nbsp;462(d)
under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier
effective registration statement for the same
offering:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If delivery of the
prospectus is expected to be made pursuant to Rule&nbsp;434,
please check the following
box:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="center">
<B><FONT size="2">CALCULATION OF REGISTRATION FEE</FONT></B>

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<TR>
    <TD width="57%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="17%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
</TR>

<TR>
    <TD colspan="5" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
</TR>

<TR>
    <TD colspan="5" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Proposed Maximum</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Amount of</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Title of Each Class of</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Aggregate</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Registration</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Securities to be Registered</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Offering Price(1)</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Fee</FONT></B></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
</TR>

<TR>
    <TD colspan="5" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Common Stock, par value $0.0001&nbsp;per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$75,000,000
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$9,503
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5" align="left"><HR size="1" noshade></TD>

</TR>

<TR>
    <TD colspan="5" align="left"><HR size="1" noshade></TD>

</TR>

</TABLE>
</CENTER>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Estimated solely for the purpose of calculating
    the registration fee pursuant to Rule&nbsp;457(o) under the
    Securities Act of 1933, as amended.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Registrant
hereby amends this Registration Statement on such date or dates
as may be necessary to delay its effective date until the
Registrant shall file a further amendment which specifically
states that this Registration Statement shall thereafter become
effective in accordance with Section&nbsp;8(a) of the Securities
Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to
said Section&nbsp;8(a), may determine.</B>
</FONT>

<P align="left">
<HR size="1" noshade color="#000000" style="margin-top: -2px">

<DIV align="left">
<HR size="4" noshade color="#000000" style="margin-top: -10px">
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" border="1" cellpadding="5"><TR><TD>
<B><FONT size="2" color="#D30547">The information in this
prospectus is not complete and may be changed. We may not sell
these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus
is not an offer to sell these securities and it is not
soliciting an offer to buy these securities in any jurisdiction
where the offer or sale is not permitted.</FONT><FONT size="2">
<BR>
</FONT></B>
</TD></TR></TABLE>

<P align="center">
<FONT color="#D30547">Subject to Completion, dated
April&nbsp;12, 2004
</FONT>

<P align="left">
PROSPECTUS

<P align="center">
<FONT size="4">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares
</FONT>

<P align="center">
<IMG src="y95710y9571002.gif" alt="(GREENFIELD ONLINE LOGO)">

<P align="center">
<FONT size="5">Common Stock
</FONT>

<P align="left">
<HR size="1" width="100%" align="left" noshade>

<P align="left">
<FONT size="2">This is our initial public offering of common
stock. We are
offering &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock and the selling stockholders identified in
this prospectus are offering an
additional &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock. No public market currently exists for our
common stock. We will not receive any proceeds from the sale of
the shares offered by the selling stockholders.
</FONT>

<P align="left">
<FONT size="2">We have applied to have our common stock approved
for quotation on the Nasdaq National Market under the symbol
&#147;SRVY.&#148; We currently estimate that the initial public
offering price will be between
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share.
</FONT>

<P align="center">
<I>Investing in our common stock involves risks. Please read
&#147;Risk Factors&#148; beginning on page&nbsp;7.</I>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="60%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Per Share</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Public Offering Price
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Underwriting Discount
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds to Greenfield Online,&nbsp;Inc. (before
    expenses)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds to the selling stockholders (before
    expenses)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<FONT size="2">The selling stockholders have granted the
underwriters a 30-day option to purchase up
to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;additional
shares of common stock on the same terms and conditions as set
forth above to cover over-allotments, if any.
</FONT>

<P align="left">
<FONT size="2">Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved
of these securities or determined if this prospectus is accurate
or complete. Any representation to the contrary is a criminal
offense.
</FONT>

<P align="left">
<FONT size="2">Lehman Brothers, on behalf of the underwriters,
expects to deliver the shares on or
about &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2004.
</FONT>

<P align="left">
<HR size="1" width="100%" align="left" noshade>

<P align="left">
<FONT size="2"> </FONT><B><FONT size="4">LEHMAN
BROTHERS</FONT></B>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="30%"></TD>
    <TD width="70%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2"> </FONT><B><FONT size="4">FRIEDMAN BILLINGS
    RAMSEY</FONT></B></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="61%"></TD>
    <TD width="39%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2"> </FONT><B><FONT size="4">PIPER JAFFRAY</FONT></B></TD>
</TR>

</TABLE>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2004

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<DIV align="left">

</DIV>

<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<P align="center">
<B><FONT size="2">TABLE OF CONTENTS</FONT></B>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="90%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Page</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#101'>Prospectus Summary</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#102'>The Offering</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#103'>Risk Factors</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#104'>Cautionary Note Regarding
    Forward-Looking Statements</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#105'>Use of Proceeds</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#106'>Dividend Policy</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#107'>Capitalization</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#108'>Dilution</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#109'>Selected Consolidated
    Financial Data</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#110'>Management&#146;s Discussion
    and Analysis of Financial Condition and Results of Operations</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#111'>Business</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#112'>Management</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#113'>Certain Relationships and
    Related Transactions</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#114'>Principal and Selling
    Stockholders</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#115'>Description of Capital
    Stock</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#116'>Shares Eligible for Future
    Sale</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#117'>Underwriting</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">79</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#118'>Notice to Canadian
    Residents</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">83</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#119'>Legal Matters</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#120'>Experts</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#121'>Where You Can Find More
    Information</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#122'>Index to Consolidated
    Financial Statements</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv3w1.txt">AMENDED AND RESTATED CERTIFICATE OF INCORPORATION</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv3w2.txt">AMENDED AND RESTATED BYLAWS</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv4w2.txt">AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv4w3.txt">REGISTRATION RIGHTS AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv4w4.txt">REGISTRATION RIGHTS AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w1.txt">FORM OF INDEMNIFICATION AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w2.txt">AMENDED AND RESTATED 1999 STOCK OPTION PLAN</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w3.txt">2004 EQUITY INCENTIVE PLAN</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w4.txt">2004 EMPLOYEE STOCK PURCHASE PLAN</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w5.txt">FORM OF STOCK OPTION AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w7.txt">RESTRICTED STOCK AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w8.txt">RESTRICTED STOCK AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w9.txt">RESTRICTED STOCK AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w10.txt">RESTRICTED STOCK AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w11.txt">RESTRICTED STOCK AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w12.txt">LICENSE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w13.txt">NOTE AND WARRANT PURCHASE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w14.txt">FORM OF WARRANT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w15.txt">NON-RECOURSE PROMISSORY NOTE</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w16.txt">FULL RECOURSE PROMISSORY NOTE</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w17.txt">PLEDGE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w18.txt">WARRANT FOR PURCHASE OF SHARES</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w19.txt">WARRANT FOR PURCHASE OF SHARES</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w20.txt">ACCOUNTS RECEIVABLE FINANCING AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w21.txt">LEASE</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w22.txt">AGREEMENT TO LEASE</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w23.txt">AGREEMENT TO LEASE</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w24.txt">LEASE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w25.txt">FIELDSOURCE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w26.txt">ENTERPRISE USER LICENSE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w27.txt">COMMERCIAL AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w28.txt">THE ALLIANCE, LICENSE AND SUPPLY AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w29.txt">FORM OF PARTNERING AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w35.txt">EMPLOYMENT AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv10w36.txt">EMPLOYMENT AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv21w1.txt">SUBSIDIARIES</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y95710exv23w1.txt">CONSENT OF PRICEWATERHOUSECOOPERS LLP</A></FONT></TD></TR>
</TABLE>
</CENTER>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center">
<B><FONT size="2">ABOUT THIS PROSPECTUS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You should rely only on the information contained
in this prospectus. We have not, and the underwriters have not,
authorized any other person to provide you with different
information. If anyone provides you with different or
inconsistent information, you should not rely on it. We and the
underwriters are not making an offer to sell these securities in
any jurisdiction where an offer or sale is not permitted. You
should assume that the information appearing in this prospectus
is accurate as of the date on the front cover of this prospectus
only. Our business, financial condition, results of operations
and prospects may have changed since that date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Through and
including &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2004 (the 25th day after the date of this prospectus), all
dealers effecting transactions in our common stock, whether or
not participating in this offering, may be required to deliver a
prospectus. This is in addition to the dealers&#146; obligations
to deliver a prospectus when acting as underwriters and with
respect to their unsold allotments or subscriptions.</FONT></B>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2"> <A name='101'></A>
</FONT>
</DIV>

<!-- link1 "PROSPECTUS SUMMARY" -->

<P align="center">
<B><FONT size="2">PROSPECTUS SUMMARY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">This summary highlights key aspects of the
information contained elsewhere in this prospectus. This summary
does not contain all the information you should consider before
investing in our common stock. You should read this entire
prospectus carefully, especially the risks of investing in our
common stock discussed under &#147;Risk Factors&#148; beginning
on page&nbsp;7 and our consolidated financial statements and the
notes to those consolidated financial statements beginning on
page&nbsp;F-1, before making an investment decision.</FONT></I>

<P align="center">
<B><FONT size="2">Greenfield Online,&nbsp;Inc.</FONT></B>

<P align="left">
<B><FONT size="2">Overview</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are a leading independent provider of Internet
survey solutions to the global marketing research industry and
we derive 100% of our revenues from Internet data collection
products and services. We actively manage the Greenfield Online
panel, a 100% Internet-based panel of approximately
1.7&nbsp;million individuals who participate in our surveys. Our
panelists represent households consisting of an estimated
4.7&nbsp;million people, allowing us to compile diverse,
demographically representative survey data.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We target our Internet survey solutions to
approximately 2,500 full service marketing research and
consulting firms in the United States and the world&#146;s top
25 marketing research companies. Our clients use the Internet
survey data that we provide to enable companies throughout the
world to make critical business decisions. Based on our internal
estimates, we believe that spending associated with the
gathering of survey data, known as fieldwork, accounts for
approximately 40% of the annual spending on survey marketing
research. Using this estimate, fieldwork represented
approximately $3.0&nbsp;billion of the $7.5&nbsp;billion global
survey market in 2002 as reported by the <I>World Association of
Opinion and Marketing Research Professionals</I>.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Until January 2002, we sold both custom
Internet-based marketing research and the Internet survey
solutions we sell today. A majority of our revenues for the
first seven years of our existence was derived from the sale of
custom research. In September 2001, we embarked on a strategy to
convert the focus of our business from providing custom research
to end-users to providing Internet survey solutions to the
marketing research firms we target today. This strategy
culminated in the sale of our custom research business in
January 2002. This sale represented a turning point in our
development as we shifted from a labor-intensive, professional
services model to a scalable, Internet-based services model.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We partner with our clients to leverage their
global sales forces and do not compete with them for custom
marketing research business. This cooperative marketing strategy
has led to significant market penetration. For the year ended
December&nbsp;31, 2003, we completed 2,482 Internet-based
projects, a 99% increase over 2002. Additionally, 45 companies
each purchased over $100,000 of our products and services in
2003, an 88% increase over 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Internet survey solutions are faster, more
efficient and more cost-effective for collecting high quality
marketing research data than traditional, labor-intensive
methods such as telephone, direct-mail and mall-based surveying.
The Internet allows our panelists to participate
24&nbsp;hours-a-day in a more convenient and less intrusive
environment than traditional data collection methods. Our
Internet-based technology interactively engages respondents
through the use of images, sound and video, enabling us to
collect richer data for our clients. We believe Internet-based
survey solutions speed survey completion, allow for
significantly larger survey sample sizes over a given time
period and provide marketing researchers with a cost-effective
means of reaching niche segments.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe we are well-positioned to capitalize
on evolving dynamics within the global survey research market.
Decreasing cooperation rates experienced by the telephone survey
industry and the increasing use of mobile phones as a primary
means of telephone communication have led to a decline in the
effectiveness of traditional telephone-based data collection
methods. This decline has been exacerbated by the recently
established Do Not Call registry, covering over 58&nbsp;million
telephone numbers. At the same time,&nbsp;Internet
</FONT>

<P align="center"><FONT size="2">1
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">penetration rates and increased broadband usage
have accelerated growth in the use of Internet-based marketing
research. We believe these dynamics will drive demand for our
Internet survey solutions. Through our North American
operations, sales offices in the United Kingdom and Continental
Europe and our production facilities in India, we believe we are
well-positioned to meet this demand.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Competitive Strengths</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe the following strengths differentiate
us from our competitors:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">The Greenfield Online
    Panel.</FONT></I><FONT size="2"> The Greenfield Online panel is
    one of the largest Internet-based panels available. Our
    1.7&nbsp;million panelists have double opted-in to participate
    in our surveys. We perform extensive screening and analysis of
    our panelists, which allows us to offer our clients premium
    specialty panels comprised of people with similar
    characteristics. We have the ability to quickly reach
    appropriate target audiences within the Greenfield Online panel
    for a wide range of client requests, including respondents in
    the healthcare, automotive, Hispanic, business-to-business,
    information technology and international segments.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Experienced Panel
    Management.</FONT></I><FONT size="2"> Over the past nine years,
    we have developed proprietary panel management techniques
    designed to maximize the efficiency and productivity of the
    Greenfield Online panel. We maintain a fresh and active panel by
    continually adding new members and seeking additional
    information from our panelists. These panel management
    techniques allow us to efficiently target our survey invitations
    and create relevant cash and non-cash incentive programs for our
    panelists. Additionally, we maintain policies to protect the
    confidentiality of our panelists&#146; personal information and
    prohibit marketing to our panelists using information obtained
    through their survey participation. We believe that these
    policies have enabled us to develop a relationship of trust with
    our panelists and foster a climate that encourages their
    continued participation in our surveys.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Complete Internet Survey
    Solutions.</FONT></I><FONT size="2"> We offer a wide range of
    Internet survey solutions that enable the global marketing
    research industry to conduct Internet-based research. Our
    complete range of survey solutions facilitates the migration
    from traditional survey methods to Internet-based methods and
    eliminates the need for our clients to develop their own
    Internet research capabilities.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Focused Sales
    Strategy.</FONT></I><FONT size="2"> Our focused sales strategy
    seeks to incorporate our Internet survey solutions into our
    clients&#146; research proposals that they present to the
    end-users of the data we collect. Our client relationships are
    strengthened by this cooperative sales strategy, which allows us
    to leverage their global sales forces as a distribution channel
    for our products and services. We do not compete with our
    clients for custom marketing research business from end-users.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Significant Operating
    Leverage.</FONT></I><FONT size="2"> We believe our
    Internet-based business model provides significant operating
    leverage and should lead to expansion of our operating income
    margin if we succeed in growing our revenues. By leveraging the
    established Greenfield Online panel, conducting an increasing
    number of surveys using our existing technology infrastructure
    and benefiting from our operations center in India, we believe
    that we will continue to improve our operating leverage.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Well-Established Brand and Commitment to
    Customer Service.</FONT></I><FONT size="2"> We were founded in
    1994 and conducted our first Internet-based marketing research
    project in 1995. Since our inception, we have built and refined
    the Greenfield Online panel and maintained a commitment to
    industry-leading customer service. For example, in 2003 we
    established an operations center near New Delhi, in
    Gurgaon,&nbsp;India, which is integrated with our U.S., Canadian
    and U.K. facilities and allows us to provide our clients with
    continuous survey programming, data collection and processing
    services. Our early entry into the Internet-based survey
    marketing research industry, the quality of the Greenfield
    Online panel and our commitment to customer service have enabled
    us to develop a strong brand within the marketing research
    industry.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Our Internet Survey Solutions</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We offer customized Internet survey solutions
that address our clients&#146; needs, including full-service
data collection and sample solutions.
</FONT>

<P align="center"><FONT size="2">2
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Full-Service.</FONT></I><FONT size="2"> We
    program and host our clients&#146; surveys, invite our panelists
    to take the surveys, and deliver the compiled data to our
    clients for their analysis and presentation. Clients can utilize
    our complete range of survey technology solutions, such as
    embedding images, sound and video into surveys, store-shelf
    simulation testing and other 3D image demonstrations. Our
    full-service solutions also include our review of survey
    responses for internal consistency, tabulation and verbatim
    response interpretation and coding.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Sample Solutions.</FONT></I><FONT size="2"> We
    provide access to the Greenfield Online panel for one-time use
    to clients that have programming capabilities, but require
    survey respondents. We can offer this access within four hours
    of project initiation. In many instances, we serve as a
    supplemental sample provider when a client&#146;s existing
    resources cannot supply enough survey participants. Supplying
    survey respondents is often the last step of a research project
    and our clients rely on our ability to perform on a fast
    turnaround basis to meet their data collection needs and project
    deadlines.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Our Strategy</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our goal is to maintain and build upon our
leadership position within the global survey data collection
market. In order to achieve this goal, our strategy includes the
following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Drive migration of traditional fieldwork to
    Internet-based marketing research.</FONT></I><FONT size="2"> We
    will continue to facilitate the transition from traditional data
    collection methods to the Internet by:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="3%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#151;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">increasing the size and diversity of the
    Greenfield Online panel;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#151;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">expanding the range of our specialty panels,
    which currently include healthcare, automotive, Hispanic,
    business-to-business, information technology and international
    segments;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#151;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">developing new and innovative Internet survey
    solutions, such as our media testing capabilities that integrate
    images, sound and video directly into surveys; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#151;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">seeking to provide faster and better service than
    traditional survey data collection methods.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Expand
    internationally.</FONT></I><FONT size="2"> During 2004, we
    intend to expand our international capabilities in order to
    satisfy client demand for non-U.S. survey data by further
    developing the size and diversity of the Greenfield Online panel
    through the addition of more panelists from the United Kingdom,
    Germany, France and Canada. The migration of traditional data
    collection to the Internet in the international market is in its
    early stages and represents a significant growth opportunity.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Pursue strategic
    acquisitions.</FONT></I><FONT size="2"> We intend to seek
    strategic acquisitions both in the United States and
    internationally to increase the size, diversity and geographic
    scope of the Greenfield Online panel, increase our client base,
    acquire new technology, broaden our expertise and expand our
    portfolio of Internet survey solutions.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Corporate Information</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We were founded in 1994 as a business unit of
Greenfield Consulting Group,&nbsp;Inc. and incorporated as a
separate entity in Connecticut in 1995 under the name Greenfield
Online Research Center,&nbsp;Inc. We changed our name to
Greenfield Online,&nbsp;Inc. in 1997 and changed our state of
incorporation to Delaware in February 2000. References in this
prospectus to &#147;Greenfield Online,&#148; &#147;we,&#148;
&#147;our company&#148; and &#147;us&#148; refer to Greenfield
Online,&nbsp;Inc.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our principal executive offices are located at 21
River Road, Wilton, Connecticut 06897. Our telephone number is
(203)&nbsp;834-8585, our principal website address is
www.greenfield.com and our panel member website address is
www.greenfieldonline.com. The information contained on our
websites does not constitute part of, nor is it incorporated
into, this prospectus.
</FONT>

<P align="center"><FONT size="2">3
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='102'></A>
</DIV>

<!-- link1 "The Offering" -->

<P align="center">
<B><FONT size="2">The Offering</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Common stock offered by Greenfield Online
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2"> <BR>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Common stock offered by selling stockholders,
    including members of our management
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2"> <BR>
     <BR>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Common stock to be outstanding after this offering
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2"> <BR>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Use of Proceeds
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">We intend to use the proceeds we receive from
    this offering to make a mandatory conversion payment to holders
    of our Series&nbsp;B Convertible Participating Preferred Stock,
    pay all accumulated but unpaid dividends to the holders of our
    Series&nbsp;B Convertible Participating Preferred Stock, redeem
    our Series&nbsp;C-2 Redeemable Non-Voting Preferred Stock and to
    fund working capital and general corporate purposes, including
    potential acquisitions. We will not receive any proceeds from
    the sale of shares of our common stock by the selling
    stockholders. See &#147;Use of Proceeds.&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Proposed Nasdaq National Market symbol
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2"> <BR>
     &#147;SRVY&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Risk Factors
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">See &#147;Risk Factors&#148; beginning on
    page&nbsp;7 for a discussion of factors that you should consider
    carefully before deciding to purchase our common stock.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The number of shares of common stock that will be
outstanding after this offering is based on the number of shares
outstanding on April&nbsp;5, 2004 and excludes the following
shares:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">920,487&nbsp;shares issuable upon exercise of
    outstanding options, with a weighted average exercise price of
    $6.02&nbsp;per share;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">52,337&nbsp;shares issuable upon exercise of
    outstanding warrants, with a weighted average exercise price of
    $24.78&nbsp;per share;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an aggregate of 808,268&nbsp;shares available for
    future awards under our Amended and Restated 1999 Stock Option
    Plan (the &#147;1999 Option Plan&#148;) and our 2004 Equity
    Incentive Plan (the &#147;2004 Equity Plan&#148;);&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">250,000&nbsp;shares available for future issuance
    under our 2004 Employee Stock Purchase Plan (the &#147;Stock
    Purchase Plan&#148;).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless specifically stated otherwise, the
information in this prospectus:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">gives effect to a reverse one-for-14 split of our
    outstanding common stock to be effective upon completion of this
    offering;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">assumes no exercise of the underwriters&#146;
    over-allotment option;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">assumes an initial public offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, the mid-point of the price range set forth on the cover
    page of this prospectus;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reflects the automatic conversion of all of our
    preferred stock into common stock (other than our
    Series&nbsp;C-2 Redeemable Non-Voting Preferred Stock as
    discussed below);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reflects the redemption of our Series&nbsp;C-2
    Redeemable Non-Voting Preferred Stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">assumes no exercise of outstanding options and
    warrants;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">assumes the filing, immediately prior to the
    completion of this offering, of our amended and restated
    certificate of incorporation, referred to in this prospectus as
    our certificate of incorporation, and the adoption of our
    amended and restated bylaws, referred to in this prospectus as
    our bylaws, implementing the provisions described under
    &#147;Description of Capital Stock.&#148;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">4
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">Summary Consolidated Financial Data</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following table provides summary
historical consolidated financial data for the periods
indicated. You should read this information in conjunction with
&#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#148; and our consolidated
financial statements and the related notes included elsewhere in
this prospectus.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The summary consolidated statement of
operations data for each of the fiscal years ended
December&nbsp;31, 2001, 2002 and 2003 and the summary
consolidated balance sheet data as of December&nbsp;31, 2002 and
2003 are derived from our audited consolidated financial
statements, which are included elsewhere in this prospectus. The
summary consolidated balance sheet data as of December&nbsp;31,
2001 is derived from audited consolidated financial statements
not included in this prospectus.</FONT></I>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="53%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">($ in thousands, except per share data)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Consolidated Statement of Operations
    Data:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net revenues:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Internet survey solutions(1)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,072</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,416</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Custom research(2)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,715</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">470</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total net revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,787</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,886</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost of revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,097</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,409</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,884</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gross profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,690</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,477</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,984</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14,213</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,908</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,697</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total other income (expense)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,074</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss) before income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,963</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,798</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision (benefit) for income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(569</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,394</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,648</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less: Accretion of Series&nbsp;C-2 redeemable
    preferred stock dividends
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(63</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Charge to common stockholders for Series B
    convertible preferred stock liquidation preference in excess of
    fair market value
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,873</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative dividends on Series&nbsp;B convertible
    preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(28</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(673</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income allocable to participating preferred
    securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(761</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) available to common stockholders
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,295</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">151</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) per share available to common
    stockholders:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17.71</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6.42</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.07</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17.71</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6.42</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.06</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Weighted average shares (in thousands)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">976</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,054</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">976</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,347</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance Sheet Data (at end of
    period):</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,056</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,864</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,721</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,102</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,724</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,929</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital lease obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,537</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,997</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,579</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,855</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,216</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series C-2 redeemable preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">821</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">943</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;B convertible preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,441</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,114</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total stockholders&#146; deficit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,603</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,526</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,327</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Other Financial and Operating Data:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">EBITDA(3)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,339</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">118</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,692</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">EBITDA margin(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">n.m.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Number of projects completed during period
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">838</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,249</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,482</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">5
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">
<HR size="1" width="18%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Internet survey solutions includes services
    revenues from the collection of survey data for sale to
    marketing research companies.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Custom research includes revenues from the line
    of business that we sold to Taylor Nelson in January 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">We define EBITDA as earnings before interest
    expense, income taxes, depreciation and amortization, which
    definition may not be comparable to similarly titled measures
    reported by other companies. We are presenting EBITDA because it
    provides an additional way to view our operations, when
    considered with both our GAAP results and the reconciliation to
    net income, which we believe provides a more complete
    understanding of our business than could be obtained absent this
    disclosure. EBITDA is presented solely as a supplemental
    disclosure because: (i)&nbsp;we believe it is a useful tool for
    investors to assess the operating performance of our business
    without the effect of non-cash depreciation and amortization
    expenses; (ii)&nbsp;we believe that investors will find it
    useful in assessing our ability to service or incur
    indebtedness; (iii)&nbsp;we use EBITDA internally to evaluate
    the performance of our personnel and also as a benchmark to
    evaluate our operating performance or compare our performance to
    that of our competitors. The use of EBITDA has limitations and
    you should not consider EBITDA in isolation from or as an
    alternative to GAAP measures, such as net income, cash flows
    from operating activities and consolidated income or cash flow
    statement data prepared in accordance with GAAP, or as a measure
    of profitability or liquidity. The following table sets forth
    the reconciliation of EBITDA, a non-GAAP financial measure, to
    net income (loss), our most directly comparable financial
    measure presented in accordance with GAAP.
    </FONT></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="68%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">($ in thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,394</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,648</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,306</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">591</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">496</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision (benefit) for income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(569</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation and amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,642</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,490</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,398</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">EBITDA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,339</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">118</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,692</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">EBITDA margin
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">n.m.</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

</TABLE>
</CENTER>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">We define EBITDA margin as our EBITDA as a
    percentage of our net revenues. EBITDA margin is not presented
    for 2001 because it is not meaningful.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">6
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2"> <A name='103'></A>
</FONT>
</DIV>

<!-- link1 "RISK FACTORS" -->

<P align="center">
<B><FONT size="2">RISK FACTORS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">An investment in our common stock involves a
high degree of risk. You should carefully consider the risks
described below, together with the financial and other
information contained in this prospectus, before making a
decision to buy our common stock. If any of the following risks
actually occur, our business, financial condition and results of
operations could suffer. In these circumstances, the market
price of our common stock could decline, and you may lose all or
part of your investment in our common stock.</FONT></I>

<P align="center">
<B><FONT size="2">Risks Related to Our Business</FONT></B>

<P align="left">
<B><FONT size="2">We have incurred losses in recent years and
may incur them again.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We incurred net losses of $52.6&nbsp;million,
$17.3&nbsp;million and $2.4&nbsp;million in 2000, 2001 and 2002,
respectively. While we were profitable in 2003, we may not be
profitable in the future. Furthermore, we may not be able to
maintain or increase profitability in the future on a quarterly
or annual basis.
</FONT>

<P align="left">
<B><FONT size="2">If we are unable to maintain the size or
demographic composition of the Greenfield Online panel, our
clients may stop using our products and services.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The commercial viability of our marketing
research data and our overall business is dependent on our
ability to attract and maintain active panelists and ensure
optimal panel composition to accommodate a broad variety of
marketing research requests. There is currently no historical
benchmark by which to predict the optimal size of research
panels to ensure high response rates and maximum revenue
generation per panelist. If we are unable to accurately
determine or build optimal-sized panels, our current panelists
may become overused and unresponsive to our requests to
participate in surveys. If we fail to regenerate our panel with
new and active panelists on a regular basis, the size and
demographic diversity of the Greenfield Online panel may
decrease and our clients may reduce or stop using our products
and services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the number of panelists participating in the
Greenfield Online panel decreases, the cost of acquiring new
panelists becomes excessive or the demographic composition of
our panel narrows, our ability to provide our clients with
accurate and statistically relevant information could suffer.
This risk is likely to increase as our clients&#146; needs
expand, and as more demographically diverse surveys are
requested by our clients.
</FONT>

<P align="left">
<B><FONT size="2">If the rate at which our panelists respond to
our surveys decreases, we may not be able to meet our
clients&#146; needs.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our panelists participate in our surveys on a
voluntary basis only, and there can be no assurance that they
will continue to do so. Our ability to maintain adequate
response rates may be harmed if:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our email-based survey invitations are not
    received by our panelists due to the use of spam-filtering and
    blocking software by individuals, corporations and Internet
    service providers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our panelists become dissatisfied with the forms
    of participation incentives we offer; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our panelists respond less frequently to our
    surveys, or stop responding altogether due to excessive requests
    for participation from us or other researchers.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Additionally, in the past, the responsiveness of
our panelists has been variable and a function of the length of
the surveys to be completed and the incentives offered to our
panelists in exchange for their participation. The incentives we
offer panelists to participate in surveys generally consist of
the opportunity to enter into sweepstakes and win prizes or
direct cash incentives. If we are required to increase
incentives or undertake more costly campaigns to retain our
current panelists, our operating expenses may increase.
</FONT>

<P align="center"><FONT size="2">7
</FONT>

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<B><FONT size="2">We derived approximately 27% of our total net
revenues from two clients in fiscal 2003. If we were to lose, or
if there were a material reduction in business from, either of
these clients or our other significant clients, our net revenues
might decline substantially.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In fiscal 2003, we derived approximately 27.1% of
our total net revenues from two clients that accounted for
approximately 14.5% and 12.7%, respectively. Either client may
terminate or reduce its use of our products and services at any
time in the future. Our top client in 2003 was Taylor Nelson
Sofres Intersearch, with which we had an alliance agreement
requiring it to make purchases of at least $5.6&nbsp;million of
our products and services from January&nbsp;31, 2002 to
January&nbsp;31, 2004. Taylor Nelson Sofres Intersearch
satisfied this obligation and is no longer contractually
required to purchase our products and services. In 2003, Taylor
Nelson Sofres Intersearch&#146;s parent company acquired NFO
Worldgroup, Inc., which maintains and operates a large Internet
respondent panel similar to our own. As a result of this
acquisition, we expect the revenue we receive from Taylor Nelson
Sofres Intersearch in 2004 to be significantly less than in
2003. Our ten largest clients accounted for $13.8&nbsp;million,
or 53.4%, of our total net revenues for 2003. If we lose
business from any of our top 10 clients, our net revenues may
decline substantially.
</FONT>

<P align="left">
<B><FONT size="2">We may not be able to successfully compete
with marketing research firms and other potential
competitors.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The market for our products and services is
highly competitive. We compete for clients with other
Internet-based marketing research data collection firms, such as
SPSS Service Bureau and Harris Interactive Service Bureau; firms
offering respondent-only services, such as Survey Sampling, Inc.
and e-Rewards, Inc.; and large marketing research companies,
such as The Kantar Group and Harris Interactive, Inc. We expect
to face intense competition in the future from other marketing
research data collection firms that develop Internet-based
products and services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We also expect to face competition from other
companies with access to large databases of individuals with
whom they can communicate through the Internet, such as email
service providers and Internet-based direct marketers, as well
as companies that develop and maintain a large volume of
Internet traffic on their websites, such as large Internet
portals, networks and search engines. These companies may,
either alone or in alliance with other firms, enter the
Internet-based marketing research data collection market.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Many of our current and potential competitors
have longer operating histories, greater brand recognition and
significantly greater financial and other resources than we do.
These competitors may be able to undertake more extensive sales
and marketing campaigns offering their services, adopt more
aggressive pricing policies, and make more attractive offers to
potential employees, strategic partners, panelists and customers
than we can. In addition, these competitors and potential
competitors may develop technologies that are superior to ours,
or that achieve greater market acceptance than our own. If we do
not successfully compete with these companies, we might
experience a loss of market share and reduced levels of net
revenue and profitability and our business would suffer as a
result.
</FONT>

<P align="left">
<B><FONT size="2">Consolidation in the marketing research
industry may result in fewer potential clients for us and a
smaller market in general if companies with existing
Internet-based panels combine with companies without such
panels.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consolidations within the marketing research
industry in general and among our clients in particular, such as
the acquisition of NFO Worldgroup, Inc. by Taylor Nelson Sofres,
Plc, could cause us to lose business from clients that acquire
companies with Internet-based panels of their own. Similarly,
our smaller clients could be acquired by larger marketing
research companies that have their own Internet-based panel and
their need for our products and services could be reduced or
eliminated as a result. In either case, our net revenues would
be reduced and our business could suffer.
</FONT>

<P align="left">
<B><FONT size="2">If our clients develop their own
Internet-based panels, we may lose some or all of their
business.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Some of our large clients have the financial
resources and sufficient need for Internet survey solutions that
they may decide to build their own Internet-based panels. Should
some or all of these clients decide
</FONT>

<P align="center"><FONT size="2">8
</FONT>

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<DIV align="left">
<FONT size="2">to build their own Internet-based panels and
succeed in doing so, their need for our products and services
could be reduced or eliminated. Additionally, should our smaller
clients consolidate and achieve sufficient scale, it may become
economically feasible for them to build their own Internet-based
panels. If they do so, their need for our products and services
could be reduced or eliminated. In either case, our net revenues
would decline.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">If the marketplace significantly slows its
migration from traditional data collection methods to
Internet-based marketing research data collection, our growth
will be adversely affected.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The marketplace must continue to accept the
Internet as a medium for collecting marketing research survey
data and convert to Internet data collection methodologies in
order for our business to grow at the rate that we anticipate.
In addition, the success of our business depends on our ability
to develop and market Internet survey solutions that achieve
broad market acceptance and facilitate the transition from
traditional data collection methods. If the marketplace slows
its migration to Internet-based data collection products and
services, we may have difficulty obtaining new clients and our
net revenues could decrease.
</FONT>

<P align="left">
<B><FONT size="2">If we do not keep pace with technological
change, we may be unable to implement our business strategy
successfully.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The marketing research data collection industry,
particularly the Internet-based marketing research data
collection industry, is characterized by intense competition,
rapid new product and service developments and evolving
methodologies. To succeed, we will need to effectively develop
and integrate various software programs, technologies and
methodologies required to enhance and improve our Internet
survey solutions. Any enhancements of new products or services
must meet the needs of our current and potential clients and
achieve significant market acceptance. Our success will also
depend on our ability to adapt to changing technologies by
continually improving the performance features and reliability
of our products and services. We may experience difficulties
that could delay or prevent the successful development,
introduction or marketing of new products and services. We could
also incur substantial costs if we need to modify our products
and services or infrastructure to adapt to these changes.
</FONT>

<P align="left">
<B><FONT size="2">If we are unable to manage and support our
growth effectively, we may not be able to execute our business
strategy successfully.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are rapidly expanding our international
operations, but have limited experience expanding sales and
operations facilities in foreign countries. If we fail to
successfully expand our sales and marketing efforts in Europe we
will be unable to address a sizeable portion of the worldwide
market for Internet-based survey data collection and the growth
of our business will be adversely affected. We are integrating
new personnel to support our growth, which makes it difficult to
maintain our standards, controls and procedures. Members of our
senior management team will be required to devote considerable
amounts of their time and attention to this expansion, which may
reduce the time and attention they will have available to manage
our operations and pursue strategic opportunities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our employee base has grown from 54 in February
2002 to approximately 190 as of April&nbsp;5, 2004, including
employees of our subsidiaries in India, the United Kingdom and
Canada. If our business continues to grow, we could be required
to hire a significant number of additional employees in the
United States and abroad. The recruiting, hiring, training and
integration of a large number of employees throughout the world
will place a significant strain on our management and
operational resources. If we are unable to successfully develop,
implement, maintain and enhance our financial and accounting
systems and controls, integrate new personnel and manage
expanded operations, we may not be able to effectively manage
our growth.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are concentrating a significant portion of our
operational capacity in our facility located in India and may
open additional facilities elsewhere in the world. If we fail to
successfully build or maintain our operations in India or
elsewhere, we may suffer interruptions in the delivery of our
products and services to our clients. In addition, if we fail in
this regard, we may be required to relocate these international
operations to the United States or elsewhere and thereby incur
higher labor costs and additional transitional costs.
</FONT>

<P align="center"><FONT size="2">9
</FONT>

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<P align="left">
<B><FONT size="2">If we are unable to achieve international
growth of the Greenfield Online panel or to overcome other risks
of international operations, we may be unable to conduct
business on a global level.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Expanding our business and the Greenfield Online
panel to operate on a global level could pose the following
risks to us:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">more restrictive privacy laws;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">difficulty in recruiting and managing employees
    in foreign countries;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">aversion to U.S.&nbsp;companies or non-domestic
    companies in the regions where we plan to expand;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">unexpected changes in regulatory requirements;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">export controls relating to encryption technology;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">currency exchange rate fluctuations;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">problems collecting accounts receivable and
    longer collection periods;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">potentially adverse tax consequences;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">political instability;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Internet access restrictions.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In particular, in the process of expanding our
global operations, we may encounter more restrictive regulations
and laws in Europe or elsewhere, particularly laws related to
privacy rights, that could inhibit our ability to expand the
Greenfield Online panel. We have little or no control over the
risks listed above and may experience some or all of these risks.
</FONT>

<P align="left">
<B><FONT size="2">We have significant operations in India that
could be adversely affected by changes in the political or
economic stability of India or government policies in India or
the United States.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have a substantial team of professionals in
India who provide us with data processing and other services.
The development of our operations center in India has been
facilitated partly by the liberalization policies pursued by the
Indian government over the past decade. Although the current
government of India, formed in October 1999, has announced
policies and taken initiatives that support the continued
economic liberalization policies that have been pursued by
previous governments, these liberalization policies may not be
continued in the future. The rate of economic liberalization
could change and specific laws and policies affecting our
business could change as well. A significant change in
India&#146;s economic liberalization and deregulation policies
could increase our labor costs and harm our business. Also,
potential laws and regulations in the United States aimed at
encouraging U.S.&nbsp;businesses to keep their operations solely
within the United States, if enacted, could harm our ability to
operate and our competitive position.
</FONT>

<P align="left">
<B><FONT size="2">Potential acquisitions or investments in other
companies may have a negative impact on our business and our
stock price.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As part of our strategy to expand the Greenfield
Online panel, our technology infrastructure and products and
services, we may consider acquiring or making investments in
complementary businesses, services, products or technologies as
appropriate opportunities arise. The risks we may face should we
acquire or invest in complementary businesses include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">difficulties with the integration and
    assimilation of the acquired business;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">diversion of our management team&#146;s attention
    from other business concerns;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">availability of favorable acquisition or
    investment financing;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">loss of key employees of any acquired business.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">10
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Acquisitions or investments may require us to
expend significant amounts of cash. This would result in our
inability to use those funds for other business purposes.
Additionally, if we fund acquisitions through further issuances
of our common stock, our stockholders will be diluted, which may
adversely affect the market price of our common stock. The
potential impairment or complete write-off of goodwill and other
intangible assets related to any such acquisition may reduce our
overall earnings, which in turn could negatively affect the
price of our common stock.
</FONT>

<P align="left">
<B><FONT size="2">Our success depends on our ability to retain
the current members of our senior management team and other key
personnel.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our success depends to a significant extent on
the continued services of our core senior management team. If
one or more of these individuals were unable or unwilling to
continue in their present position, our business would be
disrupted and might suffer. We do not maintain key-person life
insurance for any of our management personnel or other key
employees.
</FONT>

<P align="left">
<B><FONT size="2">If we fail to continue to attract and retain
project management professionals and other highly-skilled
personnel, we may be unable to successfully execute our business
strategy.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our business model is based and our success
depends upon our ability to attract, retain and motivate
highly-skilled project management professionals and other
technical, managerial, marketing, sales and client support
personnel throughout the world. Because competition to attract
trained technical and project management personnel is intense in
the marketing research data collection industry, we may
experience difficulty attracting, integrating or retaining the
number of qualified personnel needed to successfully implement
our business strategy. If we are delayed in recruiting key
employees, we may be forced to incur significant additional
recruitment, compensation and relocation expenses. If we are
unable to hire and retain such personnel in the future, we may
not be able to operate our business as we do today or meet the
needs of our clients.
</FONT>

<P align="left">
<B><FONT size="2">Any failure in the performance of our
Internet-based technology infrastructure or of those Internet
service providers used by our panelists, could harm our business
and our reputation.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our systems and operations are vulnerable to
damage or interruption from fire, earthquake, power loss,
telecommunications failure, break-ins, viruses or other harmful
attacks on computer information systems and similar events. We
depend on our primary technology systems hosted at our Wilton,
Connecticut data center to keep our infrastructure operational.
We have replicated the functionality of the Wilton data center
by contracting with MCI WorldCom Communications, Inc., in
Elmsford, New York, to host and provide an off-site,
fully-redundant facility under the terms of a co-location
service agreement. Our system may not be capable of seamlessly
or adequately replicating our products and services in the event
of technical difficulties, if at all, and our facilities may not
be capable of sufficiently protecting our systems.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have experienced technical difficulties and
downtime in the past, primarily as a result of testing and
implementing new software. Technical difficulties and downtime
may continue to occur in the future. The impact of technical
difficulties on our systems or operations may be more severe and
cause greater amounts of downtime in the future than our systems
have experienced to date. Although we currently have business
interruption insurance, it may not adequately compensate us for
losses that could occur due to failures in our systems or the
systems of third-parties and any resulting interruptions in our
communications with the Greenfield Online panel or in our data
collection efforts. Also, our servers and software must be able
to accommodate a high volume of traffic. Any significant
increase in demand on our servers beyond the amount we currently
anticipate will require us to expand and adapt our network
infrastructure. If we are unable to add additional software and
hardware to accommodate increased demand, unanticipated system
disruptions and slower data collection may result.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Additionally, our panelists communicate with us
using various Internet service providers. Many of these
providers have experienced significant outages or impairments of
service in the past, and could experience future outages, delays
and other difficulties due to system failures or impairments
unrelated to our technology
</FONT>

<P align="center"><FONT size="2">11
</FONT>

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<DIV align="left">
<FONT size="2">systems. Any future system delays or
connectivity-related failures of Internet service providers
could adversely affect our access to our panelists. Future
disruptions and outages as a result of the foregoing factors
could cause the Internet to be viewed as an unreliable source of
data collection, which could prevent us from maintaining the
Greenfield Online panel and selling our products and services.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">We are susceptible to breaches of database
security and denial of service attacks. If a breach occurs and
the personal information of our panelists is exposed or misused,
we may be liable and it could make it difficult for us to
recruit for and maintain the Greenfield Online panel.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Despite measures taken by us to increase
security, our infrastructure is potentially vulnerable to
physical or electronic break-ins. Intruders may be able to gain
access to this information. A party who is able to circumvent
our security measures and gain access to the identity and other
confidential information regarding our panelists could
misappropriate this information or interrupt our operations. As
a result, we may be required to expend financial and other
resources to protect against the threat of security breaches or
to alleviate problems caused by these breaches. These increased
expenditures could harm our business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Security breaches could also damage our
reputation and expose us to liability. Any claims resulting from
the unauthorized use of information concerning our panelists
could expose us to loss or result in costly litigation. Such
breaches could also cause us to lose the confidence and trust of
our panelists, which could significantly harm our business. In
addition, the FTC and state agencies recently have been
investigating various Internet companies regarding their use of
personal information. We could incur additional costs and
expenses if new regulations regarding the use of personal
information are introduced or if our privacy practices are
investigated and found to be inadequate.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our computer systems are susceptible to planned
overloads, commonly referred to as denial of service attacks. By
designing software applications that trigger the simultaneous
overload of traffic into one website, intruders have recently
been able to temporarily impair the websites of companies with
more mature infrastructure systems than our own. If we become
the target of similar attacks in the future, our websites could
be temporarily disabled and our business might suffer. If such
events occur on more than an infrequent basis, our reputation
could be damaged and the marketplace could determine that the
Internet is not a reliable medium for data collection activities.
</FONT>

<P align="left">
<B><FONT size="2">If our licensed survey programming software
becomes unavailable, is no longer accepted by our clients or
becomes obsolete, we would be required to acquire or develop new
software and systems to program our Internet survey
solutions.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We utilize a survey development software program
created by a third-party to program our surveys so that they can
be displayed through the Internet and taken by our panelists. We
believe that this software represents the current standard in
the Internet-based marketing research data collection industry.
The company that authored this software is a small and
developing company. If this company ceases operations or fails
to continue to develop its software, the software could become
unavailable or obsolete. If this software becomes obsolete or
competing survey software is developed that is perceived to be
of superior functionality or value, our clients may not accept
our Internet survey solutions. In any of these events, we would
be required to expend resources acquiring or developing new
software and the sale or delivery of our products and services
could be interrupted.
</FONT>

<P align="left">
<B><FONT size="2">Loss of technical support from third-parties
could disrupt our business.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We rely on third-party technology support for our
infrastructure systems. While in recent years our internal
technicians designed the majority of our technological
infrastructure, we often engage third-party vendors to build the
architecture we design. In addition, technical support from
third-parties may not continue to be available to us in the
future on commercially reasonable terms, if at all. If this
support were no longer available, our business would be
disrupted. The inability to engage third-parties to support the
building and maintenance of the technology important to our
business would require us to obtain substitute technology that
might be of lower quality or performance standards or technology
of a comparable quality obtainable only at
</FONT>

<P align="center"><FONT size="2">12
</FONT>

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<DIV align="left">
<FONT size="2">a greater cost. Also, our inability to outsource
select technical projects on a commercially reasonable basis
could impede us from providing our products and services to our
clients on a timely basis.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Our inability to protect our intellectual
property could adversely affect our business.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our ability to compete and successfully implement
our business strategy depends on our use of internally-developed
technologies and trademarks that are protected through a
combination of copyright, trade secret and trademark laws. We
currently have trademark registrations in the United&nbsp;States
for the trademarks <I>Research Revolution&#174;</I>,
<I>NetReach&#174;</I> and <I>FieldSource&#174;</I> among others,
and have a perpetual contractual right granted to us by Millward
Brown, Inc. to use the trademarks <I>Greenfield Online&#174;</I>
and <I>Greenfield</I>&#174; in the United&nbsp;States. If we are
prevented from using these trademarks, our brand recognition and
business could suffer. As a result, we would need to make
substantial expenditures to promote and rebuild our brand
identity and loyalty with our clients and members of the
Greenfield Online panel.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We currently have pending trademark applications
in the United&nbsp;States for products and systems connected
with our business. We also expect to apply for additional
trademarks in the future. Our trademark applications may not be
approved, or if approved, could be successfully challenged or
invalidated by others. Our trademark applications also may not
be approved in the event third-parties already own these
trademarks. Use of these trademarks may also be restricted
unless we enter into arrangements with the third-party owners.
These arrangements might not be possible on commercially
reasonable terms, if at all.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We generally enter into confidentiality
agreements with parties with whom we do business, and control
access to and distribution of our technologies, documentation
and other proprietary information. In the future, we may also
enter into license agreements with these parties. Parties may
disclose, obtain or use our technologies without our permission.
The protective measures we have taken may not prevent
misappropriation of our technologies, particularly in foreign
countries where laws or law enforcement practices might not
protect our proprietary rights as fully as in the United States.
</FONT>

<P align="left">
<B><FONT size="2">We may be at a competitive disadvantage if we
are unable to protect our proprietary rights or if we infringe
on the proprietary rights of others, and related litigation
could be time consuming and costly.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because we operate our business through websites
and rely heavily on computer hardware and software, proprietary
rights, particularly trade secrets and copyrights, are critical
to our success and competitive position. The actions we take to
protect our proprietary rights may be inadequate. In addition,
effective copyright, trademark and trade secret protection may
be unenforceable or limited in certain countries and, due to the
global nature of the Internet, we may be unable to control the
dissemination of our content and products and the use of our
products and services. In addition, third-parties may claim that
we have violated their intellectual property rights. For
example, companies have recently brought claims against other
Internet companies regarding alleged infringement of patent
rights relating to methods of doing business over the Internet.
To the extent that we violate a patent or other intellectual
property right of another party, we may be prevented from
operating our business as planned or may be required to pay
damages, obtain a license, if available, for the use of the
patent or other right to use a non-infringing method to
accomplish our objectives. In August 2000, we received a notice
from a party, claiming to have received a patent with rights
relating to, among other things, a method or process for
conducting surveys over the Internet. We understand that this
party has also approached many of our competitors in the
Internet data collection industry. We have not had any
additional contact with this party since December&nbsp;15, 2000.
To the extent that this party seeks to enforce its patent, and a
court finds that such an infringement claim has merit, we may be
required to expend large sums of money defending such action and
seeking to have the patent declared invalid. If this party is
successful, we could be forced to pay royalties in order to
continue conducting surveys over the Internet or even be
restrained from conducting surveys over the Internet. In the
future, we may also license content from third-parties, and we
could become subject to infringement actions based on this
licensed content.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our ability to execute our business strategy will
suffer if a successful claim of infringement is brought against
us and we are unable to introduce new trademarks, develop
non-infringing technology or license the infringed or similar
technology on a timely basis. Moreover, our general liability
insurance may not be
</FONT>

<P align="center"><FONT size="2">13
</FONT>

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<DIV align="left">
<FONT size="2">adequate to cover all or any of the costs
incurred defending patent or trademark infringement claims, or
to indemnify us for liability that may be imposed.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">If we fail to develop our brand
cost-effectively, our business may suffer.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that developing and maintaining
awareness of the Greenfield Online brand in a cost-effective
manner is critical to achieving widespread acceptance of our
existing and future products and services and is an important
element in attracting new clients. Furthermore, we believe that
the importance of brand recognition will increase as competition
in our market develops. Successful promotion of our brand
depends largely on the effectiveness of our marketing efforts
and our ability to provide reliable and useful products and
services at competitive prices. In the past, our efforts to
build our brand have involved significant expense. Brand
promotion activities may not yield increased revenue, and even
if they do, any increased revenue may not offset the expenses
incurred in building our brand. If we fail to successfully
promote and maintain our brand, or incur substantial expenses in
an unsuccessful attempt to promote and maintain our brand, we
may fail to attract enough new clients or retain enough existing
clients to realize a sufficient return on our brand-building
efforts.
</FONT>

<P align="left">
<B><FONT size="2">Fluctuations in our operating results may
cause our stock price to decline.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the past, our operating results fluctuated
significantly from quarter to quarter and we expect them to
continue to do so in the future. Factors outside of our control
that have caused our operating results to fluctuate in the past
and that may affect us in the future, include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">fluctuations in general economic conditions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">demand for marketing research products and
    services generally;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">fluctuations in the marketing research budgets of
    the end-users serviced by our marketing research clients;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the development by our clients of their own
    Internet respondent panels;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the failure of our large clients to win
    Internet-based marketing research projects;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the development of products and services by our
    competitors;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">technical difficulties or system-downtime
    affecting access to the Internet.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Factors within our control that have caused our
operating results to fluctuate in the past and that may affect
us in the future, include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to increase the size and diversity of
    the Greenfield Online panel for use in developing new products
    and services;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to develop new products and services;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to hire and train sales personnel and
    project management personnel;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">technical difficulties or downtime of individual
    components of our computer systems;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to deliver projects to our clients in
    a timely fashion.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The factors listed above may affect both our
quarter-to-quarter operating results as well as our long-term
success. Given the fluctuations in our operating results, you
should not rely on quarter-to-quarter comparisons of our results
of operations as an indication of our future performance or to
determine any trend in our performance.
</FONT>

<P align="center"><FONT size="2">14
</FONT>

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<B><FONT size="2">Our directors, executive officers, key
personnel, members of their families, significant stockholders
and entities affiliated with them have significant control over
our management and affairs.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our directors, executive officers, members of
their families, significant stockholders and entities affiliated
with them will, in the aggregate, beneficially own approximately
65% of our outstanding common stock following the completion of
this offering, or approximately 62% of our outstanding common
stock in the event that the underwriters&#146; over-allotment
option is exercised in full. Specifically, entities affiliated
with Insight Venture Associates&nbsp;III, L.L.C. will
beneficially own approximately 32% of our outstanding common
stock following this offering, or approximately 31% of our
outstanding common stock in the event that the
underwriters&#146; over-allotment option is exercised in full,
and UBS Capital&nbsp;II LLC and its affiliates will beneficially
own approximately 15% of our outstanding common stock following
this offering, or approximately 14% of our outstanding common
stock in the event that the underwriters&#146; over-allotment
option is exercised in full. As a result, these stockholders
will be able to exercise control over all matters requiring
approval by our stockholders, including the election of
directors and approval of mergers, consolidations, sales of
assets, recapitalizations and amendments to our certificate of
incorporation. These stockholders may take actions with which
you do not agree, including actions that delay, defer or prevent
a change of control, and could adversely affect the price that
investors are willing to pay for our common stock.
</FONT>

<P align="left">
<B><FONT size="2">We might have difficulty obtaining additional
capital, which could prevent us from achieving our business
objectives. If we are successful in raising additional capital,
it may have a dilutive effect on our stockholders.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may need to raise additional capital in the
future to fund the expansion of the Greenfield Online panel and
the marketing of our products and services, or to acquire or
invest in complementary businesses, technologies or services. If
additional financing is not available, or available only on
terms that are not acceptable to us, we may be unable to fund
the development and expansion of our business, attract qualified
personnel, promote our brand name, take advantage of business
opportunities or respond to competitive pressures. Any of these
events may harm our business. Also, if we raise funds by issuing
additional shares of our common stock or debt securities
convertible into common stock, our stockholders will experience
dilution, which may be significant, to their ownership interest
in us. If we raise funds by issuing shares of a different class
of stock other than our common stock or by issuing debt, the
holders of such different classes of stock or debt securities
may have rights senior to the rights of the holders of our
common stock.
</FONT>

<P align="left">
<B><FONT size="2">Our reported financial results may be
adversely affected by changes in accounting principles generally
accepted in the United States.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Generally accepted accounting principles in the
United States, known as GAAP, are subject to interpretation by
the Financial Accounting Standards Board, or FASB, the American
Institute of Certified Public Accountants, the SEC and various
bodies formed to promulgate and interpret appropriate accounting
principles. A change in these principles or interpretations
could have a significant effect on our reported financial
results, and could affect the reporting of transactions
completed before the announcement of a change in these
principles.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For example, we account for stock-based
compensation using the intrinsic-value method in accordance with
Accounting Principles Board Opinion No.&nbsp;25 &#147;Accounting
for Stock Issued to Employees.&#148; Under this standard,
compensation expense is determined to the extent that the fair
value of the underlying stock on the date of grant exceeds the
exercise price of the employee stock option or stock award.
Compensation so determined is deferred in the caption unearned
stock-based compensation within the stockholders&#146; equity
(deficit) section of our financial statements, and then
recognized over the service period for the stock option or
award. However, several companies have recently elected to
change their accounting policies and begun to record the fair
value of stock options as an expense. Although the standards
have not been finalized and the timing of a final statement has
not been established, FASB has announced its support for
recording the fair value of stock options granted as an expense.
If we are required to change our accounting policy and to
retroactively restate prior periods as if we had adopted these
standards for prior periods, our cost of revenues
</FONT>

<P align="center"><FONT size="2">15
</FONT>

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<DIV align="left">
<FONT size="2">and operating expenses as reflected in our
historical financial statements may increase and such changes
could impact our results of operations for future periods.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


<P align="center">
<B><FONT size="2">Risks Related to Our Industry</FONT></B>

<P align="left">
<B><FONT size="2">If use of the Internet does not continue to
grow, we might not be able to continue to grow our
business.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We rely on the Internet for critical aspects of
our business, including the recruitment of our panelists. If
Internet usage declines or grows at a significantly slower rate
than currently projected, we may be unable to attract additional
panelists or clients for our Internet survey solutions.
</FONT>

<P align="left">
<B><FONT size="2">If the various Internet access providers do
not continue to develop their infrastructure adequately, we may
have difficulties accessing our panelists and our business may
suffer.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our panelists depend on a variety of Internet
access providers and other website operators for access to our
website. If use of the Internet continues to grow as currently
projected, the infrastructure that maintains the Internet may be
unable to support the demands placed on it. Various other
factors could also inhibit the ability of the Internet&#146;s
infrastructure to support increased use, including inadequate
networks and security concerns. If the Internet infrastructure
is not able to support the demands placed on it by excessive
growth, its performance and reliability may decline and we may
not be able to access our panelists.
</FONT>

<P align="left">
<B><FONT size="2">Government regulations could limit our
Internet activities or result in additional costs of doing
business and conducting marketing research on the
Internet.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The federal Controlling the Assault of
Non-Solicited Pornography and Marketing Act of 2003 (the
&#147;CAN-SPAM Act&#148;), which took effect on January&nbsp;1,
2004, imposes a series of new requirements on the use of
commercial email messages and directs the FTC to issue new
regulations that define relevant criteria and to enforce the
Act. Among other things, one proposal being examined by the FTC
is a federal &#147;Do Not Email&#148; registry. The CAN-SPAM Act
and the regulations enforcing the Act may significantly impact
the manner in which we recruit and communicate with our
panelists. It may also expose us to potential liability or
require us to change or abandon our webmaster affiliate program
and other recruitment techniques. We may also need to develop
technology or systems to comply with the Act&#146;s requirements
for honoring &#147;opt-out&#148; requests. Additionally, there
are at least 37&nbsp;state statutes that purport to regulate the
distribution of commercial email. If we cannot comply with the
requirements of the CAN-SPAM Act or these state statutes, we may
need to cease operating portions of our business and our
business could suffer.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Internet Tax Freedom Act (the
&#147;ITFA&#148;) that was originally passed in 1995 prohibited
states or political subdivisions from (i)&nbsp;imposing taxes on
Internet access and (ii)&nbsp;imposing multiple and
discriminatory taxes on e-commerce. The ITFA expired on
November&nbsp;1, 2003 and has not been renewed. As a result of
the expiration of the ITFA, states are no longer prohibited
under federal law from imposing taxes that were covered by the
ITFA. In the absence of a renewal of the ITFA, states may begin
to impose taxes on Internet access, related charges and other
e-commerce products and services. If one or more states impose
such taxes in a manner that results in the taxation of Internet
access providers, ourselves, our customers or other parties upon
whom these parties&#146; or our panelists&#146; rely for access
to the Internet or other products or services, our expenses may
increase and it may become difficult to recruit and maintain our
panelists or sell our products and services. Proposed
legislation has been introduced in Congress to reinstate and
broaden the ITFA. It is unclear whether or not this legislation
will be enacted and, if so, the substance of its provisions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A number of states within the United States are
participants in the Streamlined Sales Tax Project (the
&#147;SSTP&#148;), which seeks to establish a uniform,
nationwide state-based taxation system that requires remote
sellers to administer and collect their respective sales taxes
even though they do not maintain a presence within that state.
If the SSTP is successful in implementing such a system, and if
our products or services are subject to this system, our
resulting tax, administrative and compliance burden will
increase.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Separately, countries belonging to the European
Union (the &#147;EU&#148;) impose a value added tax
(&#147;VAT&#148;) on the sale of goods and services, including
digital goods and services. An EU Directive that took effect on
</FONT>

<P align="center"><FONT size="2">16
</FONT>

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<DIV align="left">
<FONT size="2">July&nbsp;1, 2003 requires businesses that sell
digital goods and services from outside the EU to certain
customers within the EU to collect, administer and remit the
VAT. To the extent that our products or services are subject to
the EU Directive, our resulting administrative and compliance
burden will increase.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In February 1999, the FCC issued a declaratory
ruling interpreting the Telecommunications Act of 1996 to allow
local exchange carriers to receive reciprocal compensation for
traffic delivered to information service providers, particularly
Internet service providers, on the basis that traffic bound for
Internet service providers is largely interstate. As a result of
this ruling, the costs of transmitting data over the Internet
may increase. If this occurs, our tax liability and operating
expenses may increase, and our business could suffer.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to those described above, we expect
more stringent laws and regulations to be enacted both
domestically and globally in the near future due to the
increasing popularity and use of the Internet. Any new
legislation or regulations or the application of existing laws
and regulations to the Internet could limit our effectiveness in
conducting Internet-based marketing research and increase our
operating expenses. In addition, the application of existing
laws to the Internet could expose us to substantial liability
for which we might not be indemnified by content providers or
other third-parties. Existing laws and regulations currently
address, and new laws and regulations and industry
self-regulatory initiatives are likely to address, a variety of
issues that could have a direct impact on our business,
including:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">user privacy and expression;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the rights and safety of children;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">intellectual property;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">information security;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">anti-competitive practices;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the convergence of offline channels with Internet
    commerce;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">taxation and pricing.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Current laws that explicitly apply to the
Internet have not yet been interpreted by the U.S.&nbsp;courts
and their applicability and scope are not yet defined. Any new
laws or regulations relating to the Internet could have an
impact on the growth of the Internet and, as a result, might
adversely affect our business.
</FONT>

<P align="left">
<B><FONT size="2">The legislation authorizing the creation and
enforcement of the federal Do Not Call registry may be declared
unconstitutional by the U.S.&nbsp;Supreme Court and, as a
result, the migration of data collection from traditional
methods to the Internet may take longer than we currently
anticipate.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On February&nbsp;17, 2004 the 10th Circuit Court
of Appeals reversed a decision by the U.S.&nbsp;District Court
for the District of Colorado, which had held that the federal Do
Not Call registry maintained and enforced by the FTC and the FCC
constituted unconstitutional abridgements of free speech rights
guaranteed under the First Amendment of the
U.S.&nbsp;Constitution. At least one telemarketing group has
publicly indicated that it will appeal this decision. Should the
U.S.&nbsp;Supreme Court hold that the Do Not Call registry
violates First Amendment rights to free speech, telephone survey
cooperation rates may increase and the migration from
traditional methods of data collection such as the telephone to
the Internet may slow or stabilize. This may slow or stabilize
the demand for our products and services.
</FONT>

<P align="left">
<B><FONT size="2">The marketing research industry is vulnerable
to general economic conditions, which may affect our
revenues.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Many of the companies served by our clients treat
all or a portion of their marketing research expenditures as
discretionary. As general economic conditions decline and these
companies seek to control variable costs, research projects for
which we have been engaged to collect data may be delayed or
cancelled, and new project bookings may slow. As a result, our
growth and earnings may be adversely impacted.
</FONT>

<P align="center"><FONT size="2">17
</FONT>

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<P align="left">
<B><FONT size="2">Terrorist attacks or mischievous actions could
disrupt our business.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If our operations facilities or data centers are
disrupted or destroyed by terrorist attacks or hackers, we may
be unable to operate and derive results from the Greenfield
Online panel or otherwise provide our products and services on a
timely basis to our customers, which could harm our business.
Moreover, if our computer information, data processing or
communication systems, or those of our vendors or customers, are
subject to disruptive terrorist or hacker attacks or other
disruptions, our business may suffer. We have not established a
formal disaster recovery plan. Our back-up operations may be
inadequate and our business interruption insurance may not be
sufficient to compensate us for any losses that may occur. A
significant business interruption may result in substantial
losses and damages.
</FONT>

<P align="center">
<B><FONT size="2">Risks Related to this Offering</FONT></B>

<P align="left">
<B><FONT size="2">The price of our common stock is likely to be
volatile and subject to wide fluctuations.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The trading prices of many Internet-related
companies have been highly volatile. The market price of our
common stock may also be subject to wide fluctuations. If our
net revenues do not grow, or grow more slowly than we
anticipate, or if our operating or capital expenditures exceed
our expectations and cannot be adjusted accordingly, the market
price of our common stock may decline.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, if the market for Internet-related
stocks or the stock market in general experiences a loss in
investor confidence or otherwise falls, the market price of our
common stock may fall for reasons unrelated to our business,
results of operations or financial condition. As a result,
investors might be unable to resell their shares of our common
stock at or above the offering price. In the past, many
companies that have experienced volatility in the market price
of their stock have been the subject of securities class action
litigation. If we were to become the subject of a class action
litigation, we could incur substantial costs and our management
team&#146;s attention and resources could be diverted from our
business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The trading market for our common stock will be
informed, in part, by the research and reports that industry or
financial analysts publish about us or our business. We do not
control these analysts. If one or more of the analysts who cover
us downgrade our stock, our stock price could decline rapidly.
If one or more of these analysts ceases coverage of our company,
we could lose visibility in the market, which in turn could
cause our stock price to decline or experience significant
volatility.
</FONT>

<P align="left">
<B><FONT size="2">Because an active trading market for our
common stock may not develop after this offering, it may be
difficult for you to sell your shares.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There was no public market for our common stock
before this offering. We do not know the extent to which
investor interest will lead to the development of a trading
market or, if one develops, how liquid that market might be or
how long it will last. If an active and liquid trading market
does not develop for our common stock, you may have difficulty
selling your shares.
</FONT>

<P align="left">
<B><FONT size="2">Our common stock price may decline if a large
number of shares are sold after the offering or a perception is
created that these sales may occur.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Following this offering, we will have a large
number of shares of our common stock outstanding and available
for resale beginning at various points in time. The market price
of our common stock could decline as a result of sales of a
large number of shares of our common stock in the open market
following this offering, or the perception that these sales
could occur. After the effective date of this offering:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">150,772&nbsp;shares of common stock will be
    eligible for sale immediately, in addition to the shares of
    common stock to be sold in this offering;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">219,857&nbsp;shares of common stock will be
    eligible for sale beginning 90&nbsp;days after the effective
    date of this offering;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">18
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">11,126,642&nbsp;shares of common stock will be
    eligible for sale beginning 181&nbsp;days after the effective
    date of this offering;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">972,824&nbsp;shares of common stock will be
    issuable upon exercise of currently outstanding options and
    warrants, as of April&nbsp;5, 2004.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The holders of these shares, in most cases, have
registration rights that will allow them to require us to
register their shares either independently or in connection with
subsequent registration statements that we may file in the
future. See &#147;Shares Eligible for Future Sale&nbsp;&#151;
Registration Rights.&#148; The sale of these shares, or the
perception that these shares may be sold in the relatively near
future, might make it difficult for us to sell equity securities
in the future. See &#147;Shares Eligible for Future Sale&#148;
and &#147;Principal and Selling Stockholders.&#148;
</FONT>

<P align="left">
<B><FONT size="2">You will incur immediate and substantial
dilution in the pro forma as adjusted net tangible book value of
the shares you purchase.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We estimate that the initial public offering
price of our common stock will be
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share. This amount is substantially higher than the pro forma as
adjusted net tangible book value of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share that our outstanding common stock will have immediately
after this offering. Accordingly, if you purchase shares of our
common stock in this offering, you will incur immediate and
substantial dilution. If the holders of outstanding options or
warrants exercise those options or warrants, you will suffer
further dilution. In addition, the issuance or exercise of
additional options or warrants to purchase our common stock
could be dilutive to purchasers of shares in this offering. See
&#147;Dilution.&#148;
</FONT>

<P align="left">
<B><FONT size="2">We have outstanding options that have the
potential to dilute shareholder value and cause the price of our
common stock to decline.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We grant stock options to our employees and other
individuals. At April&nbsp;5, 2004, we had options outstanding
to purchase 920,487&nbsp;shares of our common stock, at exercise
prices ranging from $0.14 to $168.84&nbsp;per share. In
addition, upon completion of this offering, we are making an
additional 803,572&nbsp;shares of our common stock available for
issuance under the 2004 Equity Plan and the Stock Purchase Plan.
If some or all of such shares are sold into the public market
over a short time period, the market price of our common stock
may decline, as the market may not be able to absorb those
shares at the prevailing market prices. Such sales may also make
it more difficult for us to sell equity securities in the future
on terms that we deem acceptable.
</FONT>

<P align="left">
<B><FONT size="2">Anti-takeover provisions in our charter
documents and Delaware law may delay or prevent tender offers or
takeover attempts, which could adversely affect our common stock
price.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our certificate of incorporation provides for the
division of our board of directors into three classes and
provides our board of directors with the power to issue shares
of preferred stock without stockholder approval. The holders of
this preferred stock could have voting rights, including voting
rights that could be superior to those holders of our common
stock. Our board of directors has the power to determine these
voting rights. In addition, as a Delaware corporation, we are
required to comply with Section&nbsp;203 of the Delaware General
Corporation Law. In general, this law prevents a person who
becomes the owner of 15% or more of our outstanding voting stock
from engaging in specified business combinations for those years
in which specified conditions are satisfied. The effect of these
provisions in our certificate of incorporation and Delaware law
could discourage or prevent third-parties from seeking to obtain
control of our company, including transactions in which the
holders of common stock might receive a premium for their shares
over prevailing market prices.
</FONT>

<P align="left">
<B><FONT size="2">We have discretion as to the use of the net
proceeds from this offering and may not use these in a manner
stockholders would prefer.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other than the mandatory conversion and dividend
payments to the holders of our Series&nbsp;B Convertible
Participating Preferred Stock and the redemption of our
Series&nbsp;C-2 Non-Voting Preferred Stock, we have not
</FONT>

<P align="center"><FONT size="2">19
</FONT>

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<DIV align="left">
<FONT size="2">identified specific uses for all of the net
proceeds from this offering, and our management will have broad
discretion in how we use them. In addition, we are unable to
determine how much of the net proceeds will be used for any
identified purpose because circumstances regarding our planned
use of the proceeds may change. You will not have the
opportunity to evaluate the economic, financial or other
information on which we base our decisions on how to use the net
proceeds. The failure of our management to apply these funds
effectively could harm our business.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">We do not anticipate paying dividends on our
common stock in the foreseeable future.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other than the mandatory conversion and dividend
payment relating to our Series&nbsp;B Convertible Participating
Preferred Stock and the mandatory redemption payment relating to
our Series&nbsp;C-2 Redeemable Non-Voting Preferred Stock as a
result of this offering, we do not anticipate paying any
dividends in the foreseeable future. We currently intend to
retain our future earnings, if any, to fund the development and
growth of our business. As a result, capital appreciation, if
any, of our common stock will be your sole source of gain for
the foreseeable future.
</FONT>

<P align="center"><FONT size="2">20
</FONT>

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<DIV align="left">
<A name='104'></A>
</DIV>

<!-- link1 "CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS" -->

<P align="center">
<B><FONT size="2">CAUTIONARY NOTE&nbsp;REGARDING FORWARD-LOOKING
STATEMENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus includes forward-looking
statements. All statements other than statements of historical
facts contained in this prospectus, including statements
regarding our future financial position, business strategy and
plans and objectives of management for future operations, are
forward-looking statements. The words &#147;believe,&#148;
&#147;may,&#148; &#147;will,&#148; &#147;estimate,&#148;
&#147;continue,&#148; &#147;anticipate,&#148;
&#147;intend,&#148; &#147;expect&#148; and similar expressions,
as they relate to us, are intended to identify forward-looking
statements. We have based these forward-looking statements
largely on our current expectations and projections about future
events and financial trends that we believe may affect our
financial condition, results of operations, business strategy
and financial needs. These forward-looking statements are
subject to a number of risks, uncertainties and assumptions
described in &#147;Risk Factors&#148; and elsewhere in this
prospectus, including, among other things:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the acceptance of our Internet-based marketing
    research data collection products and services by existing and
    potential clients;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to maintain and expand the Greenfield
    Online panel both domestically and internationally;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to market our Internet survey
    solutions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to continue to develop and improve
    our technology infrastructure;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">significant increases in competitive pressures in
    the marketing research data collection industry;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to attract and retain experienced
    project management professionals;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the effect that the Do Not Call registry and
    other regulations may have on the adoption of Internet-based
    marketing research data collection;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the growth of Internet penetration outside the
    United States;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to expand internationally.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These risks are not exhaustive. Other sections of
this prospectus include additional factors which could adversely
impact our business and financial performance. Moreover, we
operate in a very competitive and rapidly changing environment.
New risk factors emerge from time to time and it is not possible
for our management to predict all risk factors, nor can we
assess the impact of all factors on our business or the extent
to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements. We assume no obligation to update
any forward-looking statements after the date of this prospectus
as a result of new information, future events or developments,
except as required by federal securities laws.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You should not rely upon forward-looking
statements as predictions of future events. We cannot assure you
that the events and circumstances reflected in the
forward-looking statements will be achieved or occur and actual
results could differ materially from those projected in the
forward-looking statements.
</FONT>

<P align="center"><FONT size="2">21
</FONT>

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<DIV align="left">
<A name='105'></A>
</DIV>

<!-- link1 "USE OF PROCEEDS" -->

<P align="center">
<B><FONT size="2">USE OF PROCEEDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We estimate that the net proceeds from this
offering with respect to the shares to be sold by us will be
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
based on an assumed initial offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share (the mid-point of the price range set forth on the cover
page of this prospectus) and after deducting underwriting
discounts and commissions and estimated offering expenses
payable by us. We will not receive any of the proceeds from the
sale of the shares by the selling stockholders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We intend to use the net proceeds from this
offering as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">approximately $9.4&nbsp;million to pay a
    mandatory conversion and dividend payment to holders of
    outstanding shares of our Series&nbsp;B Convertible
    Participating Preferred Stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">approximately $2.1&nbsp;million to mandatorily
    redeem all outstanding shares of our Series&nbsp;C-2 Redeemable
    Non-Voting Preferred Stock;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the remainder to fund working capital and general
    corporate purposes, including potential acquisitions.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of the date of this prospectus, we have no
binding agreements or commitments with respect to any
acquisition. Pending application, we intend to invest the net
proceeds of this offering in short-term, interest-bearing,
investment-grade securities.
</FONT>

<DIV align="left">
<A name='106'></A>
</DIV>

<!-- link1 "DIVIDEND POLICY" -->

<P align="center">
<B><FONT size="2">DIVIDEND POLICY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other than the mandatory conversion and dividend
payment relating to our Series&nbsp;B Convertible Participating
Preferred Stock and the mandatory redemption payment relating to
our Series&nbsp;C-2 Redeemable Non-Voting Preferred Stock as a
result of this offering, we do not anticipate paying any
dividends in the foreseeable future. We anticipate that we will
retain all of our future earnings for use in the expansion and
operation of our business. Any future determination as to the
payment of dividends will be at our board of directors&#146;
discretion and will depend on our financial condition, operating
results, current and anticipated cash needs, plans for expansion
and other factors that our board of directors considers to be
relevant.
</FONT>

<P align="center"><FONT size="2">22
</FONT>

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<DIV align="left">
<A name='107'></A>
</DIV>

<!-- link1 "CAPITALIZATION" -->

<P align="center">
<B><FONT size="2">CAPITALIZATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth our cash, cash
equivalents and capitalization as of December&nbsp;31, 2003,
presented on an actual basis and on a pro forma as adjusted
basis to give effect to this offering and certain transactions
as though they occurred as of December&nbsp;31, 2003 as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">conversion of all of our outstanding shares of
    convertible preferred stock into 10,408,119&nbsp;shares of
    common stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">payment of approximately $9.4&nbsp;million to
    holders of outstanding shares of our Series&nbsp;B Convertible
    Participating Preferred Stock;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">redemption of all outstanding shares of our
    Series&nbsp;C-2 Redeemable Non-Voting Preferred Stock for an
    aggregate price of approximately $2.1&nbsp;million;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">sale
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock by us in this offering at an assumed initial
    public offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share (the mid-point of the price range set forth on the cover
    page of this prospectus) and the application of the estimated
    net proceeds. See &#147;Use of Proceeds.&#148;
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You should read this information together with
the sections of this prospectus entitled &#147;Selected
Consolidated Financial Data&#148; and &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of
Operations&#148; and the consolidated financial statements and
related notes appearing elsewhere in this prospectus.
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="61%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">As of December&nbsp;31, 2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro Forma</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Actual</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As Adjusted</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">($ in thousands,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">except per share data)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,721</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital lease obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,579</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;C-2 redeemable preferred stock; par
    value $0.0001 per share; 10,000 shares authorized and
    outstanding actual; none authorized, issued and outstanding pro
    forma as adjusted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">943</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;B convertible preferred stock; par
    value $.0001&nbsp;per share; 30,211,595&nbsp;shares authorized,
    issued and outstanding actual; none authorized, issued and
    outstanding pro forma as adjusted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,114</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stockholders&#146; equity (deficit):
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Preferred Stock; par value $.0001 per share; none
    authorized, issued and outstanding actual; 5,000,000 shares
    authorized, none issued and outstanding pro forma as adjusted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;A convertible preferred stock; par
    value $.0001&nbsp;per share; 40,874,511&nbsp;shares authorized,
    issued and outstanding actual; none authorized, issued and
    outstanding pro forma as adjusted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;C-1 convertible preferred stock; par
    value $.0001&nbsp;per share; 74,627,182&nbsp;shares authorized,
    issued and outstanding actual; none authorized, issued and
    outstanding pro forma as adjusted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Common stock; par value $.0001&nbsp;per share;
    13,605,479&nbsp;shares authorized and 2,054,486&nbsp;shares
    issued and outstanding actual; 100,000,000 shares authorized
    and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    issued and outstanding pro forma as adjusted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Additional paid-in capital
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,440</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accumulated deficit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(84,389</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unearned stock-based compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,258</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Note receivable from officer
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(131</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total stockholders&#146; equity (deficit)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,327</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total capitalization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,929</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">23
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The outstanding share information in the table
above excludes:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">920,487&nbsp;shares of common stock issuable upon
    exercise of outstanding stock options, with a weighted average
    exercise price of $6.02&nbsp;per share;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">52,337&nbsp;shares of common stock issuable upon
    exercise of outstanding warrants, with a weighted average
    exercise price of $24.78&nbsp;per share;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an aggregate of 808,268&nbsp;shares of common
    stock available for future awards under our 1999 Option Plan and
    our 2004 Equity Plan; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">250,000&nbsp;shares of common stock available for
    future issuance under our Stock Purchase Plan.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">24
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='108'></A>
</DIV>

<!-- link1 "DILUTION" -->

<P align="center">
<B><FONT size="2">DILUTION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2003, our historical net
tangible book value was approximately $2.5&nbsp;million, or
$1.21&nbsp;per share of our common stock. The historical net
tangible book value of our common stock is the difference
between our total tangible assets and our total liabilities,
divided by the number of shares of common stock outstanding at
that date. As of December&nbsp;31, 2003, the pro forma net
tangible book value of our common stock was approximately
$2.5&nbsp;million, or $0.20&nbsp;per share of common stock. The
pro forma net tangible book value of our common stock is the
difference between our tangible assets and our liabilities,
divided by the number of shares of our common stock outstanding
as of December&nbsp;31, 2003, after giving effect to the
mandatory conversion of all outstanding shares of our
convertible preferred stock into shares of common stock, and the
mandatory redemption of all outstanding shares of our
Series&nbsp;C-2 Redeemable Non-Voting Preferred Stock. For new
investors in our common stock, dilution is the per share
difference between the initial public offering price of our
common stock and the pro forma net tangible book value of our
common stock immediately after completion of this offering and
redemption of all outstanding shares of Series C-2 Preferred
Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">After giving effect to our receipt of the net
proceeds from our sale of shares of common stock in this
offering at the assumed public offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share (the mid-point of the price range set forth on the cover
page of this prospectus) and application of estimated net
proceeds therefrom after deducting the underwriters&#146;
discounts and commissions and estimated offering expenses, our
net tangible book value at December&nbsp;31, 2003 would have
been approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
or
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share. This represents an immediate increase in net tangible
book value of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share to existing stockholders and an immediate dilution of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share to new investors purchasing shares of common stock in this
offering. The following table illustrates this per share
dilution:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="80%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Assumed initial public offering price per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pro forma net tangible book value per share as of
    December&nbsp;31, 2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Increase per share attributable to new investors
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pro forma as adjusted net tangible book value per
    share after giving effect to this offering and related
    conversions and redemptions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dilution in pro forma net tangible book value per
    share to new investors
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table summarizes, on a pro forma
basis, as of December&nbsp;31, 2003, the differences between the
number and percentage of shares of common stock issued to our
existing stockholders and new investors purchasing shares of
common stock in this offering, as well as the aggregate
consideration and the average price per share paid by them:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="41%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Shares Purchased</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Total Consideration</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average Price</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percent</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percent</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Per Share</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Existing stockholders
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">New investors
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the underwriters&#146; over-allotment option
is exercised in full, the following will occur:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the percentage of the total number of shares of
    common stock held by existing stockholders will decrease
    to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
    after this offering; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the number of shares held by new investors will
    increase
    to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
    of the total number of shares of our common stock outstanding
    after this offering.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The outstanding share information in the table
above excludes:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an aggregate of 920,487&nbsp;shares of common
    stock issuable upon exercise of outstanding stock options, with
    a weighted average exercise price of $6.02&nbsp;per share;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">25
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">52,337&nbsp;shares of common stock issuable upon
    exercise of outstanding warrants, with a weighted average
    exercise price of $24.78&nbsp;per share;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an aggregate of 808,268&nbsp;shares of common
    stock available for future awards under our 1999 Stock Option
    Plan and our 2004 Equity Plan; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">250,000&nbsp;shares of common stock available for
    future issuance under our Stock Purchase Plan.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">26
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='109'></A>
</DIV>

<!-- link1 "SELECTED CONSOLIDATED FINANCIAL DATA" -->

<P align="center">
<B><FONT size="2">SELECTED CONSOLIDATED FINANCIAL DATA</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following selected consolidated financial
data should be read in conjunction with &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of
Operations&#148; and the consolidated financial statements and
related notes, which are included elsewhere in this prospectus.
The selected consolidated statement of operations data for each
of the fiscal years ended December&nbsp;31, 2001, 2002 and 2003
and the selected consolidated balance sheet data as of
December&nbsp;31, 2002 and 2003 are derived from our audited
consolidated financial statements, which are included elsewhere
in this prospectus. The selected consolidated statement of
operations data for the fiscal year ended December&nbsp;31, 2000
and the selected consolidated balance sheet data as of
December&nbsp;31, 2000 and 2001 are derived from audited
consolidated financial statements not included in this
prospectus. Selected consolidated financial data for the period
from January&nbsp;1, 1999 through May&nbsp;16, 1999 is referred
to as the &#147;Predecessor Company.&#148; On May&nbsp;17, 1999,
members of our then-existing management and a group of new
investors executed a management buyout of 97% of our common
stock. The selected statement of operations data for the periods
from January&nbsp;1, 1999 through May&nbsp;16, 1999 and from
May&nbsp;17, 1999 through December&nbsp;31, 1999, and the
selected balance sheet data as of December&nbsp;31, 1999 are
derived from our audited financial statements not included in
this prospectus.</FONT></I>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="28%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Predecessor&nbsp;Company</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;1,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">May&nbsp;17,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Through</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Through</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">May 16,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">($ in thousands, except per share data)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">Statement of Operations Data:</FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net revenues:
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Internet survey solutions(1)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">357</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">545</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,051</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,072</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">14,416</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">25,868</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Custom research(2)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,377</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,013</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">13,067</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,715</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">470</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total net revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,734</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,558</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">15,118</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">13,787</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">14,886</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">25,868</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Cost of revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">702</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,538</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,699</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,097</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,409</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,884</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Gross profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,032</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,020</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,419</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,690</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,477</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">16,984</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Operating expenses:
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Selling, general and administrative
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,244</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">11,326</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">42,901</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">15,148</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">10,123</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">12,127</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Panel acquisition
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">27</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">112</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,619</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">351</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">713</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,421</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Depreciation and amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">156</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,844</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,375</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,654</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,802</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,113</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Research and development
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">186</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,441</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,928</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,750</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">747</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">626</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total operating expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,613</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">16,723</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">56,823</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">19,903</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">13,385</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">15,287</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Operating income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(4,581</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(13,703</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(48,404</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(14,213</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(3,908</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,697</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total other income (expense)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(50</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(1,016</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(4,164</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(3,074</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">945</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">101</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income (loss) before income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(4,631</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(14,719</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(52,568</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(2,963</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,798</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Provision (benefit) for income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(940</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(569</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">150</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(4,631</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(13,779</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(52,568</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(2,394</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,648</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Less:&nbsp;&nbsp;Accretion of Series&nbsp;C-2
    redeemable preferred stock dividends
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(63</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Charge to common stockholders for Series&nbsp;B
    convertible preferred stock liquidation preference in excess of
    fair market value
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(3,873</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Cumulative dividends on Series B convertible
    preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(28</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(673</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income allocable to participating preferred
    securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(761</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net income (loss) available to common stockholders
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(4,631</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(13,779</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(52,568</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(6,295</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">151</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net income (loss) per share available to common
    stockholders
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(18.61</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(57.43</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(17.71</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(6.42</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">0.07</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(18.61</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(57.43</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(17.71</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(6.42</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">0.06</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Weighted average shares outstanding
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">740</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">915</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">976</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">981</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,054</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">740</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">915</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">976</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">981</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,347</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">27
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="53%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">As of December&nbsp;31</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">($ in thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance Sheet Data:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,318</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,056</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,864</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,721</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,353</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,580</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,102</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,724</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,929</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital lease obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">696</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,414</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,537</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,997</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,579</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,619</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,836</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,855</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,216</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;C-2 redeemable preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">821</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">943</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;B convertible preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,441</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,114</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total stockholders&#146; equity (deficit)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">323</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,351</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,603</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,526</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,327</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="44%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Predecessor</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Company</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Jan.&nbsp;1,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">May&nbsp;17</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">through</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">through</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">May&nbsp;16,&nbsp;1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Dec.&nbsp;31,&nbsp;1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">($ in thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">Other Financial and Operating Data:</FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">EBITDA(3)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(4,425</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(9,826</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(38,843</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(9,339</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">118</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,692</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">EBITDA margin(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">n.m.</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">n.m.</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">n.m.</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">n.m.</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">%</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">%</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Number of projects completed during period
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">847</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">838</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,249</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,482</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Internet survey solutions includes services
    revenues from the collection of survey data for sale to
    marketing research companies.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Custom research includes revenues from the line
    of business that we sold to Taylor Nelson in January 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">We define EBITDA as earnings before interest
    expense, income taxes, depreciation and amortization, which
    definition may not be comparable to similarly titled measures
    reported by other companies. We are presenting EBITDA because it
    provides an additional way to view our operations, when
    considered with both our GAAP results and the reconciliation to
    net income, which we believe provides a more complete
    understanding of our business than could be obtained absent this
    disclosure. EBITDA is presented solely as a supplemental
    disclosure because: (i)&nbsp;we believe it is a useful tool for
    investors to assess the operating performance of the business
    without the effect of non-cash depreciation and amortization
    expenses; (ii)&nbsp;we believe that investors will find it
    useful in assessing our ability to service or incur
    indebtedness; (iii)&nbsp;we use EBITDA internally to evaluate
    the performance of our personnel and also as a benchmark to
    evaluate our operating performance or compare our performance to
    that of our competitors. The use of EBITDA has limitations and
    you should not consider EBITDA in isolation from or as an
    alternative to GAAP measures such as net income, cash flows from
    operating activities and consolidated income or cash flow
    statement data prepared in accordance with GAAP, or as a measure
    of profitability or liquidity. The following table sets forth
    the reconciliation of EBITDA, a non-GAAP financial measure, to
    net income (loss), our most directly comparable financial
    measure presented in accordance with GAAP.
    </FONT></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="40%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Predecessor Company</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Jan.&nbsp;1,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">May&nbsp;17</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">through</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">through</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">May&nbsp;16,&nbsp;1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Dec.&nbsp;31,&nbsp;1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">($ in thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(4,631</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(13,788</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(52,569</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(2,394</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,648</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">50</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,058</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,351</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,306</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">591</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">496</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Provision (benefit) for income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(940</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(569</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">150</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Depreciation and amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">156</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,844</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,375</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,642</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,490</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,398</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">EBITDA
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(4,425</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(9,826</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(38,843</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(9,339</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">118</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,692</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">EBITDA margin
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">n.m.</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">n.m.</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">n.m.</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">n.m.</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">%</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">%</FONT></TD>
</TR>

</TABLE>
</CENTER>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">We define EBITDA margin as our EBITDA as a
    percentage of our net revenues. EBITDA margin is not presented
    for 1999, 2000 and 2001 because it is not meaningful.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">28
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='110'></A>
</DIV>

<!-- link1 "MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" -->

<P align="center">
<B><FONT size="2">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS
OF</FONT></B>

<DIV align="center">
<B><FONT size="2">FINANCIAL CONDITION AND RESULTS OF
OPERATIONS</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following discussion and analysis of our
financial condition and results of operations should be read in
conjunction with our consolidated financial statements and
related notes starting on pages&nbsp;F-1 through F-29 of this
prospectus. This discussion contains forward-looking statements
that involve risks and uncertainties. Our actual results could
differ materially from those anticipated in these
forward-looking statements as a result of certain factors,
including those discussed in &#147;Risk Factors&#148; above. See
&#147;Cautionary Note Regarding Forward-Looking
Statements.&#148;</FONT></I>

<P align="left">
<B><FONT size="2">Overview</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are a leading independent provider of Internet
survey solutions to the global marketing research industry and
we derive 100% of our revenues from Internet data collection
products and services. We actively manage the Greenfield Online
panel, a 100% Internet-based panel of approximately
1.7&nbsp;million individuals who participate in our surveys. Our
panelists represent households consisting of an estimated
4.7&nbsp;million people, allowing us to compile diverse,
demographically representative survey data.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We target our Internet survey solutions to
approximately 2,500 full service marketing research and
consulting firms in the United States and the world&#146;s top
25 marketing research companies. Our clients use the Internet
survey data that we provide to enable companies throughout the
world to make critical marketing and business decisions. Based
on our internal estimates, we believe that spending associated
with the gathering of survey data, known as fieldwork, accounts
for approximately 40% of the annual spending on survey marketing
research. Using this estimate, fieldwork represented
approximately $3.0&nbsp;billion of the approximately
$7.5&nbsp;billion global survey market in 2002 as reported by
the <I>World Association of Opinion and Marketing Research
Professionals</I>.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Over the past nine years, we have developed
proprietary panel management techniques that allow us to manage
the Greenfield Online panel. We use these techniques to
efficiently conduct Internet surveys and continually seek to
refresh and enhance our panel profiles, enabling the delivery of
higher-value survey data to our clients. Our automated
technology platform allows us to perform a large volume of
surveys simultaneously, and our global production capabilities
enable us to provide continuous survey programming, data
collection and processing services.
</FONT>

<P align="left">
<B><FONT size="2">Key Historical Events that Impact Our
Business</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We were incorporated in the State of Connecticut
on September&nbsp;28, 1995. Until May&nbsp;17, 1999, one person
owned all of our capital stock. On May&nbsp;17, 1999, our
then-existing management and a group of new investors completed
a management buyout (the &#147;Management Buyout&#148;), in
which approximately 97% of our outstanding common stock was
acquired by Greenfield Holdings, LLC (&#147;Greenfield
Holdings&#148;), an entity formed for the sole purpose of the
Management Buyout. The remaining 3% was retained by the prior
owner. From 1999 until 2002, we invested significant amounts to
build the Greenfield Online panel and our Internet-based
technology infrastructure. In December 2002, our controlling
shareholders completed a recapitalization of our business and
Greenfield Holdings was dissolved.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Until January 2002, we sold both custom
Internet-based marketing research and the Internet survey
solutions we sell today. A majority of our revenues for the
first seven years of our existence was derived from the sale of
custom marketing research. In September 2001, we embarked on a
strategy to convert the focus of our business from providing
custom marketing research to end-users to providing Internet
survey solutions to the marketing research firms we target
today. This strategy culminated in the sale of our custom
marketing research business (the &#147;Custom Research
Business&#148;) to Taylor Nelson in January 2002. The sale of
our Custom Research Business represented a turning point in our
development as we shifted from a labor-intensive, professional
services business model to a scalable Internet-based services
business model.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under our asset sale agreement with Taylor
Nelson, we received $2.0&nbsp;million in cash consideration at
closing in January 2002 and an additional $600,000 in January
2003. Contemporaneously with the execution of the asset sale
agreement, we entered into an alliance agreement with Taylor
Nelson that terminates on
</FONT>

<P align="center"><FONT size="2">29
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">January&nbsp;30, 2007. We treated
$1.4&nbsp;million of the proceeds received at closing as
consideration for the value of the assets conveyed and $600,000
as a prepayment of the first three months&#146; payments due
under the alliance agreement. The alliance agreement obligated
Taylor Nelson to use our services to meet substantially all of
its Internet sample survey requirements for U.S.-based marketing
research until certain minimum revenue guarantees were met. In
2002, the alliance agreement required Taylor Nelson to provide
us with a minimum of $200,000&nbsp;per month after the first
three months of qualifying revenue for purchases of sample and
other services, and in 2003 this minimum monthly amount
increased to $300,000. In December 2003, Taylor Nelson satisfied
its total minimum purchase requirement, but we continue to
perform work for Taylor Nelson under the terms of the alliance
agreement.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In July 2003, we formed Greenfield Online Private
Limited (&#147;GFOL India&#148;) in Gurgaon,&nbsp;India in order
to reduce labor costs and to allow us to offer around-the-clock
data processing and survey programming services. In August 2003,
we acquired Greenfield Online Europe, Ltd. (&#147;GFOL
Europe&#148;), a newly-formed U.K. corporation, to allow us to
market our Internet survey solutions in Europe. In March 2004,
we formed Greenfield Online Canada, Ltd. in order to expand our
North American operations to cover the Canadian market.
</FONT>

<P align="left">
<B><FONT size="2">Our Operating Leverage</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe our Internet-based model provides
significant operating leverage and should lead to expansion of
our operating income margin if we are successful in growing our
revenues. By leveraging the established Greenfield Online panel,
conducting an increasing number of surveys using our existing
technology infrastructure and benefitting from our operations
center in India, we believe that we will continue to improve our
operating leverage.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We utilize a combination of sales professionals,
account executives and automated bid technology to maximize our
personal interaction with current and prospective clients while
minimizing selling costs. We also utilize our clients&#146;
sales organizations as channel partners for distribution of our
Internet survey solutions. By selling through marketing research
channels, we experience significant sales leverage and return on
invested sales dollars.
</FONT>

<P align="left">
<B><FONT size="2">Quarterly Internet Survey Solutions Revenue
Growth</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have experienced significant growth in our
revenues related to Internet survey solutions since 2000.
Starting with a base annual revenue of $2.1&nbsp;million in
2000, our Internet survey solutions revenues grew to
$25.9&nbsp;million for the year ended December&nbsp;31, 2003.
The following chart depicts growth of our quarterly services
revenues derived from Internet survey solutions from January
2001 through December 2003.
</FONT>

<P align="center">
<IMG src="y95710y9571000.gif" alt="LOGO">

<P align="center"><FONT size="2">30
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">Explanation of Key Financial Statement
Captions</FONT></B>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
Revenues</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We report our revenues net of customer volume
rebates and cash discounts. Discounts for larger customers
typically range from 5% to 20% off of our standard rates and we
typically limit volume rebates to a few customers. These rebates
have not been material in amount historically, nor do we expect
them to be material in the near future. Our net revenues are
derived primarily from the following offerings:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Full
    Service</FONT></I><FONT size="2">&nbsp;&#151; we program our
    clients&#146; surveys, host them on our website infrastructure,
    invite our panelists to take the surveys and deliver the
    compiled data to our clients for their analysis and presentation.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Sample Solutions&nbsp;&#151;
    </FONT></I><FONT size="2">clients that have their own
    programming capabilities, but have limited or no access to
    survey respondents, can purchase controlled access to the
    Greenfield Online panel.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2003, our net revenues were evenly derived
from full-service and sample solutions. We expect our relative
mix of revenues to remain the same in 2004.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We typically experience a one month lag between
submitting a bid for a project and the project award. We monitor
forward delivery demand using the bid data maintained on our
customer relationship management software and the
&#147;win-rate&#148; derived from this data in order to plan
operational needs, such as the need to hire or reassign delivery
personnel, and panel growth needs and composition.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Once awarded, our typical project is usually
completed in less than 30&nbsp;days. We track the costs incurred
on each project and defer cost recognition until such time as
the project is delivered to the client. Upon delivery, the costs
associated with the project are expensed and revenue is
recognized.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of
Revenues</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our direct costs associated with generating
revenues primarily consist of the following items:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Project
    Personnel</FONT></I><FONT size="2">&nbsp;&#151; Project
    personnel have three distinct roles: project management, survey
    programming and data processing. We maintain project personnel
    in the United States, Europe, Canada and India. Labor costs are
    specifically allocated to each project. We utilize an automated
    timekeeping system in which project personnel maintain estimates
    of time incurred for each specific project. Project personnel
    are paid quarterly bonuses based upon quality of service
    delivery and achievement of revenue goals associated with
    clients.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Panelist
    Incentives</FONT></I><FONT size="2">&nbsp;&#151; Our panelists
    receive cash and non-cash incentives for participating in our
    surveys. Each member of our panel has their own Greenfield
    Online incentive account that we maintain. We accrue incentives
    based upon a member qualifying for and completing a survey
    within a predetermined timeframe. The panel member may request
    and receive payment of his or her incentives at any point in
    time prior to expiration. Incentives generally expire one year
    after award as outlined in terms and conditions available on our
    panelist website.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Data
    Processing</FONT></I><FONT size="2">&nbsp;&#151; We perform the
    majority of the processing of survey data with our own
    professionals. Occasionally, we outsource certain data
    processing functions to third-party suppliers.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Outside
    Sample</FONT></I><FONT size="2">&nbsp;&#151; Occasionally,
    clients will request that we supplement our sample with survey
    responses from individuals who are not members of the Greenfield
    Online panel. These requests may occur in situations where the
    customer requests augmentation of data collected from the
    Greenfield Online panel, as well as in markets in which we do
    not have panelists, typically certain international geographic
    sectors.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Other Direct
    Costs</FONT></I><FONT size="2">&nbsp;&#151; Other direct costs
    may include the following: (i)&nbsp;fees paid to a third party
    for healthcare-related sample data retrieved from a panel of
    healthcare professionals developed by this third party and
    (ii)&nbsp;fees paid to Microsoft Corporation for surveys
    completed and sold using data from panelists we have obtained
    through the Microsoft Network (&#147;MSN&#148;). We intend to
    phase out our use
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">31
</FONT>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">of arrangements with third parties that require
    us to pay fees in connection with completed surveys. Also
    included in other direct costs are unearned stock-based
    compensation charges which are amortized over the service period
    of options granted to project personnel.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Amortization of Internal Use
    Software</FONT></I><FONT size="2">&nbsp;&#151; We include in
    cost of revenues amortization of capitalized software costs
    related to survey production. Over the last two years, we have
    migrated from developing the majority of our internal use
    software ourselves to using third-party best-of-breed survey
    solutions. This migration has tended to reduce the cost of such
    software and thus, has also reduced amortization expense.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Selling, General and Administrative
    Expenses</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We employ 31 individuals that support the sales
and marketing of our Internet survey solutions. These sales
professionals are compensated based upon project delivery and
revenue recognition. Commissions are accrued when we deliver
completed projects to our clients. In addition, we maintain the
Greenfield Online panel with a staff of five panel management
personnel. These individuals design programs geared toward
panelist recruitment, retention and incentives and are also
responsible for panel database design and development.
Furthermore, we support our sales effort with a staff of three
marketing professionals who design product pricing, promotional
and distribution strategies. We employ 11&nbsp;individuals who
provide a foundation for these functions in the areas of
executive, finance, human resources and information technology
operations. This group is responsible for maintaining the
infrastructure and support for the entire sales, delivery and
panel teams. Also included in selling, general and
administrative expenses are unearned stock-based compensation
charges which are amortized over the service period of options
granted to selling, general and administrative personnel.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Panel Acquisition Expenses</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We continually add new members to the Greenfield
Online panel in order to support growing demand for our products
and services as well as to compensate for members who leave the
panel in the ordinary course of our business. We incur costs to
acquire members for our panel, including fees paid to procure
new panelists from our web master affiliate program and through
panel acquisition agreements with large Internet portals,
special interest, age and ethnicity-related websites, incentives
paid to Microsoft for recruiting panelists to the panel, the
cost to test potential panel sources before full recruitment
roll-out begins on a specific website and other costs associated
with the panel recruitment process. These costs are expensed as
incurred.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Research and Development
    Expenses</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We employ a staff of professional technology
personnel who develop proprietary solutions for panel database
development and integrating client and third-party software
solutions into our technology infrastructure. All costs
associated with research and product development efforts are
expensed as incurred and recorded under research and development
expenses.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As discussed in Note 2 to our consolidated
financial statements included elsewhere in this prospectus,
costs relating to survey software development that meet the
criteria for capitalization under GAAP are capitalized and
amortized over the estimated period of benefit, usually two
years.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Income Taxes</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We recognize deferred tax assets and liabilities
on differences between the book and tax basis of assets and
liabilities using currently effective rates. Further, deferred
tax assets are recognized for the expected realization of
available net operating loss carryforwards. A valuation
allowance is recorded to reduce a deferred tax asset to an
amount that we expect to realize in the future. We continually
review the adequacy of the valuation allowance and recognize
these benefits if a reassessment indicates that it is more
likely than not that these benefits will be realized. In
addition, we continuously evaluate our tax contingencies and
recognize a liability when we believe that it is probable that a
liability exists.
</FONT>

<P align="center"><FONT size="2">32
</FONT>

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<P align="left">
<B><FONT size="2">Treatment of Sale of Custom Research
Business</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We do not believe that the sale of the Custom
Research Business qualified for discontinued operations
treatment under Statement of Financial Accounting Standards
No.&nbsp;144, &#147;Accounting for the Impairment or Disposal of
Long-Lived Assets&#148; (&#147;SFAS&nbsp;144&#148;), because
(i)&nbsp;the business was not run separately from the Internet
Survey Solutions business, (ii)&nbsp;a single income statement
and cash flow statement was prepared on a combined basis for
internal reporting purposes, (iii)&nbsp;we never attempted to
capture and track cash flows of the Custom Research Business
separately, and it would be impracticable for us to
retrospectively develop meaningful information regarding these
cash flows; and (iv)&nbsp;we had continuing involvement in the
business under our alliance agreement, as both Taylor Nelson and
its end customers relied on us to fulfill our obligations under
contracts in process and as principal supplier of internet
research to Taylor Nelson during the term of the agreement.
</FONT>

<P align="left">
<B><FONT size="2">Critical Accounting Policies and
Estimates</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our discussion and analysis of our financial
condition and results of operations are based on our financial
statements, which have been prepared in conformity with GAAP in
the United States. The preparation of these financial statements
requires us to make estimates and judgments that affect the
reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses
during the reporting periods. On an on-going basis, we evaluate
our estimates and judgments. We base our estimates on historical
experience, independent instructions, known trends and events
and various other factors that are believed to be reasonable
under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and
liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates under different
assumptions or conditions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe the following critical accounting
policies affect our more significant judgments and estimates
used in the preparation of our consolidated financial statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Revenue Recognition.</FONT></I><FONT size="2">
We recognize revenues when survey data is delivered to the
client in accordance with the terms of our agreements. Research
products are delivered within a short period, generally ranging
from a few days to eight weeks. An appropriate deferral is made
for direct costs related to contracts in process, and no revenue
is recognized until delivery of the data has taken place.
Billings rendered in advance of services being performed, as
well as customer deposits received in advance, are recorded as a
current liability included in deferred revenue. We are required
to estimate contract losses, if any, and provide for such losses
in the period they are determined and estimable. We do not
believe that there are realistic alternatives to our revenue
recognition policy given the short period of service delivery
and the requirement to deliver completed surveys to our
customers. We do not believe there is significant risk of
recognizing revenue prematurely since our contracts are
standardized, the earnings process is short and no single
project accounts for a significant portion of our revenue.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Stock-Based
Compensation.</FONT></I><FONT size="2"> We have elected to
follow Accounting Principle Board Opinion No.&nbsp;25,
&#147;Accounting for Stock Issued to Employees&#148;
(&#147;APB&nbsp;25&#148;), and related interpretations in
accounting for our stock-based compensation plans, rather than
the alternative fair value method provided for under Financial
Accounting Standard No.&nbsp;123 &#147;Accounting for
Stock-Based Compensation&#148; (&#147;FAS&nbsp;123&#148;). In
2002 and 2003, we granted certain options to purchase our common
stock at exercise prices that we have now determined to be less
than the fair value of our common stock and, as a result, we
have recorded deferred stock compensation expense which is
amortized to earnings over the service period of the employee.
In the notes to our consolidated financial statements, we
provide pro forma disclosures in accordance with FAS&nbsp;123.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Accounting for equity instruments granted or sold
by us under APB&nbsp;25, FAS&nbsp;123 and EITF&nbsp;96-18
requires fair value estimates of the equity instrument granted
or sold. If our estimates of the fair value of these equity
instruments are too high or too low, our expenses may be over-
or under-stated. Equity instruments granted or sold in exchange
for the receipt of goods or services and the value of those
goods or services can not be readily estimated, as is true in
connection with most stock options and warrants granted
</FONT>

<P align="center"><FONT size="2">33
</FONT>

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<DIV align="left">
<FONT size="2">to employees and non-employees, and we estimated
the fair value of the equity instruments based upon
consideration of factors which we deemed to be relevant at the
time.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The fair value of our common stock is determined
by our board of directors contemporaneously with the grant of a
stock option. Prior to the existence of a public trading market
for our common stock, our board of directors considered numerous
objective and subjective factors in determining the fair value
of our common stock. At the time of option grants and other
stock issuances, our board of directors considered the
liquidation preferences, dividend rights, voting control and
anti-dilution protection attributable to our then-outstanding
redeemable convertible preferred stock, the status of private
and public financial markets, valuations of comparable private
and public companies, the likelihood of achieving a liquidity
event, our existing financial resources, our anticipated capital
needs, dilution to common stockholders from anticipated future
financings and a general assessment of future business risks, as
such conditions existed at the time of the grant. Subsequent
events or conditions that differ from these factors could have a
material impact on stock compensation expense in our
consolidated financial statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Earnings Per Share</FONT></I><FONT size="2">
We report net income (loss) per share in accordance with
Statement of Financial Accounting Standards No. 128
&#147;Earnings per Share&#148; (&#147;SFAS 128&#148;). Earnings
per share (&#147;EPS&#148;) is sensitive to fair value
estimation techniques, as this effects accretion estimates that
are charged against income available to common stockholders. For
our participating preferred securities it is our policy to
determine both basic and diluted EPS using the &#147;two
class&#148; method as defined under SFAS&nbsp;128. We determined
this as the appropriate method as it was more dilutive than the
&#147;if&nbsp;&#151; converted&#148; method.
</FONT>

<P align="left">
<B><FONT size="2">Results of Operations</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Year Ended December&nbsp;31, 2003 Versus
    Year Ended December&nbsp;31, 2002</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth our results of
operations based on the amounts and percentage relationship of
the items listed to net revenues for the periods presented.
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="60%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">($ in thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net revenues:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Internet survey solutions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,416</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">96.8</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Custom research
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">470</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total net revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,886</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost of revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,409</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,884</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gross profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,477</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,984</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating expenses:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Selling, general and administrative
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,123</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,127</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">46.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Panel acquisition expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">713</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,421</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation and amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,802</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,113</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Research and development
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">747</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total operating expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,385</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,287</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">59.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,908</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(26.3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,697</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income (expense):
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest expense, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(621</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4.2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(440</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1.7</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related party interest income (expense), net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">69</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(55</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,497</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">596</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total other income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss)&nbsp;before income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,963</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19.9</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,798</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision (benefit)&nbsp;for income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(569</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3.8</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,394</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,648</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.4</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">34
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Net Revenues. </FONT></I><FONT size="2">Net
revenues for Internet survey solutions for the year ended
December&nbsp;31, 2003 were $25.9&nbsp;million, compared to
$14.4&nbsp;million for the year ended December&nbsp;31, 2002, an
increase of $11.5&nbsp;million, or 79.4%. Net revenues increased
primarily due to an increase in the number of survey projects
completed as well as an increase in the number of clients we
serviced in 2003 over 2002. New revenue sources introduced early
in 2003, including sample-only solutions and revenues from the
healthcare segment of the Greenfield Online panel, contributed
significantly to the increase in revenues from 2002 to 2003.
Furthermore, demand for our services was driven by market
factors, including the need for customers to improve
profitability by using Internet-based marketing research data
and the impact of the Do Not Call registry on marketing research
firms whose franchises were previously predominantly
telephone-based research solutions. Net revenues from custom
research for the year ended December&nbsp;31, 2003 decreased to
zero from $470,000 in the year ended December&nbsp;31, 2002. The
decrease in custom research revenues was due to the sale of our
Custom Research Business in January 2002 and our shift in
strategy to providing Internet survey solutions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Gross Profit. </FONT></I><FONT size="2">Gross
profit for the year ended December&nbsp;31, 2003 was
$17.0&nbsp;million, compared to $9.5&nbsp;million for the year
ended December&nbsp;31, 2002, an increase of $7.5&nbsp;million,
or 79.2%. Gross profit increased primarily due to the additional
revenues described above. Gross profit as a percentage of net
revenues increased due primarily to a decline in costs related
to the amortization of capitalized survey software cost. As we
migrated from development of our own survey software technology
to using third-party technology, the associated costs for
internal use software declined significantly. As a result of
lower spending, the amounts capitalized and the related
amortization have declined. Gross profit for the year ended
December&nbsp;31, 2003 was 65.7% of net revenues, compared to
63.7% for the year ended December&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Selling, General and Administrative Expenses.
</FONT></I><FONT size="2">Selling, general and administrative
expenses for the year ended December&nbsp;31, 2003 were
$12.1&nbsp;million, compared to $10.1&nbsp;million for the prior
year, an increase of $2.0&nbsp;million or 19.8%. Selling
expenses, primarily personnel costs and related commissions,
increased substantially as a result of additional resources
aimed at promoting our services. General and administrative
expenses increased primarily as a result of increased
compensation expense associated with executive compensation, as
well as costs associated with our India and U.K. expansion,
which began in 2003. In addition, amortization of unearned
stock-based compensation in 2003 contributed to this increase.
As a percentage of net revenues, selling, general and
administrative costs decreased 21.1% primarily due to the
overall increase in revenues generated by the additional sales
efforts. Selling, general and administrative expenses were 46.9%
of net revenues for the year ended December&nbsp;31, 2003,
compared to 68.0% for the year ended December&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Panel Acquisition Expenses.
</FONT></I><FONT size="2">Panel acquisition expenses were
$1.4&nbsp;million for the year ended December&nbsp;31, 2003,
compared to $713,000 for the year ended December&nbsp;31, 2002,
an increase of $708,000, or 99.3%. Panel acquisition expenses
increased primarily as a result of our continuing efforts to
expand and diversify our panel. Panel acquisition expenses were
5.5% of net revenues for the year ended December&nbsp;31, 2003,
compared to 4.8% for the year ended December&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Depreciation and Amortization Expenses.
</FONT></I><FONT size="2">Depreciation and amortization expenses
for the year ended December&nbsp;31, 2003 were
$1.1&nbsp;million, compared to $1.8&nbsp;million for the year
ended December&nbsp;31, 2002, a decrease of $689,000, or 38.2%.
The decrease was primarily due to a decrease in amortization
expense of intangible assets and a decrease in depreciation
expense of property and equipment. This decline in depreciation
and amortization expense occurred as a portion of these assets
became fully depreciated early in 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Interest Expense, Net.
</FONT></I><FONT size="2">Interest expense for the year ended
December&nbsp;31, 2003 was $440,000, compared to $621,000 for
the year ended December&nbsp;31, 2002, a decrease of $181,000,
or 29.1%. The decrease was due primarily to lower debt levels
outstanding during the 2003 period, resulting from repayment of
the outstanding balance debt under our revolving credit facility
in October 2003 with cash generated from operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Related Party Interest Income (Expense).
</FONT></I><FONT size="2">Related party interest expense for the
year ended December&nbsp;31, 2003 was $55,000, compared to
related party interest income of $69,000 for the year ended
December&nbsp;31, 2002. This change was due to our
recapitalization in 2002, which involved, among other
</FONT>

<P align="center"><FONT size="2">35
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">things, the exchange of our related party
convertible notes for preferred stock in 2002. In addition, the
increase in related party interest expense was due to accretion
of debt discount on certain shares of preferred stock issued in
connection with our the recapitalization in December 2002.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Other Income, Net.
</FONT></I><FONT size="2">Other income for the year ended
December&nbsp;31, 2003 was $596,000, compared to
$1.5&nbsp;million for the year ended December&nbsp;31, 2002.
Other income for the year ended December&nbsp;31, 2003 related
primarily to the contingent gain on the sale of our Custom
Research Business, which was completed in January 2002. The
contingent gain could not be recognized until January 2003, when
certain conditions were met and the cash was collected. Other
income for the year ended December&nbsp;31, 2002 related
primarily to the gain on the disposal of the Custom Research
Business. For a further discussion of the sale of our Custom
Research Business, see note&nbsp;3 to our consolidated financial
statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Provision (Benefit) for Income Taxes.
</FONT></I><FONT size="2">We recorded an income tax provision
for the year ended December&nbsp;31, 2003 of $150,000, compared
to a benefit of $569,000 for the year ended December&nbsp;31,
2002. The 2003 tax provision was primarily related to federal
and state taxes that could not be offset by net operating loss
carryforwards. In 2002, the tax benefit reflected a state
research and development credit for which we received refunds.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Net Income (Loss).
</FONT></I><FONT size="2">Our net income for the year ended
December&nbsp;31, 2003 was $1.6&nbsp;million, compared to a net
loss of $2.4&nbsp;million for the year ended December&nbsp;31,
2002. The increase in net income is primarily the result of the
increase in revenues partially offset by increased selling,
general and administrative expenses and panel acquisition
expenses, as more fully described above. Net income per common
share for the year ended December&nbsp;31, 2003 was $0.07 basic
and $0.06 diluted, as compared to a net loss of $(6.42) basic
and diluted for the year ended December&nbsp;31, 2002.
</FONT>

<P align="center"><FONT size="2">36
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Year Ended December&nbsp;31, 2002 Versus
    Year Ended December&nbsp;31, 2001</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth our results of
operations based on the amounts and percentage relationship of
the items listed to net revenues for the periods presented.
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="57%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">($ in thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Internet survey solutions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,072</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29.5</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,416</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">96.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Custom research
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,715</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">470</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total net revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,787</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,886</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost of revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,097</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,409</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gross profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,690</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,477</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating expenses:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Selling, general and administrative
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,148</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">109.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,123</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Panel acquisition expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">351</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">713</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation and amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,654</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,802</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Research and development
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,750</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">747</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total operating expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,903</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">144.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,385</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14,213</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(103.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,908</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(26.3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income (expense):
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest expense, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(971</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(621</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4.2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related party interest income (expense), net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,303</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16.7</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">69</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,497</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total other income (expense)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,074</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(22.3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Loss before income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(125.4</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,963</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19.9</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Benefit from income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(569</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3.8</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net loss
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(125.4</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,394</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Net Revenues. </FONT></I><FONT size="2">Net
revenues for Internet survey solutions for the year ended
December&nbsp;31, 2002 were $14.4&nbsp;million, compared to
$4.1&nbsp;million for the year ended December&nbsp;31, 2001, an
increase of $10.3&nbsp;million, or 254.0%. The overall increase
in net revenues was primarily due to an increase in the number
of survey projects completed as well as an increase in the
number of clients we serviced in 2002 over 2001. This increase
in revenues was due primarily to the impact of our shift in
strategy to being an Internet survey solutions provider after
the sale of our Custom Research Business. Net revenues from
custom research for the year ended December&nbsp;31, 2002
decreased by $9.2&nbsp;million, or 95.2%, to $470,000 from
$9.7&nbsp;million for the year ended December&nbsp;31, 2001 due
to the sale of our Custom Research Business in January 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Gross Profit. </FONT></I><FONT size="2">Gross
profit for the year ended December&nbsp;31, 2002 was $9.5
million, compared to $5.7&nbsp;million for the year ended
December&nbsp;31, 2001, an increase of $3.8&nbsp;million, or
66.6%. Gross profit increased primarily due to our increased
revenues as well as a significant decline in amortization of
capitalized survey software costs. As we migrated from internal
development of survey software technology to use of third-party
technology, the associated application development costs for
overall survey software declined significantly. As a result of
lower spending, amounts capitalized and the related amortization
have declined. Gross profit as a percentage of net revenues for
the year ended December&nbsp;31, 2002 was 63.7%, compared to
41.3% for the year ended December&nbsp;31, 2001. This increase
was due primarily to the lower direct project costs associated
with full service and sample solutions as opposed to custom
research survey solutions, which we did not provide in
substantially all of 2002, as well as the decline in
amortization expense associated with internally developed
software.
</FONT>

<P align="center"><FONT size="2">37
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Selling, General and Administrative Expenses.
</FONT></I><FONT size="2">Selling, general and administrative
expenses for the year ended December&nbsp;31, 2002 were
$10.1&nbsp;million, compared to $15.1&nbsp;million for the prior
year, a decrease of $5.0&nbsp;million, or 33.1%. Selling,
general and administrative expenses for the year ended
December&nbsp;31, 2002 were 68.0% of net revenues, compared to
109.9% of net revenues for the year ended December&nbsp;31,
2001. Selling, general and administrative expenses decreased
primarily as a result of the disposition of our Custom Research
Business and cost savings measures we instituted during 2001. Of
the $5.0&nbsp;million decline in selling, general and
administrative expenses, $4.8&nbsp;million was due to reduction
in headcount following the sale of our Custom Research Business
and additional workforce reductions that we effected in early
2002. Additionally, the reduction was due in part to lower
overhead expenses resulting from these personnel reductions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Panel Acquisition Expenses.
</FONT></I><FONT size="2">Panel acquisition expenses for the
year ended December&nbsp;31, 2002 were $713,000, compared to
$351,000 for the year ended December&nbsp;31, 2001, an increase
of $362,000, or 103.1%. Panel acquisition expenses increased
primarily as a result of our efforts to grow the size of the
Greenfield Online panel during 2002 to support a higher level of
survey volume expected in 2003 and the future. Panel acquisition
expenses for the year ended December&nbsp;31, 2002 were 4.8% of
net revenues, compared to 2.6% of net revenues for the year
ended December&nbsp;31, 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Depreciation and Amortization Expenses.
</FONT></I><FONT size="2">Depreciation and amortization expenses
for the year ended December 31, 2002 were $1.8&nbsp;million,
compared to $2.7&nbsp;million for the year ended
December&nbsp;31, 2001, a decrease of $852,000, or 32.1%.
Depreciation and amortization expenses decreased primarily due
to reduced amortization expense related to intangible assets,
which were written down in 2001 due to a lack of recoverability.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Research and Development Expenses.
</FONT></I><FONT size="2">Research and development expenses for
the year ended December&nbsp;31, 2002 were $747,000, compared to
$1.8&nbsp;million for the year ended December&nbsp;31, 2001, a
decrease of $1.0&nbsp;million. The decline was due primarily to
cost reduction efforts, including staff reductions and reduction
of third-party software development consultant fees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Interest Expense, Net.
</FONT></I><FONT size="2">Interest expense, net for the year
ended December&nbsp;31, 2002 was $621,000, compared to $971,000
for the year ended December&nbsp;31, 2001, a decrease of
$350,000, or 36.0%. The decrease was due primarily to lower debt
levels outstanding during 2002. During 2002, we repaid our term
loan with Bank of America, and we used part of the proceeds from
the sale of our Custom Research Business to further reduce
outstanding debt.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Related Party Interest Income (Expense), Net.
</FONT></I><FONT size="2">Related party interest income was
$69,000 as compared to an expense of $2.3&nbsp;million for the
years ended December&nbsp;31, 2002 and December&nbsp;31, 2001,
respectively. The decline in related party interest expense was
due to the effects of the 2002 recapitalization.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Other Income, Net.
</FONT></I><FONT size="2">Other income for the year ended
December&nbsp;31, 2002 was $1.5&nbsp;million, compared to
$200,000 for the year ended December&nbsp;31, 2001. Other income
for the year ended December&nbsp;31, 2002 related primarily to
the gain on disposal of our Custom Research Business, which was
completed in January 2002. Other income for the year ended
December&nbsp;31, 2001 related primarily to the sale of a patent
on software that we had developed but no longer needed.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Benefit from Income Taxes.
</FONT></I><FONT size="2">We recorded an income tax benefit for
the year ended December&nbsp;31, 2002 of $569,000, which
reflected a state research and development credit. For the year
ended December&nbsp;31, 2001, we did not record any income tax
benefit as cumulative losses placed in doubt the ultimate
realization of the related deferred tax assets.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Net Income (Loss).
</FONT></I><FONT size="2">Our net loss for the year ended
December&nbsp;31, 2002 was $2.4&nbsp;million, compared to a net
loss of $17.3&nbsp;million for the year ended December&nbsp;31,
2001. The improvement on our net loss is the result of increased
revenues as a result of the migration in business strategy and
the workforce reduction as more fully described above. Net loss
per share amounted to $(6.42) basic and diluted for the year
ended December&nbsp;31, 2002, as compared to $(17.71) basic and
diluted for the year ended December&nbsp;31, 2001.
</FONT>

<P align="center"><FONT size="2">38
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">Liquidity and Capital Resources</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since inception, we have financed our operations
primarily through sales of equity and debt securities, from
borrowings under our credit facilities, from the proceeds from
the sale of our Custom Research Business and, more recently,
through cash flows from operations. We have received a total of
$43.0&nbsp;million from private offerings of our equity and debt
securities. At December&nbsp;31, 2003, we had approximately
$3.7&nbsp;million in cash on hand.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cash provided by operations for the year ended
December&nbsp;31, 2003 was $4.1&nbsp;million, compared to
$697,000 for the year ended December&nbsp;31, 2002. The increase
in cash flow from operations in 2003 was primarily attributed to
our profitability and to improved working capital management.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cash provided by investing activities was
$295,000 for the year ended December&nbsp;31, 2003, compared to
$539,000 for the year ended December&nbsp;31, 2002. These
amounts primarily represented net cash received from the sale of
our Custom Research Business of $600,000 in 2003 and
$1.1&nbsp;million in 2002, offset by $305,000 and $558,000 of
cash capital expenditures made in the ordinary course of
business in 2003 and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cash used in financing activities was
$2.5&nbsp;million for the year ended December&nbsp;31, 2003 as
compared to $428,000 for the year ended December&nbsp;31, 2002.
The difference was primarily the result of higher repayments of
our short-term debt in 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our working capital at December 31, 2003 was
$1.0&nbsp;million, compared to a deficit of $1.9&nbsp;million at
December&nbsp;31, 2002, an increase of $2.9&nbsp;million. The
increase in working capital was primarily due to our improved
profitability resulting in increases in cash and accounts
receivable and decreases in outstanding debt, partially offset
by increases in accounts payable and accrued expenses as a
result of growth in the number of our employees and in the size
of our panelist base.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have maintained a banking relationship with
Silicon Valley Bank since September 2001. In August 2003, we
amended our credit facility with Silicon Valley Bank to extend
the maturity date until August 2005 and reduce the applicable
interest rate. This credit facility allows for borrowings of up
to $1.9 million, based upon an 80% advance rate on eligible
accounts receivable (the &#147;Borrowing Base&#148;), and bears
interest at a rate equal to the prime rate plus 1%, plus a
collateral handling fee of 0.375% of the monthly average daily
financed receivable balance. The credit facility is
collateralized by a pledge of our general assets and contains a
covenant that requires us to achieve EBITDA (as defined in the
credit facility) of $1.00 or more during each month that the
facility is outstanding. In October 2003, we repaid the entire
outstanding balance under the facility, and at December&nbsp;31,
2003 the entire amount was available for borrowing, subject to
the sufficiency of the Borrowing Base.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We also maintain an ongoing relationship with
Somerset Capital Group Ltd., a leasing company, to finance the
acquisition of equipment, software and office furniture pursuant
to leases which we have recorded as capital leases.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2003 and 2002, we did not
have any relationships with unconsolidated entities or financial
partnerships, such as entities often referred to as structured
finance or special purpose entities, which would have been
established for the purpose of facilitating off-balance sheet
arrangements or other contractually narrow or limited purposes.
As such, we are not exposed to any financing, liquidity, market
or credit risk that could arise if we had engaged in such
relationships.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We intend to use the net proceeds of this
offering to pay a mandatory conversion and dividend payment of
approximately $9.4&nbsp;million to the holders of our
Series&nbsp;B Convertible Participating Preferred Stock.
Additionally, we intend to use approximately $2.1&nbsp;million
of the net proceeds of this offering to fund a mandatory
redemption of all outstanding shares of our Series&nbsp;C-2
Redeemable Non-Voting Preferred Stock. We intend to use the
remainder of the net proceeds to fund working capital and
general corporate purposes. See &#147;Use of Proceeds.&#148;
</FONT>

<P align="center"><FONT size="2">39
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During 2004, we expect capital expenditures to
total approximately $2.8&nbsp;million, including approximately
$1.0&nbsp;million for the construction of our operations
facility in India. We also expect that capital expenditures for
our operations in North America will be approximately
$1.8&nbsp;million in 2004.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table summarizes our contractual
obligations at December&nbsp;31, 2003 and the effect such
obligations are expected to have on our liquidity and cash flow
in future periods:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="45%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Years Ended December 31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="23"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2009 and</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2004</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2005</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2006</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2007</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2008</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">thereafter</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">(in thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Contractual obligations:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Loans payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital lease obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,579</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">874</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">548</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">129</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series C-2 preferred redemption payment(1)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,052</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,052</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series B preferred conversion payment(1)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,114</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,114</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-cancelable operating lease obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,791</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,413</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,067</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,067</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,127</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,127</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total contractual cash obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,563</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,458</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,620</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,202</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,161</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,132</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents mandatory payments to be made upon
    completion of our proposed IPO. The amounts have been presented
    in this table at their liquidation value at December&nbsp;31,
    2003. In the absence of a qualified initial public offering, the
    Series&nbsp;C-2 Redeemable Non-Voting Preferred Stock will
    become mandatorily redeemable in May 2009 and the Series&nbsp;B
    Participating Preferred Stock will become convertible (and the
    conversion payment will become due) only with our consent.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on our current level of operations and
anticipated growth, we believe that our cash generated from
operations, amounts available under our credit facility and
future capital leasing arrangements with Somerset Capital,
together with the net proceeds that we will receive from this
offering, will be adequate to finance our working capital and
other capital expenditure requirements through the foreseeable
future, although no assurance can be given in this regard. Poor
financial results, unanticipated expenses, acquisitions of
technologies or businesses or strategic investments could give
rise to additional financing requirements sooner than we expect.
There can be no assurance that equity or debt financing will be
available to us when we need it or, if available, that the terms
will be satisfactory to us and not dilutive to our then-current
stockholders.
</FONT>

<P align="left">
<B><FONT size="2">Impact of Inflation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our results are affected by the impact of
inflation primarily on production, operating costs and interest
rates. The effects of inflation in changing prices on our net
revenues and operations have not been material in the last three
fiscal years. However, there has been deflationary pressure on
selling prices, which require us to monitor our operating costs
and efficiencies. Due to the competitive nature of the marketing
research industry, there can be no assurance that this negative
pressure will not continue. Historically, we have used selling
price adjustments, cost containment programs and improved
operating efficiencies to offset the otherwise negative impact
of inflation on our operations.
</FONT>

<P align="left">
<B><FONT size="2">Quantitative and Qualitative Disclosures About
Market Risk</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We operate primarily in the United States.
However, we have recently expanded internationally and are
exposed to certain market risks arising from transactions that
in the normal course of business include fluctuations in
interest rates and currency exchange rates. These risks are not
expected to be material. However, no assurance can be given that
such risks will not become material. While we have not used
derivative financial instruments in the past, we may, on
occasion, use them in the future in order to manage or reduce
these risks. We do not expect to enter into derivative or other
financial instruments for trading or speculative purposes.
</FONT>

<P align="center"><FONT size="2">40
</FONT>

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<P align="left">
<B><FONT size="2">Recently Issued Accounting
Pronouncements</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In January 2003, the Financial Accounting
Standards Board, or FASB, issued Interpretation No.&nbsp;46,
&#147;Consolidation of Variable Interest Entities&#148;
(&#147;FIN&nbsp;46&#148;), which is an interpretation of
Accounting Research Bulletin No.&nbsp;51, &#147;Consolidated
Financial Statements.&#148; FIN&nbsp;46 requires that if an
entity has a controlling interest in a variable interest entity,
the assets, liabilities and results of activities of the
variable interest entity should be included in the consolidated
financial statements of the controlling entity. In December
2003, the FASB issued FIN&nbsp;46R to provide additional
clarifications to FIN&nbsp;46 and deferred the latest date by
which FIN&nbsp;46 must be applied by a Company for variable
interest entities acquired after January&nbsp;31, 2003, to the
first annual reporting period beginning after December&nbsp;15,
2004. FIN&nbsp;46 is currently effective for all variable
interest entities created or acquired after January&nbsp;31,
2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In May 2003, the FASB issued
SFAS&nbsp;No.&nbsp;150, &#147;Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and
Equity.&#148; This statement establishes how a company
classifies and measures certain financial instruments with
characteristics of both liabilities and equity, including
redeemable convertible preferred stock. This statement is
effective for financial instruments entered into or modified
after May&nbsp;31, 2003, and otherwise effective at the
beginning of the interim period commencing July&nbsp;1, 2003,
except for mandatory redeemable financial instruments of
nonpublic companies. As a result of the adoption of
SFAS&nbsp;150, our Series&nbsp;C-2 Preferred Stock has been
classified between liabilities and equity at December&nbsp;31,
2002 and was reclassified to a liability at December&nbsp;31,
2003 because we must redeem all of the Series C-2 Preferred
Stock upon the occurrence of the earlier of certain liquidity
events or May 2009.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In August 2001, the FASB issued
SFAS&nbsp;No.&nbsp;144. SFAS&nbsp;144 provides new guidance on
the recognition of impairment losses on long-lived assets,
excluding goodwill, to be held and used or to be disposed of and
also broadens the definition of what constitutes a discontinued
operation and how the results of a discontinued operation are to
be measured and presented. SFAS&nbsp;144 also requires
long-lived assets that are to be abandoned, be treated as held
for use and depreciated over their remaining expected lives and
broadens the presentation of discontinued operations in the
statement of operations to a component of an entity rather than
a segment of a business. SFAS&nbsp;144 was effective for us
beginning January&nbsp;1, 2002 and had no material impact on our
financial position or results of operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In June 2002, the FASB issued
SFAS&nbsp;No.&nbsp;146, &#147;Accounting for Costs Associated
with Exit or Disposal Activities&#148;
(&#147;SFAS&nbsp;146&#148;). SFAS&nbsp;146 requires that a
liability for a cost associated with an exit or disposal
activity be recognized and measured, initially at fair value,
only when the liability is incurred; therefore, nullifying
Emerging Issues Task Force Issue No.&nbsp;94-3, &#147;Liability
Recognition for Certain Employee Termination benefits and Other
Costs to Exit an Activity (including Certain Costs Incurred in a
Restructuring)&#148; (&#147;EITF&nbsp;94-3&#148;) that required
a liability for an exit cost to be recognized at the date of an
entity&#146;s commitment to an exit plan. The adoption of
SFAS&nbsp;146 is expected to result in delayed recognition for
certain types of costs as compared to the provisions of
EITF&nbsp;94-3, especially for facility closure costs. The
provisions of SFAS&nbsp;146 are effective for exit or disposal
activities that are initiated after December&nbsp;31, 2002. The
adoption of SFAS&nbsp;146 could affect the types and timing of
costs included in future business consolidation and
restructuring programs. SFAS&nbsp;146 did not have a material
impact on our financial position or results of operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In November 2002, the FASB issued Interpretation
No.&nbsp;45 &#147;Guarantor&#146;s Accounting and Disclosure
Requirements for Guarantees,&nbsp;Including Indirect Guarantees
of Indebtedness of Others, (an interpretation of FASB Statements
No.&nbsp;5, 57, and 107 and rescission of FASB interpretation
No.&nbsp;34)&#148; (&#147;FIN&nbsp;45&#148;). FIN&nbsp;45
elaborates on the disclosures to be made by a guarantor in its
interim and annual financial statements about its obligations
under certain guarantees that it has issued. FIN&nbsp;45 also
clarifies that a guarantor is required to recognize, at the
inception of a guarantee, a liability for the fair value of the
obligation undertaken in issuing the guarantee. The initial
recognition and measurement provisions of FIN&nbsp;45 are
applicable on a prospective basis to guarantees issued or
modified after December&nbsp;31, 2002. The disclosure
requirements of FIN&nbsp;45 were effective for interim and
annual financial statements for periods ending after
December&nbsp;15, 2002. The initial recognition and initial
measurement provisions did not have a material impact on our
financial position or results of operations.
</FONT>

<P align="center"><FONT size="2">41
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December 2002, the Emerging Issues Task Force
(&#147;EITF&#148;) issued EITF Issue&nbsp;00-21,
&#147;Accounting for Revenue Arrangements with Multiple
Deliverables (&#147;EITF&nbsp;00-21&#148;). EITF&nbsp;00-21
provides guidance on determining whether a revenue arrangement
contains multiple deliverable items and if so, requires that
revenue be allocated among the different items based on fair
value. EITF&nbsp;00-21 also requires that revenue on any item in
a revenue arrangement with multiple deliverables not delivered
completely must be deferred until delivery of the item is
completed. The guidance in EITF&nbsp;00-21 is effective for
revenue arrangements entered into in fiscal years beginning
after June&nbsp;15, 2003. EITF&nbsp;00-21 is not expected to
have a material impact on our financial position or results of
operations.
</FONT>

<P align="center"><FONT size="2">42
</FONT>

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<DIV align="left">
<FONT size="2"> <A name='111'></A>
</FONT>
</DIV>

<!-- link1 "BUSINESS" -->

<P align="center">
<B><FONT size="2">BUSINESS</FONT></B>

<P align="left">
<B><FONT size="2">Overview</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are a leading independent provider of Internet
survey solutions to the global marketing research industry and
we derive 100% of our revenues from Internet data collection
products and services. We actively manage the Greenfield Online
panel, a 100% Internet-based panel of approximately
1.7&nbsp;million individuals who participate in our surveys. Our
panelists represent households consisting of an estimated
4.7&nbsp;million people, allowing us to compile diverse,
demographically representative survey data.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We target our Internet survey solutions to
approximately 2,500 full service marketing research and
consulting firms in the United States and the world&#146;s top
25 marketing research companies. Our clients use the Internet
survey data that we provide to enable companies throughout the
world to make critical business decisions. Based on our internal
estimates, we believe that spending associated with the
gathering of survey data, known as fieldwork, accounts for
approximately 40% of the annual spending on survey marketing
research. Using this estimate, fieldwork represented
approximately $3.0&nbsp;billion of the $7.5&nbsp;billion global
survey market in 2002 as reported by the <I>World Association of
Opinion and Marketing Research Professionals</I>.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Until January 2002, we sold both custom
Internet-based marketing research and the Internet survey
solutions we sell today. A majority of our revenues for the
first seven years of our existence was derived from the sale of
custom research. In September 2001, we embarked on a strategy to
convert the focus of our business from providing custom research
to end-users to providing Internet survey solutions to the
marketing research firms we target today. This strategy
culminated in the sale of our custom research business to Taylor
Nelson Sofres Operations, Inc. in January 2002. The sale of our
custom research business represented a turning point in our
development as we shifted from a labor-intensive, professional
services model to a scalable, Internet-based services model.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We partner with our clients to leverage their
global sales forces and do not compete with them for custom
marketing research business. This cooperative marketing strategy
has led to significant market penetration. For the year ended
December&nbsp;31, 2003, we completed 2,482&nbsp;Internet-based
projects, a 99% increase over 2002. Additionally,
45&nbsp;companies each purchased over $100,000 of our products
and services in 2003, an 88% increase over 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Internet survey solutions are faster, more
efficient and more cost-effective for collecting high quality
marketing research data than traditional, labor-intensive
methods such as telephone, direct-mail and mall-based surveying.
The Internet allows our panelists to participate
24&nbsp;hours-a-day in a more convenient and less intrusive
environment than traditional data collection methods. Our
Internet-based technology interactively engages respondents
through the use of images, sound and video, enabling us to
collect richer data for our clients. We believe Internet-based
survey solutions speed survey completion, allow for
significantly larger survey sample sizes over a given time
period and provide marketing researchers with a cost-effective
means of reaching niche segments.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe we are well-positioned to capitalize
on evolving dynamics within the global survey research market.
Decreasing cooperation rates experienced by the telephone survey
industry and the increasing use of mobile phones as a primary
means of telephone communication have led to a decline in the
effectiveness of traditional telephone-based data collection
methods. This decline has been exacerbated by the recently
established Do Not Call registry, covering over 58&nbsp;million
telephone numbers. At the same time, Internet penetration and
increased broadband usage have accelerated growth in the use of
Internet-based marketing research. We believe these dynamics
will drive demand for our Internet survey solutions. Through our
North American operations, our sales offices in the United
Kingdom and Continental Europe and our operations center in
India, we believe we are well-positioned to meet this demand.
</FONT>

<P align="center"><FONT size="2">43
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">Our Market Opportunity</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Businesses rely on feedback from consumers to
make decisions about their products and services. Heightened
competition, consolidation, globalization of product markets,
acceleration of product launch schedules, shortened product life
and rapidly changing consumer preferences define today&#146;s
business environment. Marketing research is a critical tool to
gather the information that businesses need to make decisions
regarding product portfolios, brand management and advertising.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The worldwide survey research industry was
estimated to be $7.5&nbsp;billion in 2002 according to the
<I>World Association of Opinion and Marketing Research
Professionals </I>(&#147;ESOMAR&#148;), a leading professional
organization based in Amsterdam, The Netherlands. According to
ESOMAR, 38% and 41% of worldwide marketing research spending
occurs in the United&nbsp;States and Europe, respectively. Using
these figures, we estimate that survey research spending in 2002
was approximately $2.9&nbsp;billion and $3.1&nbsp;billion in the
United States and Europe, respectively. Of this
$6.0&nbsp;billion U.S. and European survey research market, we
believe that approximately 40%, or $2.4&nbsp;billion, is spent
by marketing research companies on fieldwork, which consists of
data collection through the administration of surveys and data
tabulation. Fieldwork is often conducted by interviews over the
telephone, in malls or through surveys distributed through the
Internet. This segment is our addressable target market.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table describes the estimated
amount of total survey research spending by geographical region
and the estimated portion of that amount spent specifically on
fieldwork.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="44%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="12%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="12%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Estimated Amount of Total</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Estimated Portion of Survey</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Survey Research Spending</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Research Spending Allotted</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Region</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">in 2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">to Fieldwork in 2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(in billions)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(in billions)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">United States
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Europe
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Factors Affecting the Growth of Internet-Based
Marketing Research</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Benefits of Internet-Based Marketing
Research. </FONT></I></B><FONT size="2">We believe the Internet
is fundamentally changing the marketing research industry,
allowing researchers to be more responsive to the challenges
posed by today&#146;s business environment.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Benefits to the Marketing Research
    Industry.</FONT></I></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">Speed. </FONT></I><FONT size="2">Using the
    Internet, marketing researchers can rapidly access, collect and
    process large amounts of data from diverse groups. Our
    proprietary panel management techniques allow us to quickly
    identify and target groups of panelists to receive and
    participate in surveys over the Internet. Survey response time
    on the Internet is measured in hours and days rather than weeks
    and months. Our technology and expertise allow us to administer
    thousands of Internet surveys simultaneously.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">Cost Effectiveness.</FONT></I><FONT size="2">
    We believe that Internet-based survey solutions lower the cost
    of marketing research by decreasing data collection costs. Once
    qualified panelists have been identified and surveys have been
    developed, the actual cost of data collection through the
    Internet is significantly less than through traditional methods.
    Our average charge for a completed survey ranges from $10.00 to
    $14.00, compared to our estimate of approximately $20.00 to
    $25.00 per mall survey and $18.00 to $22.00 per telephone survey.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">Improved Results.</FONT></I><FONT size="2">
    Members of the Greenfield Online panel are able to complete
    surveys in the privacy of their own homes, without interacting
    with interviewers. As a result, we believe interviewer bias is
    eliminated. Because the Internet provides respondents with a
    degree of anonymity and privacy not found in telephone or
    mall-based surveys, we believe Internet survey solutions
    generate more honest
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">44
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">responses, even to sensitive subject matter
    questions, such as income, personal health, political
    affiliations and sexual orientation. Internet-based surveys can
    accommodate a variety of new media as well, including images,
    sound and video, which cannot be integrated into telephone or
    mail surveys. We believe that integrating these media allows
    researchers to capture feedback needed by marketers to assess
    new product offerings and test new advertising messages more
    accurately.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">New Opportunities.
    </FONT></I><FONT size="2">We believe that Internet-based
    marketing research offers new options not previously available
    to research professionals. Internet survey solutions allow
    research professionals more design flexibility because they are
    not limited to what can be communicated by an interviewer over
    the telephone, or detailed on paper. Our Internet survey
    solutions increase the research options available to our clients
    by allowing them to embed images, sound and video within their
    surveys.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Benefits to Survey Respondents.</FONT></I></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">Less Intrusive and More
    Convenient.</FONT></I><FONT size="2"> Our Internet survey
    solutions are less intrusive than telephone surveys. The
    Internet expands the amount of data collection time available
    because respondents can complete surveys at their convenience at
    any time. In contrast, telephone surveys can only be conducted
    during limited hours and are often attempted at times of the
    day, such as dinner time, which many respondents find intrusive
    and inconvenient.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">More Engaging. </FONT></I><FONT size="2">Our
    Internet survey solutions are more engaging than telephone and
    direct mail surveys because they integrate images, sound and
    video, and often include advance previews of potential new
    products, movie trailers and commercials. We believe this
    advance preview feature makes our Internet survey solutions more
    compelling and enjoyable for our panelists than surveys
    administered through traditional methods.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Decline in Effectiveness of Telephone Data
Collection.</FONT></I></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Telephone Refusal Rates.
    </FONT></I><FONT size="2">The telephone is the dominant method
    for conducting marketing research surveys. However, the number
    of people refusing to participate in telephone research is
    increasing rapidly. According to a survey conducted by the
    <I>Council for Marketing &#38; Opinion Research
    </I>(&#147;CMOR&#148;), an independent trade organization, the
    percentage of Americans refusing to participate in telephone
    surveys was 60% in 1999, 63% in 2001 and 79% in 2003. CMOR
    reported that telephone interviewers often have little chance of
    getting past the introduction before respondents refuse to
    participate. Also adding to the refusal rate is the fact that
    many potential respondents are among the millions of people who
    have listed their telephone numbers on the national Do Not Call
    registry and do not understand that survey research is exempt
    from that legislation.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Advanced Telephone Technology.
    </FONT></I><FONT size="2">An increasing number of homes are
    adopting advanced telephone technologies such as caller ID,
    answering machines and special ring tones to screen telephone
    calls and use call blocking to prevent unwanted calls
    completely. This decreases the opportunity to perform telephone
    surveys and makes conducting telephone surveys more expensive
    and time consuming.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Adoption of Mobile Telephones as Primary
    Telecommunication Device.</FONT></I><FONT size="2"> There is a
    trend among consumers to abandon landline telephones and adopt
    mobile telephones as their primary means of telecommunication.
    The Telephone Consumer Protection Act, enacted in 1991, provides
    that calls cannot be placed by automatic telephone dialing
    systems to mobile telephone numbers unless the phone owner has
    given prior consent and is not charged for the call. This
    legislation impacts the telephone research industry and may
    become an even larger issue as telephone survey researchers lose
    access to a significant portion of the population switching to
    mobile telephones as a result of recent number portability
    regulations.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Proliferation of Non-usable Telephone Numbers.
    </FONT></I><FONT size="2">An increasing proportion of telephone
    numbers are being used by devices such as fax machines and
    computer modems. As a result of this trend, telephone survey
    data collectors are required to dial an ever-increasing volume
    of telephone numbers in order to reach the same number of
    respondents, thereby increasing their expenses. According to a
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">45
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">CMOR study published in June 2003, telephone data
    survey collectors were required to dial twice as many numbers in
    2003 to complete a survey as they were required to dial in 1999.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Growth in Internet Penetration.
</FONT></I></B><FONT size="2">In 2003, the percentage of the
U.S. population using the Internet was approximately 65%, up
from 48% in 2000. In the United Kingdom, Internet use reached
57% in 2003, up from 28% in 2000. Viewed across the United
Kingdom, Germany and France, on a blended basis, Internet
penetration reached 43% in 2003, more than doubling from 2002.
As Internet penetration increases, and in particular as
broadband penetration climbs, we believe the migration from
traditional data collection methods to Internet-based data
collection will accelerate. As the population of Internet users
increases, a larger and more diverse group of people become
accessible to us as potential panelists and the quality of the
Greenfield Online panel will likely improve.
</FONT>

<P align="left">
<B><FONT size="2">Our Competitive Strengths</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe we are well-positioned for continued
growth in our target market and the following strengths
differentiate us from our competitors.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">The Greenfield Online
    Panel.</FONT></I><FONT size="2"> The Greenfield Online panel is
    one of the largest Internet-based panels available. Our
    1.7&nbsp;million panelists have double opted-in to participate
    in our surveys. We continue to actively expand the breadth and
    demographics of the Greenfield Online panel to address the needs
    of our clients. We perform extensive screening and analysis of
    our panelists, which allows us to offer our clients premium
    specialty panels comprised of people with similar
    characteristics. We have the ability to quickly reach
    appropriate target audiences within our panel for a wide range
    of client requests, including respondents in the healthcare,
    automotive, Hispanic, business-to-business, information
    technology and international segments. In 2003, the Greenfield
    Online panel completed 2,482&nbsp;Internet-based marketing
    research projects.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Experienced Panel
    Management.</FONT></I><FONT size="2"> Over the past nine years,
    we have developed proprietary panel management techniques
    designed to maximize the efficiency and productivity of the
    Greenfield Online panel. We maintain a fresh and active panel by
    continually adding new members and seeking additional
    information from our panelists. These panel management
    techniques allow us to efficiently target our survey invitations
    and create relevant cash and non-cash incentive programs for our
    panelists. Additionally, we maintain policies to protect the
    confidentiality of our panelists&#146; personal information and
    prohibit marketing to our panelists using information obtained
    through their survey participation. We believe that these
    policies have enabled us to develop a relationship of trust with
    our panelists and foster a climate that encourages their
    continued participation in our surveys.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Complete Internet Survey
    Solutions.</FONT></I><FONT size="2"> We offer a wide range of
    Internet survey solutions that enable the global marketing
    research industry to conduct Internet-based research. Our
    complete range of survey solutions facilitates the migration
    from traditional survey methods to Internet-based methods and
    eliminates the need for our clients to develop their own
    Internet research capabilities.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Focused Sales
    Strategy.</FONT></I><FONT size="2"> Our focused sales strategy
    seeks to incorporate our Internet survey solutions into our
    clients&#146; research proposals that they present to the
    end-users of the data we collect. Our client relationships are
    strengthened by this cooperative sales strategy which allows us
    to leverage their global sales forces as a distribution channel
    for our products and services. We do not compete with our
    clients for custom marketing research business from end-users.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Significant Operating Leverage.
    </FONT></I><FONT size="2">We believe our Internet-based business
    model provides significant operating leverage and should lead to
    expansion of our operating income margin if we succeed in
    growing our revenues. By leveraging the established Greenfield
    Online panel, conducting an increasing number of surveys using
    our existing technology infrastructure and benefiting from our
    operations center in India, we believe we will continue to
    improve our operating leverage.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Well-Established Brand and Commitment to
    Customer Service.</FONT></I><FONT size="2"> We were founded in
    1994 and conducted our first Internet-based marketing research
    project in 1995. Since our inception, we have built and refined
    the Greenfield Online panel and maintained a commitment to
    industry-leading
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">46
</FONT>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">customer service. For example, in 2003 we
    established an operations center near New Delhi, in Gurgaon,
    India, which is integrated with our U.S., Canadian and U.K.
    facilities and allows us to provide our clients with continuous
    survey programming, data collection and processing services. Our
    early entry into the Internet-based survey marketing research
    industry, the quality of the Greenfield Online panel and our
    commitment to customer service have enabled us to develop a
    strong brand within the marketing research industry.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Our Strategy</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our goal is to maintain and build upon our
leadership position within the global Internet survey solutions
market. In order to achieve this goal, our strategy is to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Drive Migration to Internet-Based Marketing
    Research.</FONT></I><FONT size="2"> We believe the Internet is
    the best method to reach a representative population sample as
    compared to the telephone and other traditional survey methods.
    As a result there is an ongoing transition within the marketing
    research industry to Internet-based survey solutions. We will
    continue to facilitate this transition and capitalize on this
    migration by:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">&#151;&nbsp;Increasing the Size and Diversity
    of the Greenfield Online Panel.</FONT></I><FONT size="2"> As the
    Greenfield Online panel becomes larger and more diverse, we will
    be able to reach smaller segments of the population allowing us
    to specifically target our clients&#146; research needs and
    offer higher value data.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">&#151;&nbsp;Expanding the Range of Our
    Specialty Panels.</FONT></I><FONT size="2"> Our current
    specialty panels include healthcare, automotive, Hispanic,
    business-to-business, information technology and international
    panel segments. Our ability to capture and access specific
    demographic information about our panelists allows us to provide
    our clients with access to research audiences that were
    difficult or impossible to find through other methods.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">&#151;&nbsp;Developing New and Innovative
    Internet-Based Survey Solutions.</FONT></I><FONT size="2"> New
    solutions, such as our media testing capabilities, integrate
    images, sound, video and other media directly into our surveys
    and provide a more interactive and engaging process than current
    methods.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <I><FONT size="2">&#151;&nbsp;Providing Faster and Better
    Service than Traditional Data Collection
    Methods.</FONT></I><FONT size="2"> Our clients seek suppliers
    that can provide high-quality panels and fast and accurate
    bid-turnaround and survey programming, allowing them more time
    to analyze survey data and provide timely, quality research for
    their customers. To achieve this strategy, we leverage our
    automated bid technology, skilled project management staff and
    our continuous survey programming capability.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Expand
    Internationally.</FONT></I><FONT size="2"> During 2004, we
    intend to further develop our capabilities outside the United
    States, expanding the size and diversity of the Greenfield
    Online panel by adding more panelists from the United Kingdom,
    Germany, France and Canada. We believe the migration of data
    collection to the Internet in the international market is in its
    early stages and represents a significant growth opportunity.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Pursue Strategic
    Acquisitions.</FONT></I><FONT size="2"> We intend to seek
    strategic acquisitions both in the United States and
    internationally to increase the size, diversity and geographic
    coverage of the Greenfield Online panel, increase our client
    base, acquire new technology, broaden our expertise and expand
    our portfolio of Internet survey solutions.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">The Greenfield Online Panel</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Greenfield Online panel is comprised of
approximately 1.7&nbsp;million individuals who voluntarily
participate in our surveys. Our panelists represent households
containing an estimated 4.7&nbsp;million people.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Panel Acquisition.</FONT></I><FONT size="2">
    We continuously recruit from a diverse pool of sources,
    including Internet portals, special interest, age and ethnicity
    focused and other websites. We also administer our internally
    developed webmaster affiliate program to enable broad based
    recruitment from lower-traffic niche websites. We believe that
    this diversified recruitment strategy helps us fulfill our goal
    of maintaining
    </FONT></TD>
</TR>

</TABLE>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">one of the largest and most representative
    panels, while also helping to ensure a continuous,
    cost-effective supply of panelists. Our panel recruitment
    strategy allows us to make daily adjustments to our recruitment
    efforts to carefully balance the supply of panelists with the
    demand for specific types of panelists. In 2003, we recruited
    over 730,000&nbsp;panelists from MSN through our agreement with
    Microsoft Corporation. Under the terms of this agreement, we
    recruit panelists for the Greenfield Online panel through MSN in
    exchange for our payment to Microsoft of fees based on the
    number of panelists recruited and the number of surveys
    delivered to our clients that are completed by such panelists.
    In the fourth quarter of 2003, panelists recruited through MSN
    represented approximately 81% of all new panelists recruited
    during that quarter. In November 2003, we substantially
    increased the diversification of our panelist recruiting
    program. As a result, in the first quarter of 2004, panelists
    recruited through MSN declined to approximately
    56,250&nbsp;panelists, representing approximately 23% of all new
    panelists recruited during that period. Throughout 2004, we plan
    to continue to expand the number of our panelist recruiting
    sources. In March 2004, the number of participating affiliates
    in our webmaster program grew to 274&nbsp;websites and we
    entered into panelist recruiting agreements with 19 additional
    websites, data suppliers and advertising networks.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Panel Management.</FONT></I><FONT size="2"> To
    extract maximum value from an Internet survey panel, proper
    panel management techniques must be employed. We utilize senior
    copywriters to design our communication materials, a
    well-maintained website, including a customized panelist web
    page, and responsive help desk support personnel to ensure that
    each contact we make with a panelist is a positive experience.
    We have developed performance metrics relating to panelist
    workload, responsiveness and participation and constantly test
    alternative communication strategies and incentive programs to
    ensure optimal panel productivity. We utilize an automated
    process to regularly probe our panel for additional profile data
    so that we can more accurately target our surveys and maximize
    the productivity of our panelists&#146; time.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Panel Incentives.</FONT></I><FONT size="2">
    Members of the Greenfield Online panel are offered incentives
    for participating in our surveys. We use a combination of
    sweepstakes and cash incentives, administered through our own
    incentive program, to encourage our panelists&#146;
    participation. The incentive level for a particular survey
    project is based upon the length and complexity of the survey
    and the difficulty in finding or motivating the survey&#146;s
    target audience. We typically initiate a survey with a modest
    incentive and then adjust the incentive level up or down as we
    invite more panelists to take the survey, and depending on the
    initial response of our panelists. With this strategy, we
    efficiently balance the invitation quantity and incentive level
    to achieve the desired number of completed surveys within the
    specified client timeframe.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Our Internet-Based Survey Solutions</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We offer survey solutions exclusively using
Internet-based methods supported by the Greenfield Online panel.
These survey solutions are customized to our clients&#146;
needs, including our full-service data collection and sample
solutions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The chart below describes the flow of an
Internet-based marketing research project and the role played by
our Internet survey solutions:
</FONT>

<P align="center">
<B><FONT size="2">Internet-Based Marketing Research Project
Flow</FONT></B>

<P align="center">
<IMG src="y95710y9571001.gif" alt="(PROJECT FLOW GRAPHIC)">

<P align="center"><FONT size="2">48
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<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Full-Service</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We program our clients&#146; surveys, host them
on our website infrastructure, invite our panelists to take the
surveys and deliver the compiled data to our clients for their
analysis and presentation to the end-user. Our clients can
utilize our complete range of Internet survey solutions,
including embedded images, sound and video, store-shelf
simulation testing and other 3D image demonstrations. Our
full-service solutions also include our review of survey
responses for internal consistency, data tabulation and verbatim
response interpretation and coding services. Our full-service
solutions takes a research questionnaire designed by our clients
from programming through data delivery. The following table
describes the products and services that comprise our
full-service capabilities and a representative application for
each product or service.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
</TR>

<TR>
    <TD colspan="5" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Product</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Representative Application</FONT></B></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
</TR>

<TR>
    <TD colspan="5" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Tracking Studies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Studies that are fielded over time to determine
    advertising awareness and brand usage
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Automobile manufacturers track consumer awareness
    of their brand to evaluate the effectiveness of their media
    spending
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Conjoint Studies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Studies that conduct a &#147;trade-off&#148;
    analysis of features/functionality
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Mobile phone carriers use these studies to design
    service plans with features that will attract the most consumers
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Concept Testing
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Studies that present product concepts to
    potential consumers
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consumer packaged goods companies test a range of
    new product offering to identify those with the most appeal to
    consumers
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Media/ Audio Testing
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Studies to evaluate the persuasiveness and key
    message recall associated with advertising
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Health and beauty care manufacturers use these
    studies to test different versions of a new advertising campaign
    to see which is most likely to result in the purchase of their
    product
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">In-Home Usage Testing
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Studies that ask respondents to try new products
    in their home
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Over-the-counter remedy manufacturers ask
    consumers to test their products and provide feedback on the
    Internet
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Omnibus Studies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Shared-cost studies that enable several clients
    to pool small sets of questions and receive feedback within
    3&nbsp;days
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">All industries take advantage of this product to
    get fast answers to urgent marketing questions
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sample
Solutions</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Clients that have survey programming
capabilities, but have limited or no access to survey
respondents, can purchase controlled access to the Greenfield
Online panel. We believe that this offering is regarded in the
marketplace as a high-value service, which we maintain by
collecting demographic information upon panelist enrollment and
by providing respondents to our clients who accurately match our
clients&#146; demographic requirements.
</FONT>

<P align="left">
<B><FONT size="2">Our Customers</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our primary target market is full-service custom
marketing research and consulting firms. We provide Internet
survey solutions to firms of all sizes in this marketplace. In
2003, our top five clients by net revenue were: Taylor Nelson
Sofres Intersearch, GfK-Custom Research, Inc., Hall and
Partners, Synovate, Inc. and ARBOR, Inc. Our top two clients in
2003, Taylor Nelson Sofres Intersearch and GfK Custom Research,
Inc., represented 14.5% and 12.7% of our total revenue in 2003,
respectively. Our top client in 2003 was Taylor
</FONT>

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<DIV align="left">
<FONT size="2">Nelson Sofres Intersearch, with which we had an
alliance agreement requiring it to make purchases of at least
5.6&nbsp;million of our products and services from
January&nbsp;31, 2002 to January&nbsp;31, 2004. Taylor Nelson
Sofres Intersearch satisfied this obligation and is no longer
contractually required to purchase our products and services. In
2003, Taylor Nelson Sofres Intersearch&#146;s parent company
acquired NFO Worldgroup, Inc., which maintains and operates a
large Internet respondent panel similar to our own. As a result
of this acquisition, we expect the revenue we receive from
Taylor Nelson Sofres Intersearch in 2004 to be significantly
less than in 2003. Our client base has grown to a diversified
group of over 280&nbsp;clients, of which 45&nbsp;purchased over
$100,000 in survey data collection services from us in 2003, up
from 21&nbsp;such clients in 2002. Our top ten clients
represented 53% of our revenue in 2003. In 2002 and 2003, we
successfully grew our client base by adding over 100 new clients
each year.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have a partner program with 25&nbsp;active
clients. Our partner program provides preferred pricing,
dedicated sales and service account teams and integrated
marketing support and tools, as well as customized marketing
materials to support the Internet research sales efforts of
these client partners. We also have integrated systems for
pricing, project-scoping and the project-delivery process with
these clients. Because we are exclusively an Internet survey
data provider and not a custom marketing research company, our
clients often seek our participation in their sales and
marketing efforts and integrate the Greenfield Online panel into
their research proposals as a critical selling component.
</FONT>

<P align="left">
<B><FONT size="2">Sales and Marketing</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We use a combination of sales professionals,
account executives and our automated bid technology to maximize
the personal interaction between sales professionals and current
and prospective clients, while minimizing our sales and
marketing costs. In 2002 and 2003, we made substantial
investments in our sales infrastructure to better serve our
clients and enter new markets. We have established regional
offices in San Francisco, California, Toronto, Ontario and
Minneapolis, Minnesota, and have sales representatives located
in Colorado, Maryland, Arizona, New Jersey and the United
Kingdom. Accordingly, our sales and marketing professionals are
assigned to geographic, client-based and industry-specific
territories and, in certain instances, to specialized research
markets. As of April&nbsp;5, 2004, we employed 32&nbsp;sales and
marketing professionals. As discussed elsewhere in this
prospectus, we completed our transition to a cooperative sales
strategy in January 2002 with the sale of our Custom Research
Business to Taylor Nelson. By selling through the marketing
research channel, we experience significant sales leverage and
return on invested sales and marketing dollars.
</FONT>

<P align="left">
<B><FONT size="2">Competition</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We currently compete with Internet-based survey
data collection providers, Internet sample providers that
provide access to survey respondents but do not offer survey
technologies, technology companies that have developed tools for
conducting Internet marketing research and traditional marketing
research companies. The primary competitive factors in our
industry include the quality and timeliness of data collection,
the price of products and services and overall reputation in the
marketplace. We believe we distinguish ourselves from our
competitors through a combination of high-quality service
provided by experienced professionals, client responsiveness,
the size and diverse demographics of the Greenfield Online
panel, process efficiencies and a dedicated focus on servicing
the marketing research industry.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We compete for clients with other Internet-based
marketing research data collection firms, such as SPSS Service
Bureau and Harris Interactive Service Bureau; firms offering
respondent-only services, such as Survey Sampling, Inc. and
e-Rewards, Inc.; and large marketing research companies, such as
The Kantar Group and Harris Interactive, Inc. We expect to face
competition in the future from other marketing research data
collection firms that develop Internet-based products and
services or other companies with access to large databases of
individuals with whom they can communicate through the Internet.
These companies may, either alone or in alliance with other
firms, penetrate the Internet-based marketing research data
collection market.
</FONT>

<P align="center"><FONT size="2">50
</FONT>

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<P align="left">
<B><FONT size="2">Technology and Intellectual Property</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our systems are based on internally-developed and
third-party software, and have been designed to reduce downtime
in the event of outages or catastrophic occurrences. Our
technology infrastructure provides continuous availability. We
host our primary technology systems at our Wilton, Connecticut
data center. To maintain reliability and to assure even
distribution of work load, survey development and analysis of
panel and survey data, we have replicated the functionality of
the Wilton data center at a UUNET co-location facility under a
co-location service agreement, which provides for redundant
power supply and communications systems. Our Wilton facility is
equipped with our own uninterruptible power supply, heating,
ventilation and fire suppression systems. Data is backed up on a
daily basis at both the UUNET and Wilton locations, and we
routinely remove backed-up data from our primary storage
facilities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We utilize the <I>Confirmit </I>survey
development software program created and licensed by Future
Information Research Management, Inc. to program our surveys so
that they can be displayed through the Internet and taken by our
panelists. We believe that this software represents the current
standard in the Internet-based marketing research data
collection industry.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We regard our copyrights, service marks,
trademarks, trade dress, trade secrets, proprietary technology
and similar intellectual property as critical to our success and
rely on trademark and copyright law, trade secret protection,
confidentiality and assignment of invention agreements and/or
license agreements with employees, customers, independent
contractors, partners and others to protect our proprietary
rights. We strategically pursue the registration of our
trademarks and service marks in the United States and have
applied for and obtained registrations in the United States for
some of our trademarks and service marks, including
<I>FieldSource</I>. Millward Brown, Inc. owns the rights in the
United States to the names <I>Greenfield </I>and <I>Greenfield
Online,</I> holds a U.S. registration for the <I>Greenfield
</I>mark and has a pending registration in the United States of
the <I>Greenfield Online </I>mark. We maintain an exclusive,
perpetual, royalty-free license from the Millward Brown, Inc. to
the <I>Greenfield Online </I>trademark for Internet qualitative
and quantitative marketing research data collection services and
to use the <I>Greenfield </I>name as part of our Internet domain
names. <I>Power your Research</I><SUP>SM</SUP>, <I>Power Your
Research With Our Experience, Our People, Our
Technology</I><SUP>SM</SUP>, <I>Research Revolution</I>&#174;,
<I>NetReach</I>&#174; and <I>FieldSource</I>&#174; are our
trademarks, trade names and service marks. Neither we nor
Millward Brown, Inc. have sought trademark registration of the
name outside the United States. Effective trademark, service
mark, copyright and trade secret protection for this name may
not be available in every country in which our products and
services are made available through the Internet.
</FONT>

<P align="left">
<B><FONT size="2">Governmental Regulation</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Do Not Call Registry</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In January 2002, the FTC adopted a rule that
created a national Do Not Call registry that allows people to
register their telephone numbers on a list from which
telemarketers are prohibited from calling. In January 2003, two
telemarketing groups filed complaints to block enforcement of
the Do Not Call registry. In response to a decision from the
Oklahoma U.S.&nbsp;District Court, the U.S.&nbsp;Congress passed
the Do Not Call Implementation Act to specifically grant the FTC
authority to create and maintain the Do Not Call registry. In
September 2003, the U.S.&nbsp;District Court for the District of
Colorado issued a decision holding that the Do Not Call registry
was unconstitutional because it violated First Amendment free
speech protections. The FTC immediately filed a motion to the
10th Circuit Court of Appeals to allow it to operate and enforce
the Do Not Call registry pending its appeal to that Court. On
February&nbsp;17, 2004, the 10th Circuit Court of Appeals
reversed the lower court and held that the Do Not Call registry
was constitutional. At least one telemarketing group has
publicly indicated it will appeal this decision to the
U.S.&nbsp;Supreme Court.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Telephone Consumer Protection
    Act</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 1991, Congress passed the Telephone Consumer
Protection Act (the &#147;TCPA&#148;), granting the FCC the
authority to promulgate rules protecting the privacy rights of
people with telephones who wanted to avoid unwanted
telemarketing calls. The FCC adopted rules to enforce this
authority and under these rules telemarketers are prohibited
from making telephone calls before 8&nbsp;a.m. and after
9&nbsp;p.m. The TCPA, which is
</FONT>

<P align="center"><FONT size="2">51
</FONT>

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<DIV align="left">
<FONT size="2">the authorizing legislation for the FCC&#146;s Do
Not Call registry, also prohibits calls made to mobile
telephones if the call is made using an automatic telephone
dialing system (defined as equipment which has the capacity to
store or produce telephone numbers to be called using a random
or sequential number generator and to dial such numbers) or an
artificial or pre-recorded voice, and if the call recipient is
charged for the call.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Controlling the Assault of Non-Solicited
    Pornography and Marketing Act of 2003</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The federal Controlling the Assault of
Non-Solicited Pornography and Marketing Act of 2003 (the
&#147;CAN-SPAM Act&#148;), which took effect on January&nbsp;1,
2004, imposes a series of new requirements on the use of
commercial email messages. The CAN-SPAM Act gives federal civil
and criminal enforcement authorities new tools to combat
unsolicited commercial email, and allows state attorneys general
and Internet access services to enforce its civil provisions.
The Act also directs the FTC to issue new regulations that
define relevant criteria, which have not yet been promulgated,
and to enforce the Act. Among other things, one proposal being
examined by the FTC is a federal &#147;Do Not Email&#148;
registry. The CAN-SPAM Act and the regulations enforcing the Act
may significantly impact the manner in which we recruit and
communicate with our panelists. It may also expose us to
potential liability or require us to change or abandon our
webmaster affiliate program and other recruitment techniques.
The CAN-SPAM Act may require us to develop technology or systems
to comply with its requirements for honoring &#147;opt-out&#148;
requests. The CAN-SPAM Act provides a variety of remedies,
including statutory damages, for each improper email sent.
Additionally, there are at least 37&nbsp;state statutes that
purport to regulate the distribution of commercial email. Some
of those statutes, or portions thereof, are preempted by the
CAN-SPAM Act, but others may still be enforceable and provide
for civil and criminal enforcement, and the imposition of
penalties and damages for their violation. If we cannot comply
with the requirements of the CAN-SPAM Act or these state
statutes, we may need to cease operating portions of our
business and our business could suffer.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">The Internet Tax Freedom Act</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Internet Tax Freedom Act (the
&#147;ITFA&#148;), that was originally passed in 1995,
prohibited states or political subdivisions from
(i)&nbsp;imposing taxes on Internet access and
(ii)&nbsp;imposing multiple and discriminatory taxes on
e-commerce The ITFA expired on November&nbsp;1, 2003 and has not
been renewed. As a result of the expiration of the ITFA, states
are no longer prohibited under federal law from imposing taxes
that were covered by the ITFA. In the absence of a renewal of
the ITFA, states may begin to impose taxes on Internet access,
related charges and other e-commerce products and services. If
one or more states impose such taxes in a manner that results in
the taxation of Internet access providers, ourselves, our
customers or other parties upon whom these parties&#146; or our
panelists&#146; rely for access to the Internet or other
products or services, it may harm our business.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Telecommunications Act of
    1996</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In February 1999, the FCC issued a declaratory
ruling interpreting the Telecommunications Act of 1996 to allow
local exchange carriers to receive reciprocal compensation for
traffic delivered to information service providers, particularly
Internet service providers, on the basis that traffic bound for
Internet service providers is largely interstate. As a result of
this ruling, the costs of transmitting data over the Internet
may increase. If this occurs, our tax liability and operating
expenses may increase, and our business could suffer.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">European Commission&#146;s Directive on
    Data Protection</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The European Commission&#146;s Directive on Data
Protection (the &#147;EC&nbsp;Directive&#148;) went into effect
in October 1998, and prohibited the transfer of personal data to
non-European Union nations that do not meet the European
&#147;adequacy&#148; standard for privacy protection. The United
States takes a different approach to privacy from that taken by
the European Union. The United States uses a sectoral approach
that relies on a mix of legislation, regulation and
self-regulation. The European Union, however, relies on
comprehensive legislation that, for example, requires creation
of government data protection agencies, registration of
databases with those agencies, and in some instances prior
approval before personal data processing may
</FONT>

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<DIV align="left">
<FONT size="2">begin. As a result of these different approaches,
the Directive could have significantly hampered the ability of
U.S.&nbsp;companies to engage in many trans-Atlantic
transactions.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In order to bridge these different privacy
approaches and provide a streamlined means for U.S.
organizations to comply with the EC Directive, the U.S.
Department of Commerce in consultation with the European
Commission developed a &#147;safe harbor&#148; framework. To be
assured of safe harbor benefits, an organization needs to self
certify annually to the U.S.&nbsp;Department of Commerce in
writing that it agrees to adhere to the safe harbor&#146;s
requirements, which includes elements such as notice, choice,
access, and enforcement. It must also state in its published
privacy policy statement that it adheres to the safe harbor
guidelines. The Department of Commerce maintains a list of all
organizations that file self-certification letters and make both
the list and the self-certification letters publicly available.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To qualify for the safe harbor, an organization
can (1)&nbsp;join a self-regulatory privacy program that adheres
to the safe harbor&#146;s requirements; or (2)&nbsp;develop its
own self regulatory privacy policy that conforms to the safe
harbor. We have self-certified to the U.S.&nbsp;Department of
Commerce and have joined <I>TRUSTe,</I> a United States-based
self-regulatory privacy program. As a result, we have been
certified as compliant with the &#147;safe harbor&#148;
guidelines.
</FONT>

<P align="left">
<B><FONT size="2">Facilities</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our headquarters and principal
U.S.&nbsp;operations facility occupies approximately 30,000
square feet and is located at 21&nbsp;River Road, Wilton,
Connecticut, under a lease that expires in November 2009. Our
other U.S.&nbsp;operations facility is located in San Francisco,
California, where we lease approximately 5,000 square feet of
which we occupy approximately 1,800 square feet under a lease
that expires in December 2004, of which another 1,400 square
feet remains unoccupied. We also lease a data center to support
our operations that occupies approximately 3,100 square feet in
Wilton, Connecticut, along with office space in East Brunswick,
New Jersey and Bethesda, Maryland to support our sales and
marketing team.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our international offices are based in Gurgaon,
India and Buckinghamshire, United Kingdom. Our operations
facility in Gurgaon, near New Delhi, will occupy approximately
19,300 square feet under a lease that expires in July 2007,
unless renewed at our option for an additional three years. Our
facility in Buckinghamshire, which is used primarily for sales
and marketing, occupies approximately 325 square feet under a
lease that expires in September 2004. In addition to these
facilities, we are currently attempting to sublease
approximately 5,600 square feet of office space in Gurgaon,
India that we formerly occupied prior to our move to the new
Gurgaon space, and we currently sublease approximately 1,800
square feet of office space to Taylor Nelson in our 5,000 square
feet facility in San Francisco, California. We believe that our
current facilities are adequate to meet our needs for the
foreseeable future and that additional or alternative facilities
may be leased on commercially reasonable terms to meet our
future needs, if necessary.
</FONT>

<P align="left">
<B><FONT size="2">Employees</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of April&nbsp;5, 2004, we employed a total of
191&nbsp;people. Of our U.S.-based employees, 29 are in sales
and marketing, 38 are in client service, 11 are in technology
development and 12 are in finance and administration. GFOL India
employed 93 people, all located in Gurgaon, India. GFOL Europe
employs three people, all located in Buckinghamshire, United
Kingdom. Greenfield Online Canada Ltd. employs two people, both
located in Toronto, Ontario. None of our employees are
represented by a collective bargaining agreement. We have not
experienced any work stoppages and consider our relationship
with our employees to be good.
</FONT>

<P align="left">
<B><FONT size="2">Legal Proceedings</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">From time to time, we may become involved in
litigation relating to claims arising from our ordinary course
of business. There are no claims or actions currently pending
or, to our knowledge, threatened against us.
</FONT>

<P align="center"><FONT size="2">53
</FONT>

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<DIV align="left">
<A name='112'></A>
</DIV>

<!-- link1 "MANAGEMENT" -->

<P align="center">
<B><FONT size="2">MANAGEMENT</FONT></B>

<P align="left">
<B><FONT size="2">Our Directors and Executive Officers</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth certain
information about our directors and executive officers as of the
date of this prospectus.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="43%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="47%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Age</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Position</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dean A. Wiltse
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">President, Chief Executive Officer and Director
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Robert E. Bies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">45</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Executive Vice President, Chief Financial Officer
    and Treasurer
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jonathan A. Flatow
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Vice President Corporate Development, Secretary
    and General Counsel
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Hugh O. Davis
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Chief Technology Officer
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Keith Price
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Senior Vice President of Sales
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Frank Kelly
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Senior Vice President of Marketing and Strategy
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Elizabeth A. Rounds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Senior Vice President of Global Partner Strategy
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Peter Sobiloff
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">47</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Chairman of the Board of Directors
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jeffrey Horing
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">40</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Joel R. Mesznik(1)(2)(3)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Burton J. Manning(2)(3)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">72</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lawrence R. Handen
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">37</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lise J. Buyer(3)(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vikas Kapoor(1)(2)(3)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Member of the audit committee.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Member of the compensation committee.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Member of the governance and nominating committee.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Has agreed to become a member of the audit
    committee 30 days after completion of this offering.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Dean A. Wiltse has served as our President and
Chief Executive Officer and a member of our Board of Directors
since April 2001. From February 1999 until April 2001,
Mr.&nbsp;Wiltse was employed by Engage,&nbsp;Inc., where he
served as General Manager of the Software Division from February
1999 to June of 2000, as Executive Vice President from June 2000
to September 2000, and as President of the Software Division,
Engage Software,&nbsp;Inc., from September 2000 to April 2001.
Mr.&nbsp;Wiltse has also held senior management positions with
Avid Technology,&nbsp;Inc., Vivo Software Inc. (acquired by
RealNetworks,&nbsp;Inc.), Vst&nbsp;Technology,&nbsp;Inc. and
Radius Inc. Mr.&nbsp;Wiltse holds a B.A. from American
University, Kogod School of Business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Robert E. Bies has served as our Chief Financial
Officer since October 1999, Treasurer since December 1999 and
Executive Vice President since August 2002. Prior to joining us,
Mr.&nbsp;Bies was with The Janis Group,&nbsp;Inc., serving as
Chief Financial Officer, Secretary and Treasurer between 1997
and 1999. Mr.&nbsp;Bies holds a B.S. summa cum laude from Long
Island University and an M.B.A. with distinction from Hofstra
University. Mr.&nbsp;Bies is a certified public accountant
licensed in New&nbsp;York.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Jonathan A. Flatow has served as our Secretary
since July 1999, as General Counsel since March 2000 and as Vice
President Corporate Development since May 2001. Prior to joining
us, Mr.&nbsp;Flatow was a partner in the law firm of Wake, See,
Dimes&nbsp;&#38; Bryniczka, which he joined in 1986 as an
associate. Mr.&nbsp;Flatow holds a B.A. from Franklin&nbsp;&#38;
Marshall College and a J.D. from Pace University School of Law.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Hugh O. Davis was a founder of Greenfield Online
in 1994. He joined Greenfield Consulting Group in September 1992
and in January 2001, he was promoted to Chief Technology
Officer, which is his current position. Mr.&nbsp;Davis holds a
B.S. from Fairfield University.
</FONT>

<P align="center"><FONT size="2">54
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Keith Price has served as our Senior Vice
President of Sales since September 2001. From June 2000 to
August 2001 he served as Vice President of our FieldSource
division, the predecessor to our current Internet survey
solutions business. From October 1999 to May 2000 he served as
Director, Client Development and launched our FieldSource
division. From 1994 to 1999 he was with Survey
Sampling,&nbsp;Inc., and most recently served as its Manager of
Business Development. Mr.&nbsp;Price holds a B.A. from
Providence College.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Frank Kelly has served as our Senior Vice
President of Marketing and Strategy since January of 2004.
Mr.&nbsp;Kelly was with the ACNielsen Company as Global Vice
President of Marketing for Consumer Research Services from
February 1998 until December 2003. Mr.&nbsp;Kelly holds a B.S.
from Babson College and an M.B.A. from Northeastern University.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Elizabeth A. Rounds has served as our Senior Vice
President of Global Partner Strategy since March 2004. Prior to
joining Greenfield Online she served as senior vice president
with GfK-Custom Research Inc., a custom marketing research
company, between November 1978 and February 2004.
Ms.&nbsp;Rounds holds a B.S. from Trinity University.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Jeffrey Horing has served as a member of our
board of directors since May 1999. From its founding in 1995 to
the present, Mr.&nbsp;Horing has served as a member of Insight
Venture Partners, a venture capital firm. Mr.&nbsp;Horing is a
director of several non-publicly traded companies. He holds a
B.S.E. and B.S. from the University of Pennsylvania&#146;s Moore
School of Engineering and The Wharton School of Business and an
M.B.A. from the M.I.T. Sloan School of Management.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Peter Sobiloff has served as a member of our
board of directors since May 1999 and as our chairman since May
2001. Mr.&nbsp;Sobiloff has been a General Partner of Insight
Venture Partners, a venture capital firm, since 1998.
Mr.&nbsp;Sobiloff served as Senior Executive at
i2&nbsp;Technologies, a software company, from 1997 to 1998.
Mr.&nbsp;Sobiloff is a director of several non-publicly traded
companies. He holds a B.A. from Baruch College.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Lawrence R. Handen has served as a member of our
board of directors since May 2001. Since November 2000,
Mr.&nbsp;Handen has been a General Partner of UBS Capital
Americas. From 1997 to November 2000 he was a partner with
PricewaterhouseCoopers. Mr.&nbsp;Handen holds a B.A. from
Bucknell University and an M.B.A. from New&nbsp;York University.
Mr.&nbsp;Handen currently serves as a director of
DynamicSoft,&nbsp;Inc., Guardent,&nbsp;Inc.,
MetaStorm,&nbsp;Inc., Optum,&nbsp;Inc., Sonexis,&nbsp;Inc. and
Xelus,&nbsp;Inc.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following directors have been determined to
be independent under the Nasdaq National Market rules by our
current board of directors. The independent directors will hold
regularly scheduled meetings at which only the independent
directors will be present.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Joel R. Mesznik has served as a member of our
board of directors since May 1999. He has been President of
Mesco Ltd., a consulting company, since 1990. He is also a
director of RAIT Investment Trust (listed on the New&nbsp;York
Stock Exchange), Pharma/wHealth Management Company (listed on
the Luxembourg Stock Exchange) and a number of non-publicly
traded companies. Mr.&nbsp;Mesznik holds a B.S. from City
University of New&nbsp;York and an M.B.A. from Columbia
University, Graduate School of Business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Burton J. Manning has served as a member of our
board of directors since May 1999. From 1987 to March 1997,
Mr.&nbsp;Manning was Chairman and Chief Executive Officer of J.
Walter Thompson Co. From March 1997 to January 1998,
Mr.&nbsp;Manning was chairman of J.&nbsp;Walter Thompson Co.
From January 1998 to present, he has served as president of
Brookbound,&nbsp;Inc. In addition to his service on our board of
directors, he serves on the board of directors of Friendly Ice
Cream Corp. and a number of non-publicly traded companies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Lise J. Buyer has served as a member of our board
of directors since April 2004. Since April 2003, Ms.&nbsp;Buyer
has served as the Director of Business Optimization at Google
Inc., a privately held technology company focused on search
services. From September 2002 to March 2003, she served as a
consultant and the Director of Research for Vista Research LLC,
an independent equity research firm in New&nbsp;York,
New&nbsp;York. From May 2000 to July 2002 she was a General
Partner at Technology Partners, a Palo Alto, California venture
capital firm. Ms.&nbsp;Buyer was the Director of Internet/ New
Media Research at Credit Suisse First Boston from July 1998 to
May 2000. Prior to that she spent 15&nbsp;years as an
institutional equity investor
</FONT>

<P align="center"><FONT size="2">55
</FONT>

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<DIV align="left">
<FONT size="2">and analyst of both the technology and media
industries. Ms.&nbsp;Buyer holds a B.A. from Wellesley College
and an M.B.A. from the Owen Graduate School of Management at
Vanderbilt University.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Vikas Kapoor has served as a member of our board
of directors since April 2004. Since September 2003,
Mr.&nbsp;Kapoor has led IntelliRisk Management Corporation, as a
member of the executive committee of the board of directors from
September 2003 to December 2003, and as Chief Executive Officer
since January 2004. From August 2002 to August 2003,
Mr.&nbsp;Kapoor served as Chief Executive Officer of Opera
Solutions, LLC. From October 2001 to July 2002, Mr.&nbsp;Kapoor
served as the Chief Executive Officer of Delano Technology
Corporation. From December 2000 to September 2001,
Mr.&nbsp;Kapoor served as Chief Executive Officer of Opera
Ventures, LLC. From March 2000 to November 2000, Mr.&nbsp;Kapoor
served as President of Walker Digital, LLC. From September 1999
to March 2000, Mr.&nbsp;Kapoor served as a member of the senior
management team of USweb/CKS Corporation. Mr.&nbsp;Kapoor
founded Mitchell Madison Group, LLC in 1994. Mitchell Madison
Group was acquired by USWeb/CKS in September 1999.
Mr.&nbsp;Kapoor holds a B.A. from Princeton University, an M.A.
from Harvard University, Graduate School of Arts&nbsp;&#38;
Sciences and an M.B.A. from the Harvard Business School.
</FONT>

<P align="left">
<B><FONT size="2">Board Structure and Composition</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Currently, eight individuals are serving as our
directors. Following the completion of this offering, we expect
Jeffrey Horing to resign from our board of directors and the
size of the board will be reduced to seven members.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon completion of this offering, our board of
directors will be divided into three classes of directors as
provided in our new certificate of incorporation and bylaws and
as set forth below.
</FONT>

<CENTER>
<TABLE width="50%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="22%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="21%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Expiration of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Class</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Initial Term</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap>&nbsp;<B><FONT size="1">Directors</FONT></B></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">I
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2005</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">Lise Buyer&nbsp;and Vikas Kapoor</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">II
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2006</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">Burton Manning&nbsp;and Lawrence Handen</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">III
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2007</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">Peter Sobiloff, Joel Mesznik&nbsp;and Dean Wiltse</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Commencing with the annual meeting of
stockholders to be held in 2005, directors for each class will
be elected at the annual meeting of stockholders held in the
year in which the term for that class expires and thereafter
will serve for a term of three years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Executive officers are appointed by the board of
directors on an annual basis and serve until their successors
have been duly elected and qualified. There are no family
relationships among any of our directors or executive officers.
</FONT>

<P align="left">
<B><FONT size="2">Board Committees</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our board of directors has established an audit
committee, a governance and nominating committee and a
compensation committee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Audit Committee.</FONT></I><FONT size="2"> Our
audit committee oversees our corporate accounting and financial
reporting process. Among other matters, the audit committee
evaluates the independent auditors&#146; qualifications,
independence and performance; determines the engagement of the
independent auditors; pre-approves the retention of the
independent auditors to perform any proposed permissible
non-audit services; monitors the rotation of partners of the
independent auditors as required by law; reviews our
consolidated financial statements; reviews our critical
accounting policies and estimates; oversees our internal audit
function; annually reviews the audit committee charter and the
committee&#146;s performance; reviews and approves the scope of
the annual audit and the audit fee; and discusses with
management and the independent auditors the results of the
annual audit and the review of our quarterly consolidated
financial statements. The current members of our audit committee
are Mr.&nbsp;Mesznik (its committee chair) and Mr.&nbsp;Kapoor.
Ms.&nbsp;Buyer will be elected to the audit committee effective
30 days after completion of this offering. As of the completion
of this offering and the appointment of Ms. Buyer, all members
of our audit committee will meet the applicable tests
</FONT>

<P align="center"><FONT size="2">56
</FONT>

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<DIV align="left">
<FONT size="2">for independence and the requirements for
financial literacy under applicable rules and regulations of the
SEC and the Nasdaq National Market. Our board has determined
that Mr.&nbsp;Mesznik is an audit committee financial expert, as
defined under the SEC rules implementing Section&nbsp;407 of the
Sarbanes-Oxley Act of 2002, and has the requisite
&#147;accounting or related financial expertise,&#148; as
defined by applicable rules and regulations of the Nasdaq
National Market.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Governance and Nominating
Committee.</FONT></I><FONT size="2"> Our governance and
nominating committee establishes and oversees the process for
identifying and evaluating nominees for directorships, including
identification, interviewing and recruiting of board candidates.
The governance and nominating committee also reviews and makes
recommendations regarding our corporate governance guidelines.
The governance and nominating committee currently consists of
Ms.&nbsp;Buyer and Messrs.&nbsp;Mesznik (its committee chair),
Manning and Kapoor. All members of our governance and nominating
committee meet the applicable tests for independence under the
applicable rules and regulations of the SEC and the Nasdaq
National Market.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Compensation
Committee.</FONT></I><FONT size="2"> Our compensation committee
reviews and recommends policies relating to compensation and
benefits of our officers and employees, including: reviewing and
approving corporate goals and objectives relevant to
compensation of the chief executive officer and other senior
officers; evaluating the performance of these officers in light
of those goals and objectives; and setting compensation of these
officers based on such evaluations. The compensation committee
also will administer the issuance of stock options and other
awards under our stock and benefit plans. The compensation
committee will review and evaluate, at least annually, the
performance of the compensation committee and its members,
including compliance of the compensation committee with its
charter. The compensation committee currently consists of
Messrs.&nbsp;Mesznik (its committee chair), Manning and Kapoor.
All members of our compensation committee meet the applicable
tests for independence under the applicable rules and
regulations of the SEC, the Nasdaq National Market and the
Internal Revenue Service.
</FONT>

<P align="left">
<B><FONT size="2">Compensation Committee Interlocks and Insider
Participation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Following the completion of this offering, the
members of our compensation committee will be
Messrs.&nbsp;Mesznik, Manning and Kapoor. Prior to establishing
the compensation committee, the board of directors as a whole
performed the functions delegated to the compensation committee.
No member of the board of directors or the compensation
committee serves as a member of the board of directors or
compensation committee of any entity that has one or more
executive officers serving as a member of our board of directors
or compensation committee.
</FONT>

<P align="left">
<B><FONT size="2">Code of Business Conduct and Ethics</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our board of directors has adopted a code of
business conduct and ethics applicable to our directors,
executive officers, including our chief financial officer and
other of our senior financial officers performing similar
functions, and employees, in accordance with applicable rules
and regulations of the SEC and the Nasdaq National Market.
</FONT>

<P align="left">
<B><FONT size="2">Board Compensation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In February 2004, we adopted a Board of
Directors&#146; Compensation Plan that provides for the
compensation of our non-employee directors. Under this plan,
non-employee directors are entitled to an annual stipend of
$16,000, and receive meeting fees for attending each board and
committee meeting. The chairman of the board and the chairman of
each committee receive $2,500&nbsp;per board and committee
meeting and the members of the board and each committee receive
$1,250&nbsp;per meeting. In addition, our directors may
participate in the 1999 Option Plan and the 2004 Equity Plan.
Each non-employee director is entitled to be reimbursed the
reasonable costs and expenses incurred in attending board
meetings.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The non-employee members of our board of
directors received the following stock option grants as
compensation for their attendance at our board and committee
meetings. These options vest over four years,
</FONT>

<P align="center"><FONT size="2">57
</FONT>

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<DIV align="left">
<FONT size="2">with 25% vesting after one year and the balance
vesting 12.5% semi-annually over the remaining period, with the
exception of the options granted to Mr.&nbsp;Manning on
October&nbsp;15, 2003, which immediately vested.
</FONT>
</DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted Average</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Non-Employee Director</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Subject to Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Dates of Grant</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise Price</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Peter Sobiloff
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">404</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7/1999&#150;7/2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.62</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jeffrey Horing
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">404</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7/1999&#150;7/2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.62</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Joel R. Mesznik(1)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">404</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7/1999&#150;7/2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.62</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Burton J. Manning(2)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,264</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9/2000&#150;10/2003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lawrence R. Handen
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Mesznik exercised additional options for
    36,978&nbsp;shares of common stock in 1999.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Manning exercised additional options for
    3,074&nbsp;shares of common stock in 1999.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to our 2004&nbsp;Director Compensation
Plan, upon completion of this offering our non-employee
directors will each receive a one-time grant of options under
the 2004 Equity Plan to purchase 40,000&nbsp;shares of our
common stock with an exercise price equal to the initial public
offering price of the shares sold in this offering. These
options vested immediately upon grant for those directors who
had been serving on the board for at least two years as of
January&nbsp;1, 2004. Option grants made to directors who joined
or will join the board on or after January&nbsp;1, 2004 will
vest over a period of 4&nbsp;years; 25% on the first anniversary
of the grant and 12.5% each six month period thereafter.
Unvested options are forfeited if and when a director ceases to
be a member of the board of directors.
</FONT>

<P align="left">
<B><FONT size="2">Executive Compensation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth the total
compensation awarded or paid to, or earned for, services
rendered to us in all capacities during 2003, by our Chief
Executive Officer and our four other most highly compensated
executive officers. These executives are referred to as the
&#147;named executive officers&#148; elsewhere in this
prospectus.
</FONT>

<P align="center">
<B><FONT size="2">Summary Compensation Table</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Long-Term</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Compensation</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Annual Compensation</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other Annual</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Underlying</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">All Other</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name and Principal Position</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Salary</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Bonus</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Compensation</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Compensation(1)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dean A. Wiltse
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">250,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">416,667</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,834</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(2)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">President and Chief Executive Officer
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Robert E. Bies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">185,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">283,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,857</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,400</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(3)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Executive Vice President, Chief Financial Officer
    and Treasurer
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jonathan A. Flatow
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,895</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(4)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,857</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,400</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(3)</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Vice President of Corporate Development,
    Secretary and General Counsel
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Hugh O. Davis
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">165,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,857</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,650</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(3)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Chief Technology Officer
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Keith Price
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">205,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132,323</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(5)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">114,285</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,400</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(3)</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Senior Vice President
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">58
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">In addition to the compensation reflected in this
    table, Messrs.&nbsp;Wiltse, Bies, Flatow and Davis were each
    granted shares of restricted stock in December 2002. One-half of
    these restricted shares vested upon grant and the remaining
    one-half vested in January 2004. See &#147;Certain Relationships
    and Related Transactions&nbsp;&#151; Restricted Stock
    Agreements.&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents other compensation consisting of an
    $18,000 car allowance, $5,210 car usage allowance and $84,633 in
    moving expense reimbursement.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents a 20% matching contribution to the
    executives&#146; 401(k)&nbsp;plan.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents reimbursement of disability insurance
    premiums paid by executive.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents sales commissions.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Stock Option Grants in 2003</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth information with
respect to stock options granted to each of our named executive
officers during 2003 and includes the potential realizable
value, which is the exercise price before taxes associated with
exercise, over the entire term of the options. This
determination assumes options are exercised at the end of their
terms, based on assumed annually compounded rates of stock
appreciation of 5% and 10% and based on the exercise price per
share. These assumed rates of appreciation comply with the rules
of the SEC and do not represent our estimate of future common
stock prices. Actual gains, if any, on stock option exercises
will depend on the future performance of our common stock. We
granted options to purchase a total of 600,472&nbsp;shares of
common stock during 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Options granted in 2003 to the named executive
officers were granted under the 1999 Option Plan, the material
terms of which are further described below. All options granted
to the named executive officers are options to purchase our
common stock. One-quarter of the shares subject to each option
grant vest on the first anniversary of the date of grant, and an
additional one-eighth of the shares subject to the option vest
each six months after the first anniversary. All options were
granted at or above fair market value as determined in good
faith by our board of directors on the date of grant.
</FONT>

<P align="center">
<B><FONT size="2">Option Grants in 2003</FONT></B>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="26%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="15"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Potential Realizable</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">Individual Grants</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Value at Assumed</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Annual Stock Price</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage of</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Appreciation Rate for</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Option Term</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Underlying</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Granted in</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price Per</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Expiration</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Share</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Date</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">5%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">10%</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dean A. Wiltse
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Robert E. Bies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,857</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10/15/2013</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,872</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,702</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jonathan A. Flatow
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,857</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10/15/2013</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,872</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,702</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Hugh O. Davis
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,857</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10/15/2013</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,872</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,702</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Keith Price
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">114,285</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">03/31/2013</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,062</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">59
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">Aggregate Option Exercises in Fiscal Year 2003
and Fiscal Year-End Option Values</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth option exercises
during 2003, the value realized upon the exercise of those
options and the number of shares of common stock subject to
exercisable stock options held as of December&nbsp;31, 2003, by
the named executive officers.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="23%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Number of Securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Underlying Unexercised</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Value of Unexercised</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Options at</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">In-the-Money Options at</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31, 2003</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31, 2003(1)</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Acquired on</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Value</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Realized</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercisable</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unexercisable</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercisable</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unexercisable</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dean A. Wiltse
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,227</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,536</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">714,274</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">428,566</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Robert E. Bies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,949</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,860</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">186,477</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">360,283</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jonathan A. Flatow
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,746</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,105</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">121,089</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">321,050</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Hugh O. Davis
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,497</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,355</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">121,089</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">321,050</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Keith Price
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,403</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,541</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,897,897</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">There was no public trading market for our common
    stock as of December&nbsp;31, 2003. Accordingly, these values
    have been based on our board of directors&#146; determination
    that the fair market value of the underlying shares as of
    December&nbsp;31, 2003 was no less than $2.66&nbsp;per share,
    less the applicable exercise price per share, multiplied by the
    number of shares underlying such options.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Employment Agreements and Change of Control
Provisions</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have entered into employment agreements with
each of our named executive officers. Each of these agreements
may be terminated by either us or the executive officer at any
time with or without cause.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In April 2004, we entered into an employment
agreement with Dean Wiltse, our Chief Executive Officer. The
agreement provides for an annual base salary of $400,000 and
payment of 12&nbsp;months&#146; base salary if we terminate
Mr.&nbsp;Wiltse without cause. The agreement also provides that
if, prior to a change in control, we terminate Mr.&nbsp;Wiltse
without cause or if he resigns for good reason, he will receive
his base salary for two years following such termination, paid
in monthly installments. If Mr.&nbsp;Wiltse is terminated
without cause upon a change of control or within one year of a
change of control, or if he resigns for good reason within one
year of a change of control, we will pay his base salary for two
years following such termination or resignation in monthly
installments and a fixed bonus of six months&#146; salary in one
lump sum.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The employment agreements with our other
executive officers provide for the payment of base salaries as
follows: Robert Bies&nbsp;&#151; $250,000; Jonathan
Flatow&nbsp;&#151; $200,000; Hugh Davis&nbsp;&#151; $200,000;
Keith Price&nbsp;&#151; $200,000; Frank Kelly&nbsp;&#151;
$150,000; and Elizabeth Rounds&nbsp;&#151; $150,000. In
addition, the agreement with Ms. Rounds provides for the payment
of an annual bonus of $75,000 upon the achievement of certain
performance objectives, and the agreement with Mr.&nbsp;Kelly
provides that he will participate in any performance-based bonus
program that we make available to other members of our senior
management.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, each of the agreements with
Ms.&nbsp;Rounds and Messrs.&nbsp;Wiltse, Bies, Flatow, Davis,
Kelly and Price:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">provides for participation in any
    performance-based bonus programs that we make available to other
    members of our senior management;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">prohibits the executive officer, during his or
    her employment with us and for a period of five years
    thereafter, from disclosing confidential information;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">requires the executive officer to transfer to us
    any inventions he or she develops during his or her employment
    with us; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">prohibits the executive officer from competing
    with us, disparaging us or hiring our employees for a period of
    one year after their termination.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">60
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, each of the agreements with
Messrs.&nbsp;Bies, Flatow, Davis and Price:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">provides for payment to them of
    12&nbsp;months&#146; base salary plus a pro rata portion of the
    annual bonus to which the named executive officer would have
    been entitled under our performance-based bonus program in the
    year in which a termination occurs if we terminate the named
    executive officer without cause or it the named executive
    officer resigns from employment with us for good reason; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">provides that, if we terminate the named
    executive officer upon a change of control or within one year
    after a change of control without cause, or if he resigns for
    good reason within one year after a change of control, we will
    pay his base salary for 18&nbsp;months in monthly installments
    and pay him a fixed bonus of three months&#146; salary in one
    lump sum plus any unvested stock options or other equity-based
    incentive awards will become immediately vested and remain
    exercisable for 12&nbsp;months from such termination date.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Stock Based Plans</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Amended and Restated 1999 Stock Option
    Plan</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The 1999 Option Plan was adopted by our board of
directors and stockholders on May&nbsp;12, 1999, and amended by
our board of directors on March&nbsp;3, 2000 and subsequently
approved by our stockholders on March&nbsp;6, 2000. Upon the
effectiveness of this offering, no further option grants will be
made under the 1999 Option Plan and the 1999 Option Plan will
terminate on May&nbsp;12, 2009, the tenth anniversary of the
date the 1999 Option Plan was adopted by our board of directors.
The 1999 Option Plan provides for the grant of incentive stock
options and nonqualified stock options, which may be granted to
our employee, including officers and directors, employees and
consultants.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Share Reserve.</FONT></I><FONT size="2"> The
aggregate number of shares of common stock that may be issued
pursuant to awards granted under the 1999 Option Plan is
987,040&nbsp;shares. As of April 5, 2004, 44,000&nbsp;shares of
common stock have been issued as a result of grants made under
the 1999 Option Plan, options to purchase 920,487&nbsp;shares
are currently outstanding and options to purchase
22,554&nbsp;shares are available for future grant under the 1999
Option Plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Administration.</FONT></I><FONT size="2"> The
board of directors administers the 1999 Option Plan and may
delegate this authority to administer the plan to a committee.
Subject to the terms of the 1999 Option Plan, the plan
administrator (our board of directors or its authorized
committee) determines recipients, grant dates, the numbers and
types of stock awards to be granted, and the terms and
conditions of the stock awards, including the period of their
exercisability and vesting. Subject to the limitations set forth
below, the plan administrator will also determine the exercise
price of options granted.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Stock Options.</FONT></I><FONT size="2">
Nonstatutory stock options and incentive stock options are
granted pursuant to nonstatutory stock option agreements and
incentive stock option agreements, respectively. The 1999 Option
Plan administrator determines the exercise price for stock
options. For persons owning more than ten percent of our stock
or of any of our affiliates (ten percent stockholders), the
exercise price for incentive options will be at least 110% of
the fair market value of the shares of common stock underlying
the incentive option on the date such incentive option is
granted and such incentive options will not be exercisable after
the expiration of five years from the date of grant. The plan
administrator determines the vesting period and term of stock
options granted under the 1999 Option Plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless the terms of an optionee&#146;s stock
option agreement provide otherwise, if an optionee&#146;s
service relationship with us, or any of our affiliates, ceases
due to disability or death or the optionee dies within a
specified period after termination of service, the optionee, or
his or her beneficiary, may exercise any vested options for a
period of 12&nbsp;months in the event of disability or death,
after the date such service relationship ends or after death, as
applicable. Unless the option agreement provides for earlier or
later termination, if an optionee&#146;s relationship with us,
or any of our affiliates, ceases for any reason other than
disability or death, the optionee may exercise any vested
options for a period of ninety days from cessation of service,
unless discharged for misconduct that was willful or wantonly
harmful to us, in which case the options expire
</FONT>

<P align="center"><FONT size="2">61
</FONT>

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<DIV align="left">
<FONT size="2">immediately upon discharge. In no event, however,
may an option be exercised after the expiration of its term, as
set forth in the stock option agreement.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Acceptable consideration for the purchase of
common stock issued upon the exercise of a stock option will
either be cash, a cashless exercise or other legal consideration
approved by the plan administrator. The plan administrator may
grant stock options with provisions entitling the optionee to a
further option in the event the optionee exercises the option
evidenced by the option agreement, in whole or in part, by
surrendering other shares of our common stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Generally, an optionee may not transfer a
nonstatutory option other than by will or the laws of descent
and distribution, unless the nonstatutory option agreement
provides otherwise. Optionees may not transfer incentive options
except by will or by the laws of descent and distribution.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Changes to Capital
Structure.</FONT></I><FONT size="2"> The number of shares that
may be delivered under the 1999 Option Plan and the number and
price of the shares covered by each outstanding stock award will
be adjusted proportionately in the event of an increase or
decrease in the number of outstanding shares of our common stock
resulting from a stock split or reverse split of shares or any
other capital adjustment or the payment of a stock dividend or
other increase or decrease in such shares effected without
receipt of consideration by us excluding any decrease resulting
from a redemption of our shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Changes in Control.</FONT></I><FONT size="2">
In the event of a change in control of us, all outstanding
options and other awards under the 1999 Option Plan may be
assumed, continued or substituted for by any surviving or
acquiring entity. If the surviving or acquiring entity elects
not to assume, continue or substitute for such awards, the
vesting of such awards held by awardholders whose service with
us or any of our affiliates has not terminated will be
accelerated and such awards will be fully vested and exercisable
immediately prior to the consummation of such transaction,
conditioned upon the effectiveness of the change in control. The
stock awards shall automatically terminate upon consummation of
such transaction if not exercised prior to such event. Options
granted under the 1999 Option Plan to our senior managers
provide for accelerated vesting in the event of a change in
control if, within one year of a corporate transaction, either
(i)&nbsp;the senior manager&#146;s employment is terminated by
the successor corporation without cause, or (ii)&nbsp;the senior
manager resigns from the successor corporation for good reason.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">2004 Equity Incentive Plan</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our board of directors adopted the 2004 Equity
Plan on April&nbsp;1, 2004 and our stockholders approved it on
April&nbsp;1, 2004. The 2004 Equity Plan will become effective
upon the completion of this offering. Unless sooner terminated
by the board of directors, the 2004 Equity Plan will terminate
on March&nbsp;31, 2014, the day before the tenth anniversary of
the date that the plan is adopted by the board. The 2004 Equity
Plan provides for the grant of incentive stock options,
nonstatutory stock options, stock bonuses, restricted stock
awards, and stock appreciation rights, which may be granted to
our employees (including officers), directors and consultants.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Share Reserve.</FONT></I><FONT size="2"> The
aggregate number of shares of common stock that may be issued
pursuant to awards granted under the 2004 Equity Plan shall not
exceed 785,714 plus (i)&nbsp;the number of shares that are
available for award under the 1999 Option Plan at the time of
effectiveness of the 2004 Equity Plan and (ii)&nbsp;the number
of shares that are subject to awards under the 1999 Plan that
are forfeited or expire prior to the termination of the 1999
Option Plan that become available for re-grant in accordance
with the provisions of the 1999 Option Plan (and in the case of
clause&nbsp;(i) and (ii) such shares shall no longer be
available for issuance under the 1999 Option Plan); <I>provided,
that</I>, the aggregate number of shares issuable under the 2004
Equity Plan shall not exceed 10% of our outstanding common stock
at the time of the completion of this offering calculated on a
fully-diluted basis (assuming the exercise or conversion of all
outstanding options, warrants and other securities convertible
into or exchangeable for shares of our common stock). As of the
date of this prospectus, no shares of common stock have been
issued under the 2004 Equity Plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following types of shares issued under the
2004 Equity Plan may again become available for the grant of new
awards under the 2004 Equity Plan: restricted stock issued under
the 2004 Equity Plan or the
</FONT>

<P align="center"><FONT size="2">62
</FONT>

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<DIV align="left">
<FONT size="2">1999 Plan that is forfeited or repurchased prior
to it becoming fully vested; shares withheld for taxes; shares
tendered to us to pay the exercise price of an option; and
shares subject to awards issued under the 2004 Equity Plan or
the 1999 Option Plan that have expired or otherwise terminated
without having been exercised in full. Shares issued under the
2004 Equity Plan may be previously unissued shares or reacquired
shares bought on the market or otherwise.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Administration.</FONT></I><FONT size="2"> The
board of directors will administer the 2004 Equity Plan and may
delegate this authority to administer the plan to a committee.
Subject to the terms of the 2004 Equity Plan, the plan
administrator (our board of directors or its authorized
committee) determines recipients, grant dates, the numbers and
types of stock awards to be granted and the terms and conditions
of the stock awards, including the period of their
exercisability and vesting. Subject to the limitations set forth
below, the plan administrator will also determine the exercise
price of options granted, the purchase price for restricted
stock and, if applicable, the strike price for stock
appreciation rights.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Stock Options.</FONT></I><FONT size="2">
Nonstatutory stock options, or nonstatutory options, and
incentive stock options, or incentive options, are granted
pursuant to nonstatutory stock option agreements and incentive
stock option agreements, respectively. The plan administrator
determines the exercise price for stock options. Subject to the
limitations set forth below regarding persons owning more than
ten percent of our stock or of any of our affiliates (ten
percent stockholders), the exercise price for incentive options
will be at least 100% of the fair market value of the shares of
common stock underlying the incentive option on the date such
incentive option is granted and such incentive options will not
be exercisable after the expiration of ten years from the date
of grant. For ten percent stockholders, the exercise price for
incentive options will be at least 110% of the fair market value
of the shares of common stock underlying the incentive option on
the date such incentive option is granted and such incentive
options will not be exercisable after the expiration of five
years from the date of grant. The plan administrator determines
the vesting period and term of stock options granted under the
2004 Equity Plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless the terms of an optionee&#146;s stock
option agreement provide otherwise, if an optionee&#146;s
service relationship with us, or any of our affiliates, ceases
due to disability or death or the optionee dies within a
specified period after termination of service, the optionee, or
his or her beneficiary, may exercise any vested options for a
period of 12&nbsp;months in the event of disability or
18&nbsp;months in the event of death, after the date such
service relationship ends or after death, as applicable. If an
optionee&#146;s relationship with us, or any of our affiliates,
ceases for any reason other than disability or death, the
optionee may exercise any vested options for a period of three
months from cessation of service, unless the terms of the stock
option agreement provide for earlier or later termination. In no
event, however, may an option be exercised after the expiration
of its term, as set forth in the stock option agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Acceptable consideration for the purchase of
common stock issued upon the exercise of a stock option will
either be cash, common stock owned by the optionee which has
been held by the optionee for at least six months, a deferred
payment arrangement, a cashless exercise or other legal
consideration approved by the plan administrator. The plan
administrator may grant stock options with provisions entitling
the optionee to a further option in the event the optionee
exercises the option evidenced by the option agreement, in whole
or in part, by surrendering other shares of our common stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Generally, an optionee may not transfer a
nonstatutory option other than by will or the laws of descent
and distribution unless the nonstatutory option agreement
provides otherwise. Optionees may not transfer incentive options
except by will or by the laws of descent and distribution and
incentive options are exercisable during the lifetime of the
optionee only by the optionee. Optionees may designate a
beneficiary who may exercise the option following the
optionee&#146;s death.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Stock Bonus Awards.</FONT></I><FONT size="2">
Stock bonus awards are granted pursuant to stock bonus
agreements. The purchase price for stock bonus awards may be
payable by the recipient&#146;s performance of services for us.
Stock bonus awards may be subject to a repurchase right in
accordance with a vesting schedule determined by the board of
directors. Upon termination of a recipient&#146;s service with
us, stock bonus awards which are unvested as of the date of such
termination may be reacquired by us after such time as it would
not result in
</FONT>

<P align="center"><FONT size="2">63
</FONT>

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<DIV align="left">
<FONT size="2">negative accounting consequences. Stock bonus
awards may be transferable only to the extent provided in a
stock bonus agreement.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Restricted Stock
Awards.</FONT></I><FONT size="2"> Restricted stock awards are
granted pursuant to restricted stock award agreements. The plan
administrator determines the purchase price for restricted stock
awards. The purchase price for a restricted stock award may be
payable in cash, by the recipient&#146;s services performed or
to be performed for us, according to a deferred payment
arrangement at the discretion of the plan administrator or any
other form of legal consideration approved by the plan
administrator. Upon termination of a recipient&#146;s service
with us, shares of restricted stock that are unvested as of the
date of such termination may be reacquired by us subject to the
terms of the restricted stock award agreement. Restricted stock
awards may be subject to a repurchase right in accordance with a
vesting schedule determined by the board of directors.
Restricted stock awards may be transferable only to the extent
provided in a restricted stock award agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Stock Appreciation
Rights.</FONT></I><FONT size="2"> Stock appreciation rights are
granted pursuant to a stock appreciation rights agreements. The
plan administrator may grant stock appreciation rights in
connection with stock options or in a stand-alone grant. The
plan administrator determines the strike price for a stock
appreciation right. A stock appreciation right granted under the
2004 Equity Plan vests at the rate specified in the stock
appreciation right agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The plan administrator determines the term of
stock appreciation rights granted under the 2004 Equity Plan.
With respect to stock appreciation rights that are granted in
connection with stock options, such stock appreciation rights
shall be exercisable only to the extent that the related stock
option is exercisable and such stock appreciation rights shall
expire no later than the date on which the related stock options
expire. If an awardholder&#146;s relationship with us, or any of
our affiliates, ceases for any reason, any unvested stock
appreciation rights will be forfeited and any vested stock
appreciation rights will be automatically redeemed.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Changes to Capital
Structure.</FONT></I><FONT size="2"> In the event of a dividend
or other distribution (whether in the form of cash, shares of
common stock, other securities, or other property),
recapitalization, stock split, reorganization, merger,
consolidation, exchange of our common stock or our other
securities, or other change in our corporate structure, the plan
administrator may adjust the number of shares that may be
delivered under the incentive plan and the number and price of
the shares covered by each outstanding stock award.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Changes in Control.</FONT></I><FONT size="2">
In the event of a change in control of us, all outstanding
options and other awards under the 2004 Equity Plan may be
assumed, continued or substituted for by any surviving or
acquiring entity. If the surviving or acquiring entity elects
not to assume, continue or substitute for such awards, the
vesting of such awards held by awardholders whose service with
us or any of our affiliates has not terminated will be
accelerated and such awards will be fully vested and exercisable
immediately prior to the consummation of such transaction, and
the stock awards shall automatically terminate upon consummation
of such transaction if not exercised prior to such event.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The board of directors may amend (subject to
shareholder approval as required by applicable law), suspend or
terminate the 2004 Equity Plan at any time.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">2004 Employee Stock Purchase
    Plan</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our board of directors adopted our Stock Purchase
Plan on April&nbsp;1, 2004 and our stockholders adopted it on
April&nbsp;1, 2004. The Stock Purchase Plan will become
effective upon the completion of this offering or as determined
by our board of directors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Share Reserve.</FONT></I><FONT size="2"> The
Stock Purchase Plan authorizes the issuance of
250,000&nbsp;shares of common stock pursuant to purchase rights
granted to certain of our employees or to employees of any of
our subsidiaries that we designate as being eligible to
participate. As of the date hereof, no shares of common stock
have been purchased under the Stock Purchase Plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Administration of the Stock Purchase
Plan.</FONT></I><FONT size="2"> The compensation committee of
the board of directors will administer the Stock Purchase Plan,
and may delegate the administration to a an officer of the
Company. The Stock Purchase Plan provides a means by which
employees may purchase our common stock. We will
</FONT>

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<DIV align="left">
<FONT size="2">implement the Stock Purchase Plan by offering to
our eligible employees the right to purchase shares of common
stock.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the Stock Purchase Plan, we will conduct
twelve consecutive offerings, each with a maximum duration of
six&nbsp;months. The first offering will commence
ninety&nbsp;days after the effective date of the registration
statement filed in connection with this prospectus and further
offerings will be conducted on each subsequent January&nbsp;1
and July&nbsp;1. The final offering under the Stock Purchase
Plan will commence on January&nbsp;1, 2010 and terminate on
June&nbsp;30, 2010.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless otherwise determined by the plan
administrator (our board of directors or its authorized
committee), common stock may be purchased by the employees
participating in the Stock Purchase Plan at a price per share
equal to the lesser of (i)&nbsp;85% of the fair market value of
a share of our common stock on the date of commencement of the
offering or (ii)&nbsp;85% of the fair market value of a share of
our common stock on the last business day of the offering.
Generally, all regular employees, including officers, who are
customarily employed by us or by any of our designated
affiliates for more than 20&nbsp;hours per week and more than
five&nbsp;months per calendar year may participate in the Stock
Purchase Plan and may contribute (normally through payroll
deductions) up to 10% of their earnings for the purchase of
common stock under the Stock Purchase Plan, as determined by the
plan administrator. If an employee&#146;s employment with us, or
any of our affiliates, ceases for any reason, the balance in the
account of such participating employee will be paid to the
employee or his or her estate. Employees may not transfer or
encumber either the payroll deductions credited to their account
or any rights to purchase shares other than by will or the laws
of descent and distribution.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Limitations.</FONT></I><FONT size="2">
Eligible employees may be granted rights to participate under
the Stock Purchase Plan only if, together with any other rights
granted under other employee stock Stock Purchase Plans, they do
not permit such employee to purchase our common stock at an
accrued rate exceeding $25,000 of the fair market value of such
stock for each calendar year in which such rights are
outstanding. No employee shall be eligible for the grant of any
rights under the Purchase Plan if immediately after such rights
are granted, such employee owns five percent or more of our
outstanding capital stock measured by vote or value.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Changes to Capital
Structure.</FONT></I><FONT size="2"> In the event of a
reorganization, recapitalization, stock split, stock dividend,
combination of shares, merger, consolidation, offerings of
rights, or any other change in the structure of our common
stock, the plan administrator may make such adjustment, if any,
as it may deem appropriate in the number, kind, and the price of
shares available for purchase under the Purchase Plan, and in
the number of shares which an employee is entitled to purchase.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The board of directors may amend (subject to
shareholder approval as required by applicable law), suspend or
terminate the 2004 Stock Purchase Plan at any time.
</FONT>

<P align="left">
<B><FONT size="2">Limitation on Liability and
Indemnification</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our certificate of incorporation contains
provisions that limit the liability of our directors for
monetary damages. Our certificate of incorporation provides that
a director will not be personally liable to us or our
stockholders for monetary damages for any breach of fiduciary
duty as a director to the fullest extent permitted by
Section&nbsp;203 of Delaware General Corporation Law, which
prohibits our certificate of incorporation from limiting the
liability of our directors for the following:
</FONT>
<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any breach of their duty of loyalty to our
    company or our stockholders;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">acts or omissions not in good faith or which
    involve intentional misconduct or a knowing violation of law;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">unlawful payments of dividends or unlawful stock
    repurchases or redemptions as provided in Section&nbsp;174 of
    the Delaware General Corporation Law;&nbsp;or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any transaction from which the director derived
    an improper personal benefit.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If Delaware law is amended to authorize corporate
action further eliminating or limiting the personal liability of
a director, then the liability of our directors will be
eliminated or limited to the fullest extent
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">permitted by Delaware law, as so amended. Our
certificate of incorporation will not eliminate a
director&#146;s duty of care and, in appropriate circumstances,
equitable remedies such as injunctive or other forms of
non-monetary relief remain available under Delaware law. Our
certificate of incorporation will not affect a director&#146;s
responsibilities under any other laws, such as the federal
securities laws or state or federal environmental laws.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our bylaws provide that:
</FONT>
<P>

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    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we are required to indemnify our directors and
    officers to the fullest extent permitted by the Delaware General
    Corporation Law, subject to limited exceptions where
    indemnification is not permitted by applicable law;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we are required to advance expenses, as incurred,
    to our directors and officers in connection with a legal
    proceeding to the fullest extent permitted by the Delaware
    General Corporation Law, subject to limited exceptions;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the rights conferred in the bylaws are not
    exclusive.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our bylaws provide that we may also indemnify our
other employees and agents to the fullest extent permitted by
Delaware General Corporation Law. Our bylaws also permit us to
secure insurance on behalf of any officer, director, employee or
other agent for any liability arising out of his or her actions
in that capacity, regardless of whether our bylaws would
otherwise permit indemnification. We have entered and expect to
continue to enter into agreements to indemnify our directors,
executive officers and other employees as determined by the
board of directors. These agreements provide for indemnification
for related expenses including attorneys&#146; fees, judgments,
fines and settlement amounts incurred by any of these
individuals in any action or proceeding. We believe that these
bylaw provisions and indemnification agreements are necessary to
attract and retain qualified persons as directors and officers.
We also maintain directors&#146; and officers&#146; liability
insurance.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The limitation of liability and indemnification
provisions in our certificate of incorporation and bylaws may
discourage stockholders from bringing a lawsuit against
directors for breach of their fiduciary duties. They may also
reduce the likelihood of derivative litigation against directors
and officers, even though an action, if successful, might
benefit us and our stockholders. A stockholder&#146;s investment
may be adversely affected to the extent we pay the costs of
settlement and damage awards against directors and officers
pursuant to these indemnification provisions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors,
officers or persons controlling us pursuant to the foregoing
provisions, we have been informed that in the opinion of the
SEC, this indemnification is against public policy as expressed
in the Securities Act and is therefore unenforceable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At present, there is no pending litigation or
proceeding involving any of our directors, officers, employees
or agents where indemnification will be required or permitted.
We are not aware of any threatened litigation or proceeding that
might result in a claim for indemnification.
</FONT>

<P align="center"><FONT size="2">66
</FONT>

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<DIV align="left">
<A name='113'></A>
</DIV>

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<P align="center">
<B><FONT size="2">CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS</FONT></B>

<P align="left">
<B><FONT size="2">Equity Sales and Related
Transactions</FONT></B>

<DIV>&nbsp;</DIV>

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    <TD width="97%"></TD>
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<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Series&nbsp;A Preferred Stock
    Offering</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In March and April of 2001, we issued and sold an
aggregate of 3,107,529&nbsp;shares of our Series&nbsp;A
Convertible Participating Preferred Stock (&#147;Series&nbsp;A
Preferred Stock&#148;) to two of our directors, Joel Mesznik and
Burton J. Manning, in addition to various other investors. Hugh
Davis, our Chief Technology Officer, purchased
193,221&nbsp;shares of Series&nbsp;A Preferred Stock in
connection with his ownership of membership units in Greenfield
Holdings, LLC. Outstanding shares of our Series&nbsp;A Preferred
Stock are convertible at the option of the holder into shares of
our common stock at a set conversion ratio. Immediately prior to
the completion of this offering, all outstanding shares of our
Series&nbsp;A Preferred Stock will be mandatorily converted into
shares of our common stock.
</FONT>

<DIV>&nbsp;</DIV>

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    <TD width="3%"></TD>
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</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">December 2002
    Recapitalization</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December 2002, we underwent a change in our
capital structure (the &#147;Recapitalization&#148;), which
resulted in the issuance and sale of three newly created classes
of preferred stock. These new classes of preferred stock were
designated the Series&nbsp;B Convertible Participating Preferred
Stock (&#147;Series&nbsp;B Preferred Stock&#148;), the
Series&nbsp;C-1 Convertible Participating Preferred Stock
(&#147;Series&nbsp;C-1 Preferred Stock&#148;), and the
Series&nbsp;C-2 Non-Voting Redeemable Preferred Stock
(&#147;Series&nbsp;C-2 Preferred Stock&#148;). As part of the
Recapitalization, we also converted our outstanding Class&nbsp;A
and Class&nbsp;B common stock into a new single class of common
stock and then effected a reverse stock split on the resulting
new single class of common stock. Additionally, we issued shares
of our common stock to certain members of our management and an
independent member of our board of directors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Series&nbsp;C-1 Preferred
Stock.</FONT></I><FONT size="2"> We offered the Series&nbsp;C-1
Preferred Stock to all holders of our Series&nbsp;A Preferred
Stock. The aggregate number of shares of our Series&nbsp;C-1
Preferred Stock issued and sold in the Recapitalization was
74,627,182, for an aggregate offering price of $4,564,778, which
was payable in cash or through the conversion of existing
principal and accrued interest due under promissory notes issued
by us and held by holders of our Series&nbsp;A Preferred Stock.
Outstanding shares of our Series&nbsp;C-1 Preferred Stock are
convertible at the option of the holder into shares of our
common stock at a set conversion ratio of one-for-14.
Immediately prior to the completion of this offering, all
outstanding shares of our Series&nbsp;C-1 Preferred Stock will
be mandatorily converted into shares of our common stock, in
accordance with the terms of the Series&nbsp;C-1 Preferred Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Series&nbsp;C-2 Preferred
Stock.</FONT></I><FONT size="2"> We issued and sold
10,000&nbsp;shares of our Series&nbsp;C-2 Preferred Stock to
Imprimis SB, L.P. (&#147;Imprimis&#148;) in exchange for the
cancellation of a promissory note held by Imprimis in an
aggregate principal amount of $2,052,267. Following the
completion of this offering, all of the shares of our
Series&nbsp;C-2 Preferred Stock will be mandatorily redeemed by
us for $2,052,267 in cash in the aggregate.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Series&nbsp;B Preferred
Stock.</FONT></I><FONT size="2"> We issued and sold
30,211,595&nbsp;shares of our Series&nbsp;B Preferred Stock in
exchange for the cancellation of certain promissory notes in an
aggregate amount of $16,827,835. In connection with the
Recapitalization, one of our stockholders, Greenfield Holdings,
LLC (&#147;Greenfield Holdings&#148;), dissolved and distributed
to its members their pro rata percentage interest of the
promissory notes that we had issued to Greenfield Holdings (the
&#147;Greenfield Holdings Notes&#148;). In the Recapitalization,
each of the members of Greenfield Holdings, other than Imprimis,
exchanged their portion of the Greenfield Holdings notes for
shares of our Series&nbsp;B Preferred Stock. Imprimis exchanged
its portion of the Greenfield Holdings Notes for shares of
Series&nbsp;C-2 Preferred Stock as described above. Outstanding
shares of the Series&nbsp;B Preferred Stock are convertible at
the option of the holder into shares of our common stock at a
set conversion ratio of one-for-14. Immediately prior to the
completion of this offering, all outstanding shares of our
Series&nbsp;B Preferred Stock will be mandatorily converted into
shares of our common stock, in accordance with the terms of the
Series&nbsp;B Preferred Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Restricted Stock
Agreements.</FONT></I><FONT size="2"> In connection with the
Recapitalization, we entered into Restricted Stock Agreements
with each of the following executive officers: Dean Wiltse, Bob
Bies, Jonathan Flatow and Hugh
</FONT>

<P align="center"><FONT size="2">67
</FONT>

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<DIV align="left">
<FONT size="2">Davis, and one of our directors, Joel Mesznik, on
December&nbsp;16, 2002, which were subsequently amended on
January&nbsp;14, 2004. These agreements permitted these
individuals to purchase an aggregate amount of 15,480,501 shares
of our common stock at par value, $0.0001&nbsp;per share, in
exchange for services rendered and services to be rendered. As a
result, Dean Wiltse purchased 766,994&nbsp;shares for $1,073.79,
Robert Bies purchased 191,749&nbsp;shares for $268.45, Jonathan
Flatow purchased 63,916&nbsp;shares for $89.48, Hugh Davis
purchased 63,916&nbsp;shares for $89.48, and Joel Mesznik
purchased 19,175&nbsp;shares for $26.84. While 50% of the shares
of common stock sold pursuant to these agreements were initially
subject to certain vesting and forfeiture provisions, as of the
date of amendment, 100% of the shares had vested.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since January&nbsp;1, 2001, the following
executive officers, directors and holders of more than five
percent of our voting securities purchased securities in the
amounts and as of the dates set forth below. Upon completion of
this offering, all shares of our Series&nbsp;C-2 Preferred Stock
will be redeemed and all outstanding shares of the remaining
series of preferred stock will be converted into shares of our
common stock on a one-for-14 basis. See
&#147;Capitalization.&#148;
</FONT>

<CENTER>
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<TR>
    <TD width="23%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Series&nbsp;A&nbsp;Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Series&nbsp;B&nbsp;Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Series&nbsp;C-1&nbsp;Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Series&nbsp;C-2&nbsp;Shares</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Issued December&nbsp;2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Issued March 2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Issued December 2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Issued December 2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Issued December 2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">for $0.0001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">for $0.2913</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">for $0.5570</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">for $0.0612</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">for $205.2267</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Per Share</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Per Share</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Per Share</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Per Share</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Per Share</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Dean A. Wiltse
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">766,994</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Joel R. Mesznik
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">19,175</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,848,903</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">(1)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,473,802</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">(2)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,448,922</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">(3)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Burton J. Manning
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">258,626</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">147,448</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">497,935</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Jeffrey Horing
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Peter Sobiloff
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Lawrence R. Handen
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&nbsp;&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Robert E. Bies
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">191,749</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Jonathan A. Flatow
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">63,916</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Hugh O. Davis
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">63,916</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">193,221</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">221,003</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Keith Price
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Insight Capital Partners&nbsp;III, L.P.
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">14,342,674</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">12,176,158</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">27,613,650</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Insight Capital Partners (Cayman)&nbsp;III, LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,552,937</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,703,488</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,840,391</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Insight Capital Partners&nbsp;III Co-investors,
    L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,514,080</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,026,309</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,840,310</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">MSD Ventures, L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,563,501</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,421,068</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,242,784</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">UBS Capital&nbsp;II LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">11,203,097</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,684,506</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">21,550,118</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Imprimis SB
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">10,000</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 1,288,535&nbsp;shares held by GOL,
    L.L.C, of which Mr.&nbsp;Mesznik is the managing member and
    212,420&nbsp;shares given by Mr.&nbsp;Mesznik to the
    Joel&nbsp;R. Mesznik 1999 Descendents&#146; Trust for the
    benefit of his family members.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Shares held by GOL, L.L.C.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 2,480,780&nbsp;shares held by GOL, L.L.C.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Loans to Executive Officer</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with an earlier recapitalization of
our company in May 1999, one of our executive officers, Hugh O.
Davis, borrowed $75,013 from us in order to purchase shares of
our Class&nbsp;A Common Stock, which were later combined with
our Class&nbsp;B Common Stock into one class of our common stock
as part of the Recapitalization. In connection with the loan,
Mr.&nbsp;Davis issued us a promissory note in the aggregate
principal amount of $75,013, with a compounding annual interest
rate of 5.3% and maturing on May&nbsp;17, 2004. In connection
with our issuance and sale of our Series&nbsp;A Preferred Stock
to Greenfield Holdings and other investors in March 2001,
Mr.&nbsp;Davis borrowed an additional $56,285 from us in order
to purchase Class&nbsp;B Units from Greenfield Holdings. In
connection with the loan, Mr.&nbsp;Davis issued us a promissory
note
</FONT>

<P align="center"><FONT size="2">68
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">in the aggregate principal amount of $56,285 with
an annually compounding interest rate of 8%, and maturing on the
earlier of our change of control or May&nbsp;17, 2004. Under a
pledge agreement dated as of May&nbsp;17, 1999 and amended
March&nbsp;9, 2001, Mr.&nbsp;Davis pledged as collateral for the
loans all of his shares of Class&nbsp;A Common Stock, the
Class&nbsp;B Units in Greenfield Holdings and any cash or
securities received in respect of the Class&nbsp;A Common Stock
and Class&nbsp;B Units. In the Recapitalization, Greenfield
Holdings was dissolved and Mr.&nbsp;Davis received shares of our
common stock in exchange for the shares of Class&nbsp;A Common
Stock and shares of our preferred stock in exchange for the
Class&nbsp;B Units of Greenfield Holdings.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">I-GAIN contract</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We had an arrangement with I-GAIN, an incentive
and loyalty reward company, which provided that I-GAIN would pay
cash awards to panelists on our behalf in exchange for our
payment of a fee of $0.50&nbsp;per transaction. Hugh O. Davis,
our Chief Technology Officer, formerly held a 10% ownership
interest in I-GAIN. The contract with I-GAIN became null and
void in May 2001 and the total costs that we incurred for this
arrangement with I-GAIN for the year ended December&nbsp;31,
2001 were $653,000, which included amounts that I-GAIN paid to
panelists. We have had no further transactions with I-GAIN since
May 2001.
</FONT>

<P align="left">
<B><FONT size="2">Director and Officer Indemnification</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our certificate of incorporation and bylaws
contain provisions limiting the liability of our directors. In
addition, we have entered into agreements to indemnify our
directors and executive officers to the fullest extent permitted
under Delaware law. See &#147;Management&nbsp;&#151; Limitation
on Liability and Indemnification.&#148;
</FONT>

<P align="left">
<B><FONT size="2">Registration Rights</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our stockholders are entitled to registration
rights. See &#147;Description of Capital Stock&nbsp;&#151;
Registration Rights.&#148;
</FONT>

<P align="left">
<B><FONT size="2">Stock Option Grants</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have granted stock options to purchase shares
of our common stock to our executive officers and directors. See
&#147;Management.&#148;
</FONT>

<P align="center"><FONT size="2">69
</FONT>

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<DIV align="left">
<A name='114'></A>
</DIV>

<!-- link1 "PRINCIPAL AND SELLING STOCKHOLDERS" -->

<P align="center">
<B><FONT size="2">PRINCIPAL AND SELLING STOCKHOLDERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth information with
respect to the beneficial ownership of our common stock held as
of March&nbsp;31, 2004, and as adjusted to reflect the sale of
common stock in this offering for:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">each of our directors;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">each of our named executive officers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">all of our directors and executive officers as a
    group;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">each person who we know beneficially owns 5% or
    more of our common stock; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">each selling stockholder.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as otherwise indicated by footnote, and
subject to applicable community property laws, we believe that
the beneficial owners of the common stock listed below have sole
voting power and investment power with respect to their shares.
Beneficial ownership is determined in accordance with the rules
of the SEC. The table below assumes the conversion of all of the
outstanding shares of our convertible preferred stock into
common stock, which will occur immediately prior to the
completion of this offering.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The number of shares of common stock outstanding,
on an as converted basis, used in calculating the percentage for
each listed person or entity includes common stock underlying
options or a warrant held by the person or entity that are
exercisable within 60&nbsp;days of March&nbsp;31, 2004 or upon
completion of this offering, but excludes common stock
underlying options or warrants held by any other person or
entity. Percentage of beneficial ownership is based on
12,462,671&nbsp;shares of common stock outstanding as of
March&nbsp;31, 2004
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock outstanding after this offering. The shares
outstanding prior to this offering consist of
2,054,552&nbsp;shares of common stock, 2,919,616&nbsp;shares of
common stock issuable upon conversion of the Series&nbsp;A
Preferred Stock, 2,157,977&nbsp;shares of common stock issuable
upon conversion of the Series&nbsp;B Preferred Stock,
5,330,526&nbsp;shares of common stock issuable upon conversion
of the Series&nbsp;C-1 Preferred Stock. Upon the completion of
this offering, all shares of our Series&nbsp;C-2 Preferred Stock
will be redeemed and all outstanding shares of the remaining
series of preferred stock will be converted into shares of our
common stock on a one-for-14 basis. The address for those
individuals for which an address is not otherwise indicated is
c/o&nbsp;Greenfield Online,&nbsp;Inc., 21&nbsp;River Road,
Wilton, Connecticut 06897.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="36%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Shares Beneficially Owned</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Shares Beneficially Owned</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Prior to this Offering</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">After this Offering</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares Being</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offered(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Executive Officers and Directors:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dean A. Wiltse(2)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">820,067</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.6</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71,675</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">748,392</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lise J. Buyer
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lawrence R. Handen(3)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,759,164</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">236,060</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,523,104</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jeffrey Horing(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,964,403</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">510,253</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,454,150</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vikas Kapoor
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Burton J. Manning(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89,974</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,698</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,276</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Joel R. Mesznik(6)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">787,778</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,399</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">720,379</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Peter Sobiloff(7)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">354</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">354</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Robert E. Bies(8)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">212,045</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,068</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">191,977</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Hugh O. Davis(9)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">112,655</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,423</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101,232</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jonathan A. Flatow(10)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">78,912</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,536</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70,376</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Keith Price(11)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31,113</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,091</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,022</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">All Executive Officers and Directors as a Group
    (14&nbsp;persons)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,856,465</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">86.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">943,203</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,913,262</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">70
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="36%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Shares Beneficially Owned</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Shares Beneficially Owned</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Prior to this Offering</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">After this Offering</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares Being</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offered(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">5% Stockholders:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Entities affiliated with Insight Venture
    Associates III, LLC(12)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,963,694</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47.9</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">510,253</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,453,441</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">UBS Capital&nbsp;II LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,759,164</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">236,060</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,523,104</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">MSD Ventures, L.P.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,122,458</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,122,458</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Other Selling Stockholders:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Forrestor Research,&nbsp;Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">135,994</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,635</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">124,359</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Robin Neustein
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">46,772</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,770</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Silicon Valley Bank(13)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,857</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,298</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,559</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Andy Greenfield
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,490</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,582</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,908</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Greenfield/Zeller Family LLC
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,490</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,582</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,908</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">701 Venture Investments LLC(14)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,356</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">459</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,897</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Joan&nbsp;Barten-Kline
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,010</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">172</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,838</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Connie R. Collingsworth and<BR>
    Allen Wilcox
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,786</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">153</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,633</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Richard B. Dodd(15)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,786</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">153</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,633</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Charles Purcell(15)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,786</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">153</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,633</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Susan Roth
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">900</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">863</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Represents beneficial ownership of less than 1%.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="3%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Assumes that the underwriters&#146;
    over-allotment option is not exercised.
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 53,072 shares issuable upon exercise of
    outstanding options exercisable within 60 days of March&nbsp;31,
    2004.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 2,759,164 shares held by UBS Capital II
    LLC. Mr. Handen is a partner of UBS Capital II LLC and disclaims
    beneficial ownership of the shares held or controlled by UBS
    Capital II LLC except to the extent of his pecuniary interest
    therein.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 354 shares issuable upon exercise of
    outstanding options held by Mr. Horing exercisable within 60
    days of March&nbsp;31, 2004 and shares held by entities
    affiliated with Insight Venture Associates III, LLC. Insight
    Venture Associates III, LLC is the general partner of these
    entities and may be deemed to beneficially own these shares as
    well as the shares subject to currently exercisable warrants
    held by Insight Capital Partners III (Cayman), L.P., and Insight
    Capital Partners-Coinvestors III L.P. (together with Insight
    Capital Partners III, L.P. and Insight Capital Partners III
    (Cayman), L.P., the &#147;Insight Funds&#148;). Jeffrey Horing,
    a director of the Company, and Jerry Murdock, as Designated
    Managing Members of Insight Venture Associates III, LLC, may be
    deemed to beneficially own the shares held by the Insight Funds
    because each of them has voting and dispositive power over such
    shares. The foregoing is not an admission by Insight Venture
    Associates III, LLC, Mr.&nbsp;Horing or Mr.&nbsp;Murdock that
    such persons are the beneficial owners of the shares held by the
    Insight Funds. See footnote 12 below.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 19,253 shares issuable upon exercise of
    outstanding options held by Mr. Manning exercisable within 60
    days of March 31, 2004.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes (a)&nbsp;354 shares issuable upon
    exercise of outstanding options held by Mr.&nbsp;Mesznik
    exercisable within 60 days of March&nbsp;31, 2004,
    (b)&nbsp;32,998 shares held by the Joel&nbsp;R. Mesznik 1999
    Descendants Trust for the benefit of Mr.&nbsp;Mesznik&#146;s
    family, (c)&nbsp;405,047 shares held by GOL LLC of which
    Mr.&nbsp;Mesznik is the managing member, and (d)&nbsp;186 shares
    issuable upon exercisable outstanding warrants held by GOL,
    L.L.C.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 354 shares issuable upon exercise of
    outstanding options held by Mr. Sobiloff exercisable within 60
    days of March&nbsp;31, 2003. Mr.&nbsp;Sobiloff is a member of
    Insight Venture Associates&nbsp;III, LLC. See footnote 12 below.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (8)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 20,296 shares issuable upon exercise of
    outstanding options held by Mr.&nbsp;Bies exercisable within 60
    days of March&nbsp;31, 2004.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">71
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; (9)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 8,997 shares issuable upon exercise of
    outstanding options held by Mr.&nbsp;Davis exercisable within 60
    days of March&nbsp;31, 2004, and 28 shares subject to currently
    exercisable warrants.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(10)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 14,995 shares issuable upon exercise of
    outstanding options held by Mr.&nbsp;Flatow exercisable within
    60 days of March&nbsp;31, 2004.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(11)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 31,113 shares issuable upon exercise of
    outstanding options held Mr.&nbsp;Price exercisable within 60
    days of May&nbsp;31, 2004.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(12)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes (a) 4,155,258 shares held by Insight
    Capital Partners III, L.P. and 1,534 shares subject to currently
    exercisable warrants held by Insight Capital Partners III, L.P.;
    (b) 1,087,365 shares held by Insight Capital Partners III
    (Cayman), L.P. and 459&nbsp;shares subject to currently
    exercisable warrants held by Insight Capital Partners III
    (Cayman), L.P.; and (c) 718,822 shares held by Insight Capital
    Partners-Coinvestors III L.P. and 256 Shares subject to
    currently exercisable warrants held by Insight Capital
    Partners-Coinvestors III L.P. Insight Venture Associates III,
    LLC is the general partner of these entities and may be deemed
    to beneficially own the shares held by the Insight Funds and the
    shares subject to currently exercisable warrants held by the
    Insight Funds. Jeffrey Horing, a director of the Company, and
    Jerry Murdock, as Designated Managing Members of Insight Venture
    Associates III, LLC, may be deemed to beneficially own the
    shares held by the Insight Funds because each of them has voting
    and dispositive power over such shares. The foregoing is not an
    admission by Insight Venture Associates III, LLC,
    Mr.&nbsp;Horing or Mr.&nbsp;Murdock that such persons are the
    beneficial owners of the shares held by the Insight Funds.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(13)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes 26,857 shares issuable upon exercise of
    outstanding warrants held by Silicon Valley Bank.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(14)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes partners of Preston Gates &#38; Ellis
    LLP, our outside legal counsel. Robert Jaffe is the partner in
    701 Venture Investments LLC with power to vote and dispose of
    these shares.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(15)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">A partner of Preston Gates &#38; Ellis LLP, our
    outside legal counsel.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">72
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='115'></A>
</DIV>

<!-- link1 "DESCRIPTION OF CAPITAL STOCK" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF CAPITAL STOCK</FONT></B>

<P align="left">
<B><FONT size="2">General</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">After this offering, we will be authorized to
issue 100,000,000&nbsp;shares of common stock, $0.0001&nbsp;par
value per share, and 5,000,000&nbsp;shares of undesignated
preferred stock, $0.0001&nbsp;par value per share. Immediately
after this offering, we estimate that there will
be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock outstanding, 920,487&nbsp;shares of common stock
will be issuable upon exercise of outstanding options and no
shares of preferred stock will be issued and outstanding based
on shares and options outstanding as of March&nbsp;31, 2004.
</FONT>

<P align="left">
<B><FONT size="2">Common Stock</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The holders of our common stock are entitled to
one vote per share on all matters submitted to a vote at meeting
of stockholders. The holders of our common stock are not
entitled to vote on any amendment to our certificate of
incorporation, including any certificate of designation filed
with respect to any series of our preferred stock, that relates
solely to the terms of one or more outstanding series of
preferred stock. There are no cumulative voting rights. Subject
to preferences that may be applicable to any outstanding
preferred stock, the holders of our common stock are entitled to
receive dividends, if any, as may be declared by our board of
directors out of funds legally available for dividends. In the
event of liquidation, dissolution or winding up of our company,
the holders of our common stock are entitled to share ratably in
all assets remaining after payment of liabilities, subject to
prior rights of preferred stock, if any, then outstanding. The
common stock has no preemptive or conversion rights or other
subscription rights. There are no redemption or sinking fund
provisions applicable to the common stock. All outstanding
shares of our common stock are fully paid and nonasssessable.
</FONT>

<P align="left">
<B><FONT size="2">Preferred Stock</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to our certificate of incorporation, our
board of directors has the authority, without further action by
our stockholders, to issue up to 5,000,000&nbsp;shares of
preferred stock. The board of directors may issue this stock in
one or more series and may fix the rights, preferences,
privileges and restrictions of this preferred stock. Some of the
rights and preferences that our board of directors may designate
include dividend rights, conversion rights, voting rights, terms
of redemption, liquidation preferences and sinking fund terms.
The board of directors may determine the number of shares
constituting any series or the designation of such series. Any
or all of the rights and preferences selected by our board of
directors may be greater than the rights of the common stock.
The issuance of preferred stock could adversely affect the
voting power of holders of common stock and the likelihood that
stockholders will receive dividend payments and payments upon
liquidation. The issuance of preferred stock could also have the
effect of delaying, deferring or preventing a change in control
of our company.
</FONT>

<P align="left">
<B><FONT size="2">Warrants and Other Rights</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have the following warrants outstanding as of
March&nbsp;31, 2004:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Warrants for an aggregate of 4,268&nbsp;shares of
    common stock, each with an exercise price of $117.18&nbsp;per
    share, issued to Insight Capital Partners&nbsp;III,
    L.P.,&nbsp;Insight Capital Partners&nbsp;III (Cayman),
    L.P.,&nbsp;Insight Capital Partners&nbsp;III (Co-Investors),
    L.P., UBS Capital&nbsp;II LLC, MSD Ventures, L.P.,&nbsp;Imprimis
    SB, L.P., Forrester Research,&nbsp;Inc., GOL, L.L.C., Charles
    Davis, The Friedman Family Foundation, Burton J. Manning, Robin
    Neustein, and Hugh&nbsp;O. Davis, in connection with the
    Recapitalization. These warrants expire in March 2005 and are
    governed by the terms of the Note and Warrant Purchase Agreement
    by and between us and Greenfield Holdings dated as of
    March&nbsp;3, 2000.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">A warrant for 26,857&nbsp;shares of common stock,
    with an exercise price of $7.42&nbsp;per share, issued to
    Silicon Valley Bank on August&nbsp;9, 2001 in connection with an
    Accounts Receivable Financing Agreement, which has been
    subsequently amended. This warrant will expire in July 2006.
    </FONT></TD>
</TR>

</TABLE>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">A warrant for 21,212&nbsp;shares of common stock,
    with an exercise price of $28.28&nbsp;per share, issued to
    Greyrock Capital on December&nbsp;3, 1999 in connection with a
    $6&nbsp;million credit facility, which has been paid in full and
    terminated. This warrant will expire in December 2004.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Registration Rights</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Amended and Restated Registration Rights
    Agreement</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The holders of 2,054,552&nbsp;shares of our
common stock, including 10,408,119 of our common stock issuable
upon the automatic conversion of our preferred stock, and
972,824&nbsp;shares of our common stock issuable upon the
exercise of outstanding stock options and warrants to purchase
our common stock, or their respective permitted transferees, are
entitled to rights with respect to registration of these shares
under the Securities Act. These rights are provided under an
Amended and Restated Registration Rights Agreement dated as of
December&nbsp;16, 2002 with all of our existing stockholders.
Under this agreement, we granted these stockholders certain
rights to register the shares of common stock owned by them
under the Securities Act. We also granted the holders of a
majority of the outstanding shares of our Series&nbsp;C-1
Convertible Participating Preferred Stock the right to demand
that we effect a registration of the common stock, or a
designated portion of the common stock, held by them, provided
that such demand relates to an aggregate gross offering of at
least $5&nbsp;million before underwriter discounts and
commissions. We are required to effect only three registrations
pursuant to these demand rights under the agreement. This
agreement is the basis on which certain of our stockholders are
selling shares of our common stock in this offering.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, all stockholders who have become
parties to the Amended and Restated Registration Rights
Agreement have unlimited &#147;piggyback&#148; registration
rights to have their shares registered under the Securities Act.
The agreement provides that whenever we propose to register
shares of our common stock under the Securities Act, then the
stockholders, with certain exceptions, will have the right to
request that we register their shares of common stock with such
registration. If we are eligible to file a registration
statement on Form&nbsp;S-3, stockholders that are a party to the
agreement have the right to have their shares registered by us
on a Form&nbsp;S-3 registration statement, provided that such
requested registration has an anticipated aggregate gross
offering price of at least $5&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The registration rights under this agreement are
subject to the rights of the managing underwriters, if any, to
reduce or exclude certain shares from the registration
(underwriting cutbacks), if their inclusion would interfere with
the marketing or sale of the contemplated offering. The
agreement requires us to pay for all costs and expenses, other
than underwriting discounts and commissions, incurred in
connection with the registration of securities under the
agreement. The agreement will terminate when there are no longer
any registrable shares outstanding under the agreement.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Silicon Valley Bank Registration Rights
    Agreement</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We granted registration rights to Silicon Valley
Bank (&#147;SVB&#148;) under a Registration Rights Agreement
dated as of August&nbsp;9, 2001 that was entered into in
connection with a warrant for 26,857&nbsp;shares of common stock
issued in connection with an accounts receivable financing
agreement. Under this agreement, if we register any of our
securities under the Securities Act prior to August&nbsp;9,
2008, SVB has the right to include its shares in such
registration (subject to underwriting cutbacks). If we are
eligible to file a registration statement on Form&nbsp;S-3, SVB
has the right to have its shares registered by us on a
Form&nbsp;S-3 registration statement, provided the aggregate
price to the public of such offering would reasonably be
expected to exceed $750,000. The agreement requires us to pay
for all costs and expenses, other than underwriting discounts,
commissions, transfer taxes, and the fees and expenses of
SVB&#146;s counsel and accountants, incurred in connection with
the registration of securities under the agreement.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Greyrock Capital Registration Rights
    Agreement</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We granted registration rights to Greyrock
Capital (&#147;GC&#148;) under a Registration Rights Agreement
dated as of December&nbsp;3, 1999 that was entered into in
connection with a warrant for 21,212&nbsp;shares of common stock
issued in connection with an accounts receivable financing
agreement. Under this agreement, if we
</FONT>

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<DIV align="left">
<FONT size="2">register any of our securities under the
Securities Act, GC has the right to include its shares in such
registration (subject to underwriting cutbacks). The agreement
requires us to pay for all costs and expenses, other than
underwriting discounts and commissions, incurred in connection
with the registration of securities under the agreement.
GC&#146;s registration rights under this agreement will
terminate on the third anniversary our initial public offering.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Delaware Anti-takeover Law and Certain Charter
and Bylaw Provisions</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Section&nbsp;203 of Delaware General
    Corporate Law</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are subject to the provisions of
Section&nbsp;203 of the General Corporation Law of Delaware. In
general, the statute prohibits a publicly held Delaware
corporation from engaging in a &#147;business combination&#148;
with an &#147;interested stockholder&#148; for a period of three
years after the date of the transaction in which the person
became an interested stockholder, unless the business
combination is approved by our board of directors and/or our
stockholders in a prescribed manner. A &#147;business
combination&#148; includes a merger, asset sale or other
transaction resulting in a financial benefit to the interested
stockholder. Subject to certain exceptions, an &#147;interested
stockholder&#148; is a person who, together with affiliates and
associates, owns, or within three years did own, 15% or more of
the corporation&#146;s voting stock.
</FONT>

<P align="left">
<B><FONT size="2">Anti-Takeover Effects of Provisions of Our
Charter Documents</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our certificate of incorporation and bylaws
provide for the division of our board of directors into three
classes as nearly equal in size as possible with staggered
three-year terms. Directors may only be removed for cause by the
affirmative vote of the holders of at least a majority of the
then outstanding shares of our capital stock entitled to vote at
an election of directors. Any vacancy on our board of directors,
including a vacancy resulting from an enlargement of our board
of directors, may only be filled by vote of a majority of our
directors then in office. The classification of our board of
directors and the limitation on filling vacancies could make it
more difficult for a third-party to acquire, or discourage a
third-party from attempting to acquire, control of us. In
addition, our classified board of directors could delay attempts
by stockholders who do not approve of our policies or procedures
to elect a majority of our board of directors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our bylaws set forth an advance notice procedure
for stockholder proposals to be brought before an annual meeting
of our stockholders, including proposed nominations of persons
for election to the board of directors. At an annual meeting,
stockholders may only consider proposals or nominations
specified in the notice of meeting or brought before the meeting
by or at the direction of the board of directors. Stockholders
may also consider a proposal or nomination by a person who was a
stockholder of record on the record date for the meeting and who
has given to our secretary timely notice, in proper form, of his
or her intention to bring that business before the meeting. Our
bylaws may have the effect of precluding the conduct of business
at a meeting if the proper procedures are not followed. These
provisions may also discourage or deter a potential acquirer
from conducting a solicitation of proxies to elect the
acquirer&#146;s own slate of directors or otherwise attempting
to obtain control of our company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Delaware law, a special meeting of
stockholders may be called by the board of directors or by any
other person authorized to do so in the certificate of
incorporation or the bylaws. Our bylaws authorize a majority of
our board of directors, the chairman of the board or the chief
executive officer to call a special meeting of stockholders.
Because our stockholders do not have the right to call a special
meeting, a stockholder could not force stockholder consideration
of a proposal over the opposition of the board of directors by
calling a special meeting of stockholders prior to such time as
a majority of the board of directors believed, the chairman
believed, or the chief executive officer believed the matter
should be considered or until the next annual meeting provided
that the requestor met the notice requirements. The restriction
on the ability of our stockholders to call a special meeting
means that a proposal to replace the board also could be delayed
until the next annual meeting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Delaware law provides that stockholders may
execute an action by written consent in lieu of a stockholder
meeting. However, Delaware law also allows us to eliminate
stockholder actions by written consent. Elimination of written
consents of stockholders may lengthen the amount of time
required to take
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">stockholder actions since actions by written
consent are not subject to the minimum notice requirement of a
stockholder&#146;s meeting. Without the availability of
stockholder&#146;s actions by written consent, a holder
controlling a majority of our capital stock would not be able to
amend our bylaws or remove directors without holding a
stockholders&#146; meeting. The holder would have to obtain the
consent of a majority of the board of directors, the chairman of
the board or the chief executive officer to call a
stockholders&#146; meeting and satisfy the notice periods
determined by the board of directors. Under our certificate of
incorporation, our stockholders may not take action by written
consent in lieu of a meeting but must take any actions at a duly
called annual or special meeting.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our certificate of incorporation provides that
the affirmative vote of the holders of at least eighty percent
(80%) of the voting power of our issued and outstanding capital
stock entitled to vote in the election of directors, is required
to amend the following provisions of our certificate of
incorporation:
</FONT>
<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Article&nbsp;VI, which relates to our classified
    board of directors;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Article&nbsp;VII, which relates to the number and
    election of directors, the management of our business, and bylaw
    provisions relating to stockholder action by written consent and
    meetings of stockholders;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Article&nbsp;X, which relates to the appointment
    of directors upon an increase in the number of directors or
    vacancy;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Article&nbsp;XI, which relates to advance notice
    requirements for new business and stockholder nominations for
    the election of directors;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Article&nbsp;XII, which relates to the
    restrictions on stockholder actions by written consent.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Transfer Agent And Registrar</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Transfer Agent and Registrar for our common
stock is Registrar and Transfer Company Inc.
</FONT>

<P align="left">
<B><FONT size="2">Nasdaq National Market Quotation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have applied to have our shares of common
stock quoted on the Nasdaq Stock Market&#146;s National Market
under the trading symbol &#147;SRVY.&#148;
</FONT>

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<DIV align="left">
<A name='116'></A>
</DIV>

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<P align="center">
<B><FONT size="2">SHARES ELIGIBLE FOR FUTURE SALE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Immediately prior to this offering, there was no
public market for our common stock. Future sales of substantial
amounts of our common stock in the public market could adversely
affect prevailing market prices of our common stock.
Furthermore, because only a limited number of shares will be
available for sale shortly after this offering because of
contractual and legal restrictions on resale described below,
sales of substantial amounts of common stock in the public
market after these restrictions lapse could adversely affect the
prevailing market price and our ability to raise equity capital
in the future.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon completion of this offering, we will
have &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding
shares of common stock, assuming no exercise of the
underwriters&#146; over-allotment option and no exercise of
outstanding options and warrants. All of the shares of common
stock sold in this offering will be freely tradable on the date
of this prospectus unless purchased by &#147;affiliates,&#148;
as that term is defined in Rule&nbsp;144 promulgated under the
Securities Act. In addition, the following table illustrates the
shares eligible for sale in the public market:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="21%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="76%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Number Of Shares</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Date Available for Sale</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    &nbsp;&nbsp;<FONT size="2">&nbsp;150,772
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">After the date of this prospectus, shares salable
    under Rule&nbsp;144(k) that are not subject to the 180-day
    lock-up.
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    &nbsp;&nbsp;<FONT size="2">&nbsp;219,857
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">After 90&nbsp;days from the date of this
    prospectus, shares salable under Rule&nbsp;144 (subject, in some
    cases, to volume limitations) or Rule&nbsp;701 that are not
    subject to the 180-day lock-up.
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">11,126,642
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">After 180&nbsp;days from the date of this
    prospectus, the 180-day lock-up is released and these shares are
    salable under Rule&nbsp;144 (subject, in some cases, to volume
    limitations), Rule&nbsp;144(k) or Rule&nbsp;701.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No prediction can be made as to the effect, if
any, that market sales of shares or the availability of shares
for sale will have on the market price prevailing from time to
time. Nevertheless, sales of substantial amounts of our common
stock in the public market after the lapse of the restrictions
described in this section, or the perception that sales may
occur, could adversely affect the prevailing market price and
our ability to raise equity capital in the future at a time and
price that it deems appropriate.
</FONT>

<P align="left">
<B><FONT size="2">Lock-Up Agreements</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We, and each of our directors, executive officers
and our stockholders holding approximately
10,016,223&nbsp;shares of our common stock,
representing &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
of our common stock after giving effect to this offering, have
agreed not to offer, sell, contract to sell, pledge or otherwise
dispose of, directly or indirectly, any shares of our common
stock or any securities convertible into or exchangeable or
exercisable for any shares of our common stock, or enter into a
transaction which would have the same effect, or enter into any
swap, hedge or other arrangement that transfers, in whole or in
part, any of the economic consequences of ownership of the
shares of common stock, or exercise any right to request or
demand registration pursuant to the Securities Act, or publicly
disclose the intention to make any offer, sale, pledge or
disposition, or to enter into any transaction, swap, hedge or
other arrangement, without the prior written consent of Lehman
Brothers, for a period of 180&nbsp;days after the public
offering date set forth on the cover of this prospectus. Because
the lock-up agreements will cover a significant portion of our
common stock not already traded in the public market, the sale
of these shares, or the perception that sales may occur, could
adversely affect the prevailing market prices of our common
stock.
</FONT>

<P align="left">
<B><FONT size="2">Rule&nbsp;144</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In general, under Rule&nbsp;144 as currently in
effect, a person (or persons whose shares are aggregated) who
has beneficially owned restricted shares for at least one year,
including persons who may be deemed our &#147;affiliates,&#148;
would be entitled to sell within any three-month period a number
of shares that does not exceed the greater of 1% of the number
of shares of common stock then outstanding or the average weekly
trading volume of the common stock as reported through the
Nasdaq National Market during the four calendar weeks preceding
the filing of a Form&nbsp;144 with respect to such sale. Sales
under Rule&nbsp;144 are also subject to manner
</FONT>

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<DIV align="left">
<FONT size="2">of sale provisions and notice requirements and to
the availability of current public information about us. In
addition, a person who is not deemed to have been our affiliate
at any time during the 90&nbsp;days preceding a sale and who has
beneficially owned for at least two years the shares proposed to
be sold, would be entitled to sell such shares under
Rule&nbsp;144(k) without regard to the requirements described
above.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Rule&nbsp;701</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In general, Rule&nbsp;701 permits resales of
shares issued under compensatory benefit plans and contracts
commencing 90&nbsp;days after the issuer becomes subject to the
reporting requirements of the Securities Exchange Act in
reliance upon Rule&nbsp;144, but without compliance with certain
restrictions, including the holding period requirements
contained in Rule&nbsp;144. We will file registration statements
on Form&nbsp;S-8 under the Securities Act to register common
stock issuable under our stock option plans and stock purchase
plan. Such registration will permit the resale of shares so
registered by nonaffiliates in the public market without
restriction under the Securities Act.
</FONT>

<P align="left">
<B><FONT size="2">Registration Rights</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Beginning 180&nbsp;days after this offering,
holders of approximately 11,530,495&nbsp;shares of our common
stock are entitled to have their shares registered by us under
the Securities Act. See &#147;Description of Capital
Stock&nbsp;&#151; Registration Rights.&#148; After any
registration of these shares, such shares, except for shares
purchased by affiliates, will be freely tradable without
restriction under the Securities Act.
</FONT>

<P align="left">
<B><FONT size="2">Stock Plans</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We intend to file a registration statement under
the Securities Act covering all of the shares of common stock
reserved for issuance under our 1999 Option Plan, 2004 Equity
Plan and Stock Purchase Plan. We expect this registration
statement to be filed and to become effective as soon as
practicable after the completion of this offering.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of April 5, 2004, options to purchase
920,487&nbsp;shares of common stock were issued and outstanding.
All of these shares will be eligible for sale in the public
market from time to time, subject to vesting provisions,
Rule&nbsp;144 volume limitations applicable to our affiliates
and, in the case of some options, the expiration of lock-up
agreements.
</FONT>

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</FONT>

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<DIV align="left">
<A name='117'></A>
</DIV>

<!-- link1 "UNDERWRITING" -->

<P align="center">
<B><FONT size="2">UNDERWRITING</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the underwriting agreement, which is filed
as an exhibit to the registration statement relating to this
prospectus, each of the underwriters named below, for whom
Lehman Brothers Inc., Friedman Billings Ramsey &#38; Co. Inc.
and Piper Jaffray&nbsp;&#38; Co. are acting as representatives,
has agreed to purchase from us and the selling stockholders the
number of shares of common stock shown opposite its name below:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Underwriters</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Shares</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lehman Brothers Inc.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Friedman, Billings, Ramsey&nbsp;&#38; Co.,
    Inc.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Piper Jaffray&nbsp;&#38; Co.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The underwriting agreement provides that the
underwriters&#146; obligations to purchase shares of common
stock depends on the satisfaction of the conditions contained in
the underwriting agreement, including:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the obligation to purchase all of the shares of
    common stock offered hereby if any of the shares are purchased
    other than those covered by the over-allotment option described
    below;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the representations and warranties made by us and
    the selling stockholders to the underwriters are true;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">there is no material change in the financial
    markets;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we and the selling stockholders deliver customary
    closing documents to the underwriters.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Over-Allotment Option</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The selling stockholders have granted to the
underwriters an option to purchase up to an aggregate
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;additional
shares of common stock, exercisable to cover over-allotments, if
any, at the public offering price less the underwriting discount
shown on the cover page of this prospectus. The underwriters may
exercise this option at any time, and from time to time, until
30&nbsp;days after the date of the underwriting agreement. To
the extent the underwriters exercise this option, each
underwriter will be committed, so long as the conditions of the
underwriting agreement are satisfied, to purchase a number of
additional shares of common stock proportionate to that
underwriter&#146;s initial commitment as indicated in the
preceding table.
</FONT>

<P align="left">
<B><FONT size="2">Commissions and Expenses</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table summarizes the underwriting
discounts that we and the selling stockholders will pay. The
underwriting fee is the difference between the public offering
price and the amount the underwriters pay to purchase the shares
from the selling stockholders and us.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="36%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Per Share</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Without</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">With</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Without</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">With</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Over-Allotment</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Over-Allotment</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Over-Allotment</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Over-Allotment</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Paid by us
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Paid by selling stockholders
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The underwriters have advised us that they
propose to offer the shares of common stock directly to the
public at the public offering price presented on the cover page
of this prospectus, and to selected dealers, who may include the
underwriters, at the public offering price less a selling
concession not in excess of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share. The underwriters may allow, and the selected dealers may
reallow, a concession not in excess of
</FONT>

<P align="center"><FONT size="2">79
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share to brokers and dealers. After the offering, the
underwriters may change the offering price and other selling
terms.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain of the underwriters and their respective
affiliates have performed and may in the future perform
investment banking and advisory services for us from time to
time for which they have received or may in the future receive
customary fees and expenses. The underwriters may, from time to
time, engage in transactions with or perform services for us in
the ordinary course of their business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We estimate that the total expenses of this
offering, including registration, filing and listing fees,
printing fees and legal and accounting expenses, but excluding
underwriting discounts, will be approximately $ million. We will
pay all costs and expenses of this offering excluding
underwriting discounts.
</FONT>

<P align="left">
<B><FONT size="2">Lock-up Agreements</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We, and each of our directors, executive
officers, the selling stockholders and certain of our other
stockholders have agreed not to offer, sell, contract to sell,
pledge or otherwise dispose of, directly or indirectly, any
shares of our common stock or any securities convertible into or
exchangeable or exercisable for any shares of our common stock,
or enter into a transaction which would have the same effect, or
enter into any swap, hedge or other arrangement that transfers,
in whole or in part, any of the economic consequences of
ownership of the shares of common stock, or exercise any right
to request or demand registration pursuant to the Securities
Act, or publicly disclose the intention to make any offer, sale,
pledge or disposition, or to enter into any transaction, swap,
hedge or other arrangement, without the prior written consent of
Lehman Brothers, for a period of 180&nbsp;days after the public
offering date set forth on the cover of this prospectus. Because
the lock-up agreements will cover a significant portion of our
common stock not already traded in the public market, the sale
of these shares, or the perception that sales may occur, could
adversely affect the prevailing market prices of our common
stock.
</FONT>

<P align="left">
<B><FONT size="2">Offering Price Determination</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to this offering, there has been no public
market of our common stock. The initial public offering price
will be negotiated between us and the representatives of the
underwriters. In determining the initial public offering price
of our common stock, we and the representatives will consider:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">prevailing market conditions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our historical performance and capital structure;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">estimates of our business potential and earnings
    prospects;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an overall assessment of our management;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the consideration of these factors in relation to
    market valuation of companies in related businesses.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Indemnification</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We and the selling stockholders have agreed to
indemnify the underwriters against liabilities relating to the
offering, including liabilities under the Securities Act and
liabilities arising from breaches of the representations and
warranties contained in the underwriting agreement, and to
contribute to payments that the underwriters may be required to
make for these liabilities.
</FONT>

<P align="center"><FONT size="2">80
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">Stabilization, Short Positions and Penalty
Bids</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The underwriters may engage in over-allotment,
stabilizing transactions, syndicate covering transactions, and
penalty bids or purchases for the purpose of pegging, fixing or
maintaining the price of our common stock, in accordance with
Regulation&nbsp;M under the Securities Exchange Act:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Over-allotment involves sales by the underwriters
    of shares in excess of the number of shares the underwriters are
    obligated to purchase, which creates a syndicate short position.
    The short position may be either a covered short position or a
    naked short position. In a covered short position, the number of
    shares over-allotted by the underwriters is not greater than the
    number of shares that they may purchase in the over-allotment
    option. In a naked short position, the number of shares involved
    is greater than the number of shares in the over-allotment
    option. The underwriters may close out any short position by
    either exercising their over-allotment option and/or purchasing
    shares in the open market.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Stabilizing transactions permit bids to purchase
    common stock so long as the stabilizing bids do not exceed a
    specified maximum.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Syndicate covering transactions involve purchases
    of the common stock in the open market after the distribution
    has been completed in order to cover syndicate short positions.
    In determining the source of shares to close out the short
    position, the underwriters will consider, among other things,
    the price of shares available for purchase in the open market as
    compared to the price at which they may purchase shares through
    the over-allotment option. If the underwriters sell more shares
    than could be covered by the over-allotment option, creating a
    naked short position, the position can only be closed out by
    buying shares in the open market. A naked short position is more
    likely to be created if the underwriters are concerned that
    there could be downward pressure on the price of the shares in
    the open market after pricing that could adversely affect
    investors who purchase in the offering.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Penalty bids permit the underwriters to reclaim a
    selling concession from a syndicate member when the common stock
    originally sold by the syndicate member is purchased in a
    stabilizing or syndicate covering transaction to cover syndicate
    short positions.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These stabilizing transactions, syndicate
covering transactions and penalty bids may raise or maintain the
market price of our common stock or prevent or slow a decline in
the market price of our common stock. As a result, the price of
our common stock may be higher than the price that might
otherwise exist in the open market. These transactions may be
effected on the Nasdaq National Market or otherwise and, if
commenced, may be discontinued at any time.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Neither we nor any of the underwriters make any
representation or prediction as to the direction or magnitude of
any effect that the transactions described above may have on the
price of our common stock. In addition, neither we nor the
underwriters make any representation that the underwriters will
engage in these stabilizing transactions or that any
transaction, once commenced, will not be discontinued without
notice.
</FONT>

<P align="left">
<B><FONT size="2">Directed Share Program</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At our request, the underwriters have reserved
for sale, at the initial public offering price, up
to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
offered hereby for officers, directors, employees and other
persons associated with us who have expressed an interest in
purchasing common stock in the offering. The number of shares
available for sale to the general public in this offering will
be reduced to the extent these persons purchase the reserved
shares. Any reserved shares not so purchased will be offered by
the underwriters to the general public on the same terms as the
other shares.
</FONT>

<P align="center"><FONT size="2">81
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">Stamp Taxes</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Purchasers of the shares of our common stock
offered by this prospectus may be required to pay stamp taxes
and other charges under the laws and practices of the country of
purchase, in addition to the offering price listed on the cover
of this prospectus. Accordingly, we urge you to consult a tax
advisor with respect to whether you may be required to pay those
taxes or charges, as well as any other tax consequences that may
arise under the laws of the country of purchase.
</FONT>

<P align="left">
<B><FONT size="2">Electronic Distribution</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A prospectus in electronic format may be made
available on Internet sites or through other online services
maintained by one or more of the underwriters and/or selling
group members participating in this offering, or by their
affiliates. In those cases, prospective investors may view
offering terms online and, depending upon the particular
underwriter or selling group member, prospective investors may
be allowed to place orders online. The underwriters may agree
with us to allocate a specific number of shares for sale to
online brokerage account holders. Any such allocation for online
distributions will be made by the underwriters on the same basis
as other allocations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other than the prospectus in electronic format,
information contained in any other web site maintained by an
underwriter or selling group member is not part of this
prospectus or the registration statement of which this
prospectus forms a part, has not been approved and/or endorsed
by us and should not be relied on by investors in deciding
whether to purchase any shares of common stock. The underwriters
and selling group members are not responsible for information
contained in web sites that they do not maintain.
</FONT>

<P align="left">
<B><FONT size="2">Discretionary Sales</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The underwriters have informed us that they will
not confirm sales to accounts over which they exercise
discretionary authority in excess of 5% of the total number of
shares offered by them.
</FONT>

<P align="center"><FONT size="2">82
</FONT>

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<!-- link1 "NOTICE TO CANADIAN RESIDENTS" -->

<P align="center">
<B><FONT size="2">NOTICE TO CANADIAN RESIDENTS</FONT></B>

<P align="left">
<B><FONT size="2">Offers and Sales in Canada</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus is not, and under no
circumstances is to be construed as, an advertisement or a
public offering of shares in Canada or any province or territory
thereof. Any offer or sale of shares in Canada will be made only
under an exemption from the requirements to file a prospectus
with the relevant Canadian securities regulators and only by a
dealer properly registered under applicable provincial
securities laws or, alternatively, pursuant to an exemption from
the dealer registration requirement in the relevant province or
territory of Canada in which such offer or sale is made.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus is for the confidential use of
only those persons to whom it is delivered by the underwriters
in connection with the offering of the shares into Canada. The
underwriters reserve the right to reject all or part of any
offer to purchase shares for any reason or allocate to any
purchaser less than all of the shares for which it has
subscribed.
</FONT>

<P align="left">
<B><FONT size="2">Responsibility</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as otherwise expressly required by
applicable law or as agreed to in contract, no representation,
warranty, or undertaking (express or implied) is made and no
responsibilities or liabilities of any kind or nature whatsoever
are accepted by any underwriter or dealer as to the accuracy or
completeness of the information contained in this prospectus or
any other information provided by the Company or the selling
stockholders in connection with the offering of the shares into
Canada.
</FONT>

<P align="left">
<B><FONT size="2">Resale Restrictions</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The distribution of the shares in Canada is being
made on a private placement basis only and is exempt from the
requirement that we and the selling stockholders prepare and
file a prospectus with the relevant Canadian regulatory
authorities. Accordingly, any resale of the shares must be made
in accordance with applicable securities laws, which will vary
depending on the relevant jurisdiction, and which may require
resales to be made in accordance with exemptions from
registration and prospectus requirements. Canadian purchasers
are advised to seek legal advice prior to any resale of the
shares.
</FONT>

<P align="left">
<B><FONT size="2">Representations of Purchasers</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each Canadian investor who purchases shares will
be deemed to have represented to us, the selling stockholders,
the underwriters and any dealer who sells shares to such
purchaser that: (i)&nbsp;the offering of the shares was not made
through an advertisement of the shares in any printed media of
general and regular paid circulation, radio, television or
telecommunications, including electronic display, or any other
form of advertising in Canada; (ii)&nbsp;such purchaser has
reviewed the terms referred to above under &#147;Resale
Restrictions&#148; above; (iii)&nbsp;where required by law, such
purchaser is purchasing as principal for its own account and not
as agent; and (iv)&nbsp;such purchaser or any ultimate purchaser
for which such purchaser is acting as agent is entitled under
applicable Canadian securities laws to purchase such shares
without the benefit of a prospectus qualified under such
securities laws, and without limiting the generality of the
foregoing: (a)&nbsp;in the case of a purchaser located in a
province other than Ontario and Newfoundland and Labrador,
without the dealer having to be registered, (b)&nbsp;in the case
of a purchaser located in a province other than Ontario or
Quebec, such purchaser is an &#147;accredited investor&#148; as
defined in section 1.1 of Multilateral Instrument 45-103 &#150;
<I>Capital Raising Exemptions,</I> (c)&nbsp;in the case of a
purchaser located in Ontario, such purchaser, or any ultimate
purchaser for which such purchaser is acting as agent, is an
&#147;accredited investor&#148;, other than an individual, as
that term is defined in Ontario Securities Commission
Rule&nbsp;45-501 &#150; <I>Exempt Distributions </I>and is a
person to which a dealer registered as an international dealer
in Ontario may sell shares, and (d)&nbsp;in the case of a
purchaser located in Qu&#233;bec, such purchaser is a
&#147;sophisticated purchaser&#148; within the meaning of
section 44 or 45 of the <I>Securities Act </I>(Qu&#233;bec).
</FONT>

<P align="center"><FONT size="2">83
</FONT>

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<P align="left">
<B><FONT size="2">Taxation and Eligibility for
Investment</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any discussion of taxation and related matters
contained in this prospectus does not purport to be a
comprehensive description of all the tax considerations that may
be relevant to a decision to purchase the shares. Canadian
purchasers of shares should consult their own legal and tax
advisers with respect to the tax consequences of an investment
in the shares in their particular circumstances and with respect
to the eligibility of the shares for investment by the purchaser
under relevant Canadian federal and provincial legislation and
regulations.
</FONT>

<P align="left">
<B><FONT size="2">Rights of Action for Damages or Rescission
(Ontario)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Securities legislation in Ontario provides that
every purchaser of shares pursuant to this prospectus shall have
a statutory right of action for damages or rescission against us
and any selling stockholder in the event this prospectus
contains a misrepresentation as defined in the <I>Securities
Act</I> (Ontario). Ontario purchasers who purchase shares
offered by this prospectus during the period of distribution are
deemed to have relied on the misrepresentation if it was a
misrepresentation at the time of purchase. Ontario purchasers
who elect to exercise a right of rescission against us and any
selling stockholder on whose behalf the distribution is made
shall have no right of action for damages against us or the
selling stockholders. The right of action for rescission or
damages conferred by the statute is in addition to, and without
derogation from, any other right the purchaser may have at law.
Prospective Ontario purchasers should refer to the applicable
provisions of Ontario securities legislation and are advised to
consult their own legal advisers as to which, or whether any, of
such rights or other rights may be available to them.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The foregoing summary is subject to the express
provisions of the <I>Securities Act </I>(Ontario) and the rules,
regulations and other instruments thereunder, and reference is
made to the complete text of such provisions contained therein.
Such provisions may contain limitations and statutory defences
on which we and the selling stockholders may rely. The
enforceability of these rights may be limited as described
herein under &#147;Enforcement of Legal Rights.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The rights of action discussed above will be
granted to the purchasers to whom such rights are conferred upon
acceptance by the relevant dealer of the purchase price for the
shares. The rights discussed above are in addition to and
without derogation from any other right or remedy which
purchasers may have at law. Similar rights may be available to
investors in other Canadian provinces.
</FONT>

<P align="left">
<B><FONT size="2">Enforcement of Legal Rights</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are organized under the laws of the State of
Delaware in the United States. All, or substantially all, of our
directors and officers, as well as the selling stockholders and
the experts named herein, may be located outside of Canada and,
as a result, it may not be possible for Canadian purchasers to
effect service of process within Canada upon us or such persons.
All or a substantial portion of our assets and such other
persons may be located outside of Canada and, as a result, it
may not be possible to satisfy a judgement against us or such
persons in Canada or to enforce a judgement obtained in Canadian
courts against us or such persons outside of Canada.
</FONT>

<P align="left">
<B><FONT size="2">Language of Documents</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon receipt of this document, you hereby confirm
that you have expressly requested that all documents evidencing
or relating in any way to the sale of the securities described
herein (including for greater certainty any purchase
confirmation or any notice) be drawn up in the English language
only. <I>Par la r&#233;ception de ce document, vous confirmez
par les pr&#233;sentes que vous avez express&#233;ment
exig&#233; que tous les documents faisant foi ou se rapportant
de quelque mani&#232;re que ce soit &#224; la vente des valeurs
mobili&#232;res d&#233;crites aux pr&#233;sentes (incluant, pour
plus de certitude, toute confirmation d&#146;achat ou tout avis)
soient r&#233;dig&#233;s en anglais seulement.</I>
</FONT>

<P align="center"><FONT size="2">84
</FONT>

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<DIV align="left">
<A name='118'></A>
</DIV>

<!-- link1 "LEGAL MATTERS" -->

<P align="center">
<B><FONT size="2">LEGAL MATTERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Preston Gates&nbsp;&#38; Ellis LLP, Seattle,
Washington, will pass upon the validity of the common stock
offered hereby. Paul, Weiss, Rifkind, Wharton&nbsp;&#38;
Garrison LLP, New&nbsp;York, New&nbsp;York, will pass upon
selected legal matters in connection with this offering for the
underwriters. Partners of Preston Gates&nbsp;&#38; Ellis LLP,
individually and through an investment partnership, hold an
aggregate of 8,928&nbsp;shares of our common stock.
</FONT>

<DIV align="left">
<A name='119'></A>
</DIV>

<!-- link1 "EXPERTS" -->

<P align="center">
<B><FONT size="2">EXPERTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consolidated financial statements as of
December&nbsp;31, 2002 and 2003, and for each of the three years
in the period ended December&nbsp;31, 2003 included in this
prospectus have been so included in reliance on the report of
PricewaterhouseCoopers LLP, independent accountants, given on
the authority of said firm as experts in auditing and accounting.
</FONT>

<DIV align="left">
<A name='120'></A>
</DIV>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->

<P align="center">
<B><FONT size="2">WHERE YOU CAN FIND MORE INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have filed with the SEC a registration
statement on Form&nbsp;S-1 under the Securities Act with respect
to the common stock offered in this offering. This prospectus
does not contain all of the information set forth in the
registration statement. For further information with respect to
Greenfield Online and the common stock offered in this offering,
we refer you to the registration statement and to the attached
exhibits and schedules. Statements made in this prospectus
concerning the contents of any document referred to in this
prospectus are not necessarily complete. With respect to each
such document filed as an exhibit to the registration statement,
we refer you to the exhibit for a more complete description of
the matter involved.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You may inspect our registration statement and
the attached exhibits and schedules without charge at the public
reference facilities maintained by the SEC at 450&nbsp;Fifth
Street,&nbsp;NW, Washington,&nbsp;DC 20549. You may obtain
copies of all or any part of our registration statement from the
SEC upon payment of prescribed fees. You may obtain information
on the operation of the public reference room by calling the SEC
at 1-800-SEC-0330.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our SEC filings, including the registration
statement and the exhibits filed with the registration
statement, are also available from the SEC&#146;s website at
www.sec.gov, which contains reports, proxy and information
statements and other information regarding issuers that file
electronically with the SEC.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You can obtain a copy of any of our filings, at
no cost, by writing to or telephoning us at:
</FONT>

<P align="center">
<FONT size="2">Greenfield Online,&nbsp;Inc.
</FONT>

<DIV align="center">
<FONT size="2">21 River Road
</FONT>
</DIV>

<DIV align="center">
<FONT size="2">Wilton, CT 06897
</FONT>
</DIV>

<DIV align="center">
<FONT size="2">Attention:&nbsp;&nbsp;Investor Relations
</FONT>
</DIV>

<DIV align="center">
<FONT size="2">(203)&nbsp;834-8585
</FONT>
</DIV>

<P align="center"><FONT size="2">85
</FONT>

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<P align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>

<DIV align="center">
<B><FONT size="2">INDEX TO CONSOLIDATED FINANCIAL
STATEMENTS</FONT></B>
</DIV>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="90%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Page</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Report of Independent Auditors
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Balance Sheets at December&nbsp;31,
    2002 and 2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Statements of Operations for the
    years ended December&nbsp;31, 2001, 2002 and 2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Statements of Changes in Convertible
    Preferred Stock and Stockholders&#146; Deficit for the years
    ended December&nbsp;31, 2001, 2002 and 2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Statements of Cash Flows for the
    years ended December&nbsp;31, 2001, 2002 and 2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Notes to Consolidated Financial Statements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-1
</FONT>

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<P align="center">
<B><FONT size="2">REPORT OF INDEPENDENT AUDITORS</FONT></B>

<P align="left">
<FONT size="2">To the Board of Directors and Stockholders of
</FONT>

<DIV align="left">
<FONT size="2">Greenfield Online,&nbsp;Inc.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The reverse stock split described in Note&nbsp;1
to the consolidated financial statements has not occurred at
April&nbsp;8, 2004. When it has been consummated, we will be in
a position to furnish the following report:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">&#147;In our opinion, the accompanying
    consolidated balance sheets and the related consolidated
    statements of operations, of changes in convertible preferred
    stock and stockholders&#146; deficit and of cash flows present
    fairly, in all material respects, the financial position of
    Greenfield Online,&nbsp;Inc. and its subsidiaries at
    December&nbsp;31, 2002 and 2003, and the results of their
    operations and their cash flows for each of the three years in
    the period ended December&nbsp;31, 2003, in conformity with
    accounting principles generally accepted in the United States of
    America. These financial statements are the responsibility of
    the Company&#146;s management; our responsibility is to express
    an opinion on these financial statements based on our audits. We
    conducted our audits of these statements in accordance with
    auditing standards generally accepted in the United States of
    America, which require that we plan and perform the audit to
    obtain reasonable assurance about whether the financial
    statements are free of material misstatement. An audit includes
    examining, on a test basis, evidence supporting the amounts and
    disclosures in the financial statements, assessing the
    accounting principles used and significant estimates made by
    management, and evaluating the overall financial statement
    presentation. We believe that our audits provide a reasonable
    basis for our opinion.&#148;
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">/s/ PRICEWATERHOUSECOOPERS LLP
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Stamford, Connecticut
</FONT>

<DIV align="left">
<FONT size="2">April&nbsp;6, 2004
</FONT>
</DIV>

<P align="center"><FONT size="2">F-2
</FONT>

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<P align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>

<P align="center">
<B><FONT size="2">CONSOLIDATED BALANCE SHEETS</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="50%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unaudited</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro Forma</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Note&nbsp;1</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">($ in thousands,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">except share data)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="15" align="center" valign="top">
    <B><FONT size="2">ASSETS</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current assets:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,864</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,721</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts receivable trade, net (net of allowances
    of $247 and $219 at December&nbsp;31, 2002 and 2003,
    respectively)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,089</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,234</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Prepaid expenses and other current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">681</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">498</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,634</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,453</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property and equipment, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,736</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,420</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other intangible assets, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">543</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">311</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Security deposits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">811</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">745</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,724</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,929</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="15" align="center" valign="top">
    <B><FONT size="2">LIABILITIES, TEMPORARY EQUITY AND
    STOCKHOLDERS&#146; DEFICIT</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="15"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current liabilities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">987</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,563</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued expenses and other current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,986</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,579</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Term loan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,216</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current portion of capital lease obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">895</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">874</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">435</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">394</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,519</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,410</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital lease obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,102</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">705</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other long-term liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">367</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;C-2 redeemable preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">943</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,988</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,142</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;C-2 redeemable preferred stock; par
    value $0.0001 per share; 10,000 shares authorized and
    outstanding (aggregate liquidation preference of $2,053 as of
    December&nbsp;31, 2003)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">821</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;B convertible preferred stock; par
    value $0.0001&nbsp;per share; 30,211,595&nbsp;shares authorized;
    30,211,595&nbsp;shares issued and outstanding
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,441</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,114</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,114</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Commitments and contingencies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stockholders&#146; deficit:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;A convertible preferred stock; par
    value $0.0001&nbsp;per share; 40,874,511&nbsp;shares authorized;
    40,874,511&nbsp;shares issued and outstanding (aggregate
    liquidation preference of $5,953 as of December&nbsp;31, 2003)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;C-1 convertible preferred stock; par
    value $0.0001&nbsp;per share; 74,627,182&nbsp;shares authorized,
    74,627,182&nbsp;shares issued and outstanding (aggregate
    liquidation preference of $9,127 as of December&nbsp;31, 2003)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Common Stock; par value $0.0001&nbsp;per share;
    12,948,337 and 13,605,479&nbsp;shares authorized at
    December&nbsp;31, 2002 and 2003, respectively; 2,050,898 and
    2,054,486&nbsp;shares issued and outstanding at
    December&nbsp;31, 2002 and 2003, respectively, and
    12,462,605&nbsp;shares issued and outstanding pro forma
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Additional paid-in capital
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">78,889</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,440</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accumulated deficit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(86,037</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(84,389</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(84,389</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unearned stock-based compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,256</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,258</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,258</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Note receivable from stockholder
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(133</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(131</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(131</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total stockholders&#146; deficit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,526</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,327</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,327</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total liabilities, temporary equity and
    stockholders&#146; deficit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,724</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,929</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,929</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">The accompanying notes are an integral part of
these consolidated financial statements.
</FONT>

<P align="center"><FONT size="2">F-3
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>

<P align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF
OPERATIONS</FONT></B>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="50%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">For the Years Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">(In thousands, except per share data)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,787</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,886</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost of revenues (including stock-based
    compensation of $143, $33 and $62, respectively and excluding
    depreciation shown below)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,097</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,409</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,884</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gross profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,690</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,477</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,984</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating expenses:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Selling, general and administrative (including
    stock-based compensation of $2,318, $1,538 and $1,220,
    respectively)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,148</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,123</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,127</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Panel acquisition expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">351</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">713</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,421</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation and amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,654</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,802</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,113</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Research and development (including stock-based
    compensation of $6, $1 and none, respectively)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,750</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">747</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total operating expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,903</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,385</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,287</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14,213</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,908</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,697</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income (expense):
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest expense, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(971</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(621</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(440</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related party interest income (expense), net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,303</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">69</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(55</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,497</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">596</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total other income (expense)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,074</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss) before income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,963</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,798</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision (benefit) for income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(569</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,394</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,648</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less: Accretion of Series&nbsp;C-2 redeemable
    preferred stock dividends
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(63</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Charge to common stockholders for Series B
    convertible preferred stock liquidation preference in excess of
    fair market value
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,873</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative dividends on Series&nbsp;B convertible
    preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(28</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(673</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income allocable to participating preferred
    securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(761</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) available to common stockholders
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,295</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">151</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) per share available to common
    stockholders:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17.71</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6.42</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.07</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17.71</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6.42</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.06</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Weighted average shares outstanding:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">976</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,054</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">976</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,347</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">The accompanying notes are an integral part of
these consolidated financial statements.
</FONT>

<P align="center"><FONT size="2">F-4
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>

<P align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF CHANGES IN
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS&#146;
DEFICIT</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

<TABLE width="100%" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="17%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Series&nbsp;A</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Series&nbsp;C-1</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Convertible</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Convertible</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Class A</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Class B</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Preferred Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Preferred Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common Stock</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance at December&nbsp;31, 2000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,350</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">843</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">281</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Year ended December&nbsp;31, 2001:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net loss for the year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issuance of preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40,875</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Surrender of Class&nbsp;A common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stock option forfeitures
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Settlement of notes receivable from stockholders
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issuance of warrants
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of unearned stock based compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exercise of stock options
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance at December&nbsp;31, 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40,875</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,350</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">843</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">281</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Year ended December&nbsp;31, 2002:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net loss for the year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issuance of stock options
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stock option forfeitures
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stock issuance and conversion related to the
    Recapitalization (Note&nbsp;11)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,627</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,350</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(450</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(843</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(281</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,051</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Effect of modification to Series&nbsp;A
    preferred<BR>
    stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Discount on Series&nbsp;C-2 redeemable preferred
    stock liquidation preference
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;B convertible preferred stock
    liquidation preference
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative dividends on Series&nbsp;B convertible
    preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of unearned stock based compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fees paid related to stock issuance and
    recapitalization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance at December&nbsp;31, 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40,875</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,627</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,051</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Year ended December&nbsp;31, 2003:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income for the year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issuance of stock options
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exercise of stock options
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accretion of discount on Series&nbsp;C-2
    redeemable preferred stock liquidation preference
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative dividends on Series&nbsp;B convertible
    preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of unearned stock based compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance at December&nbsp;31, 2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40,875</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,627</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,054</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>

<P align="right">[Additional columns below]

<P>[Continued from above table, first column(s) repeated]

<TABLE width="100%" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="17%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Class A</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Note</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Additional</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Treasury Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Receivable</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unearned</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Paid-In</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">From</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Stock Based</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Accumulated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Stockholders&#146;</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Capital</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Officer</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Compensation</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Deficit</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Deficit</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance at December&nbsp;31, 2000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,601</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,216</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16,445</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(500</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,382</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(66,356</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,351</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Year ended December&nbsp;31, 2001:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net loss for the year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issuance of preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,536</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,540</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Surrender of Class&nbsp;A common stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(31</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(425</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(425</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stock option forfeitures
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,462</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,462</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Settlement of notes receivable from stockholders
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,555</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">425</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,555</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">425</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issuance of warrants
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of unearned stock based compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,467</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,467</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exercise of stock options
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance at December&nbsp;31, 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80,146</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,247</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16,868</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(75</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,898</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(83,643</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,603</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Year ended December&nbsp;31, 2002:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net loss for the year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,394</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,394</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issuance of stock options
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,087</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,087</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stock option forfeitures
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(157</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">157</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stock issuance and conversion related to the
    Recapitalization (Note&nbsp;11)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,715</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,247</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(58</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,801</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Effect of modification to Series&nbsp;A
    preferred<BR>
    stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,430</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,430</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Discount on Series&nbsp;C-2 redeemable preferred
    stock liquidation preference
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,232</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,232</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;B convertible preferred stock
    liquidation preference
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,413</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,413</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative dividends on Series&nbsp;B convertible
    preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(28</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(28</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of unearned stock based compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,572</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,572</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fees paid related to stock issuance and
    recapitalization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(263</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(263</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance at December&nbsp;31, 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">78,889</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(133</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,256</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(86,037</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,526</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Year ended December&nbsp;31, 2003:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income for the year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,648</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,648</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issuance of stock options
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,284</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,284</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exercise of stock options
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accretion of discount on Series&nbsp;C-2
    redeemable preferred stock liquidation preference
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(63</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(63</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative dividends on Series&nbsp;B convertible
    preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(673</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(673</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of unearned stock based compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,282</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,282</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance at December&nbsp;31, 2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,440</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(131</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,258</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(84,389</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,327</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>

<P align="center">
<FONT size="2">F-5
</FONT>

<P align="center">
<FONT size="2">The accompanying notes are an integral part of
these consolidated financial statements.
</FONT>

<P align="center">

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>

<P align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF CASH
FLOWS</FONT></B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="58%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">For the Years Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">(In thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash flows from operating activities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,394</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,648</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation and amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,642</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,490</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,398</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of contract asset
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">183</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stock based compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,467</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,572</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,282</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-cash interest expense (income)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,755</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(69</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">55</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Impairment of other intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">481</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Loss on disposal of property and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">184</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gain on sale of Custom Research Business
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,497</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(600</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for doubtful accounts and other sales
    allowances
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">271</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of debt discount
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">195</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Changes in assets and liabilities, net:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">582</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(437</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,173</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred project costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">357</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">624</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(263</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Additions (refunds)&nbsp;of security deposits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(232</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,057</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(104</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">576</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,795</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(326</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,275</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other current
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(26</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,809</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(652</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred project revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,151</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(500</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(40</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash provided by (used in) operating
    activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10,990</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">697</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,051</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash flows from investing activities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds from sale of Custom Research Business
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expenses paid in connection with the sale of the
    custom research business
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(303</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Additions to property and equipment and
    intangibles
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,024</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(558</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(305</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash provided by (used in) investing
    activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,024</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">539</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">295</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash flows from financing activities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds from issuance of capital stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,456</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds from borrowings under credit facility
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,189</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Repayments under credit facility
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,216</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other long-term liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">367</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(282</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Increase (decrease) in book overdraft
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(31</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds from borrowings under bridge notes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,926</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Repayments under term loan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Legal fees paid in conjunction with
    recapitalization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(263</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds of options exercised
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds from subscriptions receivable from
    management
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Principal payments under capital lease obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(821</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(590</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(964</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash (used in) provided by financing
    activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,752</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(428</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,489</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net increase (decrease) in cash and cash
    equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(262</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">808</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,857</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents at beginning of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,318</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,056</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,864</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents at end of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,056</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,864</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,721</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Supplemental disclosures of cash flow
    information:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash paid during the year for:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">356</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">599</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">412</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Supplemental Schedule of Non-cash Investing
    and<BR>
    Financing Activities:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Purchase of equipment and internal use software
    financed through capital lease obligations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,612</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">545</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issuance of warrants in connection with debt
    financing
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,140</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issuance of Series&nbsp;A convertible preferred
    stock for note receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exchange of bridge notes into equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,926</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exchange of accrued related party interest into
    equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,348</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exchange of notes payable to stockholder into
    equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,118</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issuance of Series&nbsp;C-2 redeemable preferred
    stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,053</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative dividends on Series&nbsp;B convertible
    preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">673</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accretion of Series&nbsp;C-2 redeemable preferred
    stock dividends
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">The accompanying notes are an integral part of
these consolidated financial statements.
</FONT>

<P align="center"><FONT size="2">F-6
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Note&nbsp;1</FONT></B></TD>
    <TD>
    <B><FONT size="2">&nbsp;&#151; Organization of Business, Nature
    of Business and Basis of Presentation:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Organization and Basis of
Presentation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Greenfield Online,&nbsp;Inc. (the
&#147;Company&#148; or &#147;Greenfield&#148;), was originally
incorporated in the State of Connecticut on September&nbsp;28,
1995. Until May&nbsp;17, 1999, one person owned all of our
capital stock. On May&nbsp;17, 1999, our then-existing
management and a group of new investors executed a management
buyout (the &#147;Management Buyout&#148;), in which
approximately 97% of the Company&#146;s outstanding common stock
was acquired by Greenfield Holdings, LLC (&#147;Greenfield
Holdings&#148;), an entity formed for the sole purpose of the
Management Buyout. This transaction was accounted for as a
leveraged recapitalization, in which the basis of Greenfield
Holdings&#146; investment in the Company was reflected in the
Company&#146;s financial statements, giving rise to goodwill and
certain other intangible assets, which have been substantially
amortized or written off prior to 2002. From 1999 until 2002,
the Company expended significant funds to build the Greenfield
Online panel and its Internet-based technology infrastructure.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December 2002, the Company&#146;s controlling
stockholders completed a recapitalization of its capital
structure, which included the issuance of new senior equity
securities, the issuance of common stock and a reverse split of
the previously issued Class&nbsp;A and Class&nbsp;B Common Stock
into common stock at a ratio of 0.41987 to 1 (the
&#147;Recapitalization&#148;), during which Greenfield Holdings
was dissolved. For all periods presented, all share information
reflects the 0.41987 reverse split as part of the
Recapitalization.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For information purposes, we refer to the
&#147;Predecessor&#148; for the period prior to the Management
Buyout (May&nbsp;17, 1999), the &#147;Successor&#148; for the
period subsequent to the Management Buyout.
</FONT>

<P align="left">
<B><FONT size="2">Nature of Business</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company is a leading independent provider of
Internet survey solutions to the global marketing research
industry and derives 100% of its revenues from Internet data
collection products and services. The Company actively manages
the Greenfield Online panel, a 100% Internet-based panel of
1.7&nbsp;million individuals who participate in the
Company&#146;s surveys.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Over the past nine&nbsp;years, the Company has
developed proprietary management techniques and technologies
that allow it to actively manage the Greenfield Online panel. It
uses these techniques to efficiently conduct Internet surveys
and continually seeks to refresh and enhance its panel profiles,
enabling the delivery of higher-value survey data to its
clients. The Company&#146;s automated technology platform allows
the Company to perform a large volume of surveys simultaneously,
and its global production capabilities provide a continuous
survey programming, data collection and processing services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company targets its Internet survey solutions
to approximately 2,500 full service marketing research and
consulting firms in the United States and the world&#146;s top
25 marketing research companies. The Company employs an
&#147;outsourcing&#148; business model that allows it to partner
with its clients to leverage their global sales forces.
</FONT>

<P align="left">
<B><FONT size="2">International Expansion&nbsp;&#151; India and
Europe</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In July 2003, the Company began operations in
Europe and in addition, it incorporated Greenfield Online
Private Limited in Gurgaon,&nbsp;India (&#147;GFOL India&#148;)
for the purpose of providing the Company with data processing
and survey programming services. In August 2003, the Company
incorporated under the laws of the United Kingdom, through its
wholly-owned subsidiary Greenfield Online Europe, Ltd.
(&#147;GFOL Europe&#148;) to provide the Company with a presence
in Europe to meet the expected increase in demand for the
Company&#146;s Internet survey solutions in Europe.
</FONT>

<P align="center"><FONT size="2">F-7
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">
<B><FONT size="2">Liquidity and Capital Resources</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has a limited operating history and,
until 2003, the Company had historically sustained net losses
and negative cash flows from operations. In addition, the
Company has an accumulated deficit at December&nbsp;31, 2002 and
2003. The Company&#146;s prospects are subject to the risks and
uncertainties frequently encountered by companies in the
relatively new and rapidly evolving markets for Internet
products and services. These risks include, but are not limited
to: the failure to further develop and extend the Company&#146;s
Internet survey solutions; the rejection of Internet-based
marketing research by companies in favor of more traditional
methods; the inability of the Company to maintain and increase
the Greenfield Online panel; failure to compete effectively for
new clients; as well as other risks and uncertainties. In
addition, the Company has growth plans, which include hiring new
personnel and expanding internationally. The Company currently
has limited financial flexibility and available borrowing
capacity to execute these plans, and the Company&#146;s growth
plans will require capital and further financial flexibility. In
the event the Company does not successfully implement its
business strategy, certain assets may not be recoverable.
</FONT>

<P align="left">
<B><FONT size="2">Reverse Stock Split</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In April 2004, the board of directors of the
Company authorized the filing of a registration statement with
the Securities and Exchange Commission that would permit the
Company to sell shares of its common stock in connection with a
proposed initial public offering of its common stock
(&#147;IPO&#148;). These consolidated financial statements give
effect to a reverse one-for-14 split of the Company&#146;s
outstanding common stock to be effective prior to the completion
of the IPO. Upon the completion of the IPO, all shares of the
Company&#146;s Series&nbsp;C-2 Preferred Stock, par value
$0.0001 (&#147;Series&nbsp;C-2&#148;) will be redeemed and all
outstanding shares of the remaining series of Preferred Stock
will be converted into shares of the Company&#146;s common stock
on a one-for-14 basis.
</FONT>

<P align="left">
<B><FONT size="2">Unaudited Pro Forma Balance Sheet</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The unaudited pro forma balance sheet gives
effect to the conversion of the convertible preferred stock as
if it occurred on December&nbsp;31, 2003. The conversion of the
outstanding preferred stock into common stock will automatically
occur upon consummation of the IPO. Upon the closing of the IPO,
all of the outstanding shares of Series&nbsp;A Convertible
Participating Preferred Stock, par value $0.0001
(&#147;Series&nbsp;A&#148;), Series&nbsp;B Convertible
Participating Preferred Stock, par value $0.0001
(&#147;Series&nbsp;B&#148;), and Series&nbsp;C-1 Convertible
Participating Preferred Stock, par value $0.0001
(&#147;Series&nbsp;C-1&#148;), will automatically convert into
an aggregate of 10,408,119&nbsp;shares of common stock.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Note&nbsp;2</FONT></B></TD>
    <TD>
    <B><FONT size="2">&nbsp;&#151; Summary of Significant Accounting
    Policies:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following are the significant accounting
policies followed by the Company:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Consolidation.</FONT></I><FONT size="2"> The
consolidated financial statements include the accounts of
Greenfield, its wholly owned and controlled subsidiaries GFOL
Europe, as well as GFOL India. All significant intercompany
transactions have been eliminated in consolidation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Revenue Recognition.</FONT></I><FONT size="2">
The Company recognizes revenues for services when the research
or survey data is delivered in accordance with the terms of the
agreements. Research products are delivered within a short
period generally ranging from a few days to eight weeks, and
there are no significant obligations remaining after delivery.
An appropriate deferral is made for costs related to projects in
process. Billings rendered in advance of services being
performed, as well as customer deposits received in advance, are
included in deferred revenue. Provision for estimated project
losses, if any, is made in the period such losses are determined
and estimable. Syndicated (recurring) research services are on a
subscription basis for periods of
</FONT>

<P align="center"><FONT size="2">F-8
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">
<FONT size="2">up to one year. Subscription revenues are
recognized ratably over the term of the related contract as
services were provided.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as discussed in Note&nbsp;3, the Company
did not have multiple element transactions during any periods
presented.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Cash and Cash
Equivalents.</FONT></I><FONT size="2"> The Company considers all
highly liquid instruments (cash and short-term securities) with
original maturities of three months or less to be cash
equivalents.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Translation of Foreign
Currencies.</FONT></I><FONT size="2"> The Company began
operations outside the United States during the year ended
December&nbsp;31, 2003. In all circumstances, the functional
currency is the U.S.&nbsp;Dollar, all assets and liabilities of
foreign subsidiaries are remeasured at the year-end (current)
exchange rates and components of revenues and expenses are
remeasured at average exchange rates for the year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Concentration of Credit
Risk.</FONT></I><FONT size="2"> Financial instruments, which
potentially subject the Company to concentrations of credit
risk, consist principally of trade accounts receivable. The
Company periodically reviews its accounts receivable for
collectibility and provides for an allowance for doubtful
accounts to the extent that amounts are not expected to be
collected. For the year ended December&nbsp;31, 2003, two
customers each accounted for more than 10% of the Company&#146;s
net sales. Taylor Nelson Sofres Intersearch (&#147;TNSI&#148;)
accounted for approximately 14.5% of the Company&#146;s net
sales and Custom Research,&nbsp;Inc. (&#147;CRI&#148;) accounted
for approximately 12.7% of the Company&#146;s net sales. The ten
largest customers of Greenfield (including TNSI and CRI)
accounted for approximately 37%, 65% and 53% of the
Company&#146;s net sales for the years ended December&nbsp;31,
2001, 2002 and 2003, respectively. The ten largest accounts
receivable balances of Greenfield (including TNSI and CRI)
accounted for approximately 63%, 47% and 38% at
December&nbsp;31, 2001, 2002 and 2003, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Property and
Equipment.</FONT></I><FONT size="2"> The Company depreciates its
assets over their estimated useful lives. The estimated useful
lives range from: 3 to 5&nbsp;years for equipment; 7&nbsp;years
for furniture and fixtures; the shorter of the estimated useful
life of the related asset or the life of the lease for leasehold
improvements; and 4&nbsp;years for automobiles. Property and
equipment are carried at historical cost, include amounts under
capital leases and are depreciated using the straight-line
method. Repair and maintenance expenditures are expensed as
incurred.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Goodwill and Other Intangible
Assets.</FONT></I><FONT size="2"> The excess of the cost over
the fair value of the net assets acquired in the Management
Buyout were recorded as intangible assets and allocated to
&#147;customer base,&#148; &#147;workforce&#148; and &#147;panel
members,&#148; which were amortized on a straight-line basis
over the estimated useful lives of the related assets,
2.5&nbsp;years, 3.5&nbsp;years and 4&nbsp;years, respectively.
Based on the Company&#146;s financial condition of recurring
operating losses, management performed an evaluation of the
recoverability of these assets and concluded during 2001 that an
impairment existed. As a result, the Company recorded an
impairment charge of $73,000 for the year ended
December&nbsp;31, 2001, which represented the remaining net book
value of the &#147;workforce&#148; at December&nbsp;31, 2001.
The Financial Accounting Standards Board (&#147;FASB&#148;)
issued Statement of Financial Accounting Standards No.&nbsp;142
&#147;Goodwill and Other Intangible Assets&#148;
(&#147;SFAS&nbsp;142&#148;) in June 2001, which was effective
for the Company on January&nbsp;1, 2002. SFAS&nbsp;142 requires
that goodwill no longer be amortized, and instead, be tested for
impairment when changes in circumstances indicate that an
impairment may exist, and at least on an annual basis. The
Company conducted its initial review as of January&nbsp;1, 2002
and determined that an impairment existed. The Company therefore
recorded an impairment charge of $93,000 for the year ended
December&nbsp;31, 2002, which is included in &#147;Selling,
general and administrative&#148; expense in the accompanying
statement of operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Long-lived Assets.</FONT></I><FONT size="2">
The Company reviews other long-lived assets, including property
and equipment and internal use software for impairment whenever
events or changes in circumstances indicate that the carrying
amount of such an asset may not be recoverable. Management
determines whether there has been any impairment on such assets
by comparing anticipated undiscounted cash flows from the use
and eventual
</FONT>

<P align="center"><FONT size="2">F-9
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">
<FONT size="2">disposition of the asset or asset group to the
carrying value of the asset. The amount of any resulting
impairment is calculated by comparing the carrying value to the
fair value, which is estimated, primarily using the present
value of the estimated future cash flows.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Software Costs.</FONT></I><FONT size="2"> The
Company follows the provisions of Statement of
Position&nbsp;98-1, <I>&#147;Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use&#148;
</I>(&#147;SOP&nbsp;98-1&#148;) to account for the costs of
computer software. Costs associated with development of code and
the purchase or license of software from external vendors,
including upgrades, which are used to run the Company&#146;s
Internet survey solutions are capitalized and amortized to cost
of services over the estimated useful life, typically two years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company expenses as incurred all costs
associated with new product development whether performed by
employees or outside consultants, including reengineering,
process mapping, feasibility studies, data conversion, and
training incurred solely to extend the useful life of the
existing software. In addition, the Company expenses as incurred
the costs associated with maintenance of current technologies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Income Taxes.</FONT></I><FONT size="2">
Deferred taxes are determined under the asset and liability
approach. Deferred tax assets and liabilities are recognized on
differences between the book and tax basis of assets and
liabilities using presently enacted tax rates. Further, deferred
tax assets are recognized for the expected benefits of available
net operating loss carryforwards, capital loss carryforwards and
foreign tax credit carryforwards. A valuation allowance is
recorded to reduce a deferred tax asset to an amount, which the
Company expects to realize in the future. The Company
continually reviews the adequacy of the valuation allowance and
recognizes these benefits only as reassessment indicates that it
is more likely than not that these benefits will be realized. In
addition, the Company continuously evaluates its tax
contingencies and recognizes a liability when it believes that
it is probable that a liability exists and can be reasonably
estimated.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Fair Value of Financial
Instruments.</FONT></I><FONT size="2"> The Company&#146;s
financial instruments primarily consist of cash, short-term
securities, accounts receivable, capital lease obligations,
accounts payable, accrued expenses, and other short and
long-term borrowings. The face value of the Company&#146;s debt
approximates its fair value and is included in the balance sheet
at its face amount net of an applicable discount. The fair value
of such debt is estimated based on quoted market prices for the
same or similar issues offered to the Company for debt with the
same or similar remaining maturities and terms. Where
applicable, discounts are based upon the estimated relative fair
value of common stock purchase warrants issued with the debt.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Panelist Incentives.</FONT></I><FONT size="2">
The Company&#146;s panelists receive incentives for
participating in the surveys from the Company, which are earned
by the panelist when the Company receives a timely survey
response. A panelist has the right to claim his or her incentive
payment at any time prior to its expiration, which is generally
one year. The Company accrues incentives as incurred, and
reverses expirations to the statement of operations as they
occur. For the years presented, unclaimed incentives represented
less than 10% of total incentives accrued.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Panel Acquisition
Expenses.</FONT></I><FONT size="2"> Costs associated with
establishing and maintaining panels of potential survey
respondents are expensed as incurred. These costs include
payments to third parties who source panelists from their
databases and websites.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Research and
Development.</FONT></I><FONT size="2"> Research and development
costs are expensed as incurred. Such costs primarily include
direct costs for salaries, employee benefits and sub-contractors
engaged in product development activities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Stock-Based
Compensation.</FONT></I><FONT size="2"> The Company accounts for
stock-based compensation using the intrinsic-value method in
accordance with Accounting Principles Board Opinion No.&nbsp;25,
<I>&#147;Accounting for Stock Issued to Employees&#148;</I>
(&#147;APB No.&nbsp;25&#148;), and related interpretations, and
has adopted the disclosure-only provisions of Statement of
Financial Accounting Standards No.&nbsp;123, <I>&#147;Accounting
for Stock-Based Compensation&#148;
</I>(&#147;SFAS&nbsp;No.&nbsp;123&#148;), for such awards. Under
APB No.&nbsp;25, compensation is determined to the extent that
the
</FONT>

<P align="center"><FONT size="2">F-10
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">
<FONT size="2">fair value of the underlying stock on the date of
grant exceeds the exercise price of the employee stock option or
stock award. Compensation so determined is deferred in
stockholders&#146; deficit&nbsp;and then recognized over the
service period for the stock option or award.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December 2002, the FASB issued
SFAS&nbsp;No.&nbsp;148, &#147;Accounting for Stock-Based
Compensation&nbsp;&#151; Transition and Disclosure, an amendment
of FASB Statement No.&nbsp;123&#148;
(&#147;SFAS&nbsp;148&#148;). SFAS&nbsp;148 amends FASB Statement
No.&nbsp;123 &#147;Accounting for Stock-Based Compensation&#148;
(&#147;SFAS&nbsp;123&#148;), to provide alternative methods of
transition for an entity that voluntarily changes to the fair
value based method of accounting for stock-based employee
compensation prescribed by SFAS&nbsp;123. SFAS&nbsp;148 also
amends the disclosure provisions of SFAS&nbsp;123 to require
prominent disclosure in both annual and interim financial
statements about the effects on reported net income of an
entity&#146;s accounting policy decisions with respect to
stock-based employee compensation. The Company has adopted the
disclosure requirements of SFAS&nbsp;123 in these financial
statements and the information regarding the net income (loss)
determined as if the Company had accounted for its stock options
under the fair value method.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table illustrates the effect on net
income (loss) available to common stockholders and income (loss)
per share if the Company had applied the fair value recognition
provisions of SFAS&nbsp;123 for the years ended
December&nbsp;31, 2001, 2002 and 2003 (in thousands, except per
share data).
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="60%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">For the Years Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income (loss) as reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,394</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,648</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Add: Stock-based employee compensation expense
    included in net income (loss) as recorded
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,467</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,572</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,282</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deduct: Total stock-based employee compensation
    expense determined under the fair value method for all awards,
    net of related tax effects
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,847</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,542</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,593</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pro forma net loss
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,667</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,364</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(663</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net Income (loss) per share as reported:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17.71</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6.42</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.07</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17.71</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6.42</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.06</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pro forma loss per share:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19.13</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8.43</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.68</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19.13</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8.43</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.68</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table illustrates the weighted
average assumptions for the Black-Scholes option-pricing model
used in determining the fair value of options granted to
employees.
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Years Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Risk-free interest rate
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.70</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.45</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.35</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Weighted average expected life (years)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Volatility factor
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Forfeiture rates
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expected dividend yield
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Stock compensation arrangements to nonemployees
are accounted for in accordance with SFAS&nbsp;123, as amended
by SFAS&nbsp;148 and FASB Interpretation No.&nbsp;44
&#147;Accounting for Certain Transactions involving
</FONT>

<P align="center"><FONT size="2">F-11
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">
<FONT size="2">Stock Compensation, an interpretation of
APB&nbsp;25&#148;, using the fair value approach. The
compensation costs of these arrangements are amortized to
expense over the service period as earned.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Net income (loss) per
share.</FONT></I><FONT size="2"> The Company reports net income
(loss) per share in accordance with Statement of Financial
Accounting Standards No.&nbsp;128 &#147;Earnings per Share&#148;
(&#147;SFAS&nbsp;128&#148;). Under SFAS&nbsp;128, basic earnings
per share, which excludes dilution, is computed by dividing net
income or loss available to common stockholders by the weighted
average number of common shares outstanding for the period.
Diluted earnings per share reflects the potential dilution of
securities that could be exercised or converted into common
shares, and is computed by dividing net income or loss available
to common stockholders by the weighted average of common shares
outstanding plus the dilutive potential common shares. Diluted
earnings per share includes in-the-money stock options and
warrants using the treasury stock method and also includes the
assumed conversion of preferred stock using the if-converted
method if dilutive. Due to the participation features of the
Company&#146;s Series&nbsp;A, Series&nbsp;B and Series&nbsp;C-1
Preferred Stock, basic and diluted earnings per share has been
calculated using the &#147;two-class&#148; method, which is an
earnings allocation formula that determines earnings per share
for each class of common stock and participating security
according to dividends declared (or accumulated) and
participation rights in undistributed earnings. In loss periods,
no amounts are allocated to the participating securities. During
a loss period, the assumed exercise of in-the-money stock
options and warrants and the conversion of convertible preferred
stock has an anti-dilutive effect and therefore, these
instruments are excluded from the computation of dilutive
earnings per share. Weighted average potential common shares of
2,351,929, 3,543,714 and none were excluded from the computation
of diluted earnings per share for the years ended
December&nbsp;31, 2001, 2002 and 2003, respectively, as they
would be anti-dilutive.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following is a reconciliation of basic number
of common shares outstanding to diluted number of common and
common stock equivalent shares outstanding (in thousands):
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="69%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">For the Years Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Weighted average number of common and potential
    common shares outstanding:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic number of common shares outstanding
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">976</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,054</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dilutive effect of stock option grants
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">289</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dilutive effect of warrants
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted number of common and potential common
    shares outstanding
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">976</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,347</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Use of Estimates.</FONT></I><FONT size="2">
The preparation of these consolidated financial statements, in
conformity with accounting principles generally accepted in the
United States of America, requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities
at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Some of
the more significant assumptions and estimates relate to the
determination of accrued expenses, liabilities for panelist
incentives and stock-based compensation, certain asset
valuations including deferred tax asset valuations and the
useful lives of property and equipment and internal use
software. Actual results could differ from those estimates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Recently Issued Accounting
Standards.</FONT></I><FONT size="2"> In August 2001, the FASB
issued SFAS&nbsp;No.&nbsp;144, &#147;Accounting for the
Impairment or Disposal of Long-Lived Assets&#148;
(&#147;SFAS&nbsp;144&#148;). SFAS&nbsp;144 provides new guidance
on the recognition of impairment losses on long-lived assets,
excluding goodwill, to be held and used or to be disposed of and
also broadens the definition of what constitutes a discontinued
operation and how the results of a discontinued operation are to
be measured and presented. SFAS&nbsp;144 also requires
long-lived assets that are to be abandoned, be treated as held
for use and depreciated over their remaining expected lives and
</FONT>

<P align="center"><FONT size="2">F-12
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">
<FONT size="2">broadens the presentation of discontinued
operations in the statement of operations to a component of an
entity rather than a segment of a business. SFAS&nbsp;144 was
effective for the Company beginning January&nbsp;1, 2002 and had
no material impact on the Company&#146;s financial position or
results of operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In June 2002, the FASB issued
SFAS&nbsp;No.&nbsp;146, &#147;Accounting for Costs Associated
with Exit or Disposal Activities&#148;
(&#147;SFAS&nbsp;146&#148;). SFAS&nbsp;146 requires that a
liability for a cost associated with an exit or disposal
activity be recognized and measured, initially at fair value,
only when the liability is incurred. SFAS&nbsp;146 nullified
Emerging Issues Task Force Issue No.&nbsp;94-3, &#147;Liability
Recognition for Certain Employee Termination benefits and Other
Costs to Exit an Activity (including Certain Costs Incurred in a
Restructuring)&#148; (&#147;EITF&nbsp;94-3&#148;), which
required a liability for an exit cost to be recognized at the
date of an entity&#146;s commitment to an exit plan. The
adoption of SFAS&nbsp;146 is expected to result in delayed
recognition for certain types of costs as compared to the
provisions of EITF&nbsp;94-3, especially for facility closure
costs. The provisions of SFAS&nbsp;146 are effective for exit or
disposal activities that are initiated after December&nbsp;31,
2002. The adoption of SFAS&nbsp;146 could affect the types and
timing of costs included in future business consolidation and
restructuring programs. SFAS&nbsp;146 did not have a material
impact on the Company&#146;s financial position or results of
operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In November 2002, the FASB issued Interpretation
No.&nbsp;45 &#147;Guarantor&#146;s Accounting and Disclosure
Requirements for Guarantees,&nbsp;Including Indirect Guarantees
of Indebtedness of Others, (an interpretation of FASB Statements
No.&nbsp;5, 57, and 107 and rescission of FASB interpretation
No.&nbsp;34)&#148; (&#147;FIN&nbsp;45&#148;). FIN&nbsp;45
elaborates on the disclosures to be made by a guarantor in its
interim and annual financial statements about its obligations
under certain guarantees that it has issued. FIN&nbsp;45 also
clarifies that a guarantor is required to recognize, at the
inception of a guarantee, a liability for the fair value of the
obligation undertaken in issuing the guarantee. The initial
recognition and measurement provisions of FIN&nbsp;45 are
applicable on a prospective basis to guarantees issued or
modified after December&nbsp;31, 2002. The disclosure
requirements of FIN&nbsp;45 were effective for interim and
annual financial statements for periods ending after
December&nbsp;15, 2002. The initial recognition and initial
measurement provisions did not have a material impact on the
Company&#146;s financial position or results of operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December 2002, the Emerging Issues Task Force
(&#147;EITF&#148;) issued EITF Issue&nbsp;00-21,
&#147;Accounting for Revenue Arrangements with Multiple
Deliverables (&#147;EITF&nbsp;00-21&#148;). EITF&nbsp;00-21
provides guidance on determining whether a revenue arrangement
contains multiple deliverable items and if so, requires that
revenue be allocated among the different items based on fair
value. EITF&nbsp;00-21 also requires that revenue on any item in
a revenue arrangement with multiple deliverables not delivered
completely must be deferred until delivery of the item is
completed. The guidance in EITF&nbsp;00-21 is effective for
revenue arrangements entered into in fiscal years beginning
after June&nbsp;15, 2003. EITF&nbsp;00-21 is not expected to
have a material impact on the Company&#146;s financial position
or results of operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In January 2003, the FASB issued Interpretation
No.&nbsp;46 &#147;Consolidation of Variable Interest
Entities&#148; (&#147;FIN&nbsp;46&#148;). FIN&nbsp;46 requires
that if an entity is the primary beneficiary of a variable
interest entity, the assets, liabilities, and results of
operations of the variable interest entity should be included in
the Consolidated Financial Statements of the entity. In December
2003, the FASB issued FIN&nbsp;46R to provide additional
clarifications to FIN&nbsp;46 and deferred the latest date by
which FIN&nbsp;46 must be applied by a Company for variable
interest entities acquired after January&nbsp;31, 2003, to the
first annual reporting period beginning after December&nbsp;15,
2004. FIN&nbsp;46 is currently effective for all variable
interest entities created or acquired after January&nbsp;31,
2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In May 2003, the FASB issued Statement of
Financial Accounting Standards No.&nbsp;150
(&#147;SFAS&nbsp;150&#148;), &#147;Accounting for Certain
Financial Instruments with Characteristics of both Liability and
Equity.&#148; SFAS&nbsp;150 improves the accounting for certain
financial instruments that, under previous guidance, issuers
could account for as equity and requires that those instruments
be classified as liabilities (or assets in certain
circumstances) in statements of financial position.
SFAS&nbsp;150 affects the issuer&#146;s accounting for certain
types of freestanding
</FONT>

<P align="center"><FONT size="2">F-13
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">
<FONT size="2">financial instruments and also requires
disclosure about alternative ways of settling the instruments
and the capital structure of entities&nbsp;&#151; all of whose
shares are mandatorily redeemable. SFAS&nbsp;150 is generally
effective for all financial instruments entered into or modified
after May&nbsp;31, 2003, and otherwise is effective in the
interim period beginning July&nbsp;1, 2003 for the Company. As a
result of the adoption of SFAS&nbsp;150, the Series&nbsp;C-2
Preferred Stock has been classified between liabilities and
equity at December&nbsp;31, 2002 and was reclassified to a
liability at December&nbsp;31, 2003 since the Company must
redeem all of the Series&nbsp;C-2 Preferred Stock (see
Note&nbsp;10).
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Note&nbsp;3</FONT></B></TD>
    <TD>
    <B><FONT size="2">&nbsp;&#151; Sale of Custom Research
    Business:</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company entered into an asset purchase
agreement (the &#147;Asset Purchase Agreement&#148;) to sell the
assets of its custom research business (the &#147;Custom
Research Business&#148;) to Taylor Nelson Sofres Operations,
Inc. (&#147;TNSO&#148;), which was completed on January&nbsp;31,
2002. For the sale, the Company received approximately
$2,000,000 at closing and an additional $600,000 during 2003,
when certain conditions in the Asset Purchase Agreement were
met. The sale of the Custom Research Business comprised the
conveyance of 19&nbsp;full-time employees, all contracts of the
Custom Research Business and a sublease of certain office space.
Further, the Company gave up its right to perform custom
research for end-user clients for a period of three years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Contemporaneously with the execution of the Asset
Purchase Agreement, the Company entered into an Alliance,
License and Supply Agreement (the &#147;Alliance
Agreement&#148;) with TNSI, an affiliate of TNSO, originally
maturing on January&nbsp;30, 2007. During the term of the
Alliance Agreement, TNSI was required to bring substantially all
of its U.S.-based custom marketing research and Internet sample
requirements business to the Company, with a contractual minimum
of $200,000&nbsp;per month of qualifying revenue (as defined in
the Alliance Agreement) from purchases of sample and other
services in the first year, increasing to a minimum of
$300,000&nbsp;per month in the second year, for a total of
$5,400,000 in guaranteed payments over the first two years. The
Alliance Agreement also specified no payments for the first
three months&#146; services in 2002. Since the Company was
required to provide the services, we treated $600,000 of the
cash received upon sale of the Custom Research Business as an
advance deposit on the first three months of services under the
Alliance Agreement. Accordingly, we viewed the total contractual
payments for the Alliance Agreement to be approximately
$6,000,000. In December 2003, the minimum purchases, as required
under the Alliance Agreement, were satisfied by TNSI.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company determined that the two agreements
with TNSO and TNSI constituted a multiple element arrangement in
which the stipulated proceeds from the sale, and the stipulated
guaranteed payments in the Alliance Agreement, are required to
be allocated between the sale transaction and the Alliance
Agreement. The Company obtained an independent valuation of the
Custom Research Business sold and the Alliance Agreement. The
Company also compared the pricing in the Alliance Agreement to
that of similarly situated customers using the guidance in
EITF&nbsp;00-21. In determining the most appropriate allocation
of fair value, the Company weighted most significantly the value
of its research services sold separately to these customers
based upon the fact that the Company&#146;s prices for services
to third parties are more objective and verifiable than
estimating the value of the business disposed of. Accordingly,
at the time, the Company determined that the fair value of the
future services amounted to approximately $5,600,000. The
$400,000 difference between the contractual amount of $6,000,000
and the fair value of the services of $5,600,000 was recorded as
a contract asset upon sale of the Custom Research Business and
the simultaneous signing of the Alliance Agreement. This asset
was amortized against revenue during 2002 and 2003 on a
straight-line basis, which is substantially similar to the
pattern in which the services were provided. The Company
recorded a pre-tax gain on the sale of the Custom Research
Business in the amount of $1,497,000 and $600,000 in year ended
December&nbsp;31, 2002 and 2003, respectively, as a result of
this transaction, which is included in &#147;other income
(expense)&#148; in the accompanying statement of operations. The
$600,000 gain was recorded in 2003, when the associated
contingencies lapsed and the cash was received.
</FONT>

<P align="center"><FONT size="2">F-14
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;26, 2003, the Company and TNSI
amended the Alliance Agreement to provide that: the term would
expire on December&nbsp;31, 2006, with no automatic renewal
rights; that the Company would be allowed to sell Internet data
collection services to end-users; and that during the term of
the Alliance Agreement, TNSI and NFO Worldgroup,&nbsp;Inc
(&#147;NFO&#148;), which Taylor Nelson Sofres plc, the parent
company of TNSO, had acquired in 2003, would provide the Company
with an opportunity to bid on substantially all of TNSI and
NFO&#146;s third-party U.S.-based Internet consumer sample
business.
</FONT>

<P align="left">
<B><FONT size="2">Note&nbsp;4&nbsp;&#151; Prepaid expenses and
other current assets:</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prepaid expenses and other current assets
consisted of the following at December&nbsp;31 (in thousands):
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="81%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other non-trade receivables
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">328</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Prepaid expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">355</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred project costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Contract asset (Note 3)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">217</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">681</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">498</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Note&nbsp;5&nbsp;&#151; Property and
Equipment, net:</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Property and equipment, net consisted of the
following at December&nbsp;31 (in thousands):
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="66%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Estimated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Useful</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Life-Years</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Computer and data processing equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3&nbsp;-&nbsp;5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,006</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,581</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Leasehold improvements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2&nbsp;-&nbsp;7</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,320</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,366</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Furniture and fixtures
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,097</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,097</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telephone system
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">123</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">123</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Automobile
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">88</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,546</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,255</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less: Accumulated depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,810</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,835</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property and equipment, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,736</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,420</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Lesser of the estimated life of the asset or the
    life of the underlying lease.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Depreciation expense amounted to $2,099,000,
$1,624,000 and $1,025,000 for the years ended December&nbsp;31,
2001, 2002 and 2003, respectively including amounts recorded
under capital leases. In the years ended December&nbsp;31, 2001
and 2002, the Company disposed of assets with a net book value
of $184,000 and $23,000, respectively, primarily leasehold
improvements and computer equipment.
</FONT>

<P align="center"><FONT size="2">F-15
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Included in property and equipment above are
assets acquired under capital leases, which are summarized below
at December&nbsp;31 (in thousands)<B>:</B>
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="77%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Computer and data processing equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,784</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,271</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Furniture and fixtures
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">947</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">947</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Automobile
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,731</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,276</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accumulated depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,354</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,024</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Assets under capital leases, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,377</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,252</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Note&nbsp;6&nbsp;&#151; Other intangible
assets, net:</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other intangible assets consists of the following
at December&nbsp;31 (in thousands):
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="66%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Estimated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Useful</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Life-Years</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Internal use software
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,907</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,047</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Panel members (fully amortized at
    December&nbsp;31, 2003)*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">712</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">712</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,619</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,759</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less: Accumulated amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,076</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,448</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other intangible assets, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">543</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">311</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left" noshade>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Asset recorded in connection with the
    &#147;Management Buyout&#148; in 1999
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Amortization of internal use software amounted to
$1,988,000, $688,000 and $285,000 for the years ended
December&nbsp;31, 2001, 2002 and 2003, respectively, which is
included in cost of revenues in the accompanying statement of
operations. Amortization of other intangible assets (excluding
internal use software) amounted to $555,000, $178,000 and
$88,000 for the years ended December&nbsp;31, 2001, 2002 and
2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the recurring losses from
operations, as well as certain downsizing efforts, management
performed an evaluation of the recoverability of these assets
and determined that the estimated fair value was less than the
carrying value of certain software costs that had no future use
and recorded an impairment charge of $408,000 and $2,000,
respectively for the years ended December&nbsp;31, 2001 and
2002, which is included in &#147;Selling, general and
administrative&#148; expenses in the accompanying statement of
operations in each respective year.
</FONT>

<P align="left">
<B><FONT size="2">Note&nbsp;7&nbsp;&#151; Accrued expenses and
other current liabilities:</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Accrued expenses and other current liabilities
consisted of the following at December&nbsp;31 (in thousands):
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="79%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued payroll and commissions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">824</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,499</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Panelist incentives
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">659</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,118</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Customer deposits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">322</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">235</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,181</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,727</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,986</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,579</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-16
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For the years ended December&nbsp;31, 2001, 2002
and 2003, the Company reversed panelist incentives accrual of
none, $85,000, and $250,000, respectively, for the expirations
of the incentives. For the year ended December&nbsp;31, 2001,
the Company had an arrangement with a consultant to provide the
payment of the awards to the panelists, which included the cost
of unclaimed incentives that benefited the consultant.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has arrangements with Microsoft
Corporation through Microsoft Network (&#147;MSN&#148;). Through
these arrangements, the Company pays MSN for network traffic
routed to the Company&#146;s website where participants respond
to its surveys. The Company also incurs a fee to MSN for surveys
completed and delivered to clients. Fees for first time traffic
routed to our website through MSN, which are included in panel
acquisition expense, amounted to $621,000 and $1,147,000 for the
years ended December&nbsp;31, 2002 and 2003, respectively. In
2003, MSN began charging the Company fees for surveys completed
and delivered through MSN referrals. Such fees for completed
surveys, which are included in cost of revenues, amounted to
$214,000 for the year ended December&nbsp;31, 2003.
</FONT>

<P align="left">
<B><FONT size="2">Note&nbsp;8&nbsp;&#151; Related
Parties:</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During 2003, the Company paid $83,000 in
consulting fees to shareholders of GFOL India in connection with
its incorporation. This agreement related primarily to
recruiting and training employees.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Notes receivable from
    Stockholders</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In conjunction with the Management Buyout, the
Company paid $500,000 to the former sole stockholder of the
Predecessor on behalf of two officers of the Company,
Mr.&nbsp;Nadilo and Mr.&nbsp;Davis. In exchange, Mr.&nbsp;Nadilo
and Mr.&nbsp;Davis issued the Company two non-recourse
promissory notes (the &#147;Promissory Notes&#148;) in the
amounts of $425,000 and $75,000, respectively. The cash paid to
Mr.&nbsp;Nadilo and Mr.&nbsp;Davis was used to purchase
1,048,050 and 184,950&nbsp;shares, respectively, of the
Company&#146;s Class&nbsp;A Common Stock
(&#147;Class&nbsp;A&#148;) from the sole stockholder of the
Predecessor in 1999. The Promissory Notes were collateralized
with the shares of Class&nbsp;A, bear interest at a rate of
5.3%&nbsp;per annum, and one Note that matures on May&nbsp;17,
2004 and may be repaid in whole or in part at any time without
penalty. The Company&#146;s sole recourse against
Mr.&nbsp;Nadilo and Mr.&nbsp;Davis is limited to the shares of
Class&nbsp;A, which were later combined with the Company&#146;s
Class&nbsp;B Common Stock (&#147;Class&nbsp;B&#148;) into one
class of common stock as part of the Recapitalization.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Class&nbsp;A Stock, purchased by
Mr.&nbsp;Nadilo and Mr.&nbsp;Davis with the proceeds of the
Promissory Notes is restricted because the Company has the right
to repurchase the Class&nbsp;A for its original purchase price
from either one of these officers if their employment terminates
for any reason. The restrictions on the Class&nbsp;A lapse and
the Class&nbsp;A becomes vested 25% one year after the
Management Buyout and 12.5% each six-month period thereafter
until four years have expired from the date of the Management
Buyout. Under Emerging Issues Task Force Abstract&nbsp;95-16,
<I>&#147;Accounting for Stock Compensation Arrangements with
Employer Loan&nbsp;Features&#148; </I>(&#147;EITF 95-16&#148;),
these Promissory Notes were treated as stock option awards with
variable plan accounting treatment.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On March&nbsp;3, 2000, Greenfield&#146;s
management and these two officers agreed to amend these
Promissory Notes to make them full recourse notes (the
&#147;Recourse Note(s)&#148;). In accordance with
EITF&nbsp;95-16, variable plan accounting treatment ceased and
the Company recorded unearned stock-based compensation expense
in the amount of $8,039,000. This unamortized unearned
stock-based compensation is being amortized to expense over the
remaining service term.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In April 2001, the Company accepted the
resignation of Mr.&nbsp;Nadilo, the Company&#146;s then Chief
Executive Officer, who surrendered all of his Class&nbsp;A in
full payment of his Recourse Note and the Company reversed the
remaining $2,555,000 unearned stock-based compensation to
additional paid in capital, with respect to Mr.&nbsp;Nadilo. In
the aggregate, with respect to these Notes, the Company
amortized $1,444,000,
</FONT>

<P align="center"><FONT size="2">F-17
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">
<FONT size="2">$192,000 and $48,000 of stock-based compensation
expense in the statement of operations for the years ended
December&nbsp;31, 2001, 2002 and 2003, respectively, leaving a
remaining balance of $44,000 to be amortized through
March&nbsp;3, 2004. At December&nbsp;31, 2003, the principal
amount of $131,000 is recorded as a &#147;Note receivable from
stockholder&#148; in stockholders&#146; deficit.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with the Company&#146;s issuance of
Series&nbsp;A Convertible Participating Preferred Stock to other
investors in March 2001, Mr.&nbsp;Davis borrowed $56,000 from
the Company to purchase Class&nbsp;B from Greenfield Holdings.
In exchange for the cash, Mr.&nbsp;Davis issued a promissory
note in the aggregate amount of $56,000 with an annual
compounding interest rate of 8% and maturing on May&nbsp;17,
2004. The loan is collateralized by the shares of Class&nbsp;B,
which were later combined with Class&nbsp;A into one class of
common stock as part of the Recapitalization.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">I-GAIN contract</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company had an arrangement with I-GAIN, an
incentive and loyalty reward company, which provided that I-GAIN
would pay cash awards to panelists on behalf of the Company in
exchange for the Company&#146;s payment of a fee of
$0.50&nbsp;per transaction. Hugh O. Davis, the Company&#146;s
Chief Technology Officer, formerly held a 10% ownership interest
in I-GAIN. The contract with I-GAIN became null and void in May
2001 and the total costs incurred by the Company for this
arrangement with I-GAIN for the year ended December&nbsp;31,
2001 was $653,000, which included amounts that I-GAIN paid to
panelists and is included in cost of revenues. There have been
no further transactions with I-GAIN since May 2001.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Greenfield Consulting
    Group,&nbsp;Inc.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On May&nbsp;14, 1999, the Company entered into a
three-year agreement with Greenfield Consulting
Group,&nbsp;Inc., (&#147;Greenfield Consulting&#148;).
Greenfield Consulting is wholly owned by the sole stockholder of
the Predecessor. Under the three-year agreement, Digital
Idea,&nbsp;Inc., a subsidiary of Greenfield Consulting, would
exclusively purchase qualitative and quantitative market
research data from the Company at discounted rates. In turn, the
Company agreed not to enter into any exclusive provider
arrangement with any other internet-focused strategic consulting
services company in the marketing services category. During the
year ended December&nbsp;31, 2001, the Company earned revenues
of approximately $330,000 from Digital Idea,&nbsp;Inc. related
to these services. There have been no further transactions with
Digital Idea,&nbsp;Inc. since 2001.
</FONT>

<P align="left">
<B><FONT size="2">Note&nbsp;9&nbsp;&#151; Revolving Credit
Facility:</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has a credit facility with Silicon
Valley Bank (the &#147;SVB Credit Facility&#148;) in the amount
of $1,875,000 at December&nbsp;31, 2002 and 2003 based upon an
80% advance rate on eligible accounts receivable (the
&#147;Borrowing Base&#148;). The SVB Credit Facility bears
interest at a rate equal to the prime rate plus 1% (prime plus
1.75%, or 5.75%, at December&nbsp;31, 2002), plus a collateral
handling fee of 0.375% of the monthly average daily financed
receivable balance. The SVB Credit Facility is collateralized by
the general assets of the Company, matures on August&nbsp;22,
2005 and is subject to a covenant, which requires the Company to
achieve certain performance targets each month that the SVB
Credit Facility is outstanding. The Company had an outstanding
balance of $1,216,000 at December&nbsp;31, 2002. In addition,
the Company paid interest in the amount of $23,000, $158,000 and
$122,000, respectively, for each of the years ended
December&nbsp;31, 2001, 2002 and 2003 associated with the SVB
Credit Facility. No amounts were outstanding under the SVB
Credit Facility at December&nbsp;31, 2003.
</FONT>

<P align="center"><FONT size="2">F-18
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">
<B><FONT size="2">Note&nbsp;10&nbsp;&#151; Redeemable or
Convertible Preferred Stock:</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Series C-2 Redeemable Preferred
    Stock</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the Recapitalization described in
Note&nbsp;11, the Company issued an aggregate of
10,000&nbsp;shares of Series&nbsp;C-2 Redeemable Preferred
Stock, par value $0.0001&nbsp;per share
(&#147;Series&nbsp;C-2&#148;), in satisfaction of debt then
outstanding of $1,537,000, plus accrued interest of $516,000
(&#147;Series&nbsp;C-2 Aggregate Proceeds&#148;) of the existing
stockholders. At the date of issuance, the Company recorded a
discount of $1,232,000, which is the difference between the
stated value and the estimated fair market value of
Series&nbsp;C-2 and was recorded as a component of additional
paid-in capital. The initial carrying value is being accreted to
redemption value over the redemption period.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Commencing on the second anniversary of the
Recapitalization, the Series&nbsp;C-2 holders shall be entitled
to receive aggregate cumulative dividends at an annual rate of
10.5% on the Series&nbsp;C-2 Aggregate Proceeds. The dividends
shall be paid when, as and if declared by the board, upon
liquidation or redemption, as defined.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Series&nbsp;C-2 holders have liquidation rights
equal to the Series&nbsp;C-2 Aggregate Proceeds, plus all
accrued and unpaid dividends. The Series&nbsp;C-2 is pari passu
with the Series&nbsp;C-1 with regard to liquidation preference,
and senior to all other equity securities of the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company may redeem the Series&nbsp;C-2 at any
time, in whole or in part, for an amount, prorated according to
the number of shares redeemed, equal to the Series&nbsp;C-2
Aggregate Proceeds, plus accrued and unpaid dividends, if any.
The Series&nbsp;C-2 is mandatorily redeemable by the Company on
May&nbsp;17, 2009, or earlier upon the occurrence of: (i)&nbsp;a
qualified initial public offering of its securities of not less
than $30&nbsp;million in aggregate proceeds and a per share
offering price greater than $1.00 (&#147;Qualified IPO&#148;) or
(ii)&nbsp;the Company enters into any transaction of merger or
consolidation where aggregate cash consideration received by the
Company is in excess of $20 million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As discussed in Note&nbsp;2, the Company adopted
the provisions of SFAS&nbsp;150. As a result of adopting
SFAS&nbsp;150, Series&nbsp;C-2, which had been included within
the balance sheet caption &#147;Series&nbsp;C-2 mandatorily
redeemable preferred stock&#148; classified between liabilities
and equity in the Company&#146;s Consolidated Balance Sheet at
December&nbsp;31, 2002, was reclassified to
&#147;Series&nbsp;C-2 mandatory redeemable preferred
stock,&#148; a new liability caption, upon adoption of
SFAS&nbsp;150 as of July&nbsp;1, 2003. As of December&nbsp;31,
2003, the mandatorily redeemable preferred stock balance was
$943,000. Subsequent to the adoption of SFAS&nbsp;150, the
accretion related to this instrument, which was previously
reported as &#147;accretion of preferred stock dividends&#148;
in the Company&#146;s Consolidated Statements of Operations, are
now accounted for as a component of interest expense. SFAS 150
does not permit reclassification of prior year amounts to
conform to the current year presentation.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Series&nbsp;B Convertible Preferred
    Stock</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the Recapitalization described in
Note&nbsp;11, the Company issued an aggregate of
30,211,595&nbsp;shares of Series&nbsp;B. The Series&nbsp;B was
issued in satisfaction of the then outstanding Greenfield
Holdings Promissory Notes of $12,600,000, plus accrued interest
of $4,228,000, (the &#147;Series&nbsp;B Aggregate
Proceeds&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The holders of Series&nbsp;B shall be entitled to
receive a cumulative dividend at an annual rate of 4% of the
Series B Aggregate Proceeds. Dividends shall be payable upon
conversion into shares of common stock by the Company. Dividends
are being accreted to the carrying value of Series&nbsp;B in the
accompanying balance sheet. No dividends shall be paid until the
Series&nbsp;C-2 has been redeemed in full. All Series&nbsp;B
stockholders have liquidation rights equal to $0.2785&nbsp;per
share, plus declared and unpaid dividends. These liquidation
rights are junior to both Series&nbsp;C-1 and Series&nbsp;C-2,
and senior to all other equity securities of the Company.
</FONT>

<P align="center"><FONT size="2">F-19
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Series&nbsp;B securities contain settlement
provisions, which require the holder to receive cash and common
stock upon redemption. Each holder of Series&nbsp;B shall have
the option to convert such holder&#146;s shares of Series&nbsp;B
into shares of Common Stock of the Company at an initial
conversion price of $0.2785, subject to equitable adjustments
for stock splits, stock dividends, recapitalizations, and the
like. Upon conversion, such holder shall also receive its per
share portion of the Series&nbsp;B liquidation rights plus all
declared and unpaid dividends.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As the liquidation rights are redeemable by the
holders upon conversion, the Company has classified the
Series&nbsp;B between liabilities and equity in the accompanying
balance sheet. In addition, upon issuance of Series&nbsp;B, the
Company recorded a charge of $3.9&nbsp;million to income
available to common shareholders based upon the difference
between the estimated fair value of the Series&nbsp;B at such
time and the liquidation preference amount.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Series&nbsp;B shall be automatically converted
into common stock upon the occurrence of either (i)&nbsp;a
Qualified IPO, (ii)&nbsp;upon the election of 66&nbsp;2/3% of
the Series&nbsp;B stockholders and subject to the Company&#146;s
consent or (iii)&nbsp;at the election of the Company. Upon such
conversion, the Company will also pay to the Series&nbsp;B
holders the Series&nbsp;B liquidation right.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In accordance with EITF Topic D-42, <I>The Effect
of the Calculation of Earnings per Share for the Redemption or
Induced Conversion of Preferred Stock,</I> at the time of
redemption, in calculating earnings per share, the Company will
be required to subtract from net earnings available to common
shareholders, the excess of (1)&nbsp;fair value of the
consideration transferred to the holders of Series&nbsp;B over
(2)&nbsp;the carrying amount of the preferred stock in the
Company&#146;s balance sheet.
</FONT>

<P align="left">
<B><FONT size="2">Note&nbsp;11&nbsp;&#151; Stockholders&#146;
Equity:</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Recapitalization</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;27, 2002, our stockholders, who
were also the holders of all of our outstanding subordinated
indebtedness, completed the Recapitalization. The
Recapitalization resulted in the issuance by the Company of
three newly created classes of Preferred Stock, an amendment to
the rights and preferences of the currently outstanding
Series&nbsp;A, the conversion of the currently outstanding
Class&nbsp;A and Class&nbsp;B Common Stock
(&#147;Class&nbsp;A&#148; and &#147;Class&nbsp;B,&#148;
respectively) into a single class of common stock, and a
combination (reverse-split) of the resulting class of common
stock. The newly created classes of Preferred Stock are
designated respectively as the Series&nbsp;B, Series&nbsp;C-1
and Series&nbsp;C-2. Because the Recapitalization was a
transaction exclusively among the existing holders of our
subordinated debt and equity securities, the transaction is
considered to be merely a change in the legal form and in the
rights and preferences of the Company&#146;s subordinated debt
and equity securities. Accordingly, there was no gain or loss
recognized from the exchange of the preferred and common equity
securities and no gain or loss on the early subordinated debt
extinguishment following the guidance of Footnote&nbsp;1 of
APB&nbsp;No.&nbsp;26, &#147;Early Extinguishment of Debt.&#148;
Instead, the Recapitalization is considered to be a capital
transaction between related parties.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the Recapitalization, on an
aggregate basis, the holders of Series&nbsp;C-1, Series&nbsp;B,
Series&nbsp;A and common stock represent approximately 85% of
the voting interest in the Company. These same shareholders also
maintained approximately the same voting interest as they held
prior to the Recapitalization.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Common Stock</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s Certificate of Incorporation,
as amended, authorizes the Company to issue up to
13,605,479&nbsp;shares of $0.001&nbsp;par value common stock.
</FONT>

<P align="center"><FONT size="2">F-20
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Effective with the Management Buyout and up until
the Recapitalization, the Company had two classes of common
stock, Class&nbsp;A and Class&nbsp;B. In liquidation,
Class&nbsp;B had a preference over the Class&nbsp;A, and would
receive a 7% cumulative return on its original price per share.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the Recapitalization, the Company
converted all of its then outstanding Class&nbsp;B and
Class&nbsp;A into a single class of Common Stock and
reverse-split such class. As a result, the Company had
945,147&nbsp;shares of common stock outstanding immediately
following this conversion.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company also sold 1,105,750&nbsp;shares of
common stock to certain members of the Company&#146;s management
and an independent member of the board of directors, (the
&#147;Restricted Common Stock&#148;). The Restricted Common
Stock was sold for par value and, for the members of management,
was restricted stock subject to a vesting schedule. The
Restricted Common Stock will vest 50% upon grant, and the
balance over a two-year period, which will accelerate upon
certain conditions. The holders of the Restricted Common Stock
entered into a voting agreement with the Company and its largest
shareholders which provides that management has the right to
vote only its vested stock, and only then for so long as the
individual remains employed by the Company. The major
shareholders share a proxy for each individual&#146;s unvested
stock in all circumstances and his vested stock if he leaves the
Company. Further, the Company and all holders of the Restricted
Common Stock entered into Sale Bonus Agreements, (the &#147;Sale
Bonus Agreements&#148;) under which the holders of the
Restricted Common Stock will receive a cash bonus in the event
of a sale of the Company. In the event of a sale, the sales
bonus provides for a cash payout of $0.0865&nbsp;per dollar of
net liquidation proceeds above $14&nbsp;million as long as net
liquidation proceeds are approximately $26.7&nbsp;million. At
the date of the Recapitalization, 543,287 Restricted Common
Stock shares were subject to restriction and 562,462 vested
immediately.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At the date of Recapitalization, the Company
recorded a deferred compensation charge of approximately
$534,000 for unvested Restricted Common Stock and charged to
compensation expense $553,000 for the Restricted Common Stock
that vested immediately as the estimated fair market value of
the underlying Restricted Common Stock shares exceeded the
amount paid in by management. As the restricted unvested
underlying common stock issued to management is subject to a
vesting schedule, the compensation charge has been deferred and
is amortized on a straight-line basis over the vesting period.
Accordingly, the Company amortized $11,000 and $267,000 for the
years ended December&nbsp;31, 2002 and 2003. As of
December&nbsp;31, 2003, unearned stock-based compensation
related to Restricted Common Stock was approximately $256,000.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Series&nbsp;A Preferred Stock</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During 2001, the Company completed the offering
of 40,874,511&nbsp;shares of preferred stock, designated as
Series&nbsp;A Preferred Stock, par value $0.0001&nbsp;per share,
(&#147;Series&nbsp;A&#148;) for $0.2913&nbsp;per share for
aggregate proceeds of $11,456,000, net of cash issuance costs of
$279,000 and inclusive of the conversion of unsecured
10%&nbsp;subordinated promissory notes, plus accrued interest
and the receipt of a note receivable from a stockholder (see
Note&nbsp;8).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the Recapitalization the original terms of
the Series&nbsp;A were modified. The modifications included
(i)&nbsp;a reduction in voting strength from 49.13% to 22.81%,
(ii)&nbsp;a 50% reduction in the Series&nbsp;A liquidation
rights coupled with a downgrade in seniority, (iii)&nbsp;waiver
of all guaranteed dividends and accrued dividends which may have
existed prior to the Recapitalization, (iv)&nbsp;adjustment to
the Series&nbsp;A conversion price and (v)&nbsp;waiver of all
protective provisions originally granted to Series&nbsp;A
holders and all rights to anti-dilution adjustments to the
Series&nbsp;A conversion price.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The holders of Series&nbsp;A are entitled to
receive dividends when, as, and if, declared by the Board of
Directors and with the Common Stock on an
&#147;as-converted&#148; basis. No dividends will be paid until
the Series&nbsp;C-2 has been redeemed in full (see Note&nbsp;10).
</FONT>

<P align="center"><FONT size="2">F-21
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Series&nbsp;A stockholders have liquidation
rights aggregating to $5,953,000 plus declared and unpaid
dividends. These amounts are to be received upon a liquidation
and after the deduction of the liquidation rights due to the
Series&nbsp;C-2, Series&nbsp;C-1 and Series&nbsp;B and all
amounts due under the Sale Bonus Agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At the option of the stockholder, each share of
Series&nbsp;A can be converted into common stock at an initial
conversion price of $0.2913&nbsp;per share, subject to
adjustments. Upon conversion, declared and unpaid dividends, if
any, convert into common stock at a price equal to the fair
value of the Common Stock at the time of conversion. The
Series&nbsp;A shall be automatically converted into common stock
upon the occurrence of (i)&nbsp;the closing of a Qualified IPO,
or (ii)&nbsp;the affirmative vote of the holders of at least
66&nbsp;2/3% of the issued and outstanding Series&nbsp;A.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Series&nbsp;C-1 Preferred
    Stock</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the Recapitalization, the Company issued
an aggregate of 74,627,182&nbsp;shares of Series&nbsp;C-1 in
satisfaction of the then outstanding bridge notes of $4,007,000,
plus accrued interest of $557,000, (the &#147;Series&nbsp;C-1
Aggregate Proceeds&#148;) of the existing stockholders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each outstanding share of Series&nbsp;C-1 is
entitled to receive dividends when, as and if declared by the
Board of Directors. No dividends shall be paid until
Series&nbsp;C-2 has been redeemed in full (see Note&nbsp;10).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All Series&nbsp;C-1 stockholders have liquidation
rights equal to $0.1223&nbsp;per share, plus declared and unpaid
dividends. Series&nbsp;C-1 ranks pari passu with the
Series&nbsp;C-2 with regard to liquidation preference, and
senior to all other equity securities of the Company and will be
entitled to liquidation preference equal to two times its
original purchase price plus accrued and unpaid dividends.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At the option of the stockholder, each share of
Series&nbsp;C-1 can be converted into common stock at an initial
conversion price of $0.0612&nbsp;per share, subject to
adjustments. Upon conversion, declared and unpaid dividends, if
any, convert into common stock at a price equal to the fair
value of the Common Stock at the time of conversion. The
Series&nbsp;C-1 shall be automatically converted into common
stock upon a qualified initial public offering, as defined, of
at least $30&nbsp;million in aggregate proceeds and a per-share
offering price greater than $1.00 or upon the election of
66&nbsp;2/3% of the Series&nbsp;C-1 stockholders.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Unearned Stock-Based
    Compensation</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has awarded certain stock option and
warrant grants in which the fair value of its underlying stock
on the date of grant exceeded the exercise price. As a result,
the Company has recorded unearned stock-based compensation,
which is being amortized over the service period, generally four
years. Accordingly, the Company has amortized $2,467,000 and
$1,572,000 and $1,282,000 of stock based compensation expense in
the statement of operations for the years ended
December&nbsp;31, 2001, 2002 and 2003, respectively, related to
these option grants. Stock-based compensation cost for the year
ended December&nbsp;31, 2003 totaled $1,282,000, including
compensation cost of $48,000 related to the notes receivable
from stockholder. Stock-based compensation expense for the year
ended December&nbsp;31, 2002 totaled $1,572,000, including
compensation cost of $192,000 related to the notes receivable
from stockholders. Stock-based compensation expense for the year
ended December&nbsp;31, 2001 totaled $2,467,000, including
compensation expense of $1,444,000 related to the notes
receivable from stockholders. In connection with options
forfeited during the year ended December&nbsp;31, 2002, the
Company wrote off $157,000 of unearned stock-based compensation
as a reduction of additional paid-in capital, respectively.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Warrants</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;3, 1999, in conjunction with the
establishment of a bank facility, the Company issued a warrant
to purchase 11,986&nbsp;shares of Class&nbsp;A at an exercise
price of $50.12&nbsp;per share (&#147;Warrant&#148;) to a debt
holder. The Warrant is exercisable immediately, expires on
December&nbsp;3, 2004 and contains anti-dilution
</FONT>

<P align="center"><FONT size="2">F-22
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">
<FONT size="2">provisions. In connection with the Company&#146;s
Recapitalization, the issuance of additional potentially
dilutive securities, and the combination of Class&nbsp;A and
Class&nbsp;B and their reverse split, the Warrant was adjusted
to be exercisable to purchase 21,212 of Common Stock at an
exercise price of $28.28&nbsp;per share. The Warrant with
respect to all 21,212 shares was outstanding at
December&nbsp;31, 2002 and 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On March&nbsp;3, 2000, in connection with a debt
financing, the Company issued a warrant to purchase
9,990&nbsp;shares of Class&nbsp;A at an exercise price of $50.12
to Greenfield Holdings (the &#147;Holdings Warrant&#148;). The
Holdings Warrant is exercisable immediately, expires on
March&nbsp;3, 2005 and contains anti-dilution provisions. In
connection with the Company&#146;s Recapitalization, the
issuance of additional potentially dilutive securities, and the
combination of Class&nbsp;A and Class&nbsp;B and their reverse
split, the Holdings Warrant was adjusted to be exercisable to
purchase 4,268 shares of Common Stock at an exercise price of
$117.18&nbsp;per share. In December 2002, Greenfield Holdings
was dissolved and the Holdings Warrant was distributed to the
members of Greenfield Holdings. As of December&nbsp;31, 2002 and
2003, the Holdings Warrant with respect to all 4,268 shares was
outstanding.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In August 2001, in connection with establishing
the SVB Credit Facility, the Company issued a warrant to
purchase 49,041&nbsp;shares of Class&nbsp;A at an exercise price
of $4.08&nbsp;per share to the creditor (the &#147;SVB
Warrant&#148;). The SVB Warrant was immediately exercisable,
expires on August&nbsp;9, 2006 and contains anti-dilution
provisions. In connection with the Company&#146;s
Recapitalization, the issuance of additional potentially
dilutive securities, and the combination of Class&nbsp;A and
Class&nbsp;B and their reverse split, the SVB Warrant was
adjusted to be exercisable to purchase 26,857 shares of Common
Stock with an exercise price of $7.42&nbsp;per share. The SVB
Warrant with respect to all 26,857&nbsp;shares was outstanding
at December&nbsp;31, 2002 and 2003.
</FONT>

<P align="left">
<B><FONT size="2">Note&nbsp;12&nbsp;&#151; Stock
Options:</FONT></B>

<P align="left">
<B><FONT size="2">1999 Stock Option Plan</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company maintains a nonqualified stock option
plan that enables key employees, directors and consultants of
the Company to purchase shares of common stock of the Company
(the &#147;Plan&#148;). The Company grants options to purchase
its common stock based upon valuations determined by management
and the Board of Directors. Options generally vest and become
exercisable in four equal annual increments commencing on the
first anniversary of the date of grant and expire after
10&nbsp;years from the date of grant.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On September&nbsp;12, 2003 the Company amended
the Plan to increase the number of shares of Common Stock, par
value $0.0001 available under the Plan by 657,143&nbsp;shares,
from 329,897 to 987,040. There were 181,985&nbsp;shares
available for future grant at December&nbsp;31, 2003.
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="60%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Option Price</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price Per</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Range</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Share</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outstanding at December&nbsp;31, 2000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100,631</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.22-$168.84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43.68</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Granted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">206,555</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42-$&nbsp;&nbsp;9.80</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.70</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Canceled
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(100,900</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42-$168.84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27.58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exercised
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(164</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.36-$&nbsp;17.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.34</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outstanding at December&nbsp;31, 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">206,122</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42-$168.84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.68</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Granted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,873</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42-$&nbsp;&nbsp;0.42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;&nbsp;0.42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Canceled
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(30,214</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42-$168.84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.68</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outstanding at December&nbsp;31, 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">177,781</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42-$168.84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-23
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="60%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Option Price</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price Per</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Range</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Share</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Granted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">600,471</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.14-$&nbsp;&nbsp;2.66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Canceled
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(13,567</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42-$168.84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.06</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exercised
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,588</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42-$&nbsp;10.36</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.70</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outstanding at December&nbsp;31, 2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">761,097</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.14-$168.84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exercisable at December&nbsp;31, 2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">133,660</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.14-$168.84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Available for future option grants at
    December&nbsp;31, 2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">181,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table summarizes information
regarding stock options granted during the years ended
December&nbsp;31, 2001, 2002 and 2003.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="51%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fair Value</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Option Price</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price Per</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">at date of</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Range</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Share</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">grant</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <I><FONT size="2">Year ended December&nbsp;31, 2001:</FONT></I></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Options granted with an exercise price equal to
    market
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">178,196</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42-$0.42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Options granted with an exercise price greater
    than market
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,359</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42-$9.80</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <I><FONT size="2">Year ended December&nbsp;31, 2002:</FONT></I></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Options granted with an exercise price greater
    than market
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,873</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42-$0.42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <I><FONT size="2">Year ended December&nbsp;31, 2003:</FONT></I></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Options granted with an exercise price less than
    market
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">600,472</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.14-$2.66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The weighted average fair value per option at
grant date was $0.56, $0.28 and $7.84, for options granted in
the years ended December&nbsp;31, 2001, 2002 and 2003,
respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table summarizes information
regarding stock options outstanding and exercisable at
December&nbsp;31, 2003:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="38%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Options Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Options Exercisable</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Weighted</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Remaining</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercisable</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exercise</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Range of Exercise Prices</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Contractual Life</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Options</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$&nbsp;&nbsp;0.00&nbsp;-&nbsp;$&nbsp;0.70
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">256,772</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.2&nbsp;years</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">91,057</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.94</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$&nbsp;&nbsp;0.71&nbsp;-&nbsp;$&nbsp;2.80
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">479,889</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.8&nbsp;years</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,174</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$&nbsp;&nbsp;2.81&nbsp;-&nbsp;$14.00
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,693</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.8&nbsp;years</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.94</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,693</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.94</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$&nbsp;14.01&nbsp;-&nbsp;$28.00
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,687</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.8&nbsp;years</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,687</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$&nbsp;28.01&nbsp;-&nbsp;$42.00
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,163</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.1&nbsp;years</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29.40</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,788</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29.40</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$&nbsp;42.01&nbsp;-&nbsp;$140.00
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">509</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.2&nbsp;years</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">106.82</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">404</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">106.82</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">$140.01&nbsp;-&nbsp;$168.84
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,384</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.1&nbsp;years</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">168.84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,857</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">168.84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-24
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">
<B><FONT size="2">Note&nbsp;13&nbsp;&#151; Taxes on
Income:</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Income (loss) before income taxes and the
provision (benefit) for income taxes are comprised of (in
thousands):
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="58%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">For the Years Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss) before income taxes:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Domestic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,963</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,853</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(55</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,287</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,963</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,798</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision (benefit) for income taxes:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Currently payable:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Federal
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">State
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(569</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total income tax provision (benefit)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(569</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the year ended December&nbsp;31, 2002, the
Company received a tax refund from the State of Connecticut in
the amount of $569,000 relating to research and development tax
credits.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Deferred income taxes are provided on temporary
differences between the financial reporting basis and tax basis
of the Company&#146;s assets and liabilities. The principal
temporary differences, which give rise to deferred tax assets
and liabilities at December&nbsp;31, 2002 and 2003 are as
follows:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="55%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31, 2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31, 2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(in thousands)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Deferred tax assets (liabilities):</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net operating loss carryforwards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,691</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,884</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unearned stock-based compensation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,421</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,018</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capitalized panel costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,030</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">892</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Federal and state tax credits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">421</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">430</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other deferred tax assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">397</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">479</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other deferred tax liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(437</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net Deferred Tax Asset
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,523</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,703</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Valuation Allowance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(22,523</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(22,703</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total Net Deferred Tax Assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2003, net operating loss
carryforwards (&#147;NOL(s)&#148;) of $64,000 and $44,065,000,
respectively are available to reduce future foreign and domestic
income taxes. The majority of the NOLs begin to expire in 2020
and 2005, respectively. During the year ended December&nbsp;31,
2003, the Company began operations in India. The Indian tax
authority granted the Company a tax holiday for a six-year
period ending in June 2009.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to Internal Revenue Code
Section&nbsp;382, certain substantial ownership changes may
result in an annual limitation on the amount of net operating
loss or tax credit carryforwards that may be utilized to offset
future income tax liabilities.
</FONT>

<P align="center"><FONT size="2">F-25
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company establishes valuation allowances in
accordance with the provisions of Statement of Financial
Accounting Standards No.&nbsp;109, &#147;Accounting for Income
Taxes&#148; (&#147;SFAS&nbsp;109&#148;). At December&nbsp;31,
2002 and 2003, the valuation allowance fully offset the gross
deferred tax asset. Because the Company incurred cumulative
losses in recent years, management did not believe there was
sufficient evidence to indicate that the Company would more
likely than not realize its domestic deferred tax assets.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company is subject to ongoing tax
examinations and assessments in various jurisdictions.
Accordingly, the Company provides for additional tax expense
based upon the probable outcomes of such matters. In addition,
when applicable, the Company adjusts the previously recorded tax
expense to reflect examination results.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The reconciliation of the computed
&#147;expected&#148; (benefit) provision (determined by applying
the United States Federal statutory income tax rate of 34% to
(loss) income before income taxes) to the actual tax provision
is as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="68%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">For the Years Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Statutory federal income tax rate
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">State income taxes, net of federal income tax
    benefit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">State research and development credit refunds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19.2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Alternative minimum taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred compensation and other
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2.4</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Change in deferred tax asset valuation allowance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(31.6</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(31.7</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(33.5</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1.2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other reconciling items
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.4</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19.2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Note&nbsp;14&nbsp;&#151; Commitments and
Contingencies:</FONT></B>

<P align="left">
<B><FONT size="2">Lease Commitments and Obligations</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Future minimum annual lease payments under
capital leases and noncancelable operating leases are as follows
at December&nbsp;31, 2003 (in thousands):
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="69%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Fiscal Years Ending December&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Capital</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Operating</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2004
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">982</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,413</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2005
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,067</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2006
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">134</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,067</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2007
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,127</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2008
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,127</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2009 and thereafter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total minimum lease payments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,720</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,791</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amount representing interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(141</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Present value of minimum capital lease payments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,579</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2003, $705,000, ($1,102,000
at December&nbsp;31, 2002) is included in &#147;Other long-term
liabilities&#148; representing the long-term portion of the
present value of minimum capital lease payments, and
</FONT>

<P align="center"><FONT size="2">F-26
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">GREENFIELD ONLINE,&nbsp;INC.</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&#151; (Continued)</FONT></B>

<P align="left">
<FONT size="2">$874,000, ($895,000 at December&nbsp;31, 2002) is
included in current liabilities representing the current portion
of the present value of minimum lease payments.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Rental expense on operating leases amounted to
approximately $1,139,000, $1,589,000 and $1,551,000 for the
years ended December&nbsp;31, 2001, 2002 and 2003, respectively.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Legal Contingencies:</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">From time to time, in the ordinary course of
business, the Company is subject to legal proceedings. While it
is impossible to determine the ultimate outcome of such matters,
it is management&#146;s opinion that the resolution of any
pending issues will not have a material adverse effect on the
consolidated financial position, cash flows or results of
operations of the Company.
</FONT>

<P align="left">
<B><FONT size="2">NOTE&nbsp;15&nbsp;&#151; Employee Benefit
Plan:</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company sponsors a 401(k) Profit Sharing Plan
(the &#147;401(k) Plan&#148;) within the United States. The
401(k) Plan covers employees who are at least 21&nbsp;years of
age and have completed three months of service. To participate
in the 401(k) Plan, employees must work for the Company for at
least 1,000&nbsp;hours each year. The 401(k) Plan was amended
during 2003 and currently provides for the option for employee
contributions up to statutory limits, of which the Company
matches 20% of the employee&#146;s contribution (the
&#147;Matching Contributions&#148;). An employee will not be
considered vested in the Matching Contributions until he or she
shall have completed three years of continuous service. Amounts
expensed under the 401(k) Plan were none, none and $42,000 in
the years ended December&nbsp;31, 2001, 2002 and 2003,
respectively.
</FONT>

<P align="left">
<B><FONT size="2">NOTE&nbsp;16&nbsp;&#151; Subsequent Event
(unaudited):</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Acceleration of Vesting of Restricted
    Management Common Stock</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On January&nbsp;14, 2004, the Company accelerated
the vesting of the remaining 25% of the Management common stock.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Extension of Credit to
    Affiliate</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In March 2004, GFOL India, a subsidiary of the
Company, entered into a $1.5&nbsp;million loan facility
agreement with the Company. Borrowing under the facility carries
an interest rate of LIBOR plus 2% and matures in three years.
</FONT>

<P align="center"><FONT size="2">F-27
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">Quarterly Financial Data
(unaudited):</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Summarized quarterly financial data for the years
ended December&nbsp;31, 2002 and 2003 are as follows (in
thousands, except per share data):
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="51%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">Quarter</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Fiscal Year Ended December&nbsp;31, 2002<SUP>(1)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">First</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Second</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Third</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fourth</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,819</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,495</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,130</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,442</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost of revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,252</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,216</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,552</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gross profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,567</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,279</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,741</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,890</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,822</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,853</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,054</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,656</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating loss
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,255</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(574</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(313</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(766</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest expense, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(163</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(156</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(156</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(77</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,497</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Loss before income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(921</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(730</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(469</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(843</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Benefit for income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(569</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net loss
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(352</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(730</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(469</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(843</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less: Charge to common stockholders for
    Series&nbsp;B convertible preferred stock liquidation preference
    in excess of fair market value
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,873</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Cumulative dividends on Series&nbsp;B convertible
    preferred stock
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(28</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net loss available to common stockholders
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(352</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(730</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(469</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,744</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net loss per share&nbsp;&#151; basic and diluted:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.38</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.78</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.50</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4.25</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.38</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.78</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(0.50</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4.25</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Weighted average shares outstanding:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">936</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">936</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">936</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,116</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">936</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">936</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">936</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,116</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The sum of quarterly income (loss) per share may
    differ from the full-year amounts due to rounding and the effect
    of weighting shares outstanding in the quarters rather than the
    full year.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-28
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="51%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">Quarter</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Fiscal Year Ended December&nbsp;31, 2003<SUP>(1)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">First</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Second</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Third</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fourth</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,591</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,948</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,048</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,281</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost of revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,531</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,956</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,574</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,823</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gross profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,060</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,992</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,474</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,458</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,162</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,291</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,994</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(102</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">701</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">480</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">618</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest expense, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(125</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(112</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(128</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(130</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other (income) expense, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">373</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">589</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">352</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">484</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">350</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">549</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">335</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">414</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less: Accretion of preferred stock dividends
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(32</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(31</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2">Cumulative
    dividends on Series&nbsp;B convertible preferred stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(168</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(168</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(168</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(169</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2">Income allocable to
    participating preferred securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(125</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(292</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(139</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(205</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income available to common stockholders
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income per share&nbsp;&#151; basic and
    diluted:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.03</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.02</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.02</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Weighted average shares outstanding:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,054</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,054</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,054</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,054</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,184</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,339</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,439</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,836</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The sum of quarterly income (loss) per share may
    differ from the full-year amounts due to rounding, or in the
    case of diluted earnings per share, because securities that are
    anti-dilutive in certain quarters may not be anti-dilutive on a
    full-year basis.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-29
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<FONT size="5">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares
</FONT>

<P align="center">
<IMG src="y95710y9571002.gif" alt="(GREENFIELD ONLINE LOGO)">

<P align="center">
<FONT size="5">Common Stock
</FONT>

<P align="center">
<HR size="1" width="33%" align="center" noshade>

<P align="center">
<FONT size="2">PROSPECTUS
</FONT>

<P align="center">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2004

<P align="center">
<HR size="1" width="33%" align="center" noshade>

<P align="center">
<B><FONT size="4">LEHMAN BROTHERS</FONT></B>

<DIV align="center">
<B><FONT size="4">FRIEDMAN BILLINGS RAMSEY</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="4">PIPER JAFFRAY</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">PART&nbsp;II</FONT></B>

<P align="center">
<B><FONT size="2">INFORMATION NOT REQUIRED IN THE
PROSPECTUS</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;13.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Other Expenses of Issuance and
    Distribution</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth the costs and
expenses, other than underwriting discounts and commissions,
payable by the Company in connection with the sale of common
stock being registered. All amounts are estimates except the SEC
registration fee and the NASD filing fee. The Registrant will
pay all these expenses.
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="77%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount to be</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Paid</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">SEC Registration Fee
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,503</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">NASD Filing Fee
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Nasdaq National Market Listing Fee
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Printing Fees and Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Legal Fees and Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounting Fees and Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Blue Sky Fees and Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transfer Agent and Registrar Fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Miscellaneous
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;14.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Indemnification of Directors and
    Officers</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As permitted by Section&nbsp;145 of the Delaware
General Corporation Law, the registrant&#146;s certificate of
incorporation includes a provision that eliminates the personal
liability of its directors for monetary damages for breach of
their fiduciary duty as directors. In addition, as permitted by
Section&nbsp;145 of the Delaware General Corporation Law, the
bylaws of the registrant provide that: (1)&nbsp;the registrant
is required to indemnify its directors and officers for serving
the registrant in those capacities or for serving other business
enterprises at the registrant&#146;s request, to the fullest
extent permitted by Delaware law, including in those
circumstances in which indemnification would otherwise be
discretionary; (2)&nbsp;the registrant may, in its discretion,
indemnify employees and agents in those circumstances where
indemnification is not required by law; (3)&nbsp;the registrant
is required to advance expenses, as incurred, to its directors
and officers in connection with defending a proceeding, except
that such director or officer shall undertake to repay such
advances if it is ultimately determined that such person is not
entitled to indemnification; (4)&nbsp;the registrant will not be
obligated pursuant to the bylaws to indemnify a person with
respect to proceedings initiated by that person, except with
respect to proceedings authorized by the registrant&#146;s board
of directors or brought to enforce a right to indemnification;
(5)&nbsp;the rights conferred in the bylaws are not exclusive,
and the registrant is authorized to enter into indemnification
agreements with its directors, officers, employees and agents
and to obtain insurance to indemnify such persons; and
(6)&nbsp;the registrant may not retroactively amend the bylaw
provisions to reduce its indemnification obligations to
directors, officers, employees and agents in these matters
arising prior to such time.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The registrant&#146;s policy is to enter into
indemnification agreements with each of its directors and
executive officers that provide the maximum indemnity allowed to
directors and executive officers by Section&nbsp;145 of the
Delaware General Corporation Law and the bylaws, as well as
certain additional procedural protections. The registrant has
also obtained directors and officers insurance to insure such
persons against certain liabilities. In addition, the
underwriting agreement for this offering contains provisions
indemnifying the registrant&#146;s directors and officers
against certain liabilities.
</FONT>

<P align="center"><FONT size="2">II-1
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;15.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Recent Sales of Unregistered
    Securities</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since March 2001, we have issued and sold the
following unregistered securities. The following information is
not adjusted to reflect the one-for-14 reverse split of our
common stock to be effected immediately prior to consummation of
the offering contemplated by this Registration Statement.
</FONT>

<P align="left">
<B><FONT size="2">December 2002 Recapitalization</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December 2002, we underwent a change in our
capital structure (the &#147;Recapitalization&#148;), which
resulted in the issuance and sale of three newly created classes
of preferred stock. These new classes of preferred stock were
designated the Series&nbsp;B Convertible Participating Preferred
Stock (&#147;Series&nbsp;B Preferred Stock&#148;), the
Series&nbsp;C-1 Convertible Participating Preferred Stock
(&#147;Series&nbsp;C-1 Preferred Stock&#148;), and the
Series&nbsp;C-2 Non-Voting Redeemable Preferred Stock
(&#147;Series&nbsp;C-2 Preferred Stock&#148;). As part of the
Recapitalization, we also converted the outstanding Class&nbsp;A
and Class&nbsp;B common stock into a new single class of common
stock and then effected a reverse stock split on the resulting
new single class of common stock. Additionally, we issued shares
of our common stock to certain members of our management and an
independent member of our board of directors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Series&nbsp;C-1 Preferred
Stock.</FONT></I><FONT size="2"> We offered the Series&nbsp;C-1
Preferred to all holders of our Series&nbsp;A Preferred Stock.
The aggregate number of shares of our Series&nbsp;C-1 Preferred
Stock issued and sold in the Recapitalization was 74,627,182 for
an aggregate offering price of $4,564,778, which was payable in
cash or through the conversion of existing principal and accrued
interest due under promissory notes issued by us and held by
holders of our Series&nbsp;A Preferred Stock. Outstanding shares
of out Series&nbsp;C-1 Preferred Stock are convertible at the
option of the holder into shares of our common stock at a set
conversion ratio.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Series&nbsp;C-2 Preferred
Stock.</FONT></I><FONT size="2"> We issued and sold
10,000&nbsp;shares of our Series&nbsp;C-2 Preferred Stock to
Imprimis SB, L.P. (&#147;Imprimis&#148;) in exchange for the
cancellation of a promissory note held by Imprimis in an
aggregate amount of $2,052,267.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Series&nbsp;B Preferred
Stock.</FONT></I><FONT size="2"> We issued and sold
30,211,595&nbsp;shares of our Series&nbsp;B Preferred Stock in
exchange for the cancellation of certain promissory notes in an
aggregate amount of $16,827,835. In connection with the
Recapitalization, one of our stockholders, Greenfield Holdings,
LLC (&#147;Greenfield Holdings&#148;), dissolved and distributed
to its members their pro rata percentage interest of the
promissory notes that we had issued to Greenfield Holdings (the
&#147;Greenfield Holdings Notes&#148;). In the Recapitalization,
each of the members of Greenfield Holdings, other than Imprimis,
exchanged their portion of the Greenfield Holdings notes for
shares of our Series&nbsp;B Preferred Stock. Imprimis exchanged
its portion of the Greenfield Holdings Notes for Series&nbsp;C-2
Preferred Stock as described above. Outstanding shares of the
Series&nbsp;B Preferred Stock are convertible at the option of
the holder into shares of our common stock at a set conversion
ratio.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Restricted Shares</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We issued and sold 15,480,501&nbsp;shares of our
common stock to certain members of our management team and one
independent director (the &#147;Restricted Shares&#148;) as
consideration for services rendered and services to be rendered.
The Management Shares were issued to Dean A. Wiltse, Robert E.
Bies, Hugh O. Davis, Jonathan A. Flatow, and Joel R. Mesznik.
The Restricted Shares were sold for par value, $0.0001&nbsp;per
share, and, for the members of management, were restricted stock
subject to a vesting schedule, which would accelerate upon
satisfaction certain conditions.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Reverse Stock-Split</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with the Recapitalization, the
Company&#146;s Class&nbsp;A Common Stock and Class&nbsp;B Common
Stock were converted into one share of a new class of our common
stock. Additionally, we effected a reverse stock-split such that
for each one outstanding share of common stock held by a
stockholder prior to the reverse stock-split, such stockholder
would hold 0.41987 new shares of our common stock after the
reverse stock split.
</FONT>

<P align="center"><FONT size="2">II-2
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Exemption From Registration</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The sales of the Series&nbsp;B Preferred Stock,
Series&nbsp;C-1 Preferred Stock, Series&nbsp;C-2 Preferred Stock
and Management Shares were exempt from registration in reliance
under Section&nbsp;4(2) of the Securities Act or
Regulation&nbsp;D promulgated thereunder. The securities issued
in connection with the reverse stock-split were exempt from
registration in reliance on Section&nbsp;3(a)(9) of the
Securities Act.
</FONT>

<P align="left">
<B><FONT size="2">March and April 2001 Series&nbsp;A Preferred
Stock</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In March and April 2001, we issued and sold a
total of 40,874,511&nbsp;shares of our Series&nbsp;A Preferred
Stock for an aggregate offering price of $11,906,745 to
Greenfield Holdings and various other investors. The shares of
our Series&nbsp;A Preferred Stock were convertible securities,
and at the option of the holder could be converted into shares
of our common stock at a set conversion ratio. Immediately prior
to the completion of this offering, shares of our Series&nbsp;A
Preferred Stock will be mandatorily converted into shares of our
common stock. These sales of our Series&nbsp;A Preferred Stock
were exempt from registration under Section&nbsp;4(2) of the
Securities Act or Regulation&nbsp;D promulgated thereunder.
</FONT>

<P align="left">
<B><FONT size="2">June and September 2001 10%&nbsp;Convertible
Subordinated Promissory Notes</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In June 2001, we sold $2,443,943 of our
10%&nbsp;Convertible Subordinated Promissory Notes (the
&#147;June 2001 Notes&#148;) to various investors. In September
2001, we sold $1,491,832 of our 10%&nbsp;Convertible
Subordinated Promissory Notes (the &#147;September 2001
Notes&#148;) to various investors. All of the principal and
interest under the June 2001 Notes and the September 2001 Notes
were subsequently converted into Series&nbsp;C-1 Preferred Stock
in the Recapitalization. The sales of the June 2001 Notes and
September 2001 Notes and the subsequent conversion of these
Notes were exempt from registration in reliance on
Section&nbsp;4(2) of the Securities Act or Regulation&nbsp;D
promulgated thereunder.
</FONT>

<P align="left">
<B><FONT size="2">Stock Option Grants and Issuances</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since March 2001, we have granted options to
employees (including officers), directors and consultants to
purchase an aggregate of 13,712,637&nbsp;shares of our common
stock. During this same period, we have issued a total of
53,168&nbsp;shares of our common stock upon exercise of such
stock options. The stock option grants and issuances of shares
thereunder were exempt under Section&nbsp;4(2) and/or
Rule&nbsp;701 under the Securities Act.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;16.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Exhibits and Financial Statement
    Schedules</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(a)&nbsp;The following exhibits are filed
herewith:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="80%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Exhibit Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Underwriting Agreement.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Certificate of
    Incorporation, to be effective upon completion of the offering.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Bylaws, to be effective upon
    completion of the offering.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Common Stock Certificate of Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Registration Rights
    Agreement, dated as of December&nbsp;16, 2002, by and among
    Greenfield Online,&nbsp;Inc. and the shareholders listed therein.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Registration Rights Agreement, dated
    August&nbsp;9, 2001, by and between Silicon Valley Bank and
    Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Registration Rights Agreement, dated
    December&nbsp;13, 1999, by and between Greyrock Capital and
    Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Opinion of Preston Gates&nbsp;&#38; Ellis LLP.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Indemnification Agreement.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated 1999 Stock Option Plan.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">II-3
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="80%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Exhibit Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">2004 Equity Incentive Plan.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">2004 Employee Stock Purchase Plan.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Stock Option Agreement under Amended and
    Restated 1999 Stock Option Plan.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.6*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Stock Option Agreement under 2004 Equity
    Incentive Plan.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restricted Stock Agreement, dated
    December&nbsp;16, 2002, by and between Dean A. Wiltse and
    Greenfield Online,&nbsp;Inc. and an amendment thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restricted Stock Agreement, dated
    December&nbsp;16, 2002, by and between Robert E. Bies and
    Greenfield Online,&nbsp;Inc. and an amendment thereto.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restricted Stock Agreement, dated
    December&nbsp;16, 2002, by and between Jonathan A. Flatow and
    Greenfield Online,&nbsp;Inc. and an amendment thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restricted Stock Agreement, dated
    December&nbsp;16, 2002, by and between Hugh O. Davis and
    Greenfield Online,&nbsp;Inc. and an amendment thereto.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restricted Stock Agreement, dated
    December&nbsp;16, 2002, by and between Joel R. Mesznik and
    Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">License Agreement, dated December&nbsp;22, 1999,
    by and between Greenfield Consulting Group,&nbsp;Inc. and
    Greenfield Online,&nbsp;Inc. and an amendment and supplement
    thereto.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Note and Warrant Purchase Agreement, dated
    March&nbsp;3, 2000, by and between Greenfield Holdings, LLC and
    Greenfield Online,&nbsp;Inc. and an amendment thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Warrant to purchase common stock of
    Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Non-Recourse Promissory Note, dated May&nbsp;17,
    1999, made by Hugh O. Davis in favor of Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.16</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Full Recourse Promissory Note, dated
    March&nbsp;9, 2001, made by Hugh O. Davis in favor of Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Pledge Agreement, dated May&nbsp;17, 1999, by and
    between Hugh O. Davis and Greenfield Online,&nbsp;Inc. and an
    amendment thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Warrant for the purchase of shares of
    Class&nbsp;A Common Stock, dated December&nbsp;3, 1999, issued
    by Greenfield Online,&nbsp;Inc. to Greyrock Capital.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Warrant for the purchase of shares of
    Class&nbsp;A Common Stock, dated August&nbsp;9, 2001, issued by
    Greenfield Online,&nbsp;Inc. to Silicon Valley Bank.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Accounts Receivable Financing Agreement, dated
    August&nbsp;9, 2001, by and between Silicon Valley Bank and
    Greenfield Online,&nbsp;Inc. and amendments thereto.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Lease, dated October&nbsp;20, 1999, by and
    between Wilton Campus Properties, LLC and Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Agreement to Lease, dated July&nbsp;19, 2003, by
    and between Tafsir Ahmad, Tanweer Ahmad, Saeed Ahmad, Salman
    Ahmad, and Shadab Ahmad (lessors)&nbsp;and M/s Agilis
    Information Technologies International Private Limited.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Agreement to Lease, dated March&nbsp;3, 2004, by
    and between M/s Unitech Business Parks Limited and M/s
    Greenfield Online PVT. Ltd.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.24</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Lease Agreement, dated September&nbsp;15, 1999,
    by and between Somerset Capital Group Ltd and Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.25&#134;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">FieldSource Agreement, dated October&nbsp;31,
    2001, by and between Custom Research&nbsp;Inc. and Greenfield
    Online,&nbsp;Inc. and an amendment thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.26&#134;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Enterprise User License Agreement, dated
    October&nbsp;21, 2002, by and between Future Information
    Research Management,&nbsp;Inc. and Greenfield Online,&nbsp;Inc.
    and an addendum thereto.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.27&#134;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Commercial Agreement, dated November&nbsp;28,
    2001, by and between Microsoft Corporation and Greenfield
    Online,&nbsp;Inc. and amendments thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.28&#134;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alliance, License and Supply Agreement, dated
    January&nbsp;31, 2002, by and between Taylor Nelson Sofres
    Intersearch Corporation and Greenfield Online,&nbsp;Inc. and
    amendments thereto.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">II-4
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="79%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Exhibit Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Partnering Agreement of Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.30*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Employment Agreement, by and
    between Dean A. Wiltse and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.31*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Employment Agreement, by and
    between Robert&nbsp;E. Bies and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.32*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Employment Agreement, by and
    between Jonathan&nbsp;A. Flatow and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.33*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Employment Agreement, by and
    between Hugh Davis and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.34*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, by and between Keith Price
    and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated December&nbsp;10,
    2003, by and between Frank Kelly and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.36</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated February&nbsp;5,
    2004, by and between Beth Rounds and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">21.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">List of Subsidiaries of Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of PricewaterhouseCoopers
    LLP,&nbsp;Independent Accountants.
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23.2*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Preston Gates &#38; Ellis LLP
    (included in Exhibit&nbsp;5.1).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">24.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Power of Attorney (reference is made to the Power
    of Attorney included on the signature page).
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp;*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">To be filed by amendment
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; &#134;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Certain information in these exhibits has been
    omitted and filed separately with the Securities and Exchange
    Commission pursuant to a confidential treatment request under
    17&nbsp;C.F.R. Sections 200.80(b)(4), 200.83 and 230.406.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(b)&nbsp;Financial Statement Schedules
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain exhibits, attachments and schedules to
the exhibits above have not been filed herewith. Greenfield
Online, Inc. will furnish any such exhibits, attachments and
schedules supplementally to the Securities and Exchange
Commission upon request.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;17.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Undertakings</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The undersigned registrant hereby undertakes to
provide to the underwriters at the closing specified in the
underwriting agreement certificates in such denominations and
registered in such names as required by the underwriters to
permit prompt delivery to each purchaser.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors,
officers and controlling persons of the registrant pursuant to
the provisions described in Item&nbsp;14 or otherwise, the
registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Securities Act and will be governed by the final
adjudication of such issue.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The undersigned registrant undertakes that:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(1)&nbsp;for purposes of determining any
    liability under the Securities Act, the information omitted from
    the form of prospectus filed as part of this registration
    statement in reliance upon Rule&nbsp;430A and
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">II-5
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">contained in the form of prospectus filed by the
    registrant pursuant to Rule&nbsp;424(b)(1) or (4)&nbsp;or 497(h)
    under the Securities Act shall be deemed to be a part of this
    registration statement as of the time it was declared
    effective,&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(2)&nbsp;for the purpose of determining any
    liability under the Securities Act, each post-effective
    amendment that contains a form of prospectus shall be deemed to
    be a new registration statement relating to the securities
    offered therein, and the offering of such securities at that
    time shall be deemed to be the initial bona fide offering
    thereof.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">II-6
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">SIGNATURES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the requirements of the Securities
Act of 1933, the registrant certifies that it has reasonable
grounds to believe that it meets all of the requirements for
filing on Form&nbsp;S-1 and has duly caused this its
Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Wilton,
State of Connecticut, on the 12<SUP>th</SUP>&nbsp;day of April,
2004.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">GREENFIELD ONLINE, INC.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">By:&nbsp;</FONT></TD>
    <TD align="center">
    <FONT size="2">/s/ DEAN A. WILTSE
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" noshade></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">Dean A. Wiltse
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <I><FONT size="2">President and Chief Executive
    Officer</FONT></I></TD>
</TR>

</TABLE>

<P align="center">
<B><FONT size="2">POWER OF ATTORNEY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">KNOW ALL PERSONS BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints
Jonathan A. Flatow and Robert E. Bies, and each of them, his
attorney-in-fact, for him in any and all capacities, to sign any
and all amendments to this registration statement (including
post-effective amendments and abbreviated registration
statements), and any and all registration statements filed
pursuant to Rule&nbsp;462 or Rule&nbsp;429 under the Securities
Act of 1933, as amended, in connection with the registration
under the Securities Act of 1933, as amended, of equity
securities of Greenfield Online,&nbsp;Inc., and to file or cause
to be filed the same, with exhibits thereto and other documents
in connection therewith, with the Securities and Exchange
Commission, hereby ratifying and confirming all that said
attorneys-in-fact, or their substitutes, may do or cause to be
done by virtue hereof.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the requirements of the Securities
Act of 1933, as amended, this Registration Statement on
Form&nbsp;S-1 has been signed by the following persons in the
capacities indicated on April&nbsp;12, 2004.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="37%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="51%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Signature</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Title</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ DEAN A. WILTSE<BR>
    <HR size="1" noshade>Dean A. Wiltse
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">President and Chief Executive Officer,
    Director<BR>
    (Principal Executive Officer)
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ ROBERT E. BIES<BR>
    <HR size="1" noshade>Robert E. Bies
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chief Financial Officer and Treasurer<BR>
    (Principal Financial and Accounting Officer)
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ JEFFREY HORING<BR>
    <HR size="1" noshade>Jeffrey Horing
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ PETER SOBILOFF<BR>
    <HR size="1" noshade>Peter Sobiloff
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ JOEL R. MESZNIK<BR>
    <HR size="1" noshade>Joel R. Mesznik
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ LAWRENCE R. HANDEN<BR>
    <HR size="1" noshade>Lawrence R. Handen
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ BURTON J. MANNING<BR>
    <HR size="1" noshade>Burton J. Manning
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ LISE J. BUYER<BR>
    <HR size="1" noshade>Lise J. Buyer
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ VIKAS KAPOOR<BR>
    <HR size="1" noshade>Vikas Kapoor
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">II-7
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">EXHIBIT INDEX</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="80%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Exhibit Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">1.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Underwriting Agreement.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Certificate of
    Incorporation, to be effective upon completion of the offering.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Bylaws, to be effective upon
    completion of the offering.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Common Stock Certificate of Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Registration Rights
    Agreement, dated as of December&nbsp;16, 2002, by and among
    Greenfield Online,&nbsp;Inc. and the shareholders listed therein.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Registration Rights Agreement, dated
    August&nbsp;9, 2001, by and between Silicon Valley Bank and
    Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Registration Rights Agreement, dated
    December&nbsp;13, 1999, by and between Greyrock Capital and
    Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5.1*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Opinion of Preston Gates&nbsp;&#38; Ellis LLP.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Indemnification Agreement.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated 1999 Stock Option Plan.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">2004 Equity Incentive Plan.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">2004 Employee Stock Purchase Plan.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Stock Option Agreement under Amended and
    Restated 1999 Stock Option Plan.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.6*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Stock Option Agreement under 2004 Equity
    Incentive Plan.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restricted Stock Agreement, dated
    December&nbsp;16, 2002, by and between Dean A. Wiltse and
    Greenfield Online,&nbsp;Inc. and an amendment thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restricted Stock Agreement, dated
    December&nbsp;16, 2002, by and between Robert E. Bies and
    Greenfield Online,&nbsp;Inc. and an amendment thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restricted Stock Agreement, dated
    December&nbsp;16, 2002, by and between Jonathan A. Flatow and
    Greenfield Online,&nbsp;Inc. and an amendment thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restricted Stock Agreement, dated
    December&nbsp;16, 2002, by and between Hugh O. Davis and
    Greenfield Online,&nbsp;Inc. and an amendment thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restricted Stock Agreement, dated
    December&nbsp;16, 2002, by and between Joel R. Mesznik and
    Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">License Agreement, dated December&nbsp;22, 1999,
    by and between Greenfield Consulting Group,&nbsp;Inc. and
    Greenfield Online,&nbsp;Inc. and an amendment and supplement
    thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Note and Warrant Purchase Agreement, dated
    March&nbsp;3, 2000, by and between Greenfield Holdings, LLC and
    Greenfield Online,&nbsp;Inc. and an amendment thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Warrant to purchase common stock of
    Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Non-Recourse Promissory Note, dated May&nbsp;17,
    1999, made by Hugh O. Davis in favor of Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.16</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Full Recourse Promissory Note, dated
    March&nbsp;9, 2001, made by Hugh O. Davis in favor of Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Pledge Agreement, dated May&nbsp;17, 1999, by and
    between Hugh O. Davis and Greenfield Online,&nbsp;Inc. and an
    amendment thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Warrant for the purchase of shares of
    Class&nbsp;A Common Stock, dated December&nbsp;3, 1999, issued
    by Greenfield Online,&nbsp;Inc. to Greyrock Capital.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Warrant for the purchase of shares of
    Class&nbsp;A Common Stock, dated August&nbsp;9, 2001, issued by
    Greenfield Online,&nbsp;Inc. to Silicon Valley Bank.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Accounts Receivable Financing Agreement, dated
    August&nbsp;9, 2001, by and between Silicon Valley Bank and
    Greenfield Online,&nbsp;Inc. and amendments thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Lease, dated October&nbsp;20, 1999, by and
    between Wilton Campus Properties, LLC and Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="80%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Exhibit Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Agreement to Lease, dated July&nbsp;19, 2003, by
    and between Tafsir Ahmad, Tanweer Ahmad, Saeed Ahmad, Salman
    Ahmad, and Shadab Ahmad (lessors)&nbsp;and M/s Agilis
    Information Technologies International Private Limited.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Agreement to Lease, dated March&nbsp;3, 2004, by
    and between M/s Unitech Business Parks Limited and M/s
    Greenfield Online PVT. Ltd.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.24</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Lease Agreement, dated September&nbsp;15, 1999,
    by and between Somerset Capital Group Ltd and Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.25&#134;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">FieldSource Agreement, dated October&nbsp;31,
    2001, by and between Custom Research&nbsp;Inc. and Greenfield
    Online,&nbsp;Inc. and an amendment thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.26&#134;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Enterprise User License Agreement, dated
    October&nbsp;21, 2002, by and between Future Information
    Research Management,&nbsp;Inc. and Greenfield Online,&nbsp;Inc.
    and an addendum thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.27&#134;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Commercial Agreement, dated November&nbsp;28,
    2001, by and between Microsoft Corporation and Greenfield
    Online,&nbsp;Inc. and amendments thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.28&#134;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Alliance, License and Supply Agreement, dated
    January&nbsp;31, 2002 by and between Taylor Nelson Sofres
    Intersearch Corporation and Greenfield Online,&nbsp;Inc. and
    amendments thereto.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Partnering Agreement of Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.30*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Employment Agreement by and
    between Dean A. Wiltse and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.31*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Employment Agreement by and
    between Robert&nbsp;E. Bies and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.32*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Employment Agreement by and
    between Jonathan&nbsp;A. Flatow and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.33*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated Employment Agreement by and
    between Hugh Davis and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.34*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement by and between Keith Price
    and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated December&nbsp;10,
    2003, by and between Frank Kelly and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10.36</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employment Agreement, dated February&nbsp;5,
    2004, by and between Beth Rounds and Greenfield Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">21.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">List of Subsidiaries of Greenfield
    Online,&nbsp;Inc.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of PricewaterhouseCoopers
    LLP,&nbsp;Independent Accountants.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23.2*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Preston Gates &#38; Ellis LLP
    (included in Exhibit&nbsp;5.1).
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">24.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Power of Attorney (reference is made to the Power
    of Attorney included on the signature page).
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">To be filed by amendment
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; &#134;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Certain information in these exhibits has been
    omitted and filed separately with the Securities and Exchange
    Commission pursuant to a confidential treatment request under
    17&nbsp;C.F.R. Sections 200.80(b)(4), 200.83 and 230.406.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain exhibits, attachments and schedules to
the exhibits above have not been filed herewith. Greenfield
Online, Inc. will furnish any such exhibits, attachments and
schedules supplementally to the Securities and Exchange
Commission upon request.
</FONT>
</BODY>
</HTML>
[{"type": "S-1", "sequence": "1", "filename": "y95710sv1.htm", "description": "FORM S-1", "secsgml_size_bytes": 1497898}]
{"company-data": {"conformed-name": "GREENFIELD ONLINE INC", "cik": "0001108906", "assigned-sic": "7389", "irs-number": "910640369", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-114391", "film-number": "04727648"}, "business-address": {"street1": "15 RIVER ROAD", "street2": "SUITE 310", "city": "WILTON", "state": "CT", "zip": "06890", "phone": "2038475700"}, "mail-address": {"street1": "15 RIVER ROAD", "street2": "SUITE 310", "city": "WILTON", "state": "CT", "zip": "06890"}}
FORM S-1
Table of Contents
As filed with the Securities and Exchange
Commission on April 12, 2004
Registration
No. 333-
UNITED STATES SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
Form S-1
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
Greenfield Online, Inc.
(Exact name of registrant as specified in its
charter)
Delaware
8742
91-0640369
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
21 River Road
Wilton, CT 06897
(203) 834-8585
(Address, including zip code and telephone
number, including area code, of Registrant's principal
executive offices)
Dean A. Wiltse
President and Chief Executive
Officer
Greenfield Online, Inc.
21 River Road
Wilton, CT 06897
(203) 834-8585
(Name, address, including zip code and
telephone number, including area code, of agent for
service)
Copies to:
Gary J. Kocher, Esq.
Michael W. Moyer, Esq.
Preston Gates & Ellis LLP
925 Fourth Avenue
Seattle, WA 98104
(206) 623-7580
Jonathan A. Flatow, Esq.
Vice President and General Counsel
Greenfield Online, Inc.
21 River Road
Wilton, CT 06897
(203) 834-8585
Raphael M. Russo, Esq.
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019
(212) 373-3000
Approximate date
of commencement of proposed sale to the public:
As soon as
practicable after the effective date of this Registration
Statement.
If any of the
securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, check the following
box:
o
If this Form is
filed to register additional securities for an offering pursuant
to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement
number of the earlier effective registration statement for the
same
offering:
o
If this Form is a
post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier
effective registration statement for the same
offering:
o
If this Form is a
post-effective amendment filed pursuant to Rule 462(d)
under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier
effective registration statement for the same
offering:
o
If delivery of the
prospectus is expected to be made pursuant to Rule 434,
please check the following
box:
o
CALCULATION OF REGISTRATION FEE
Proposed Maximum
Amount of
Title of Each Class of
Aggregate
Registration
Securities to be Registered
Offering Price(1)
Fee
Common Stock, par value $0.0001 per share
$75,000,000
$9,503
(1)
Estimated solely for the purpose of calculating
    the registration fee pursuant to Rule 457(o) under the
    Securities Act of 1933, as amended.
The Registrant
hereby amends this Registration Statement on such date or dates
as may be necessary to delay its effective date until the
Registrant shall file a further amendment which specifically
states that this Registration Statement shall thereafter become
effective in accordance with Section 8(a) of the Securities
Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to
said Section 8(a), may determine.
Table of Contents
The information in this
prospectus is not complete and may be changed. We may not sell
these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus
is not an offer to sell these securities and it is not
soliciting an offer to buy these securities in any jurisdiction
where the offer or sale is not permitted.
Subject to Completion, dated
April 12, 2004
PROSPECTUS
Shares
Common Stock
This is our initial public offering of common
stock. We are
offering                      shares
of our common stock and the selling stockholders identified in
this prospectus are offering an
additional                      shares
of common stock. No public market currently exists for our
common stock. We will not receive any proceeds from the sale of
the shares offered by the selling stockholders.
We have applied to have our common stock approved
for quotation on the Nasdaq National Market under the symbol
"SRVY." We currently estimate that the initial public
offering price will be between
$          and
$           per
share.
Investing in our common stock involves risks. Please read
"Risk Factors" beginning on page 7.
Per Share
Total
Public Offering Price
$
$
Underwriting Discount
$
$
Proceeds to Greenfield Online, Inc. (before
    expenses)
$
$
Proceeds to the selling stockholders (before
    expenses)
$
$
The selling stockholders have granted the
underwriters a 30-day option to purchase up
to                     additional
shares of common stock on the same terms and conditions as set
forth above to cover over-allotments, if any.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved
of these securities or determined if this prospectus is accurate
or complete. Any representation to the contrary is a criminal
offense.
Lehman Brothers, on behalf of the underwriters,
expects to deliver the shares on or
about                     ,
2004.
LEHMAN
BROTHERS
FRIEDMAN BILLINGS
    RAMSEY
PIPER JAFFRAY
,
2004
TABLE OF CONTENTS
Page
Prospectus Summary
1
The Offering
4
Risk Factors
7
Cautionary Note Regarding
    Forward-Looking Statements
21
Use of Proceeds
22
Dividend Policy
22
Capitalization
23
Dilution
25
Selected Consolidated
    Financial Data
27
Management's Discussion
    and Analysis of Financial Condition and Results of Operations
29
Business
43
Management
54
Certain Relationships and
    Related Transactions
67
Principal and Selling
    Stockholders
70
Description of Capital
    Stock
73
Shares Eligible for Future
    Sale
77
Underwriting
79
Notice to Canadian
    Residents
83
Legal Matters
85
Experts
85
Where You Can Find More
    Information
85
Index to Consolidated
    Financial Statements
F-1
AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
AMENDED AND RESTATED BYLAWS
AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT
REGISTRATION RIGHTS AGREEMENT
REGISTRATION RIGHTS AGREEMENT
FORM OF INDEMNIFICATION AGREEMENT
AMENDED AND RESTATED 1999 STOCK OPTION PLAN
2004 EQUITY INCENTIVE PLAN
2004 EMPLOYEE STOCK PURCHASE PLAN
FORM OF STOCK OPTION AGREEMENT
RESTRICTED STOCK AGREEMENT
RESTRICTED STOCK AGREEMENT
RESTRICTED STOCK AGREEMENT
RESTRICTED STOCK AGREEMENT
RESTRICTED STOCK AGREEMENT
LICENSE AGREEMENT
NOTE AND WARRANT PURCHASE AGREEMENT
FORM OF WARRANT
NON-RECOURSE PROMISSORY NOTE
FULL RECOURSE PROMISSORY NOTE
PLEDGE AGREEMENT
WARRANT FOR PURCHASE OF SHARES
WARRANT FOR PURCHASE OF SHARES
ACCOUNTS RECEIVABLE FINANCING AGREEMENT
LEASE
AGREEMENT TO LEASE
AGREEMENT TO LEASE
LEASE AGREEMENT
FIELDSOURCE AGREEMENT
ENTERPRISE USER LICENSE AGREEMENT
COMMERCIAL AGREEMENT
THE ALLIANCE, LICENSE AND SUPPLY AGREEMENT
FORM OF PARTNERING AGREEMENT
EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT
SUBSIDIARIES
CONSENT OF PRICEWATERHOUSECOOPERS LLP
ABOUT THIS PROSPECTUS
You should rely only on the information contained
in this prospectus. We have not, and the underwriters have not,
authorized any other person to provide you with different
information. If anyone provides you with different or
inconsistent information, you should not rely on it. We and the
underwriters are not making an offer to sell these securities in
any jurisdiction where an offer or sale is not permitted. You
should assume that the information appearing in this prospectus
is accurate as of the date on the front cover of this prospectus
only. Our business, financial condition, results of operations
and prospects may have changed since that date.
Through and
including                     ,
2004 (the 25th day after the date of this prospectus), all
dealers effecting transactions in our common stock, whether or
not participating in this offering, may be required to deliver a
prospectus. This is in addition to the dealers' obligations
to deliver a prospectus when acting as underwriters and with
respect to their unsold allotments or subscriptions.
Table of Contents
PROSPECTUS SUMMARY
This summary highlights key aspects of the
information contained elsewhere in this prospectus. This summary
does not contain all the information you should consider before
investing in our common stock. You should read this entire
prospectus carefully, especially the risks of investing in our
common stock discussed under "Risk Factors" beginning
on page 7 and our consolidated financial statements and the
notes to those consolidated financial statements beginning on
page F-1, before making an investment decision.
Greenfield Online, Inc.
Overview
We are a leading independent provider of Internet
survey solutions to the global marketing research industry and
we derive 100% of our revenues from Internet data collection
products and services. We actively manage the Greenfield Online
panel, a 100% Internet-based panel of approximately
1.7 million individuals who participate in our surveys. Our
panelists represent households consisting of an estimated
4.7 million people, allowing us to compile diverse,
demographically representative survey data.
We target our Internet survey solutions to
approximately 2,500 full service marketing research and
consulting firms in the United States and the world's top
25 marketing research companies. Our clients use the Internet
survey data that we provide to enable companies throughout the
world to make critical business decisions. Based on our internal
estimates, we believe that spending associated with the
gathering of survey data, known as fieldwork, accounts for
approximately 40% of the annual spending on survey marketing
research. Using this estimate, fieldwork represented
approximately $3.0 billion of the $7.5 billion global
survey market in 2002 as reported by the
World Association of
Opinion and Marketing Research Professionals
.
Until January 2002, we sold both custom
Internet-based marketing research and the Internet survey
solutions we sell today. A majority of our revenues for the
first seven years of our existence was derived from the sale of
custom research. In September 2001, we embarked on a strategy to
convert the focus of our business from providing custom research
to end-users to providing Internet survey solutions to the
marketing research firms we target today. This strategy
culminated in the sale of our custom research business in
January 2002. This sale represented a turning point in our
development as we shifted from a labor-intensive, professional
services model to a scalable, Internet-based services model.
We partner with our clients to leverage their
global sales forces and do not compete with them for custom
marketing research business. This cooperative marketing strategy
has led to significant market penetration. For the year ended
December 31, 2003, we completed 2,482 Internet-based
projects, a 99% increase over 2002. Additionally, 45 companies
each purchased over $100,000 of our products and services in
2003, an 88% increase over 2002.
Internet survey solutions are faster, more
efficient and more cost-effective for collecting high quality
marketing research data than traditional, labor-intensive
methods such as telephone, direct-mail and mall-based surveying.
The Internet allows our panelists to participate
24 hours-a-day in a more convenient and less intrusive
environment than traditional data collection methods. Our
Internet-based technology interactively engages respondents
through the use of images, sound and video, enabling us to
collect richer data for our clients. We believe Internet-based
survey solutions speed survey completion, allow for
significantly larger survey sample sizes over a given time
period and provide marketing researchers with a cost-effective
means of reaching niche segments.
We believe we are well-positioned to capitalize
on evolving dynamics within the global survey research market.
Decreasing cooperation rates experienced by the telephone survey
industry and the increasing use of mobile phones as a primary
means of telephone communication have led to a decline in the
effectiveness of traditional telephone-based data collection
methods. This decline has been exacerbated by the recently
established Do Not Call registry, covering over 58 million
telephone numbers. At the same time, Internet
1
Table of Contents
penetration rates and increased broadband usage
have accelerated growth in the use of Internet-based marketing
research. We believe these dynamics will drive demand for our
Internet survey solutions. Through our North American
operations, sales offices in the United Kingdom and Continental
Europe and our production facilities in India, we believe we are
well-positioned to meet this demand.
Competitive Strengths
We believe the following strengths differentiate
us from our competitors:
•
The Greenfield Online
    Panel.
The Greenfield Online panel is
    one of the largest Internet-based panels available. Our
    1.7 million panelists have double opted-in to participate
    in our surveys. We perform extensive screening and analysis of
    our panelists, which allows us to offer our clients premium
    specialty panels comprised of people with similar
    characteristics. We have the ability to quickly reach
    appropriate target audiences within the Greenfield Online panel
    for a wide range of client requests, including respondents in
    the healthcare, automotive, Hispanic, business-to-business,
    information technology and international segments.
•
Experienced Panel
    Management.
Over the past nine years,
    we have developed proprietary panel management techniques
    designed to maximize the efficiency and productivity of the
    Greenfield Online panel. We maintain a fresh and active panel by
    continually adding new members and seeking additional
    information from our panelists. These panel management
    techniques allow us to efficiently target our survey invitations
    and create relevant cash and non-cash incentive programs for our
    panelists. Additionally, we maintain policies to protect the
    confidentiality of our panelists' personal information and
    prohibit marketing to our panelists using information obtained
    through their survey participation. We believe that these
    policies have enabled us to develop a relationship of trust with
    our panelists and foster a climate that encourages their
    continued participation in our surveys.
•
Complete Internet Survey
    Solutions.
We offer a wide range of
    Internet survey solutions that enable the global marketing
    research industry to conduct Internet-based research. Our
    complete range of survey solutions facilitates the migration
    from traditional survey methods to Internet-based methods and
    eliminates the need for our clients to develop their own
    Internet research capabilities.
•
Focused Sales
    Strategy.
Our focused sales strategy
    seeks to incorporate our Internet survey solutions into our
    clients' research proposals that they present to the
    end-users of the data we collect. Our client relationships are
    strengthened by this cooperative sales strategy, which allows us
    to leverage their global sales forces as a distribution channel
    for our products and services. We do not compete with our
    clients for custom marketing research business from end-users.
•
Significant Operating
    Leverage.
We believe our
    Internet-based business model provides significant operating
    leverage and should lead to expansion of our operating income
    margin if we succeed in growing our revenues. By leveraging the
    established Greenfield Online panel, conducting an increasing
    number of surveys using our existing technology infrastructure
    and benefiting from our operations center in India, we believe
    that we will continue to improve our operating leverage.
•
Well-Established Brand and Commitment to
    Customer Service.
We were founded in
    1994 and conducted our first Internet-based marketing research
    project in 1995. Since our inception, we have built and refined
    the Greenfield Online panel and maintained a commitment to
    industry-leading customer service. For example, in 2003 we
    established an operations center near New Delhi, in
    Gurgaon, India, which is integrated with our U.S., Canadian
    and U.K. facilities and allows us to provide our clients with
    continuous survey programming, data collection and processing
    services. Our early entry into the Internet-based survey
    marketing research industry, the quality of the Greenfield
    Online panel and our commitment to customer service have enabled
    us to develop a strong brand within the marketing research
    industry.
Our Internet Survey Solutions
We offer customized Internet survey solutions
that address our clients' needs, including full-service
data collection and sample solutions.
2
Table of Contents
•
Full-Service.
We
    program and host our clients' surveys, invite our panelists
    to take the surveys, and deliver the compiled data to our
    clients for their analysis and presentation. Clients can utilize
    our complete range of survey technology solutions, such as
    embedding images, sound and video into surveys, store-shelf
    simulation testing and other 3D image demonstrations. Our
    full-service solutions also include our review of survey
    responses for internal consistency, tabulation and verbatim
    response interpretation and coding.
•
Sample Solutions.
We
    provide access to the Greenfield Online panel for one-time use
    to clients that have programming capabilities, but require
    survey respondents. We can offer this access within four hours
    of project initiation. In many instances, we serve as a
    supplemental sample provider when a client's existing
    resources cannot supply enough survey participants. Supplying
    survey respondents is often the last step of a research project
    and our clients rely on our ability to perform on a fast
    turnaround basis to meet their data collection needs and project
    deadlines.
Our Strategy
Our goal is to maintain and build upon our
leadership position within the global survey data collection
market. In order to achieve this goal, our strategy includes the
following:
•
Drive migration of traditional fieldwork to
    Internet-based marketing research.
We
    will continue to facilitate the transition from traditional data
    collection methods to the Internet by:
—
increasing the size and diversity of the
    Greenfield Online panel;
—
expanding the range of our specialty panels,
    which currently include healthcare, automotive, Hispanic,
    business-to-business, information technology and international
    segments;
—
developing new and innovative Internet survey
    solutions, such as our media testing capabilities that integrate
    images, sound and video directly into surveys; and
—
seeking to provide faster and better service than
    traditional survey data collection methods.
•
Expand
    internationally.
During 2004, we
    intend to expand our international capabilities in order to
    satisfy client demand for non-U.S. survey data by further
    developing the size and diversity of the Greenfield Online panel
    through the addition of more panelists from the United Kingdom,
    Germany, France and Canada. The migration of traditional data
    collection to the Internet in the international market is in its
    early stages and represents a significant growth opportunity.
•
Pursue strategic
    acquisitions.
We intend to seek
    strategic acquisitions both in the United States and
    internationally to increase the size, diversity and geographic
    scope of the Greenfield Online panel, increase our client base,
    acquire new technology, broaden our expertise and expand our
    portfolio of Internet survey solutions.
Corporate Information
We were founded in 1994 as a business unit of
Greenfield Consulting Group, Inc. and incorporated as a
separate entity in Connecticut in 1995 under the name Greenfield
Online Research Center, Inc. We changed our name to
Greenfield Online, Inc. in 1997 and changed our state of
incorporation to Delaware in February 2000. References in this
prospectus to "Greenfield Online," "we,"
"our company" and "us" refer to Greenfield
Online, Inc.
Our principal executive offices are located at 21
River Road, Wilton, Connecticut 06897. Our telephone number is
(203) 834-8585, our principal website address is
www.greenfield.com and our panel member website address is
www.greenfieldonline.com. The information contained on our
websites does not constitute part of, nor is it incorporated
into, this prospectus.
3
Table of Contents
The Offering
Common stock offered by Greenfield Online
shares
Common stock offered by selling stockholders,
    including members of our management
shares
Common stock to be outstanding after this offering
shares
Use of Proceeds
We intend to use the proceeds we receive from
    this offering to make a mandatory conversion payment to holders
    of our Series B Convertible Participating Preferred Stock,
    pay all accumulated but unpaid dividends to the holders of our
    Series B Convertible Participating Preferred Stock, redeem
    our Series C-2 Redeemable Non-Voting Preferred Stock and to
    fund working capital and general corporate purposes, including
    potential acquisitions. We will not receive any proceeds from
    the sale of shares of our common stock by the selling
    stockholders. See "Use of Proceeds."
Proposed Nasdaq National Market symbol
"SRVY"
Risk Factors
See "Risk Factors" beginning on
    page 7 for a discussion of factors that you should consider
    carefully before deciding to purchase our common stock.
The number of shares of common stock that will be
outstanding after this offering is based on the number of shares
outstanding on April 5, 2004 and excludes the following
shares:
•
920,487 shares issuable upon exercise of
    outstanding options, with a weighted average exercise price of
    $6.02 per share;
•
52,337 shares issuable upon exercise of
    outstanding warrants, with a weighted average exercise price of
    $24.78 per share;
•
an aggregate of 808,268 shares available for
    future awards under our Amended and Restated 1999 Stock Option
    Plan (the "1999 Option Plan") and our 2004 Equity
    Incentive Plan (the "2004 Equity Plan"); and
•
250,000 shares available for future issuance
    under our 2004 Employee Stock Purchase Plan (the "Stock
    Purchase Plan").
Unless specifically stated otherwise, the
information in this prospectus:
•
gives effect to a reverse one-for-14 split of our
    outstanding common stock to be effective upon completion of this
    offering;
•
assumes no exercise of the underwriters'
    over-allotment option;
•
assumes an initial public offering price of
    $           per
    share, the mid-point of the price range set forth on the cover
    page of this prospectus;
•
reflects the automatic conversion of all of our
    preferred stock into common stock (other than our
    Series C-2 Redeemable Non-Voting Preferred Stock as
    discussed below);
•
reflects the redemption of our Series C-2
    Redeemable Non-Voting Preferred Stock;
•
assumes no exercise of outstanding options and
    warrants; and
•
assumes the filing, immediately prior to the
    completion of this offering, of our amended and restated
    certificate of incorporation, referred to in this prospectus as
    our certificate of incorporation, and the adoption of our
    amended and restated bylaws, referred to in this prospectus as
    our bylaws, implementing the provisions described under
    "Description of Capital Stock."
4
Table of Contents
Summary Consolidated Financial Data
The following table provides summary
historical consolidated financial data for the periods
indicated. You should read this information in conjunction with
"Management's Discussion and Analysis of Financial
Condition and Results of Operations" and our consolidated
financial statements and the related notes included elsewhere in
this prospectus.
The summary consolidated statement of
operations data for each of the fiscal years ended
December 31, 2001, 2002 and 2003 and the summary
consolidated balance sheet data as of December 31, 2002 and
2003 are derived from our audited consolidated financial
statements, which are included elsewhere in this prospectus. The
summary consolidated balance sheet data as of December 31,
2001 is derived from audited consolidated financial statements
not included in this prospectus.
2001
2002
2003
($ in thousands, except per share data)
Consolidated Statement of Operations
    Data:
Net revenues:
Internet survey solutions(1)
$
4,072
$
14,416
$
25,868
Custom research(2)
9,715
470
—
Total net revenues
13,787
14,886
25,868
Cost of revenues
8,097
5,409
8,884
Gross profit
5,690
9,477
16,984
Operating income (loss)
(14,213
)
(3,908
)
1,697
Total other income (expense)
(3,074
)
945
101
Income (loss) before income taxes
(17,287
)
(2,963
)
1,798
Provision (benefit) for income taxes
—
(569
)
150
Net income (loss)
(17,287
)
(2,394
)
1,648
Less: Accretion of Series C-2 redeemable
    preferred stock dividends
—
—
(63
)
Charge to common stockholders for Series B
    convertible preferred stock liquidation preference in excess of
    fair market value
—
(3,873
)
—
Cumulative dividends on Series B convertible
    preferred stock
—
(28
)
(673
)
Income allocable to participating preferred
    securities
—
—
(761
)
Net income (loss) available to common stockholders
$
(17,287
)
$
(6,295
)
$
151
Net income (loss) per share available to common
    stockholders:
Basic
$
(17.71
)
$
(6.42
)
$
0.07
Diluted
$
(17.71
)
$
(6.42
)
$
0.06
Weighted average shares (in thousands)
Basic
976
981
2,054
Diluted
976
981
2,347
Balance Sheet Data (at end of
    period):
Cash and cash equivalents
$
1,056
$
1,864
$
3,721
Total assets
9,102
8,724
11,929
Capital lease obligations
2,537
1,997
1,579
Total debt
21,855
1,216
—
Series C-2 redeemable preferred stock
—
821
943
Series B convertible preferred stock
—
8,441
9,114
Total stockholders' deficit
$
(21,603
)
$
(8,526
)
$
(6,327
)
Other Financial and Operating Data:
EBITDA(3)
(9,339
)
118
3,692
EBITDA margin(4)
n.m.
1
%
14
%
Number of projects completed during period
838
1,249
2,482
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Table of Contents
(1)
Internet survey solutions includes services
    revenues from the collection of survey data for sale to
    marketing research companies.
(2)
Custom research includes revenues from the line
    of business that we sold to Taylor Nelson in January 2002.
(3)
We define EBITDA as earnings before interest
    expense, income taxes, depreciation and amortization, which
    definition may not be comparable to similarly titled measures
    reported by other companies. We are presenting EBITDA because it
    provides an additional way to view our operations, when
    considered with both our GAAP results and the reconciliation to
    net income, which we believe provides a more complete
    understanding of our business than could be obtained absent this
    disclosure. EBITDA is presented solely as a supplemental
    disclosure because: (i) we believe it is a useful tool for
    investors to assess the operating performance of our business
    without the effect of non-cash depreciation and amortization
    expenses; (ii) we believe that investors will find it
    useful in assessing our ability to service or incur
    indebtedness; (iii) we use EBITDA internally to evaluate
    the performance of our personnel and also as a benchmark to
    evaluate our operating performance or compare our performance to
    that of our competitors. The use of EBITDA has limitations and
    you should not consider EBITDA in isolation from or as an
    alternative to GAAP measures, such as net income, cash flows
    from operating activities and consolidated income or cash flow
    statement data prepared in accordance with GAAP, or as a measure
    of profitability or liquidity. The following table sets forth
    the reconciliation of EBITDA, a non-GAAP financial measure, to
    net income (loss), our most directly comparable financial
    measure presented in accordance with GAAP.
2001
2002
2003
($ in thousands)
Net income (loss)
$
(17,287
)
$
(2,394
)
$
1,648
Interest expense
3,306
591
496
Provision (benefit) for income taxes
—
(569
)
150
Depreciation and amortization
4,642
2,490
1,398
EBITDA
(9,339
)
118
3,692
EBITDA margin
n.m.
1
%
14
%
(4)
We define EBITDA margin as our EBITDA as a
    percentage of our net revenues. EBITDA margin is not presented
    for 2001 because it is not meaningful.
6
Table of Contents
RISK FACTORS
An investment in our common stock involves a
high degree of risk. You should carefully consider the risks
described below, together with the financial and other
information contained in this prospectus, before making a
decision to buy our common stock. If any of the following risks
actually occur, our business, financial condition and results of
operations could suffer. In these circumstances, the market
price of our common stock could decline, and you may lose all or
part of your investment in our common stock.
Risks Related to Our Business
We have incurred losses in recent years and
may incur them again.
We incurred net losses of $52.6 million,
$17.3 million and $2.4 million in 2000, 2001 and 2002,
respectively. While we were profitable in 2003, we may not be
profitable in the future. Furthermore, we may not be able to
maintain or increase profitability in the future on a quarterly
or annual basis.
If we are unable to maintain the size or
demographic composition of the Greenfield Online panel, our
clients may stop using our products and services.
The commercial viability of our marketing
research data and our overall business is dependent on our
ability to attract and maintain active panelists and ensure
optimal panel composition to accommodate a broad variety of
marketing research requests. There is currently no historical
benchmark by which to predict the optimal size of research
panels to ensure high response rates and maximum revenue
generation per panelist. If we are unable to accurately
determine or build optimal-sized panels, our current panelists
may become overused and unresponsive to our requests to
participate in surveys. If we fail to regenerate our panel with
new and active panelists on a regular basis, the size and
demographic diversity of the Greenfield Online panel may
decrease and our clients may reduce or stop using our products
and services.
If the number of panelists participating in the
Greenfield Online panel decreases, the cost of acquiring new
panelists becomes excessive or the demographic composition of
our panel narrows, our ability to provide our clients with
accurate and statistically relevant information could suffer.
This risk is likely to increase as our clients' needs
expand, and as more demographically diverse surveys are
requested by our clients.
If the rate at which our panelists respond to
our surveys decreases, we may not be able to meet our
clients' needs.
Our panelists participate in our surveys on a
voluntary basis only, and there can be no assurance that they
will continue to do so. Our ability to maintain adequate
response rates may be harmed if:
•
our email-based survey invitations are not
    received by our panelists due to the use of spam-filtering and
    blocking software by individuals, corporations and Internet
    service providers;
•
our panelists become dissatisfied with the forms
    of participation incentives we offer; or
•
our panelists respond less frequently to our
    surveys, or stop responding altogether due to excessive requests
    for participation from us or other researchers.
Additionally, in the past, the responsiveness of
our panelists has been variable and a function of the length of
the surveys to be completed and the incentives offered to our
panelists in exchange for their participation. The incentives we
offer panelists to participate in surveys generally consist of
the opportunity to enter into sweepstakes and win prizes or
direct cash incentives. If we are required to increase
incentives or undertake more costly campaigns to retain our
current panelists, our operating expenses may increase.
7
Table of Contents
We derived approximately 27% of our total net
revenues from two clients in fiscal 2003. If we were to lose, or
if there were a material reduction in business from, either of
these clients or our other significant clients, our net revenues
might decline substantially.
In fiscal 2003, we derived approximately 27.1% of
our total net revenues from two clients that accounted for
approximately 14.5% and 12.7%, respectively. Either client may
terminate or reduce its use of our products and services at any
time in the future. Our top client in 2003 was Taylor Nelson
Sofres Intersearch, with which we had an alliance agreement
requiring it to make purchases of at least $5.6 million of
our products and services from January 31, 2002 to
January 31, 2004. Taylor Nelson Sofres Intersearch
satisfied this obligation and is no longer contractually
required to purchase our products and services. In 2003, Taylor
Nelson Sofres Intersearch's parent company acquired NFO
Worldgroup, Inc., which maintains and operates a large Internet
respondent panel similar to our own. As a result of this
acquisition, we expect the revenue we receive from Taylor Nelson
Sofres Intersearch in 2004 to be significantly less than in
2003. Our ten largest clients accounted for $13.8 million,
or 53.4%, of our total net revenues for 2003. If we lose
business from any of our top 10 clients, our net revenues may
decline substantially.
We may not be able to successfully compete
with marketing research firms and other potential
competitors.
The market for our products and services is
highly competitive. We compete for clients with other
Internet-based marketing research data collection firms, such as
SPSS Service Bureau and Harris Interactive Service Bureau; firms
offering respondent-only services, such as Survey Sampling, Inc.
and e-Rewards, Inc.; and large marketing research companies,
such as The Kantar Group and Harris Interactive, Inc. We expect
to face intense competition in the future from other marketing
research data collection firms that develop Internet-based
products and services.
We also expect to face competition from other
companies with access to large databases of individuals with
whom they can communicate through the Internet, such as email
service providers and Internet-based direct marketers, as well
as companies that develop and maintain a large volume of
Internet traffic on their websites, such as large Internet
portals, networks and search engines. These companies may,
either alone or in alliance with other firms, enter the
Internet-based marketing research data collection market.
Many of our current and potential competitors
have longer operating histories, greater brand recognition and
significantly greater financial and other resources than we do.
These competitors may be able to undertake more extensive sales
and marketing campaigns offering their services, adopt more
aggressive pricing policies, and make more attractive offers to
potential employees, strategic partners, panelists and customers
than we can. In addition, these competitors and potential
competitors may develop technologies that are superior to ours,
or that achieve greater market acceptance than our own. If we do
not successfully compete with these companies, we might
experience a loss of market share and reduced levels of net
revenue and profitability and our business would suffer as a
result.
Consolidation in the marketing research
industry may result in fewer potential clients for us and a
smaller market in general if companies with existing
Internet-based panels combine with companies without such
panels.
Consolidations within the marketing research
industry in general and among our clients in particular, such as
the acquisition of NFO Worldgroup, Inc. by Taylor Nelson Sofres,
Plc, could cause us to lose business from clients that acquire
companies with Internet-based panels of their own. Similarly,
our smaller clients could be acquired by larger marketing
research companies that have their own Internet-based panel and
their need for our products and services could be reduced or
eliminated as a result. In either case, our net revenues would
be reduced and our business could suffer.
If our clients develop their own
Internet-based panels, we may lose some or all of their
business.
Some of our large clients have the financial
resources and sufficient need for Internet survey solutions that
they may decide to build their own Internet-based panels. Should
some or all of these clients decide
8
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to build their own Internet-based panels and
succeed in doing so, their need for our products and services
could be reduced or eliminated. Additionally, should our smaller
clients consolidate and achieve sufficient scale, it may become
economically feasible for them to build their own Internet-based
panels. If they do so, their need for our products and services
could be reduced or eliminated. In either case, our net revenues
would decline.
If the marketplace significantly slows its
migration from traditional data collection methods to
Internet-based marketing research data collection, our growth
will be adversely affected.
The marketplace must continue to accept the
Internet as a medium for collecting marketing research survey
data and convert to Internet data collection methodologies in
order for our business to grow at the rate that we anticipate.
In addition, the success of our business depends on our ability
to develop and market Internet survey solutions that achieve
broad market acceptance and facilitate the transition from
traditional data collection methods. If the marketplace slows
its migration to Internet-based data collection products and
services, we may have difficulty obtaining new clients and our
net revenues could decrease.
If we do not keep pace with technological
change, we may be unable to implement our business strategy
successfully.
The marketing research data collection industry,
particularly the Internet-based marketing research data
collection industry, is characterized by intense competition,
rapid new product and service developments and evolving
methodologies. To succeed, we will need to effectively develop
and integrate various software programs, technologies and
methodologies required to enhance and improve our Internet
survey solutions. Any enhancements of new products or services
must meet the needs of our current and potential clients and
achieve significant market acceptance. Our success will also
depend on our ability to adapt to changing technologies by
continually improving the performance features and reliability
of our products and services. We may experience difficulties
that could delay or prevent the successful development,
introduction or marketing of new products and services. We could
also incur substantial costs if we need to modify our products
and services or infrastructure to adapt to these changes.
If we are unable to manage and support our
growth effectively, we may not be able to execute our business
strategy successfully.
We are rapidly expanding our international
operations, but have limited experience expanding sales and
operations facilities in foreign countries. If we fail to
successfully expand our sales and marketing efforts in Europe we
will be unable to address a sizeable portion of the worldwide
market for Internet-based survey data collection and the growth
of our business will be adversely affected. We are integrating
new personnel to support our growth, which makes it difficult to
maintain our standards, controls and procedures. Members of our
senior management team will be required to devote considerable
amounts of their time and attention to this expansion, which may
reduce the time and attention they will have available to manage
our operations and pursue strategic opportunities.
Our employee base has grown from 54 in February
2002 to approximately 190 as of April 5, 2004, including
employees of our subsidiaries in India, the United Kingdom and
Canada. If our business continues to grow, we could be required
to hire a significant number of additional employees in the
United States and abroad. The recruiting, hiring, training and
integration of a large number of employees throughout the world
will place a significant strain on our management and
operational resources. If we are unable to successfully develop,
implement, maintain and enhance our financial and accounting
systems and controls, integrate new personnel and manage
expanded operations, we may not be able to effectively manage
our growth.
We are concentrating a significant portion of our
operational capacity in our facility located in India and may
open additional facilities elsewhere in the world. If we fail to
successfully build or maintain our operations in India or
elsewhere, we may suffer interruptions in the delivery of our
products and services to our clients. In addition, if we fail in
this regard, we may be required to relocate these international
operations to the United States or elsewhere and thereby incur
higher labor costs and additional transitional costs.
9
Table of Contents
If we are unable to achieve international
growth of the Greenfield Online panel or to overcome other risks
of international operations, we may be unable to conduct
business on a global level.
Expanding our business and the Greenfield Online
panel to operate on a global level could pose the following
risks to us:
•
more restrictive privacy laws;
•
difficulty in recruiting and managing employees
    in foreign countries;
•
aversion to U.S. companies or non-domestic
    companies in the regions where we plan to expand;
•
unexpected changes in regulatory requirements;
•
export controls relating to encryption technology;
•
currency exchange rate fluctuations;
•
problems collecting accounts receivable and
    longer collection periods;
•
potentially adverse tax consequences;
•
political instability; and
•
Internet access restrictions.
In particular, in the process of expanding our
global operations, we may encounter more restrictive regulations
and laws in Europe or elsewhere, particularly laws related to
privacy rights, that could inhibit our ability to expand the
Greenfield Online panel. We have little or no control over the
risks listed above and may experience some or all of these risks.
We have significant operations in India that
could be adversely affected by changes in the political or
economic stability of India or government policies in India or
the United States.
We have a substantial team of professionals in
India who provide us with data processing and other services.
The development of our operations center in India has been
facilitated partly by the liberalization policies pursued by the
Indian government over the past decade. Although the current
government of India, formed in October 1999, has announced
policies and taken initiatives that support the continued
economic liberalization policies that have been pursued by
previous governments, these liberalization policies may not be
continued in the future. The rate of economic liberalization
could change and specific laws and policies affecting our
business could change as well. A significant change in
India's economic liberalization and deregulation policies
could increase our labor costs and harm our business. Also,
potential laws and regulations in the United States aimed at
encouraging U.S. businesses to keep their operations solely
within the United States, if enacted, could harm our ability to
operate and our competitive position.
Potential acquisitions or investments in other
companies may have a negative impact on our business and our
stock price.
As part of our strategy to expand the Greenfield
Online panel, our technology infrastructure and products and
services, we may consider acquiring or making investments in
complementary businesses, services, products or technologies as
appropriate opportunities arise. The risks we may face should we
acquire or invest in complementary businesses include:
•
difficulties with the integration and
    assimilation of the acquired business;
•
diversion of our management team's attention
    from other business concerns;
•
availability of favorable acquisition or
    investment financing; and
•
loss of key employees of any acquired business.
10
Table of Contents
Acquisitions or investments may require us to
expend significant amounts of cash. This would result in our
inability to use those funds for other business purposes.
Additionally, if we fund acquisitions through further issuances
of our common stock, our stockholders will be diluted, which may
adversely affect the market price of our common stock. The
potential impairment or complete write-off of goodwill and other
intangible assets related to any such acquisition may reduce our
overall earnings, which in turn could negatively affect the
price of our common stock.
Our success depends on our ability to retain
the current members of our senior management team and other key
personnel.
Our success depends to a significant extent on
the continued services of our core senior management team. If
one or more of these individuals were unable or unwilling to
continue in their present position, our business would be
disrupted and might suffer. We do not maintain key-person life
insurance for any of our management personnel or other key
employees.
If we fail to continue to attract and retain
project management professionals and other highly-skilled
personnel, we may be unable to successfully execute our business
strategy.
Our business model is based and our success
depends upon our ability to attract, retain and motivate
highly-skilled project management professionals and other
technical, managerial, marketing, sales and client support
personnel throughout the world. Because competition to attract
trained technical and project management personnel is intense in
the marketing research data collection industry, we may
experience difficulty attracting, integrating or retaining the
number of qualified personnel needed to successfully implement
our business strategy. If we are delayed in recruiting key
employees, we may be forced to incur significant additional
recruitment, compensation and relocation expenses. If we are
unable to hire and retain such personnel in the future, we may
not be able to operate our business as we do today or meet the
needs of our clients.
Any failure in the performance of our
Internet-based technology infrastructure or of those Internet
service providers used by our panelists, could harm our business
and our reputation.
Our systems and operations are vulnerable to
damage or interruption from fire, earthquake, power loss,
telecommunications failure, break-ins, viruses or other harmful
attacks on computer information systems and similar events. We
depend on our primary technology systems hosted at our Wilton,
Connecticut data center to keep our infrastructure operational.
We have replicated the functionality of the Wilton data center
by contracting with MCI WorldCom Communications, Inc., in
Elmsford, New York, to host and provide an off-site,
fully-redundant facility under the terms of a co-location
service agreement. Our system may not be capable of seamlessly
or adequately replicating our products and services in the event
of technical difficulties, if at all, and our facilities may not
be capable of sufficiently protecting our systems.
We have experienced technical difficulties and
downtime in the past, primarily as a result of testing and
implementing new software. Technical difficulties and downtime
may continue to occur in the future. The impact of technical
difficulties on our systems or operations may be more severe and
cause greater amounts of downtime in the future than our systems
have experienced to date. Although we currently have business
interruption insurance, it may not adequately compensate us for
losses that could occur due to failures in our systems or the
systems of third-parties and any resulting interruptions in our
communications with the Greenfield Online panel or in our data
collection efforts. Also, our servers and software must be able
to accommodate a high volume of traffic. Any significant
increase in demand on our servers beyond the amount we currently
anticipate will require us to expand and adapt our network
infrastructure. If we are unable to add additional software and
hardware to accommodate increased demand, unanticipated system
disruptions and slower data collection may result.
Additionally, our panelists communicate with us
using various Internet service providers. Many of these
providers have experienced significant outages or impairments of
service in the past, and could experience future outages, delays
and other difficulties due to system failures or impairments
unrelated to our technology
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systems. Any future system delays or
connectivity-related failures of Internet service providers
could adversely affect our access to our panelists. Future
disruptions and outages as a result of the foregoing factors
could cause the Internet to be viewed as an unreliable source of
data collection, which could prevent us from maintaining the
Greenfield Online panel and selling our products and services.
We are susceptible to breaches of database
security and denial of service attacks. If a breach occurs and
the personal information of our panelists is exposed or misused,
we may be liable and it could make it difficult for us to
recruit for and maintain the Greenfield Online panel.
Despite measures taken by us to increase
security, our infrastructure is potentially vulnerable to
physical or electronic break-ins. Intruders may be able to gain
access to this information. A party who is able to circumvent
our security measures and gain access to the identity and other
confidential information regarding our panelists could
misappropriate this information or interrupt our operations. As
a result, we may be required to expend financial and other
resources to protect against the threat of security breaches or
to alleviate problems caused by these breaches. These increased
expenditures could harm our business.
Security breaches could also damage our
reputation and expose us to liability. Any claims resulting from
the unauthorized use of information concerning our panelists
could expose us to loss or result in costly litigation. Such
breaches could also cause us to lose the confidence and trust of
our panelists, which could significantly harm our business. In
addition, the FTC and state agencies recently have been
investigating various Internet companies regarding their use of
personal information. We could incur additional costs and
expenses if new regulations regarding the use of personal
information are introduced or if our privacy practices are
investigated and found to be inadequate.
Our computer systems are susceptible to planned
overloads, commonly referred to as denial of service attacks. By
designing software applications that trigger the simultaneous
overload of traffic into one website, intruders have recently
been able to temporarily impair the websites of companies with
more mature infrastructure systems than our own. If we become
the target of similar attacks in the future, our websites could
be temporarily disabled and our business might suffer. If such
events occur on more than an infrequent basis, our reputation
could be damaged and the marketplace could determine that the
Internet is not a reliable medium for data collection activities.
If our licensed survey programming software
becomes unavailable, is no longer accepted by our clients or
becomes obsolete, we would be required to acquire or develop new
software and systems to program our Internet survey
solutions.
We utilize a survey development software program
created by a third-party to program our surveys so that they can
be displayed through the Internet and taken by our panelists. We
believe that this software represents the current standard in
the Internet-based marketing research data collection industry.
The company that authored this software is a small and
developing company. If this company ceases operations or fails
to continue to develop its software, the software could become
unavailable or obsolete. If this software becomes obsolete or
competing survey software is developed that is perceived to be
of superior functionality or value, our clients may not accept
our Internet survey solutions. In any of these events, we would
be required to expend resources acquiring or developing new
software and the sale or delivery of our products and services
could be interrupted.
Loss of technical support from third-parties
could disrupt our business.
We rely on third-party technology support for our
infrastructure systems. While in recent years our internal
technicians designed the majority of our technological
infrastructure, we often engage third-party vendors to build the
architecture we design. In addition, technical support from
third-parties may not continue to be available to us in the
future on commercially reasonable terms, if at all. If this
support were no longer available, our business would be
disrupted. The inability to engage third-parties to support the
building and maintenance of the technology important to our
business would require us to obtain substitute technology that
might be of lower quality or performance standards or technology
of a comparable quality obtainable only at
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a greater cost. Also, our inability to outsource
select technical projects on a commercially reasonable basis
could impede us from providing our products and services to our
clients on a timely basis.
Our inability to protect our intellectual
property could adversely affect our business.
Our ability to compete and successfully implement
our business strategy depends on our use of internally-developed
technologies and trademarks that are protected through a
combination of copyright, trade secret and trademark laws. We
currently have trademark registrations in the United States
for the trademarks
Research Revolution®
,
NetReach®
and
FieldSource®
among others,
and have a perpetual contractual right granted to us by Millward
Brown, Inc. to use the trademarks
Greenfield Online®
and
Greenfield
® in the United States. If we are
prevented from using these trademarks, our brand recognition and
business could suffer. As a result, we would need to make
substantial expenditures to promote and rebuild our brand
identity and loyalty with our clients and members of the
Greenfield Online panel.
We currently have pending trademark applications
in the United States for products and systems connected
with our business. We also expect to apply for additional
trademarks in the future. Our trademark applications may not be
approved, or if approved, could be successfully challenged or
invalidated by others. Our trademark applications also may not
be approved in the event third-parties already own these
trademarks. Use of these trademarks may also be restricted
unless we enter into arrangements with the third-party owners.
These arrangements might not be possible on commercially
reasonable terms, if at all.
We generally enter into confidentiality
agreements with parties with whom we do business, and control
access to and distribution of our technologies, documentation
and other proprietary information. In the future, we may also
enter into license agreements with these parties. Parties may
disclose, obtain or use our technologies without our permission.
The protective measures we have taken may not prevent
misappropriation of our technologies, particularly in foreign
countries where laws or law enforcement practices might not
protect our proprietary rights as fully as in the United States.
We may be at a competitive disadvantage if we
are unable to protect our proprietary rights or if we infringe
on the proprietary rights of others, and related litigation
could be time consuming and costly.
Because we operate our business through websites
and rely heavily on computer hardware and software, proprietary
rights, particularly trade secrets and copyrights, are critical
to our success and competitive position. The actions we take to
protect our proprietary rights may be inadequate. In addition,
effective copyright, trademark and trade secret protection may
be unenforceable or limited in certain countries and, due to the
global nature of the Internet, we may be unable to control the
dissemination of our content and products and the use of our
products and services. In addition, third-parties may claim that
we have violated their intellectual property rights. For
example, companies have recently brought claims against other
Internet companies regarding alleged infringement of patent
rights relating to methods of doing business over the Internet.
To the extent that we violate a patent or other intellectual
property right of another party, we may be prevented from
operating our business as planned or may be required to pay
damages, obtain a license, if available, for the use of the
patent or other right to use a non-infringing method to
accomplish our objectives. In August 2000, we received a notice
from a party, claiming to have received a patent with rights
relating to, among other things, a method or process for
conducting surveys over the Internet. We understand that this
party has also approached many of our competitors in the
Internet data collection industry. We have not had any
additional contact with this party since December 15, 2000.
To the extent that this party seeks to enforce its patent, and a
court finds that such an infringement claim has merit, we may be
required to expend large sums of money defending such action and
seeking to have the patent declared invalid. If this party is
successful, we could be forced to pay royalties in order to
continue conducting surveys over the Internet or even be
restrained from conducting surveys over the Internet. In the
future, we may also license content from third-parties, and we
could become subject to infringement actions based on this
licensed content.
Our ability to execute our business strategy will
suffer if a successful claim of infringement is brought against
us and we are unable to introduce new trademarks, develop
non-infringing technology or license the infringed or similar
technology on a timely basis. Moreover, our general liability
insurance may not be
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adequate to cover all or any of the costs
incurred defending patent or trademark infringement claims, or
to indemnify us for liability that may be imposed.
If we fail to develop our brand
cost-effectively, our business may suffer.
We believe that developing and maintaining
awareness of the Greenfield Online brand in a cost-effective
manner is critical to achieving widespread acceptance of our
existing and future products and services and is an important
element in attracting new clients. Furthermore, we believe that
the importance of brand recognition will increase as competition
in our market develops. Successful promotion of our brand
depends largely on the effectiveness of our marketing efforts
and our ability to provide reliable and useful products and
services at competitive prices. In the past, our efforts to
build our brand have involved significant expense. Brand
promotion activities may not yield increased revenue, and even
if they do, any increased revenue may not offset the expenses
incurred in building our brand. If we fail to successfully
promote and maintain our brand, or incur substantial expenses in
an unsuccessful attempt to promote and maintain our brand, we
may fail to attract enough new clients or retain enough existing
clients to realize a sufficient return on our brand-building
efforts.
Fluctuations in our operating results may
cause our stock price to decline.
In the past, our operating results fluctuated
significantly from quarter to quarter and we expect them to
continue to do so in the future. Factors outside of our control
that have caused our operating results to fluctuate in the past
and that may affect us in the future, include:
•
fluctuations in general economic conditions;
•
demand for marketing research products and
    services generally;
•
fluctuations in the marketing research budgets of
    the end-users serviced by our marketing research clients;
•
the development by our clients of their own
    Internet respondent panels;
•
the failure of our large clients to win
    Internet-based marketing research projects;
•
the development of products and services by our
    competitors; and
•
technical difficulties or system-downtime
    affecting access to the Internet.
Factors within our control that have caused our
operating results to fluctuate in the past and that may affect
us in the future, include:
•
our ability to increase the size and diversity of
    the Greenfield Online panel for use in developing new products
    and services;
•
our ability to develop new products and services;
•
our ability to hire and train sales personnel and
    project management personnel;
•
technical difficulties or downtime of individual
    components of our computer systems; and
•
our ability to deliver projects to our clients in
    a timely fashion.
The factors listed above may affect both our
quarter-to-quarter operating results as well as our long-term
success. Given the fluctuations in our operating results, you
should not rely on quarter-to-quarter comparisons of our results
of operations as an indication of our future performance or to
determine any trend in our performance.
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Our directors, executive officers, key
personnel, members of their families, significant stockholders
and entities affiliated with them have significant control over
our management and affairs.
Our directors, executive officers, members of
their families, significant stockholders and entities affiliated
with them will, in the aggregate, beneficially own approximately
65% of our outstanding common stock following the completion of
this offering, or approximately 62% of our outstanding common
stock in the event that the underwriters' over-allotment
option is exercised in full. Specifically, entities affiliated
with Insight Venture Associates III, L.L.C. will
beneficially own approximately 32% of our outstanding common
stock following this offering, or approximately 31% of our
outstanding common stock in the event that the
underwriters' over-allotment option is exercised in full,
and UBS Capital II LLC and its affiliates will beneficially
own approximately 15% of our outstanding common stock following
this offering, or approximately 14% of our outstanding common
stock in the event that the underwriters' over-allotment
option is exercised in full. As a result, these stockholders
will be able to exercise control over all matters requiring
approval by our stockholders, including the election of
directors and approval of mergers, consolidations, sales of
assets, recapitalizations and amendments to our certificate of
incorporation. These stockholders may take actions with which
you do not agree, including actions that delay, defer or prevent
a change of control, and could adversely affect the price that
investors are willing to pay for our common stock.
We might have difficulty obtaining additional
capital, which could prevent us from achieving our business
objectives. If we are successful in raising additional capital,
it may have a dilutive effect on our stockholders.
We may need to raise additional capital in the
future to fund the expansion of the Greenfield Online panel and
the marketing of our products and services, or to acquire or
invest in complementary businesses, technologies or services. If
additional financing is not available, or available only on
terms that are not acceptable to us, we may be unable to fund
the development and expansion of our business, attract qualified
personnel, promote our brand name, take advantage of business
opportunities or respond to competitive pressures. Any of these
events may harm our business. Also, if we raise funds by issuing
additional shares of our common stock or debt securities
convertible into common stock, our stockholders will experience
dilution, which may be significant, to their ownership interest
in us. If we raise funds by issuing shares of a different class
of stock other than our common stock or by issuing debt, the
holders of such different classes of stock or debt securities
may have rights senior to the rights of the holders of our
common stock.
Our reported financial results may be
adversely affected by changes in accounting principles generally
accepted in the United States.
Generally accepted accounting principles in the
United States, known as GAAP, are subject to interpretation by
the Financial Accounting Standards Board, or FASB, the American
Institute of Certified Public Accountants, the SEC and various
bodies formed to promulgate and interpret appropriate accounting
principles. A change in these principles or interpretations
could have a significant effect on our reported financial
results, and could affect the reporting of transactions
completed before the announcement of a change in these
principles.
For example, we account for stock-based
compensation using the intrinsic-value method in accordance with
Accounting Principles Board Opinion No. 25 "Accounting
for Stock Issued to Employees." Under this standard,
compensation expense is determined to the extent that the fair
value of the underlying stock on the date of grant exceeds the
exercise price of the employee stock option or stock award.
Compensation so determined is deferred in the caption unearned
stock-based compensation within the stockholders' equity
(deficit) section of our financial statements, and then
recognized over the service period for the stock option or
award. However, several companies have recently elected to
change their accounting policies and begun to record the fair
value of stock options as an expense. Although the standards
have not been finalized and the timing of a final statement has
not been established, FASB has announced its support for
recording the fair value of stock options granted as an expense.
If we are required to change our accounting policy and to
retroactively restate prior periods as if we had adopted these
standards for prior periods, our cost of revenues
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and operating expenses as reflected in our
historical financial statements may increase and such changes
could impact our results of operations for future periods.
Risks Related to Our Industry
If use of the Internet does not continue to
grow, we might not be able to continue to grow our
business.
We rely on the Internet for critical aspects of
our business, including the recruitment of our panelists. If
Internet usage declines or grows at a significantly slower rate
than currently projected, we may be unable to attract additional
panelists or clients for our Internet survey solutions.
If the various Internet access providers do
not continue to develop their infrastructure adequately, we may
have difficulties accessing our panelists and our business may
suffer.
Our panelists depend on a variety of Internet
access providers and other website operators for access to our
website. If use of the Internet continues to grow as currently
projected, the infrastructure that maintains the Internet may be
unable to support the demands placed on it. Various other
factors could also inhibit the ability of the Internet's
infrastructure to support increased use, including inadequate
networks and security concerns. If the Internet infrastructure
is not able to support the demands placed on it by excessive
growth, its performance and reliability may decline and we may
not be able to access our panelists.
Government regulations could limit our
Internet activities or result in additional costs of doing
business and conducting marketing research on the
Internet.
The federal Controlling the Assault of
Non-Solicited Pornography and Marketing Act of 2003 (the
"CAN-SPAM Act"), which took effect on January 1,
2004, imposes a series of new requirements on the use of
commercial email messages and directs the FTC to issue new
regulations that define relevant criteria and to enforce the
Act. Among other things, one proposal being examined by the FTC
is a federal "Do Not Email" registry. The CAN-SPAM Act
and the regulations enforcing the Act may significantly impact
the manner in which we recruit and communicate with our
panelists. It may also expose us to potential liability or
require us to change or abandon our webmaster affiliate program
and other recruitment techniques. We may also need to develop
technology or systems to comply with the Act's requirements
for honoring "opt-out" requests. Additionally, there
are at least 37 state statutes that purport to regulate the
distribution of commercial email. If we cannot comply with the
requirements of the CAN-SPAM Act or these state statutes, we may
need to cease operating portions of our business and our
business could suffer.
The Internet Tax Freedom Act (the
"ITFA") that was originally passed in 1995 prohibited
states or political subdivisions from (i) imposing taxes on
Internet access and (ii) imposing multiple and
discriminatory taxes on e-commerce. The ITFA expired on
November 1, 2003 and has not been renewed. As a result of
the expiration of the ITFA, states are no longer prohibited
under federal law from imposing taxes that were covered by the
ITFA. In the absence of a renewal of the ITFA, states may begin
to impose taxes on Internet access, related charges and other
e-commerce products and services. If one or more states impose
such taxes in a manner that results in the taxation of Internet
access providers, ourselves, our customers or other parties upon
whom these parties' or our panelists' rely for access
to the Internet or other products or services, our expenses may
increase and it may become difficult to recruit and maintain our
panelists or sell our products and services. Proposed
legislation has been introduced in Congress to reinstate and
broaden the ITFA. It is unclear whether or not this legislation
will be enacted and, if so, the substance of its provisions.
A number of states within the United States are
participants in the Streamlined Sales Tax Project (the
"SSTP"), which seeks to establish a uniform,
nationwide state-based taxation system that requires remote
sellers to administer and collect their respective sales taxes
even though they do not maintain a presence within that state.
If the SSTP is successful in implementing such a system, and if
our products or services are subject to this system, our
resulting tax, administrative and compliance burden will
increase.
Separately, countries belonging to the European
Union (the "EU") impose a value added tax
("VAT") on the sale of goods and services, including
digital goods and services. An EU Directive that took effect on
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July 1, 2003 requires businesses that sell
digital goods and services from outside the EU to certain
customers within the EU to collect, administer and remit the
VAT. To the extent that our products or services are subject to
the EU Directive, our resulting administrative and compliance
burden will increase.
In February 1999, the FCC issued a declaratory
ruling interpreting the Telecommunications Act of 1996 to allow
local exchange carriers to receive reciprocal compensation for
traffic delivered to information service providers, particularly
Internet service providers, on the basis that traffic bound for
Internet service providers is largely interstate. As a result of
this ruling, the costs of transmitting data over the Internet
may increase. If this occurs, our tax liability and operating
expenses may increase, and our business could suffer.
In addition to those described above, we expect
more stringent laws and regulations to be enacted both
domestically and globally in the near future due to the
increasing popularity and use of the Internet. Any new
legislation or regulations or the application of existing laws
and regulations to the Internet could limit our effectiveness in
conducting Internet-based marketing research and increase our
operating expenses. In addition, the application of existing
laws to the Internet could expose us to substantial liability
for which we might not be indemnified by content providers or
other third-parties. Existing laws and regulations currently
address, and new laws and regulations and industry
self-regulatory initiatives are likely to address, a variety of
issues that could have a direct impact on our business,
including:
•
user privacy and expression;
•
the rights and safety of children;
•
intellectual property;
•
information security;
•
anti-competitive practices;
•
the convergence of offline channels with Internet
    commerce; and
•
taxation and pricing.
Current laws that explicitly apply to the
Internet have not yet been interpreted by the U.S. courts
and their applicability and scope are not yet defined. Any new
laws or regulations relating to the Internet could have an
impact on the growth of the Internet and, as a result, might
adversely affect our business.
The legislation authorizing the creation and
enforcement of the federal Do Not Call registry may be declared
unconstitutional by the U.S. Supreme Court and, as a
result, the migration of data collection from traditional
methods to the Internet may take longer than we currently
anticipate.
On February 17, 2004 the 10th Circuit Court
of Appeals reversed a decision by the U.S. District Court
for the District of Colorado, which had held that the federal Do
Not Call registry maintained and enforced by the FTC and the FCC
constituted unconstitutional abridgements of free speech rights
guaranteed under the First Amendment of the
U.S. Constitution. At least one telemarketing group has
publicly indicated that it will appeal this decision. Should the
U.S. Supreme Court hold that the Do Not Call registry
violates First Amendment rights to free speech, telephone survey
cooperation rates may increase and the migration from
traditional methods of data collection such as the telephone to
the Internet may slow or stabilize. This may slow or stabilize
the demand for our products and services.
The marketing research industry is vulnerable
to general economic conditions, which may affect our
revenues.
Many of the companies served by our clients treat
all or a portion of their marketing research expenditures as
discretionary. As general economic conditions decline and these
companies seek to control variable costs, research projects for
which we have been engaged to collect data may be delayed or
cancelled, and new project bookings may slow. As a result, our
growth and earnings may be adversely impacted.
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Terrorist attacks or mischievous actions could
disrupt our business.
If our operations facilities or data centers are
disrupted or destroyed by terrorist attacks or hackers, we may
be unable to operate and derive results from the Greenfield
Online panel or otherwise provide our products and services on a
timely basis to our customers, which could harm our business.
Moreover, if our computer information, data processing or
communication systems, or those of our vendors or customers, are
subject to disruptive terrorist or hacker attacks or other
disruptions, our business may suffer. We have not established a
formal disaster recovery plan. Our back-up operations may be
inadequate and our business interruption insurance may not be
sufficient to compensate us for any losses that may occur. A
significant business interruption may result in substantial
losses and damages.
Risks Related to this Offering
The price of our common stock is likely to be
volatile and subject to wide fluctuations.
The trading prices of many Internet-related
companies have been highly volatile. The market price of our
common stock may also be subject to wide fluctuations. If our
net revenues do not grow, or grow more slowly than we
anticipate, or if our operating or capital expenditures exceed
our expectations and cannot be adjusted accordingly, the market
price of our common stock may decline.
In addition, if the market for Internet-related
stocks or the stock market in general experiences a loss in
investor confidence or otherwise falls, the market price of our
common stock may fall for reasons unrelated to our business,
results of operations or financial condition. As a result,
investors might be unable to resell their shares of our common
stock at or above the offering price. In the past, many
companies that have experienced volatility in the market price
of their stock have been the subject of securities class action
litigation. If we were to become the subject of a class action
litigation, we could incur substantial costs and our management
team's attention and resources could be diverted from our
business.
The trading market for our common stock will be
informed, in part, by the research and reports that industry or
financial analysts publish about us or our business. We do not
control these analysts. If one or more of the analysts who cover
us downgrade our stock, our stock price could decline rapidly.
If one or more of these analysts ceases coverage of our company,
we could lose visibility in the market, which in turn could
cause our stock price to decline or experience significant
volatility.
Because an active trading market for our
common stock may not develop after this offering, it may be
difficult for you to sell your shares.
There was no public market for our common stock
before this offering. We do not know the extent to which
investor interest will lead to the development of a trading
market or, if one develops, how liquid that market might be or
how long it will last. If an active and liquid trading market
does not develop for our common stock, you may have difficulty
selling your shares.
Our common stock price may decline if a large
number of shares are sold after the offering or a perception is
created that these sales may occur.
Following this offering, we will have a large
number of shares of our common stock outstanding and available
for resale beginning at various points in time. The market price
of our common stock could decline as a result of sales of a
large number of shares of our common stock in the open market
following this offering, or the perception that these sales
could occur. After the effective date of this offering:
•
150,772 shares of common stock will be
    eligible for sale immediately, in addition to the shares of
    common stock to be sold in this offering;
•
219,857 shares of common stock will be
    eligible for sale beginning 90 days after the effective
    date of this offering;
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•
11,126,642 shares of common stock will be
    eligible for sale beginning 181 days after the effective
    date of this offering; and
•
972,824 shares of common stock will be
    issuable upon exercise of currently outstanding options and
    warrants, as of April 5, 2004.
The holders of these shares, in most cases, have
registration rights that will allow them to require us to
register their shares either independently or in connection with
subsequent registration statements that we may file in the
future. See "Shares Eligible for Future Sale —
Registration Rights." The sale of these shares, or the
perception that these shares may be sold in the relatively near
future, might make it difficult for us to sell equity securities
in the future. See "Shares Eligible for Future Sale"
and "Principal and Selling Stockholders."
You will incur immediate and substantial
dilution in the pro forma as adjusted net tangible book value of
the shares you purchase.
We estimate that the initial public offering
price of our common stock will be
$           per
share. This amount is substantially higher than the pro forma as
adjusted net tangible book value of
$           per
share that our outstanding common stock will have immediately
after this offering. Accordingly, if you purchase shares of our
common stock in this offering, you will incur immediate and
substantial dilution. If the holders of outstanding options or
warrants exercise those options or warrants, you will suffer
further dilution. In addition, the issuance or exercise of
additional options or warrants to purchase our common stock
could be dilutive to purchasers of shares in this offering. See
"Dilution."
We have outstanding options that have the
potential to dilute shareholder value and cause the price of our
common stock to decline.
We grant stock options to our employees and other
individuals. At April 5, 2004, we had options outstanding
to purchase 920,487 shares of our common stock, at exercise
prices ranging from $0.14 to $168.84 per share. In
addition, upon completion of this offering, we are making an
additional 803,572 shares of our common stock available for
issuance under the 2004 Equity Plan and the Stock Purchase Plan.
If some or all of such shares are sold into the public market
over a short time period, the market price of our common stock
may decline, as the market may not be able to absorb those
shares at the prevailing market prices. Such sales may also make
it more difficult for us to sell equity securities in the future
on terms that we deem acceptable.
Anti-takeover provisions in our charter
documents and Delaware law may delay or prevent tender offers or
takeover attempts, which could adversely affect our common stock
price.
Our certificate of incorporation provides for the
division of our board of directors into three classes and
provides our board of directors with the power to issue shares
of preferred stock without stockholder approval. The holders of
this preferred stock could have voting rights, including voting
rights that could be superior to those holders of our common
stock. Our board of directors has the power to determine these
voting rights. In addition, as a Delaware corporation, we are
required to comply with Section 203 of the Delaware General
Corporation Law. In general, this law prevents a person who
becomes the owner of 15% or more of our outstanding voting stock
from engaging in specified business combinations for those years
in which specified conditions are satisfied. The effect of these
provisions in our certificate of incorporation and Delaware law
could discourage or prevent third-parties from seeking to obtain
control of our company, including transactions in which the
holders of common stock might receive a premium for their shares
over prevailing market prices.
We have discretion as to the use of the net
proceeds from this offering and may not use these in a manner
stockholders would prefer.
Other than the mandatory conversion and dividend
payments to the holders of our Series B Convertible
Participating Preferred Stock and the redemption of our
Series C-2 Non-Voting Preferred Stock, we have not
19
Table of Contents
identified specific uses for all of the net
proceeds from this offering, and our management will have broad
discretion in how we use them. In addition, we are unable to
determine how much of the net proceeds will be used for any
identified purpose because circumstances regarding our planned
use of the proceeds may change. You will not have the
opportunity to evaluate the economic, financial or other
information on which we base our decisions on how to use the net
proceeds. The failure of our management to apply these funds
effectively could harm our business.
We do not anticipate paying dividends on our
common stock in the foreseeable future.
Other than the mandatory conversion and dividend
payment relating to our Series B Convertible Participating
Preferred Stock and the mandatory redemption payment relating to
our Series C-2 Redeemable Non-Voting Preferred Stock as a
result of this offering, we do not anticipate paying any
dividends in the foreseeable future. We currently intend to
retain our future earnings, if any, to fund the development and
growth of our business. As a result, capital appreciation, if
any, of our common stock will be your sole source of gain for
the foreseeable future.
20
Table of Contents
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This prospectus includes forward-looking
statements. All statements other than statements of historical
facts contained in this prospectus, including statements
regarding our future financial position, business strategy and
plans and objectives of management for future operations, are
forward-looking statements. The words "believe,"
"may," "will," "estimate,"
"continue," "anticipate,"
"intend," "expect" and similar expressions,
as they relate to us, are intended to identify forward-looking
statements. We have based these forward-looking statements
largely on our current expectations and projections about future
events and financial trends that we believe may affect our
financial condition, results of operations, business strategy
and financial needs. These forward-looking statements are
subject to a number of risks, uncertainties and assumptions
described in "Risk Factors" and elsewhere in this
prospectus, including, among other things:
•
the acceptance of our Internet-based marketing
    research data collection products and services by existing and
    potential clients;
•
our ability to maintain and expand the Greenfield
    Online panel both domestically and internationally;
•
our ability to market our Internet survey
    solutions;
•
our ability to continue to develop and improve
    our technology infrastructure;
•
significant increases in competitive pressures in
    the marketing research data collection industry;
•
our ability to attract and retain experienced
    project management professionals;
•
the effect that the Do Not Call registry and
    other regulations may have on the adoption of Internet-based
    marketing research data collection;
•
the growth of Internet penetration outside the
    United States; and
•
our ability to expand internationally.
These risks are not exhaustive. Other sections of
this prospectus include additional factors which could adversely
impact our business and financial performance. Moreover, we
operate in a very competitive and rapidly changing environment.
New risk factors emerge from time to time and it is not possible
for our management to predict all risk factors, nor can we
assess the impact of all factors on our business or the extent
to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements. We assume no obligation to update
any forward-looking statements after the date of this prospectus
as a result of new information, future events or developments,
except as required by federal securities laws.
You should not rely upon forward-looking
statements as predictions of future events. We cannot assure you
that the events and circumstances reflected in the
forward-looking statements will be achieved or occur and actual
results could differ materially from those projected in the
forward-looking statements.
21
Table of Contents
USE OF PROCEEDS
We estimate that the net proceeds from this
offering with respect to the shares to be sold by us will be
$           million,
based on an assumed initial offering price of
$           per
share (the mid-point of the price range set forth on the cover
page of this prospectus) and after deducting underwriting
discounts and commissions and estimated offering expenses
payable by us. We will not receive any of the proceeds from the
sale of the shares by the selling stockholders.
We intend to use the net proceeds from this
offering as follows:
•
approximately $9.4 million to pay a
    mandatory conversion and dividend payment to holders of
    outstanding shares of our Series B Convertible
    Participating Preferred Stock;
•
approximately $2.1 million to mandatorily
    redeem all outstanding shares of our Series C-2 Redeemable
    Non-Voting Preferred Stock; and
•
the remainder to fund working capital and general
    corporate purposes, including potential acquisitions.
As of the date of this prospectus, we have no
binding agreements or commitments with respect to any
acquisition. Pending application, we intend to invest the net
proceeds of this offering in short-term, interest-bearing,
investment-grade securities.
DIVIDEND POLICY
Other than the mandatory conversion and dividend
payment relating to our Series B Convertible Participating
Preferred Stock and the mandatory redemption payment relating to
our Series C-2 Redeemable Non-Voting Preferred Stock as a
result of this offering, we do not anticipate paying any
dividends in the foreseeable future. We anticipate that we will
retain all of our future earnings for use in the expansion and
operation of our business. Any future determination as to the
payment of dividends will be at our board of directors'
discretion and will depend on our financial condition, operating
results, current and anticipated cash needs, plans for expansion
and other factors that our board of directors considers to be
relevant.
22
Table of Contents
CAPITALIZATION
The following table sets forth our cash, cash
equivalents and capitalization as of December 31, 2003,
presented on an actual basis and on a pro forma as adjusted
basis to give effect to this offering and certain transactions
as though they occurred as of December 31, 2003 as follows:
•
conversion of all of our outstanding shares of
    convertible preferred stock into 10,408,119 shares of
    common stock;
•
payment of approximately $9.4 million to
    holders of outstanding shares of our Series B Convertible
    Participating Preferred Stock;
•
redemption of all outstanding shares of our
    Series C-2 Redeemable Non-Voting Preferred Stock for an
    aggregate price of approximately $2.1 million; and
•
sale
    of                      shares
    of common stock by us in this offering at an assumed initial
    public offering price of
    $           per
    share (the mid-point of the price range set forth on the cover
    page of this prospectus) and the application of the estimated
    net proceeds. See "Use of Proceeds."
You should read this information together with
the sections of this prospectus entitled "Selected
Consolidated Financial Data" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" and the consolidated financial statements and
related notes appearing elsewhere in this prospectus.
As of December 31, 2003
Pro Forma
Actual
As Adjusted
($ in thousands,
except per share data)
Cash and cash equivalents
$
3,721
$
Capital lease obligations
1,579
Series C-2 redeemable preferred stock; par
    value $0.0001 per share; 10,000 shares authorized and
    outstanding actual; none authorized, issued and outstanding pro
    forma as adjusted
943
Series B convertible preferred stock; par
    value $.0001 per share; 30,211,595 shares authorized,
    issued and outstanding actual; none authorized, issued and
    outstanding pro forma as adjusted
9,114
Stockholders' equity (deficit):
Preferred Stock; par value $.0001 per share; none
    authorized, issued and outstanding actual; 5,000,000 shares
    authorized, none issued and outstanding pro forma as adjusted
—
Series A convertible preferred stock; par
    value $.0001 per share; 40,874,511 shares authorized,
    issued and outstanding actual; none authorized, issued and
    outstanding pro forma as adjusted
4
Series C-1 convertible preferred stock; par
    value $.0001 per share; 74,627,182 shares authorized,
    issued and outstanding actual; none authorized, issued and
    outstanding pro forma as adjusted
7
Common stock; par value $.0001 per share;
    13,605,479 shares authorized and 2,054,486 shares
    issued and outstanding actual; 100,000,000 shares authorized
    and          shares
    issued and outstanding pro forma as adjusted
—
Additional paid-in capital
82,440
Accumulated deficit
(84,389
)
Unearned stock-based compensation
(4,258
)
Note receivable from officer
(131
)
Total stockholders' equity (deficit)
(6,327
)
Total capitalization
$
11,929
$
23
Table of Contents
The outstanding share information in the table
above excludes:
•
920,487 shares of common stock issuable upon
    exercise of outstanding stock options, with a weighted average
    exercise price of $6.02 per share;
•
52,337 shares of common stock issuable upon
    exercise of outstanding warrants, with a weighted average
    exercise price of $24.78 per share;
•
an aggregate of 808,268 shares of common
    stock available for future awards under our 1999 Option Plan and
    our 2004 Equity Plan; and
•
250,000 shares of common stock available for
    future issuance under our Stock Purchase Plan.
24
Table of Contents
DILUTION
As of December 31, 2003, our historical net
tangible book value was approximately $2.5 million, or
$1.21 per share of our common stock. The historical net
tangible book value of our common stock is the difference
between our total tangible assets and our total liabilities,
divided by the number of shares of common stock outstanding at
that date. As of December 31, 2003, the pro forma net
tangible book value of our common stock was approximately
$2.5 million, or $0.20 per share of common stock. The
pro forma net tangible book value of our common stock is the
difference between our tangible assets and our liabilities,
divided by the number of shares of our common stock outstanding
as of December 31, 2003, after giving effect to the
mandatory conversion of all outstanding shares of our
convertible preferred stock into shares of common stock, and the
mandatory redemption of all outstanding shares of our
Series C-2 Redeemable Non-Voting Preferred Stock. For new
investors in our common stock, dilution is the per share
difference between the initial public offering price of our
common stock and the pro forma net tangible book value of our
common stock immediately after completion of this offering and
redemption of all outstanding shares of Series C-2 Preferred
Stock.
After giving effect to our receipt of the net
proceeds from our sale of shares of common stock in this
offering at the assumed public offering price of
$           per
share (the mid-point of the price range set forth on the cover
page of this prospectus) and application of estimated net
proceeds therefrom after deducting the underwriters'
discounts and commissions and estimated offering expenses, our
net tangible book value at December 31, 2003 would have
been approximately
$           million,
or
$           per
share. This represents an immediate increase in net tangible
book value of
$           per
share to existing stockholders and an immediate dilution of
$           per
share to new investors purchasing shares of common stock in this
offering. The following table illustrates this per share
dilution:
Assumed initial public offering price per share
$
Pro forma net tangible book value per share as of
    December 31, 2003
$
Increase per share attributable to new investors
Pro forma as adjusted net tangible book value per
    share after giving effect to this offering and related
    conversions and redemptions
Dilution in pro forma net tangible book value per
    share to new investors
$
The following table summarizes, on a pro forma
basis, as of December 31, 2003, the differences between the
number and percentage of shares of common stock issued to our
existing stockholders and new investors purchasing shares of
common stock in this offering, as well as the aggregate
consideration and the average price per share paid by them:
Shares Purchased
Total Consideration
Average Price
Number
Percent
Amount
Percent
Per Share
Existing stockholders
%
$
%
$
New investors
Total
100
%
$
100
%
$
If the underwriters' over-allotment option
is exercised in full, the following will occur:
•
the percentage of the total number of shares of
    common stock held by existing stockholders will decrease
    to           %
    after this offering; and
•
the number of shares held by new investors will
    increase
    to           or
    approximately           %
    of the total number of shares of our common stock outstanding
    after this offering.
The outstanding share information in the table
above excludes:
•
an aggregate of 920,487 shares of common
    stock issuable upon exercise of outstanding stock options, with
    a weighted average exercise price of $6.02 per share;
25
Table of Contents
•
52,337 shares of common stock issuable upon
    exercise of outstanding warrants, with a weighted average
    exercise price of $24.78 per share;
•
an aggregate of 808,268 shares of common
    stock available for future awards under our 1999 Stock Option
    Plan and our 2004 Equity Plan; and
•
250,000 shares of common stock available for
    future issuance under our Stock Purchase Plan.
26
Table of Contents
SELECTED CONSOLIDATED FINANCIAL DATA
The following selected consolidated financial
data should be read in conjunction with "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" and the consolidated financial statements and
related notes, which are included elsewhere in this prospectus.
The selected consolidated statement of operations data for each
of the fiscal years ended December 31, 2001, 2002 and 2003
and the selected consolidated balance sheet data as of
December 31, 2002 and 2003 are derived from our audited
consolidated financial statements, which are included elsewhere
in this prospectus. The selected consolidated statement of
operations data for the fiscal year ended December 31, 2000
and the selected consolidated balance sheet data as of
December 31, 2000 and 2001 are derived from audited
consolidated financial statements not included in this
prospectus. Selected consolidated financial data for the period
from January 1, 1999 through May 16, 1999 is referred
to as the "Predecessor Company." On May 17, 1999,
members of our then-existing management and a group of new
investors executed a management buyout of 97% of our common
stock. The selected statement of operations data for the periods
from January 1, 1999 through May 16, 1999 and from
May 17, 1999 through December 31, 1999, and the
selected balance sheet data as of December 31, 1999 are
derived from our audited financial statements not included in
this prospectus.
Predecessor Company
January 1,
May 17,
Through
Through
May 16,
December 31,
1999
1999
2000
2001
2002
2003
($ in thousands, except per share data)
Statement of Operations Data:
Net revenues:
Internet survey solutions(1)
$
357
$
545
$
2,051
$
4,072
$
14,416
$
25,868
Custom research(2)
1,377
5,013
13,067
9,715
470
—
Total net revenues
1,734
5,558
15,118
13,787
14,886
25,868
Cost of revenues
702
2,538
6,699
8,097
5,409
8,884
Gross profit
1,032
3,020
8,419
5,690
9,477
16,984
Operating expenses:
Selling, general and administrative
5,244
11,326
42,901
15,148
10,123
12,127
Panel acquisition
27
112
1,619
351
713
1,421
Depreciation and amortization
156
3,844
9,375
2,654
1,802
1,113
Research and development
186
1,441
2,928
1,750
747
626
Total operating expenses
5,613
16,723
56,823
19,903
13,385
15,287
Operating income (loss)
(4,581
)
(13,703
)
(48,404
)
(14,213
)
(3,908
)
1,697
Total other income (expense)
(50
)
(1,016
)
(4,164
)
(3,074
)
945
101
Income (loss) before income taxes
(4,631
)
(14,719
)
(52,568
)
(17,287
)
(2,963
)
1,798
Provision (benefit) for income taxes
—
(940
)
—
—
(569
)
150
Net income (loss)
$
(4,631
)
$
(13,779
)
$
(52,568
)
$
(17,287
)
$
(2,394
)
$
1,648
Less:  Accretion of Series C-2
    redeemable preferred stock dividends
—
—
—
—
—
(63
)
Charge to common stockholders for Series B
    convertible preferred stock liquidation preference in excess of
    fair market value
—
—
—
—
(3,873
)
—
Cumulative dividends on Series B convertible
    preferred stock
—
—
—
—
(28
)
(673
)
Income allocable to participating preferred
    securities
—
—
—
—
—
(761
)
Net income (loss) available to common stockholders
$
(4,631
)
$
(13,779
)
$
(52,568
)
$
(17,287
)
$
(6,295
)
$
151
Net income (loss) per share available to common
    stockholders
Basic
—
(18.61
)
(57.43
)
(17.71
)
(6.42
)
0.07
Diluted
—
(18.61
)
(57.43
)
(17.71
)
(6.42
)
0.06
Weighted average shares outstanding
Basic
—
740
915
976
981
2,054
Diluted
—
740
915
976
981
2,347
27
Table of Contents
As of December 31
1999
2000
2001
2002
2003
($ in thousands)
Balance Sheet Data:
Cash and cash equivalents
$
1,709
$
1,318
$
1,056
$
1,864
$
3,721
Total assets
23,353
13,580
9,102
8,724
11,929
Capital lease obligations
696
1,414
2,537
1,997
1,579
Total debt
19,619
18,836
21,855
1,216
—
Series C-2 redeemable preferred stock
—
—
—
821
943
Series B convertible preferred stock
—
—
—
8,441
9,114
Total stockholders' equity (deficit)
323
(18,351
)
(21,603
)
(8,526
)
(6,327
)
Predecessor
Company
Jan. 1,
May 17
through
through
May 16, 1999
Dec. 31, 1999
2000
2001
2002
2003
($ in thousands)
Other Financial and Operating Data:
EBITDA(3)
$
(4,425
)
$
(9,826
)
$
(38,843
)
$
(9,339
)
$
118
$
3,692
EBITDA margin(4)
n.m.
n.m.
n.m.
n.m.
1
%
14
%
Number of projects completed during period
847
838
1,249
2,482
(1)
Internet survey solutions includes services
    revenues from the collection of survey data for sale to
    marketing research companies.
(2)
Custom research includes revenues from the line
    of business that we sold to Taylor Nelson in January 2002.
(3)
We define EBITDA as earnings before interest
    expense, income taxes, depreciation and amortization, which
    definition may not be comparable to similarly titled measures
    reported by other companies. We are presenting EBITDA because it
    provides an additional way to view our operations, when
    considered with both our GAAP results and the reconciliation to
    net income, which we believe provides a more complete
    understanding of our business than could be obtained absent this
    disclosure. EBITDA is presented solely as a supplemental
    disclosure because: (i) we believe it is a useful tool for
    investors to assess the operating performance of the business
    without the effect of non-cash depreciation and amortization
    expenses; (ii) we believe that investors will find it
    useful in assessing our ability to service or incur
    indebtedness; (iii) we use EBITDA internally to evaluate
    the performance of our personnel and also as a benchmark to
    evaluate our operating performance or compare our performance to
    that of our competitors. The use of EBITDA has limitations and
    you should not consider EBITDA in isolation from or as an
    alternative to GAAP measures such as net income, cash flows from
    operating activities and consolidated income or cash flow
    statement data prepared in accordance with GAAP, or as a measure
    of profitability or liquidity. The following table sets forth
    the reconciliation of EBITDA, a non-GAAP financial measure, to
    net income (loss), our most directly comparable financial
    measure presented in accordance with GAAP.
Predecessor Company
Jan. 1,
May 17
through
through
May 16, 1999
Dec. 31, 1999
2000
2001
2002
2003
($ in thousands)
Net income (loss)
$
(4,631
)
$
(13,788
)
$
(52,569
)
$
(17,287
)
$
(2,394
)
$
1,648
Interest expense
50
1,058
4,351
3,306
591
496
Provision (benefit) for income taxes
—
(940
)
—
—
(569
)
150
Depreciation and amortization
156
3,844
9,375
4,642
2,490
1,398
EBITDA
$
(4,425
)
$
(9,826
)
$
(38,843
)
$
(9,339
)
$
118
$
3,692
EBITDA margin
n.m.
n.m.
n.m.
n.m.
1
%
14
%
(4)
We define EBITDA margin as our EBITDA as a
    percentage of our net revenues. EBITDA margin is not presented
    for 1999, 2000 and 2001 because it is not meaningful.
28
Table of Contents
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF
FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following discussion and analysis of our
financial condition and results of operations should be read in
conjunction with our consolidated financial statements and
related notes starting on pages F-1 through F-29 of this
prospectus. This discussion contains forward-looking statements
that involve risks and uncertainties. Our actual results could
differ materially from those anticipated in these
forward-looking statements as a result of certain factors,
including those discussed in "Risk Factors" above. See
"Cautionary Note Regarding Forward-Looking
Statements."
Overview
We are a leading independent provider of Internet
survey solutions to the global marketing research industry and
we derive 100% of our revenues from Internet data collection
products and services. We actively manage the Greenfield Online
panel, a 100% Internet-based panel of approximately
1.7 million individuals who participate in our surveys. Our
panelists represent households consisting of an estimated
4.7 million people, allowing us to compile diverse,
demographically representative survey data.
We target our Internet survey solutions to
approximately 2,500 full service marketing research and
consulting firms in the United States and the world's top
25 marketing research companies. Our clients use the Internet
survey data that we provide to enable companies throughout the
world to make critical marketing and business decisions. Based
on our internal estimates, we believe that spending associated
with the gathering of survey data, known as fieldwork, accounts
for approximately 40% of the annual spending on survey marketing
research. Using this estimate, fieldwork represented
approximately $3.0 billion of the approximately
$7.5 billion global survey market in 2002 as reported by
the
World Association of Opinion and Marketing Research
Professionals
.
Over the past nine years, we have developed
proprietary panel management techniques that allow us to manage
the Greenfield Online panel. We use these techniques to
efficiently conduct Internet surveys and continually seek to
refresh and enhance our panel profiles, enabling the delivery of
higher-value survey data to our clients. Our automated
technology platform allows us to perform a large volume of
surveys simultaneously, and our global production capabilities
enable us to provide continuous survey programming, data
collection and processing services.
Key Historical Events that Impact Our
Business
We were incorporated in the State of Connecticut
on September 28, 1995. Until May 17, 1999, one person
owned all of our capital stock. On May 17, 1999, our
then-existing management and a group of new investors completed
a management buyout (the "Management Buyout"), in
which approximately 97% of our outstanding common stock was
acquired by Greenfield Holdings, LLC ("Greenfield
Holdings"), an entity formed for the sole purpose of the
Management Buyout. The remaining 3% was retained by the prior
owner. From 1999 until 2002, we invested significant amounts to
build the Greenfield Online panel and our Internet-based
technology infrastructure. In December 2002, our controlling
shareholders completed a recapitalization of our business and
Greenfield Holdings was dissolved.
Until January 2002, we sold both custom
Internet-based marketing research and the Internet survey
solutions we sell today. A majority of our revenues for the
first seven years of our existence was derived from the sale of
custom marketing research. In September 2001, we embarked on a
strategy to convert the focus of our business from providing
custom marketing research to end-users to providing Internet
survey solutions to the marketing research firms we target
today. This strategy culminated in the sale of our custom
marketing research business (the "Custom Research
Business") to Taylor Nelson in January 2002. The sale of
our Custom Research Business represented a turning point in our
development as we shifted from a labor-intensive, professional
services business model to a scalable Internet-based services
business model.
Under our asset sale agreement with Taylor
Nelson, we received $2.0 million in cash consideration at
closing in January 2002 and an additional $600,000 in January
2003. Contemporaneously with the execution of the asset sale
agreement, we entered into an alliance agreement with Taylor
Nelson that terminates on
29
Table of Contents
January 30, 2007. We treated
$1.4 million of the proceeds received at closing as
consideration for the value of the assets conveyed and $600,000
as a prepayment of the first three months' payments due
under the alliance agreement. The alliance agreement obligated
Taylor Nelson to use our services to meet substantially all of
its Internet sample survey requirements for U.S.-based marketing
research until certain minimum revenue guarantees were met. In
2002, the alliance agreement required Taylor Nelson to provide
us with a minimum of $200,000 per month after the first
three months of qualifying revenue for purchases of sample and
other services, and in 2003 this minimum monthly amount
increased to $300,000. In December 2003, Taylor Nelson satisfied
its total minimum purchase requirement, but we continue to
perform work for Taylor Nelson under the terms of the alliance
agreement.
In July 2003, we formed Greenfield Online Private
Limited ("GFOL India") in Gurgaon, India in order
to reduce labor costs and to allow us to offer around-the-clock
data processing and survey programming services. In August 2003,
we acquired Greenfield Online Europe, Ltd. ("GFOL
Europe"), a newly-formed U.K. corporation, to allow us to
market our Internet survey solutions in Europe. In March 2004,
we formed Greenfield Online Canada, Ltd. in order to expand our
North American operations to cover the Canadian market.
Our Operating Leverage
We believe our Internet-based model provides
significant operating leverage and should lead to expansion of
our operating income margin if we are successful in growing our
revenues. By leveraging the established Greenfield Online panel,
conducting an increasing number of surveys using our existing
technology infrastructure and benefitting from our operations
center in India, we believe that we will continue to improve our
operating leverage.
We utilize a combination of sales professionals,
account executives and automated bid technology to maximize our
personal interaction with current and prospective clients while
minimizing selling costs. We also utilize our clients'
sales organizations as channel partners for distribution of our
Internet survey solutions. By selling through marketing research
channels, we experience significant sales leverage and return on
invested sales dollars.
Quarterly Internet Survey Solutions Revenue
Growth
We have experienced significant growth in our
revenues related to Internet survey solutions since 2000.
Starting with a base annual revenue of $2.1 million in
2000, our Internet survey solutions revenues grew to
$25.9 million for the year ended December 31, 2003.
The following chart depicts growth of our quarterly services
revenues derived from Internet survey solutions from January
2001 through December 2003.
30
Table of Contents
Explanation of Key Financial Statement
Captions
Net
Revenues
We report our revenues net of customer volume
rebates and cash discounts. Discounts for larger customers
typically range from 5% to 20% off of our standard rates and we
typically limit volume rebates to a few customers. These rebates
have not been material in amount historically, nor do we expect
them to be material in the near future. Our net revenues are
derived primarily from the following offerings:
•
Full
    Service
— we program our
    clients' surveys, host them on our website infrastructure,
    invite our panelists to take the surveys and deliver the
    compiled data to our clients for their analysis and presentation.
•
Sample Solutions —
clients that have their own
    programming capabilities, but have limited or no access to
    survey respondents, can purchase controlled access to the
    Greenfield Online panel.
In 2003, our net revenues were evenly derived
from full-service and sample solutions. We expect our relative
mix of revenues to remain the same in 2004.
We typically experience a one month lag between
submitting a bid for a project and the project award. We monitor
forward delivery demand using the bid data maintained on our
customer relationship management software and the
"win-rate" derived from this data in order to plan
operational needs, such as the need to hire or reassign delivery
personnel, and panel growth needs and composition.
Once awarded, our typical project is usually
completed in less than 30 days. We track the costs incurred
on each project and defer cost recognition until such time as
the project is delivered to the client. Upon delivery, the costs
associated with the project are expensed and revenue is
recognized.
Cost of
Revenues
Our direct costs associated with generating
revenues primarily consist of the following items:
•
Project
    Personnel
— Project
    personnel have three distinct roles: project management, survey
    programming and data processing. We maintain project personnel
    in the United States, Europe, Canada and India. Labor costs are
    specifically allocated to each project. We utilize an automated
    timekeeping system in which project personnel maintain estimates
    of time incurred for each specific project. Project personnel
    are paid quarterly bonuses based upon quality of service
    delivery and achievement of revenue goals associated with
    clients.
•
Panelist
    Incentives
— Our panelists
    receive cash and non-cash incentives for participating in our
    surveys. Each member of our panel has their own Greenfield
    Online incentive account that we maintain. We accrue incentives
    based upon a member qualifying for and completing a survey
    within a predetermined timeframe. The panel member may request
    and receive payment of his or her incentives at any point in
    time prior to expiration. Incentives generally expire one year
    after award as outlined in terms and conditions available on our
    panelist website.
•
Data
    Processing
— We perform the
    majority of the processing of survey data with our own
    professionals. Occasionally, we outsource certain data
    processing functions to third-party suppliers.
•
Outside
    Sample
— Occasionally,
    clients will request that we supplement our sample with survey
    responses from individuals who are not members of the Greenfield
    Online panel. These requests may occur in situations where the
    customer requests augmentation of data collected from the
    Greenfield Online panel, as well as in markets in which we do
    not have panelists, typically certain international geographic
    sectors.
•
Other Direct
    Costs
— Other direct costs
    may include the following: (i) fees paid to a third party
    for healthcare-related sample data retrieved from a panel of
    healthcare professionals developed by this third party and
    (ii) fees paid to Microsoft Corporation for surveys
    completed and sold using data from panelists we have obtained
    through the Microsoft Network ("MSN"). We intend to
    phase out our use
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of arrangements with third parties that require
    us to pay fees in connection with completed surveys. Also
    included in other direct costs are unearned stock-based
    compensation charges which are amortized over the service period
    of options granted to project personnel.
•
Amortization of Internal Use
    Software
— We include in
    cost of revenues amortization of capitalized software costs
    related to survey production. Over the last two years, we have
    migrated from developing the majority of our internal use
    software ourselves to using third-party best-of-breed survey
    solutions. This migration has tended to reduce the cost of such
    software and thus, has also reduced amortization expense.
Selling, General and Administrative
    Expenses
We employ 31 individuals that support the sales
and marketing of our Internet survey solutions. These sales
professionals are compensated based upon project delivery and
revenue recognition. Commissions are accrued when we deliver
completed projects to our clients. In addition, we maintain the
Greenfield Online panel with a staff of five panel management
personnel. These individuals design programs geared toward
panelist recruitment, retention and incentives and are also
responsible for panel database design and development.
Furthermore, we support our sales effort with a staff of three
marketing professionals who design product pricing, promotional
and distribution strategies. We employ 11 individuals who
provide a foundation for these functions in the areas of
executive, finance, human resources and information technology
operations. This group is responsible for maintaining the
infrastructure and support for the entire sales, delivery and
panel teams. Also included in selling, general and
administrative expenses are unearned stock-based compensation
charges which are amortized over the service period of options
granted to selling, general and administrative personnel.
Panel Acquisition Expenses
We continually add new members to the Greenfield
Online panel in order to support growing demand for our products
and services as well as to compensate for members who leave the
panel in the ordinary course of our business. We incur costs to
acquire members for our panel, including fees paid to procure
new panelists from our web master affiliate program and through
panel acquisition agreements with large Internet portals,
special interest, age and ethnicity-related websites, incentives
paid to Microsoft for recruiting panelists to the panel, the
cost to test potential panel sources before full recruitment
roll-out begins on a specific website and other costs associated
with the panel recruitment process. These costs are expensed as
incurred.
Research and Development
    Expenses
We employ a staff of professional technology
personnel who develop proprietary solutions for panel database
development and integrating client and third-party software
solutions into our technology infrastructure. All costs
associated with research and product development efforts are
expensed as incurred and recorded under research and development
expenses.
As discussed in Note 2 to our consolidated
financial statements included elsewhere in this prospectus,
costs relating to survey software development that meet the
criteria for capitalization under GAAP are capitalized and
amortized over the estimated period of benefit, usually two
years.
Income Taxes
We recognize deferred tax assets and liabilities
on differences between the book and tax basis of assets and
liabilities using currently effective rates. Further, deferred
tax assets are recognized for the expected realization of
available net operating loss carryforwards. A valuation
allowance is recorded to reduce a deferred tax asset to an
amount that we expect to realize in the future. We continually
review the adequacy of the valuation allowance and recognize
these benefits if a reassessment indicates that it is more
likely than not that these benefits will be realized. In
addition, we continuously evaluate our tax contingencies and
recognize a liability when we believe that it is probable that a
liability exists.
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Table of Contents
Treatment of Sale of Custom Research
Business
We do not believe that the sale of the Custom
Research Business qualified for discontinued operations
treatment under Statement of Financial Accounting Standards
No. 144, "Accounting for the Impairment or Disposal of
Long-Lived Assets" ("SFAS 144"), because
(i) the business was not run separately from the Internet
Survey Solutions business, (ii) a single income statement
and cash flow statement was prepared on a combined basis for
internal reporting purposes, (iii) we never attempted to
capture and track cash flows of the Custom Research Business
separately, and it would be impracticable for us to
retrospectively develop meaningful information regarding these
cash flows; and (iv) we had continuing involvement in the
business under our alliance agreement, as both Taylor Nelson and
its end customers relied on us to fulfill our obligations under
contracts in process and as principal supplier of internet
research to Taylor Nelson during the term of the agreement.
Critical Accounting Policies and
Estimates
Our discussion and analysis of our financial
condition and results of operations are based on our financial
statements, which have been prepared in conformity with GAAP in
the United States. The preparation of these financial statements
requires us to make estimates and judgments that affect the
reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses
during the reporting periods. On an on-going basis, we evaluate
our estimates and judgments. We base our estimates on historical
experience, independent instructions, known trends and events
and various other factors that are believed to be reasonable
under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and
liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates under different
assumptions or conditions.
We believe the following critical accounting
policies affect our more significant judgments and estimates
used in the preparation of our consolidated financial statements.
Revenue Recognition.
We recognize revenues when survey data is delivered to the
client in accordance with the terms of our agreements. Research
products are delivered within a short period, generally ranging
from a few days to eight weeks. An appropriate deferral is made
for direct costs related to contracts in process, and no revenue
is recognized until delivery of the data has taken place.
Billings rendered in advance of services being performed, as
well as customer deposits received in advance, are recorded as a
current liability included in deferred revenue. We are required
to estimate contract losses, if any, and provide for such losses
in the period they are determined and estimable. We do not
believe that there are realistic alternatives to our revenue
recognition policy given the short period of service delivery
and the requirement to deliver completed surveys to our
customers. We do not believe there is significant risk of
recognizing revenue prematurely since our contracts are
standardized, the earnings process is short and no single
project accounts for a significant portion of our revenue.
Stock-Based
Compensation.
We have elected to
follow Accounting Principle Board Opinion No. 25,
"Accounting for Stock Issued to Employees"
("APB 25"), and related interpretations in
accounting for our stock-based compensation plans, rather than
the alternative fair value method provided for under Financial
Accounting Standard No. 123 "Accounting for
Stock-Based Compensation" ("FAS 123"). In
2002 and 2003, we granted certain options to purchase our common
stock at exercise prices that we have now determined to be less
than the fair value of our common stock and, as a result, we
have recorded deferred stock compensation expense which is
amortized to earnings over the service period of the employee.
In the notes to our consolidated financial statements, we
provide pro forma disclosures in accordance with FAS 123.
Accounting for equity instruments granted or sold
by us under APB 25, FAS 123 and EITF 96-18
requires fair value estimates of the equity instrument granted
or sold. If our estimates of the fair value of these equity
instruments are too high or too low, our expenses may be over-
or under-stated. Equity instruments granted or sold in exchange
for the receipt of goods or services and the value of those
goods or services can not be readily estimated, as is true in
connection with most stock options and warrants granted
33
Table of Contents
to employees and non-employees, and we estimated
the fair value of the equity instruments based upon
consideration of factors which we deemed to be relevant at the
time.
The fair value of our common stock is determined
by our board of directors contemporaneously with the grant of a
stock option. Prior to the existence of a public trading market
for our common stock, our board of directors considered numerous
objective and subjective factors in determining the fair value
of our common stock. At the time of option grants and other
stock issuances, our board of directors considered the
liquidation preferences, dividend rights, voting control and
anti-dilution protection attributable to our then-outstanding
redeemable convertible preferred stock, the status of private
and public financial markets, valuations of comparable private
and public companies, the likelihood of achieving a liquidity
event, our existing financial resources, our anticipated capital
needs, dilution to common stockholders from anticipated future
financings and a general assessment of future business risks, as
such conditions existed at the time of the grant. Subsequent
events or conditions that differ from these factors could have a
material impact on stock compensation expense in our
consolidated financial statements.
Earnings Per Share
We report net income (loss) per share in accordance with
Statement of Financial Accounting Standards No. 128
"Earnings per Share" ("SFAS 128"). Earnings
per share ("EPS") is sensitive to fair value
estimation techniques, as this effects accretion estimates that
are charged against income available to common stockholders. For
our participating preferred securities it is our policy to
determine both basic and diluted EPS using the "two
class" method as defined under SFAS 128. We determined
this as the appropriate method as it was more dilutive than the
"if — converted" method.
Results of Operations
Year Ended December 31, 2003 Versus
    Year Ended December 31, 2002
The following table sets forth our results of
operations based on the amounts and percentage relationship of
the items listed to net revenues for the periods presented.
2002
%
2003
%
($ in thousands)
Net revenues:
Internet survey solutions
$
14,416
96.8
%
$
25,868
100.0
%
Custom research
470
3.2
—
—
Total net revenues
14,886
100.0
25,868
100.0
Cost of revenues
5,409
36.3
8,884
34.3
Gross profit
9,477
63.7
16,984
65.7
Operating expenses:
Selling, general and administrative
10,123
68.0
12,127
46.9
Panel acquisition expenses
713
4.8
1,421
5.5
Depreciation and amortization
1,802
12.1
1,113
4.3
Research and development
747
5.0
626
2.4
Total operating expenses
13,385
89.9
15,287
59.1
Operating income (loss)
(3,908
)
(26.3
)
1,697
6.6
Other income (expense):
Interest expense, net
(621
)
(4.2
)
(440
)
(1.7
)
Related party interest income (expense), net
69
0.5
(55
)
(0.2
)
Other income, net
1,497
10.1
596
2.3
Total other income
945
6.3
101
0.4
Income (loss) before income taxes
(2,963
)
(19.9
)
1,798
7.0
Provision (benefit) for income taxes
(569
)
(3.8
)
150
0.6
Net income (loss)
$
(2,394
)
(16.1
)%
$
1,648
6.4
%
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Net Revenues.
Net
revenues for Internet survey solutions for the year ended
December 31, 2003 were $25.9 million, compared to
$14.4 million for the year ended December 31, 2002, an
increase of $11.5 million, or 79.4%. Net revenues increased
primarily due to an increase in the number of survey projects
completed as well as an increase in the number of clients we
serviced in 2003 over 2002. New revenue sources introduced early
in 2003, including sample-only solutions and revenues from the
healthcare segment of the Greenfield Online panel, contributed
significantly to the increase in revenues from 2002 to 2003.
Furthermore, demand for our services was driven by market
factors, including the need for customers to improve
profitability by using Internet-based marketing research data
and the impact of the Do Not Call registry on marketing research
firms whose franchises were previously predominantly
telephone-based research solutions. Net revenues from custom
research for the year ended December 31, 2003 decreased to
zero from $470,000 in the year ended December 31, 2002. The
decrease in custom research revenues was due to the sale of our
Custom Research Business in January 2002 and our shift in
strategy to providing Internet survey solutions.
Gross Profit.
Gross
profit for the year ended December 31, 2003 was
$17.0 million, compared to $9.5 million for the year
ended December 31, 2002, an increase of $7.5 million,
or 79.2%. Gross profit increased primarily due to the additional
revenues described above. Gross profit as a percentage of net
revenues increased due primarily to a decline in costs related
to the amortization of capitalized survey software cost. As we
migrated from development of our own survey software technology
to using third-party technology, the associated costs for
internal use software declined significantly. As a result of
lower spending, the amounts capitalized and the related
amortization have declined. Gross profit for the year ended
December 31, 2003 was 65.7% of net revenues, compared to
63.7% for the year ended December 31, 2002.
Selling, General and Administrative Expenses.
Selling, general and administrative
expenses for the year ended December 31, 2003 were
$12.1 million, compared to $10.1 million for the prior
year, an increase of $2.0 million or 19.8%. Selling
expenses, primarily personnel costs and related commissions,
increased substantially as a result of additional resources
aimed at promoting our services. General and administrative
expenses increased primarily as a result of increased
compensation expense associated with executive compensation, as
well as costs associated with our India and U.K. expansion,
which began in 2003. In addition, amortization of unearned
stock-based compensation in 2003 contributed to this increase.
As a percentage of net revenues, selling, general and
administrative costs decreased 21.1% primarily due to the
overall increase in revenues generated by the additional sales
efforts. Selling, general and administrative expenses were 46.9%
of net revenues for the year ended December 31, 2003,
compared to 68.0% for the year ended December 31, 2002.
Panel Acquisition Expenses.
Panel acquisition expenses were
$1.4 million for the year ended December 31, 2003,
compared to $713,000 for the year ended December 31, 2002,
an increase of $708,000, or 99.3%. Panel acquisition expenses
increased primarily as a result of our continuing efforts to
expand and diversify our panel. Panel acquisition expenses were
5.5% of net revenues for the year ended December 31, 2003,
compared to 4.8% for the year ended December 31, 2002.
Depreciation and Amortization Expenses.
Depreciation and amortization expenses
for the year ended December 31, 2003 were
$1.1 million, compared to $1.8 million for the year
ended December 31, 2002, a decrease of $689,000, or 38.2%.
The decrease was primarily due to a decrease in amortization
expense of intangible assets and a decrease in depreciation
expense of property and equipment. This decline in depreciation
and amortization expense occurred as a portion of these assets
became fully depreciated early in 2003.
Interest Expense, Net.
Interest expense for the year ended
December 31, 2003 was $440,000, compared to $621,000 for
the year ended December 31, 2002, a decrease of $181,000,
or 29.1%. The decrease was due primarily to lower debt levels
outstanding during the 2003 period, resulting from repayment of
the outstanding balance debt under our revolving credit facility
in October 2003 with cash generated from operations.
Related Party Interest Income (Expense).
Related party interest expense for the
year ended December 31, 2003 was $55,000, compared to
related party interest income of $69,000 for the year ended
December 31, 2002. This change was due to our
recapitalization in 2002, which involved, among other
35
Table of Contents
things, the exchange of our related party
convertible notes for preferred stock in 2002. In addition, the
increase in related party interest expense was due to accretion
of debt discount on certain shares of preferred stock issued in
connection with our the recapitalization in December 2002.
Other Income, Net.
Other income for the year ended
December 31, 2003 was $596,000, compared to
$1.5 million for the year ended December 31, 2002.
Other income for the year ended December 31, 2003 related
primarily to the contingent gain on the sale of our Custom
Research Business, which was completed in January 2002. The
contingent gain could not be recognized until January 2003, when
certain conditions were met and the cash was collected. Other
income for the year ended December 31, 2002 related
primarily to the gain on the disposal of the Custom Research
Business. For a further discussion of the sale of our Custom
Research Business, see note 3 to our consolidated financial
statements.
Provision (Benefit) for Income Taxes.
We recorded an income tax provision
for the year ended December 31, 2003 of $150,000, compared
to a benefit of $569,000 for the year ended December 31,
2002. The 2003 tax provision was primarily related to federal
and state taxes that could not be offset by net operating loss
carryforwards. In 2002, the tax benefit reflected a state
research and development credit for which we received refunds.
Net Income (Loss).
Our net income for the year ended
December 31, 2003 was $1.6 million, compared to a net
loss of $2.4 million for the year ended December 31,
2002. The increase in net income is primarily the result of the
increase in revenues partially offset by increased selling,
general and administrative expenses and panel acquisition
expenses, as more fully described above. Net income per common
share for the year ended December 31, 2003 was $0.07 basic
and $0.06 diluted, as compared to a net loss of $(6.42) basic
and diluted for the year ended December 31, 2002.
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Table of Contents
Year Ended December 31, 2002 Versus
    Year Ended December 31, 2001
The following table sets forth our results of
operations based on the amounts and percentage relationship of
the items listed to net revenues for the periods presented.
2001
%
2002
%
($ in thousands)
Net revenues
Internet survey solutions
$
4,072
29.5
%
$
14,416
96.8
Custom research
9,715
70.5
470
3.2
Total net revenues
13,787
100.0
14,886
100.0
Cost of revenues
8,097
58.7
5,409
36.3
Gross profit
5,690
41.3
9,477
63.7
Operating expenses:
Selling, general and administrative
15,148
109.9
10,123
68.0
Panel acquisition expenses
351
2.5
713
4.8
Depreciation and amortization
2,654
19.3
1,802
12.1
Research and development
1,750
12.7
747
5.0
Total operating expenses
19,903
144.4
13,385
89.9
Operating income
(14,213
)
(103.1
)
(3,908
)
(26.3
)
Other income (expense):
Interest expense, net
(971
)
(7.0
)
(621
)
(4.2
)
Related party interest income (expense), net
(2,303
)
(16.7
)
69
0.5
Other income, net
200
1.5
1,497
10.1
Total other income (expense)
(3,074
)
(22.3
)
945
6.3
Loss before income taxes
(17,287
)
(125.4
)
(2,963
)
(19.9
)
Benefit from income taxes
—
—
(569
)
(3.8
)
Net loss
$
(17,287
)
(125.4
)%
$
(2,394
)
(16.1
)%
Net Revenues.
Net
revenues for Internet survey solutions for the year ended
December 31, 2002 were $14.4 million, compared to
$4.1 million for the year ended December 31, 2001, an
increase of $10.3 million, or 254.0%. The overall increase
in net revenues was primarily due to an increase in the number
of survey projects completed as well as an increase in the
number of clients we serviced in 2002 over 2001. This increase
in revenues was due primarily to the impact of our shift in
strategy to being an Internet survey solutions provider after
the sale of our Custom Research Business. Net revenues from
custom research for the year ended December 31, 2002
decreased by $9.2 million, or 95.2%, to $470,000 from
$9.7 million for the year ended December 31, 2001 due
to the sale of our Custom Research Business in January 2002.
Gross Profit.
Gross
profit for the year ended December 31, 2002 was $9.5
million, compared to $5.7 million for the year ended
December 31, 2001, an increase of $3.8 million, or
66.6%. Gross profit increased primarily due to our increased
revenues as well as a significant decline in amortization of
capitalized survey software costs. As we migrated from internal
development of survey software technology to use of third-party
technology, the associated application development costs for
overall survey software declined significantly. As a result of
lower spending, amounts capitalized and the related amortization
have declined. Gross profit as a percentage of net revenues for
the year ended December 31, 2002 was 63.7%, compared to
41.3% for the year ended December 31, 2001. This increase
was due primarily to the lower direct project costs associated
with full service and sample solutions as opposed to custom
research survey solutions, which we did not provide in
substantially all of 2002, as well as the decline in
amortization expense associated with internally developed
software.
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Table of Contents
Selling, General and Administrative Expenses.
Selling, general and administrative
expenses for the year ended December 31, 2002 were
$10.1 million, compared to $15.1 million for the prior
year, a decrease of $5.0 million, or 33.1%. Selling,
general and administrative expenses for the year ended
December 31, 2002 were 68.0% of net revenues, compared to
109.9% of net revenues for the year ended December 31,
2001. Selling, general and administrative expenses decreased
primarily as a result of the disposition of our Custom Research
Business and cost savings measures we instituted during 2001. Of
the $5.0 million decline in selling, general and
administrative expenses, $4.8 million was due to reduction
in headcount following the sale of our Custom Research Business
and additional workforce reductions that we effected in early
2002. Additionally, the reduction was due in part to lower
overhead expenses resulting from these personnel reductions.
Panel Acquisition Expenses.
Panel acquisition expenses for the
year ended December 31, 2002 were $713,000, compared to
$351,000 for the year ended December 31, 2001, an increase
of $362,000, or 103.1%. Panel acquisition expenses increased
primarily as a result of our efforts to grow the size of the
Greenfield Online panel during 2002 to support a higher level of
survey volume expected in 2003 and the future. Panel acquisition
expenses for the year ended December 31, 2002 were 4.8% of
net revenues, compared to 2.6% of net revenues for the year
ended December 31, 2001.
Depreciation and Amortization Expenses.
Depreciation and amortization expenses
for the year ended December 31, 2002 were $1.8 million,
compared to $2.7 million for the year ended
December 31, 2001, a decrease of $852,000, or 32.1%.
Depreciation and amortization expenses decreased primarily due
to reduced amortization expense related to intangible assets,
which were written down in 2001 due to a lack of recoverability.
Research and Development Expenses.
Research and development expenses for
the year ended December 31, 2002 were $747,000, compared to
$1.8 million for the year ended December 31, 2001, a
decrease of $1.0 million. The decline was due primarily to
cost reduction efforts, including staff reductions and reduction
of third-party software development consultant fees.
Interest Expense, Net.
Interest expense, net for the year
ended December 31, 2002 was $621,000, compared to $971,000
for the year ended December 31, 2001, a decrease of
$350,000, or 36.0%. The decrease was due primarily to lower debt
levels outstanding during 2002. During 2002, we repaid our term
loan with Bank of America, and we used part of the proceeds from
the sale of our Custom Research Business to further reduce
outstanding debt.
Related Party Interest Income (Expense), Net.
Related party interest income was
$69,000 as compared to an expense of $2.3 million for the
years ended December 31, 2002 and December 31, 2001,
respectively. The decline in related party interest expense was
due to the effects of the 2002 recapitalization.
Other Income, Net.
Other income for the year ended
December 31, 2002 was $1.5 million, compared to
$200,000 for the year ended December 31, 2001. Other income
for the year ended December 31, 2002 related primarily to
the gain on disposal of our Custom Research Business, which was
completed in January 2002. Other income for the year ended
December 31, 2001 related primarily to the sale of a patent
on software that we had developed but no longer needed.
Benefit from Income Taxes.
We recorded an income tax benefit for
the year ended December 31, 2002 of $569,000, which
reflected a state research and development credit. For the year
ended December 31, 2001, we did not record any income tax
benefit as cumulative losses placed in doubt the ultimate
realization of the related deferred tax assets.
Net Income (Loss).
Our net loss for the year ended
December 31, 2002 was $2.4 million, compared to a net
loss of $17.3 million for the year ended December 31,
2001. The improvement on our net loss is the result of increased
revenues as a result of the migration in business strategy and
the workforce reduction as more fully described above. Net loss
per share amounted to $(6.42) basic and diluted for the year
ended December 31, 2002, as compared to $(17.71) basic and
diluted for the year ended December 31, 2001.
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Liquidity and Capital Resources
Since inception, we have financed our operations
primarily through sales of equity and debt securities, from
borrowings under our credit facilities, from the proceeds from
the sale of our Custom Research Business and, more recently,
through cash flows from operations. We have received a total of
$43.0 million from private offerings of our equity and debt
securities. At December 31, 2003, we had approximately
$3.7 million in cash on hand.
Cash provided by operations for the year ended
December 31, 2003 was $4.1 million, compared to
$697,000 for the year ended December 31, 2002. The increase
in cash flow from operations in 2003 was primarily attributed to
our profitability and to improved working capital management.
Cash provided by investing activities was
$295,000 for the year ended December 31, 2003, compared to
$539,000 for the year ended December 31, 2002. These
amounts primarily represented net cash received from the sale of
our Custom Research Business of $600,000 in 2003 and
$1.1 million in 2002, offset by $305,000 and $558,000 of
cash capital expenditures made in the ordinary course of
business in 2003 and 2002, respectively.
Cash used in financing activities was
$2.5 million for the year ended December 31, 2003 as
compared to $428,000 for the year ended December 31, 2002.
The difference was primarily the result of higher repayments of
our short-term debt in 2003.
Our working capital at December 31, 2003 was
$1.0 million, compared to a deficit of $1.9 million at
December 31, 2002, an increase of $2.9 million. The
increase in working capital was primarily due to our improved
profitability resulting in increases in cash and accounts
receivable and decreases in outstanding debt, partially offset
by increases in accounts payable and accrued expenses as a
result of growth in the number of our employees and in the size
of our panelist base.
We have maintained a banking relationship with
Silicon Valley Bank since September 2001. In August 2003, we
amended our credit facility with Silicon Valley Bank to extend
the maturity date until August 2005 and reduce the applicable
interest rate. This credit facility allows for borrowings of up
to $1.9 million, based upon an 80% advance rate on eligible
accounts receivable (the "Borrowing Base"), and bears
interest at a rate equal to the prime rate plus 1%, plus a
collateral handling fee of 0.375% of the monthly average daily
financed receivable balance. The credit facility is
collateralized by a pledge of our general assets and contains a
covenant that requires us to achieve EBITDA (as defined in the
credit facility) of $1.00 or more during each month that the
facility is outstanding. In October 2003, we repaid the entire
outstanding balance under the facility, and at December 31,
2003 the entire amount was available for borrowing, subject to
the sufficiency of the Borrowing Base.
We also maintain an ongoing relationship with
Somerset Capital Group Ltd., a leasing company, to finance the
acquisition of equipment, software and office furniture pursuant
to leases which we have recorded as capital leases.
At December 31, 2003 and 2002, we did not
have any relationships with unconsolidated entities or financial
partnerships, such as entities often referred to as structured
finance or special purpose entities, which would have been
established for the purpose of facilitating off-balance sheet
arrangements or other contractually narrow or limited purposes.
As such, we are not exposed to any financing, liquidity, market
or credit risk that could arise if we had engaged in such
relationships.
We intend to use the net proceeds of this
offering to pay a mandatory conversion and dividend payment of
approximately $9.4 million to the holders of our
Series B Convertible Participating Preferred Stock.
Additionally, we intend to use approximately $2.1 million
of the net proceeds of this offering to fund a mandatory
redemption of all outstanding shares of our Series C-2
Redeemable Non-Voting Preferred Stock. We intend to use the
remainder of the net proceeds to fund working capital and
general corporate purposes. See "Use of Proceeds."
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During 2004, we expect capital expenditures to
total approximately $2.8 million, including approximately
$1.0 million for the construction of our operations
facility in India. We also expect that capital expenditures for
our operations in North America will be approximately
$1.8 million in 2004.
The following table summarizes our contractual
obligations at December 31, 2003 and the effect such
obligations are expected to have on our liquidity and cash flow
in future periods:
Years Ended December 31,
2009 and
Total
2004
2005
2006
2007
2008
thereafter
(in thousands)
Contractual obligations:
Loans payable
$
27
$
5
$
5
$
6
$
6
$
5
$
—
Capital lease obligations
1,579
874
548
129
28
—
—
Long-term debt
—
—
—
—
—
—
—
Series C-2 preferred redemption payment(1)
2,052
2,052
—
—
—
—
—
Series B preferred conversion payment(1)
9,114
9,114
—
—
—
—
—
Non-cancelable operating lease obligations
6,791
1,413
1,067
1,067
1,127
1,127
990
Total contractual cash obligations
$
19,563
$
13,458
$
1,620
$
1,202
$
1,161
$
1,132
$
990
(1)
Represents mandatory payments to be made upon
    completion of our proposed IPO. The amounts have been presented
    in this table at their liquidation value at December 31,
    2003. In the absence of a qualified initial public offering, the
    Series C-2 Redeemable Non-Voting Preferred Stock will
    become mandatorily redeemable in May 2009 and the Series B
    Participating Preferred Stock will become convertible (and the
    conversion payment will become due) only with our consent.
Based on our current level of operations and
anticipated growth, we believe that our cash generated from
operations, amounts available under our credit facility and
future capital leasing arrangements with Somerset Capital,
together with the net proceeds that we will receive from this
offering, will be adequate to finance our working capital and
other capital expenditure requirements through the foreseeable
future, although no assurance can be given in this regard. Poor
financial results, unanticipated expenses, acquisitions of
technologies or businesses or strategic investments could give
rise to additional financing requirements sooner than we expect.
There can be no assurance that equity or debt financing will be
available to us when we need it or, if available, that the terms
will be satisfactory to us and not dilutive to our then-current
stockholders.
Impact of Inflation
Our results are affected by the impact of
inflation primarily on production, operating costs and interest
rates. The effects of inflation in changing prices on our net
revenues and operations have not been material in the last three
fiscal years. However, there has been deflationary pressure on
selling prices, which require us to monitor our operating costs
and efficiencies. Due to the competitive nature of the marketing
research industry, there can be no assurance that this negative
pressure will not continue. Historically, we have used selling
price adjustments, cost containment programs and improved
operating efficiencies to offset the otherwise negative impact
of inflation on our operations.
Quantitative and Qualitative Disclosures About
Market Risk
We operate primarily in the United States.
However, we have recently expanded internationally and are
exposed to certain market risks arising from transactions that
in the normal course of business include fluctuations in
interest rates and currency exchange rates. These risks are not
expected to be material. However, no assurance can be given that
such risks will not become material. While we have not used
derivative financial instruments in the past, we may, on
occasion, use them in the future in order to manage or reduce
these risks. We do not expect to enter into derivative or other
financial instruments for trading or speculative purposes.
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Recently Issued Accounting
Pronouncements
In January 2003, the Financial Accounting
Standards Board, or FASB, issued Interpretation No. 46,
"Consolidation of Variable Interest Entities"
("FIN 46"), which is an interpretation of
Accounting Research Bulletin No. 51, "Consolidated
Financial Statements." FIN 46 requires that if an
entity has a controlling interest in a variable interest entity,
the assets, liabilities and results of activities of the
variable interest entity should be included in the consolidated
financial statements of the controlling entity. In December
2003, the FASB issued FIN 46R to provide additional
clarifications to FIN 46 and deferred the latest date by
which FIN 46 must be applied by a Company for variable
interest entities acquired after January 31, 2003, to the
first annual reporting period beginning after December 15,
2004. FIN 46 is currently effective for all variable
interest entities created or acquired after January 31,
2003.
In May 2003, the FASB issued
SFAS No. 150, "Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and
Equity." This statement establishes how a company
classifies and measures certain financial instruments with
characteristics of both liabilities and equity, including
redeemable convertible preferred stock. This statement is
effective for financial instruments entered into or modified
after May 31, 2003, and otherwise effective at the
beginning of the interim period commencing July 1, 2003,
except for mandatory redeemable financial instruments of
nonpublic companies. As a result of the adoption of
SFAS 150, our Series C-2 Preferred Stock has been
classified between liabilities and equity at December 31,
2002 and was reclassified to a liability at December 31,
2003 because we must redeem all of the Series C-2 Preferred
Stock upon the occurrence of the earlier of certain liquidity
events or May 2009.
In August 2001, the FASB issued
SFAS No. 144. SFAS 144 provides new guidance on
the recognition of impairment losses on long-lived assets,
excluding goodwill, to be held and used or to be disposed of and
also broadens the definition of what constitutes a discontinued
operation and how the results of a discontinued operation are to
be measured and presented. SFAS 144 also requires
long-lived assets that are to be abandoned, be treated as held
for use and depreciated over their remaining expected lives and
broadens the presentation of discontinued operations in the
statement of operations to a component of an entity rather than
a segment of a business. SFAS 144 was effective for us
beginning January 1, 2002 and had no material impact on our
financial position or results of operations.
In June 2002, the FASB issued
SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities"
("SFAS 146"). SFAS 146 requires that a
liability for a cost associated with an exit or disposal
activity be recognized and measured, initially at fair value,
only when the liability is incurred; therefore, nullifying
Emerging Issues Task Force Issue No. 94-3, "Liability
Recognition for Certain Employee Termination benefits and Other
Costs to Exit an Activity (including Certain Costs Incurred in a
Restructuring)" ("EITF 94-3") that required
a liability for an exit cost to be recognized at the date of an
entity's commitment to an exit plan. The adoption of
SFAS 146 is expected to result in delayed recognition for
certain types of costs as compared to the provisions of
EITF 94-3, especially for facility closure costs. The
provisions of SFAS 146 are effective for exit or disposal
activities that are initiated after December 31, 2002. The
adoption of SFAS 146 could affect the types and timing of
costs included in future business consolidation and
restructuring programs. SFAS 146 did not have a material
impact on our financial position or results of operations.
In November 2002, the FASB issued Interpretation
No. 45 "Guarantor's Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees
of Indebtedness of Others, (an interpretation of FASB Statements
No. 5, 57, and 107 and rescission of FASB interpretation
No. 34)" ("FIN 45"). FIN 45
elaborates on the disclosures to be made by a guarantor in its
interim and annual financial statements about its obligations
under certain guarantees that it has issued. FIN 45 also
clarifies that a guarantor is required to recognize, at the
inception of a guarantee, a liability for the fair value of the
obligation undertaken in issuing the guarantee. The initial
recognition and measurement provisions of FIN 45 are
applicable on a prospective basis to guarantees issued or
modified after December 31, 2002. The disclosure
requirements of FIN 45 were effective for interim and
annual financial statements for periods ending after
December 15, 2002. The initial recognition and initial
measurement provisions did not have a material impact on our
financial position or results of operations.
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In December 2002, the Emerging Issues Task Force
("EITF") issued EITF Issue 00-21,
"Accounting for Revenue Arrangements with Multiple
Deliverables ("EITF 00-21"). EITF 00-21
provides guidance on determining whether a revenue arrangement
contains multiple deliverable items and if so, requires that
revenue be allocated among the different items based on fair
value. EITF 00-21 also requires that revenue on any item in
a revenue arrangement with multiple deliverables not delivered
completely must be deferred until delivery of the item is
completed. The guidance in EITF 00-21 is effective for
revenue arrangements entered into in fiscal years beginning
after June 15, 2003. EITF 00-21 is not expected to
have a material impact on our financial position or results of
operations.
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BUSINESS
Overview
We are a leading independent provider of Internet
survey solutions to the global marketing research industry and
we derive 100% of our revenues from Internet data collection
products and services. We actively manage the Greenfield Online
panel, a 100% Internet-based panel of approximately
1.7 million individuals who participate in our surveys. Our
panelists represent households consisting of an estimated
4.7 million people, allowing us to compile diverse,
demographically representative survey data.
We target our Internet survey solutions to
approximately 2,500 full service marketing research and
consulting firms in the United States and the world's top
25 marketing research companies. Our clients use the Internet
survey data that we provide to enable companies throughout the
world to make critical business decisions. Based on our internal
estimates, we believe that spending associated with the
gathering of survey data, known as fieldwork, accounts for
approximately 40% of the annual spending on survey marketing
research. Using this estimate, fieldwork represented
approximately $3.0 billion of the $7.5 billion global
survey market in 2002 as reported by the
World Association of
Opinion and Marketing Research Professionals
.
Until January 2002, we sold both custom
Internet-based marketing research and the Internet survey
solutions we sell today. A majority of our revenues for the
first seven years of our existence was derived from the sale of
custom research. In September 2001, we embarked on a strategy to
convert the focus of our business from providing custom research
to end-users to providing Internet survey solutions to the
marketing research firms we target today. This strategy
culminated in the sale of our custom research business to Taylor
Nelson Sofres Operations, Inc. in January 2002. The sale of our
custom research business represented a turning point in our
development as we shifted from a labor-intensive, professional
services model to a scalable, Internet-based services model.
We partner with our clients to leverage their
global sales forces and do not compete with them for custom
marketing research business. This cooperative marketing strategy
has led to significant market penetration. For the year ended
December 31, 2003, we completed 2,482 Internet-based
projects, a 99% increase over 2002. Additionally,
45 companies each purchased over $100,000 of our products
and services in 2003, an 88% increase over 2002.
Internet survey solutions are faster, more
efficient and more cost-effective for collecting high quality
marketing research data than traditional, labor-intensive
methods such as telephone, direct-mail and mall-based surveying.
The Internet allows our panelists to participate
24 hours-a-day in a more convenient and less intrusive
environment than traditional data collection methods. Our
Internet-based technology interactively engages respondents
through the use of images, sound and video, enabling us to
collect richer data for our clients. We believe Internet-based
survey solutions speed survey completion, allow for
significantly larger survey sample sizes over a given time
period and provide marketing researchers with a cost-effective
means of reaching niche segments.
We believe we are well-positioned to capitalize
on evolving dynamics within the global survey research market.
Decreasing cooperation rates experienced by the telephone survey
industry and the increasing use of mobile phones as a primary
means of telephone communication have led to a decline in the
effectiveness of traditional telephone-based data collection
methods. This decline has been exacerbated by the recently
established Do Not Call registry, covering over 58 million
telephone numbers. At the same time, Internet penetration and
increased broadband usage have accelerated growth in the use of
Internet-based marketing research. We believe these dynamics
will drive demand for our Internet survey solutions. Through our
North American operations, our sales offices in the United
Kingdom and Continental Europe and our operations center in
India, we believe we are well-positioned to meet this demand.
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Our Market Opportunity
Businesses rely on feedback from consumers to
make decisions about their products and services. Heightened
competition, consolidation, globalization of product markets,
acceleration of product launch schedules, shortened product life
and rapidly changing consumer preferences define today's
business environment. Marketing research is a critical tool to
gather the information that businesses need to make decisions
regarding product portfolios, brand management and advertising.
The worldwide survey research industry was
estimated to be $7.5 billion in 2002 according to the
World Association of Opinion and Marketing Research
Professionals
("ESOMAR"), a leading professional
organization based in Amsterdam, The Netherlands. According to
ESOMAR, 38% and 41% of worldwide marketing research spending
occurs in the United States and Europe, respectively. Using
these figures, we estimate that survey research spending in 2002
was approximately $2.9 billion and $3.1 billion in the
United States and Europe, respectively. Of this
$6.0 billion U.S. and European survey research market, we
believe that approximately 40%, or $2.4 billion, is spent
by marketing research companies on fieldwork, which consists of
data collection through the administration of surveys and data
tabulation. Fieldwork is often conducted by interviews over the
telephone, in malls or through surveys distributed through the
Internet. This segment is our addressable target market.
The following table describes the estimated
amount of total survey research spending by geographical region
and the estimated portion of that amount spent specifically on
fieldwork.
Estimated Amount of Total
Estimated Portion of Survey
Survey Research Spending
Research Spending Allotted
Region
in 2002
to Fieldwork in 2002
(in billions)
(in billions)
United States
$
2.9
$
1.2
Europe
3.1
1.2
Other
1.5
0.6
Total:
$
7.5
$
3.0
Factors Affecting the Growth of Internet-Based
Marketing Research
Benefits of Internet-Based Marketing
Research.
We believe the Internet
is fundamentally changing the marketing research industry,
allowing researchers to be more responsive to the challenges
posed by today's business environment.
•
Benefits to the Marketing Research
    Industry.
Speed.
Using the
    Internet, marketing researchers can rapidly access, collect and
    process large amounts of data from diverse groups. Our
    proprietary panel management techniques allow us to quickly
    identify and target groups of panelists to receive and
    participate in surveys over the Internet. Survey response time
    on the Internet is measured in hours and days rather than weeks
    and months. Our technology and expertise allow us to administer
    thousands of Internet surveys simultaneously.
Cost Effectiveness.
We believe that Internet-based survey solutions lower the cost
    of marketing research by decreasing data collection costs. Once
    qualified panelists have been identified and surveys have been
    developed, the actual cost of data collection through the
    Internet is significantly less than through traditional methods.
    Our average charge for a completed survey ranges from $10.00 to
    $14.00, compared to our estimate of approximately $20.00 to
    $25.00 per mall survey and $18.00 to $22.00 per telephone survey.
Improved Results.
Members of the Greenfield Online panel are able to complete
    surveys in the privacy of their own homes, without interacting
    with interviewers. As a result, we believe interviewer bias is
    eliminated. Because the Internet provides respondents with a
    degree of anonymity and privacy not found in telephone or
    mall-based surveys, we believe Internet survey solutions
    generate more honest
44
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responses, even to sensitive subject matter
    questions, such as income, personal health, political
    affiliations and sexual orientation. Internet-based surveys can
    accommodate a variety of new media as well, including images,
    sound and video, which cannot be integrated into telephone or
    mail surveys. We believe that integrating these media allows
    researchers to capture feedback needed by marketers to assess
    new product offerings and test new advertising messages more
    accurately.
New Opportunities.
We believe that Internet-based
    marketing research offers new options not previously available
    to research professionals. Internet survey solutions allow
    research professionals more design flexibility because they are
    not limited to what can be communicated by an interviewer over
    the telephone, or detailed on paper. Our Internet survey
    solutions increase the research options available to our clients
    by allowing them to embed images, sound and video within their
    surveys.
•
Benefits to Survey Respondents.
Less Intrusive and More
    Convenient.
Our Internet survey
    solutions are less intrusive than telephone surveys. The
    Internet expands the amount of data collection time available
    because respondents can complete surveys at their convenience at
    any time. In contrast, telephone surveys can only be conducted
    during limited hours and are often attempted at times of the
    day, such as dinner time, which many respondents find intrusive
    and inconvenient.
More Engaging.
Our
    Internet survey solutions are more engaging than telephone and
    direct mail surveys because they integrate images, sound and
    video, and often include advance previews of potential new
    products, movie trailers and commercials. We believe this
    advance preview feature makes our Internet survey solutions more
    compelling and enjoyable for our panelists than surveys
    administered through traditional methods.
Decline in Effectiveness of Telephone Data
Collection.
•
Telephone Refusal Rates.
The telephone is the dominant method
    for conducting marketing research surveys. However, the number
    of people refusing to participate in telephone research is
    increasing rapidly. According to a survey conducted by the
Council for Marketing & Opinion Research
("CMOR"), an independent trade organization, the
    percentage of Americans refusing to participate in telephone
    surveys was 60% in 1999, 63% in 2001 and 79% in 2003. CMOR
    reported that telephone interviewers often have little chance of
    getting past the introduction before respondents refuse to
    participate. Also adding to the refusal rate is the fact that
    many potential respondents are among the millions of people who
    have listed their telephone numbers on the national Do Not Call
    registry and do not understand that survey research is exempt
    from that legislation.
•
Advanced Telephone Technology.
An increasing number of homes are
    adopting advanced telephone technologies such as caller ID,
    answering machines and special ring tones to screen telephone
    calls and use call blocking to prevent unwanted calls
    completely. This decreases the opportunity to perform telephone
    surveys and makes conducting telephone surveys more expensive
    and time consuming.
•
Adoption of Mobile Telephones as Primary
    Telecommunication Device.
There is a
    trend among consumers to abandon landline telephones and adopt
    mobile telephones as their primary means of telecommunication.
    The Telephone Consumer Protection Act, enacted in 1991, provides
    that calls cannot be placed by automatic telephone dialing
    systems to mobile telephone numbers unless the phone owner has
    given prior consent and is not charged for the call. This
    legislation impacts the telephone research industry and may
    become an even larger issue as telephone survey researchers lose
    access to a significant portion of the population switching to
    mobile telephones as a result of recent number portability
    regulations.
•
Proliferation of Non-usable Telephone Numbers.
An increasing proportion of telephone
    numbers are being used by devices such as fax machines and
    computer modems. As a result of this trend, telephone survey
    data collectors are required to dial an ever-increasing volume
    of telephone numbers in order to reach the same number of
    respondents, thereby increasing their expenses. According to a
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CMOR study published in June 2003, telephone data
    survey collectors were required to dial twice as many numbers in
    2003 to complete a survey as they were required to dial in 1999.
Growth in Internet Penetration.
In 2003, the percentage of the
U.S. population using the Internet was approximately 65%, up
from 48% in 2000. In the United Kingdom, Internet use reached
57% in 2003, up from 28% in 2000. Viewed across the United
Kingdom, Germany and France, on a blended basis, Internet
penetration reached 43% in 2003, more than doubling from 2002.
As Internet penetration increases, and in particular as
broadband penetration climbs, we believe the migration from
traditional data collection methods to Internet-based data
collection will accelerate. As the population of Internet users
increases, a larger and more diverse group of people become
accessible to us as potential panelists and the quality of the
Greenfield Online panel will likely improve.
Our Competitive Strengths
We believe we are well-positioned for continued
growth in our target market and the following strengths
differentiate us from our competitors.
•
The Greenfield Online
    Panel.
The Greenfield Online panel is
    one of the largest Internet-based panels available. Our
    1.7 million panelists have double opted-in to participate
    in our surveys. We continue to actively expand the breadth and
    demographics of the Greenfield Online panel to address the needs
    of our clients. We perform extensive screening and analysis of
    our panelists, which allows us to offer our clients premium
    specialty panels comprised of people with similar
    characteristics. We have the ability to quickly reach
    appropriate target audiences within our panel for a wide range
    of client requests, including respondents in the healthcare,
    automotive, Hispanic, business-to-business, information
    technology and international segments. In 2003, the Greenfield
    Online panel completed 2,482 Internet-based marketing
    research projects.
•
Experienced Panel
    Management.
Over the past nine years,
    we have developed proprietary panel management techniques
    designed to maximize the efficiency and productivity of the
    Greenfield Online panel. We maintain a fresh and active panel by
    continually adding new members and seeking additional
    information from our panelists. These panel management
    techniques allow us to efficiently target our survey invitations
    and create relevant cash and non-cash incentive programs for our
    panelists. Additionally, we maintain policies to protect the
    confidentiality of our panelists' personal information and
    prohibit marketing to our panelists using information obtained
    through their survey participation. We believe that these
    policies have enabled us to develop a relationship of trust with
    our panelists and foster a climate that encourages their
    continued participation in our surveys.
•
Complete Internet Survey
    Solutions.
We offer a wide range of
    Internet survey solutions that enable the global marketing
    research industry to conduct Internet-based research. Our
    complete range of survey solutions facilitates the migration
    from traditional survey methods to Internet-based methods and
    eliminates the need for our clients to develop their own
    Internet research capabilities.
•
Focused Sales
    Strategy.
Our focused sales strategy
    seeks to incorporate our Internet survey solutions into our
    clients' research proposals that they present to the
    end-users of the data we collect. Our client relationships are
    strengthened by this cooperative sales strategy which allows us
    to leverage their global sales forces as a distribution channel
    for our products and services. We do not compete with our
    clients for custom marketing research business from end-users.
•
Significant Operating Leverage.
We believe our Internet-based business
    model provides significant operating leverage and should lead to
    expansion of our operating income margin if we succeed in
    growing our revenues. By leveraging the established Greenfield
    Online panel, conducting an increasing number of surveys using
    our existing technology infrastructure and benefiting from our
    operations center in India, we believe we will continue to
    improve our operating leverage.
•
Well-Established Brand and Commitment to
    Customer Service.
We were founded in
    1994 and conducted our first Internet-based marketing research
    project in 1995. Since our inception, we have built and refined
    the Greenfield Online panel and maintained a commitment to
    industry-leading
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customer service. For example, in 2003 we
    established an operations center near New Delhi, in Gurgaon,
    India, which is integrated with our U.S., Canadian and U.K.
    facilities and allows us to provide our clients with continuous
    survey programming, data collection and processing services. Our
    early entry into the Internet-based survey marketing research
    industry, the quality of the Greenfield Online panel and our
    commitment to customer service have enabled us to develop a
    strong brand within the marketing research industry.
Our Strategy
Our goal is to maintain and build upon our
leadership position within the global Internet survey solutions
market. In order to achieve this goal, our strategy is to:
•
Drive Migration to Internet-Based Marketing
    Research.
We believe the Internet is
    the best method to reach a representative population sample as
    compared to the telephone and other traditional survey methods.
    As a result there is an ongoing transition within the marketing
    research industry to Internet-based survey solutions. We will
    continue to facilitate this transition and capitalize on this
    migration by:
— Increasing the Size and Diversity
    of the Greenfield Online Panel.
As the
    Greenfield Online panel becomes larger and more diverse, we will
    be able to reach smaller segments of the population allowing us
    to specifically target our clients' research needs and
    offer higher value data.
— Expanding the Range of Our
    Specialty Panels.
Our current
    specialty panels include healthcare, automotive, Hispanic,
    business-to-business, information technology and international
    panel segments. Our ability to capture and access specific
    demographic information about our panelists allows us to provide
    our clients with access to research audiences that were
    difficult or impossible to find through other methods.
— Developing New and Innovative
    Internet-Based Survey Solutions.
New
    solutions, such as our media testing capabilities, integrate
    images, sound, video and other media directly into our surveys
    and provide a more interactive and engaging process than current
    methods.
— Providing Faster and Better
    Service than Traditional Data Collection
    Methods.
Our clients seek suppliers
    that can provide high-quality panels and fast and accurate
    bid-turnaround and survey programming, allowing them more time
    to analyze survey data and provide timely, quality research for
    their customers. To achieve this strategy, we leverage our
    automated bid technology, skilled project management staff and
    our continuous survey programming capability.
•
Expand
    Internationally.
During 2004, we
    intend to further develop our capabilities outside the United
    States, expanding the size and diversity of the Greenfield
    Online panel by adding more panelists from the United Kingdom,
    Germany, France and Canada. We believe the migration of data
    collection to the Internet in the international market is in its
    early stages and represents a significant growth opportunity.
•
Pursue Strategic
    Acquisitions.
We intend to seek
    strategic acquisitions both in the United States and
    internationally to increase the size, diversity and geographic
    coverage of the Greenfield Online panel, increase our client
    base, acquire new technology, broaden our expertise and expand
    our portfolio of Internet survey solutions.
The Greenfield Online Panel
The Greenfield Online panel is comprised of
approximately 1.7 million individuals who voluntarily
participate in our surveys. Our panelists represent households
containing an estimated 4.7 million people.
•
Panel Acquisition.
We continuously recruit from a diverse pool of sources,
    including Internet portals, special interest, age and ethnicity
    focused and other websites. We also administer our internally
    developed webmaster affiliate program to enable broad based
    recruitment from lower-traffic niche websites. We believe that
    this diversified recruitment strategy helps us fulfill our goal
    of maintaining
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one of the largest and most representative
    panels, while also helping to ensure a continuous,
    cost-effective supply of panelists. Our panel recruitment
    strategy allows us to make daily adjustments to our recruitment
    efforts to carefully balance the supply of panelists with the
    demand for specific types of panelists. In 2003, we recruited
    over 730,000 panelists from MSN through our agreement with
    Microsoft Corporation. Under the terms of this agreement, we
    recruit panelists for the Greenfield Online panel through MSN in
    exchange for our payment to Microsoft of fees based on the
    number of panelists recruited and the number of surveys
    delivered to our clients that are completed by such panelists.
    In the fourth quarter of 2003, panelists recruited through MSN
    represented approximately 81% of all new panelists recruited
    during that quarter. In November 2003, we substantially
    increased the diversification of our panelist recruiting
    program. As a result, in the first quarter of 2004, panelists
    recruited through MSN declined to approximately
    56,250 panelists, representing approximately 23% of all new
    panelists recruited during that period. Throughout 2004, we plan
    to continue to expand the number of our panelist recruiting
    sources. In March 2004, the number of participating affiliates
    in our webmaster program grew to 274 websites and we
    entered into panelist recruiting agreements with 19 additional
    websites, data suppliers and advertising networks.
•
Panel Management.
To
    extract maximum value from an Internet survey panel, proper
    panel management techniques must be employed. We utilize senior
    copywriters to design our communication materials, a
    well-maintained website, including a customized panelist web
    page, and responsive help desk support personnel to ensure that
    each contact we make with a panelist is a positive experience.
    We have developed performance metrics relating to panelist
    workload, responsiveness and participation and constantly test
    alternative communication strategies and incentive programs to
    ensure optimal panel productivity. We utilize an automated
    process to regularly probe our panel for additional profile data
    so that we can more accurately target our surveys and maximize
    the productivity of our panelists' time.
•
Panel Incentives.
Members of the Greenfield Online panel are offered incentives
    for participating in our surveys. We use a combination of
    sweepstakes and cash incentives, administered through our own
    incentive program, to encourage our panelists'
    participation. The incentive level for a particular survey
    project is based upon the length and complexity of the survey
    and the difficulty in finding or motivating the survey's
    target audience. We typically initiate a survey with a modest
    incentive and then adjust the incentive level up or down as we
    invite more panelists to take the survey, and depending on the
    initial response of our panelists. With this strategy, we
    efficiently balance the invitation quantity and incentive level
    to achieve the desired number of completed surveys within the
    specified client timeframe.
Our Internet-Based Survey Solutions
We offer survey solutions exclusively using
Internet-based methods supported by the Greenfield Online panel.
These survey solutions are customized to our clients'
needs, including our full-service data collection and sample
solutions.
The chart below describes the flow of an
Internet-based marketing research project and the role played by
our Internet survey solutions:
Internet-Based Marketing Research Project
Flow
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Full-Service
We program our clients' surveys, host them
on our website infrastructure, invite our panelists to take the
surveys and deliver the compiled data to our clients for their
analysis and presentation to the end-user. Our clients can
utilize our complete range of Internet survey solutions,
including embedded images, sound and video, store-shelf
simulation testing and other 3D image demonstrations. Our
full-service solutions also include our review of survey
responses for internal consistency, data tabulation and verbatim
response interpretation and coding services. Our full-service
solutions takes a research questionnaire designed by our clients
from programming through data delivery. The following table
describes the products and services that comprise our
full-service capabilities and a representative application for
each product or service.
Product
Description
Representative Application
Tracking Studies
Studies that are fielded over time to determine
    advertising awareness and brand usage
Automobile manufacturers track consumer awareness
    of their brand to evaluate the effectiveness of their media
    spending
Conjoint Studies
Studies that conduct a "trade-off"
    analysis of features/functionality
Mobile phone carriers use these studies to design
    service plans with features that will attract the most consumers
Concept Testing
Studies that present product concepts to
    potential consumers
Consumer packaged goods companies test a range of
    new product offering to identify those with the most appeal to
    consumers
Media/ Audio Testing
Studies to evaluate the persuasiveness and key
    message recall associated with advertising
Health and beauty care manufacturers use these
    studies to test different versions of a new advertising campaign
    to see which is most likely to result in the purchase of their
    product
In-Home Usage Testing
Studies that ask respondents to try new products
    in their home
Over-the-counter remedy manufacturers ask
    consumers to test their products and provide feedback on the
    Internet
Omnibus Studies
Shared-cost studies that enable several clients
    to pool small sets of questions and receive feedback within
    3 days
All industries take advantage of this product to
    get fast answers to urgent marketing questions
Sample
Solutions
Clients that have survey programming
capabilities, but have limited or no access to survey
respondents, can purchase controlled access to the Greenfield
Online panel. We believe that this offering is regarded in the
marketplace as a high-value service, which we maintain by
collecting demographic information upon panelist enrollment and
by providing respondents to our clients who accurately match our
clients' demographic requirements.
Our Customers
Our primary target market is full-service custom
marketing research and consulting firms. We provide Internet
survey solutions to firms of all sizes in this marketplace. In
2003, our top five clients by net revenue were: Taylor Nelson
Sofres Intersearch, GfK-Custom Research, Inc., Hall and
Partners, Synovate, Inc. and ARBOR, Inc. Our top two clients in
2003, Taylor Nelson Sofres Intersearch and GfK Custom Research,
Inc., represented 14.5% and 12.7% of our total revenue in 2003,
respectively. Our top client in 2003 was Taylor
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Nelson Sofres Intersearch, with which we had an
alliance agreement requiring it to make purchases of at least
5.6 million of our products and services from
January 31, 2002 to January 31, 2004. Taylor Nelson
Sofres Intersearch satisfied this obligation and is no longer
contractually required to purchase our products and services. In
2003, Taylor Nelson Sofres Intersearch's parent company
acquired NFO Worldgroup, Inc., which maintains and operates a
large Internet respondent panel similar to our own. As a result
of this acquisition, we expect the revenue we receive from
Taylor Nelson Sofres Intersearch in 2004 to be significantly
less than in 2003. Our client base has grown to a diversified
group of over 280 clients, of which 45 purchased over
$100,000 in survey data collection services from us in 2003, up
from 21 such clients in 2002. Our top ten clients
represented 53% of our revenue in 2003. In 2002 and 2003, we
successfully grew our client base by adding over 100 new clients
each year.
We have a partner program with 25 active
clients. Our partner program provides preferred pricing,
dedicated sales and service account teams and integrated
marketing support and tools, as well as customized marketing
materials to support the Internet research sales efforts of
these client partners. We also have integrated systems for
pricing, project-scoping and the project-delivery process with
these clients. Because we are exclusively an Internet survey
data provider and not a custom marketing research company, our
clients often seek our participation in their sales and
marketing efforts and integrate the Greenfield Online panel into
their research proposals as a critical selling component.
Sales and Marketing
We use a combination of sales professionals,
account executives and our automated bid technology to maximize
the personal interaction between sales professionals and current
and prospective clients, while minimizing our sales and
marketing costs. In 2002 and 2003, we made substantial
investments in our sales infrastructure to better serve our
clients and enter new markets. We have established regional
offices in San Francisco, California, Toronto, Ontario and
Minneapolis, Minnesota, and have sales representatives located
in Colorado, Maryland, Arizona, New Jersey and the United
Kingdom. Accordingly, our sales and marketing professionals are
assigned to geographic, client-based and industry-specific
territories and, in certain instances, to specialized research
markets. As of April 5, 2004, we employed 32 sales and
marketing professionals. As discussed elsewhere in this
prospectus, we completed our transition to a cooperative sales
strategy in January 2002 with the sale of our Custom Research
Business to Taylor Nelson. By selling through the marketing
research channel, we experience significant sales leverage and
return on invested sales and marketing dollars.
Competition
We currently compete with Internet-based survey
data collection providers, Internet sample providers that
provide access to survey respondents but do not offer survey
technologies, technology companies that have developed tools for
conducting Internet marketing research and traditional marketing
research companies. The primary competitive factors in our
industry include the quality and timeliness of data collection,
the price of products and services and overall reputation in the
marketplace. We believe we distinguish ourselves from our
competitors through a combination of high-quality service
provided by experienced professionals, client responsiveness,
the size and diverse demographics of the Greenfield Online
panel, process efficiencies and a dedicated focus on servicing
the marketing research industry.
We compete for clients with other Internet-based
marketing research data collection firms, such as SPSS Service
Bureau and Harris Interactive Service Bureau; firms offering
respondent-only services, such as Survey Sampling, Inc. and
e-Rewards, Inc.; and large marketing research companies, such as
The Kantar Group and Harris Interactive, Inc. We expect to face
competition in the future from other marketing research data
collection firms that develop Internet-based products and
services or other companies with access to large databases of
individuals with whom they can communicate through the Internet.
These companies may, either alone or in alliance with other
firms, penetrate the Internet-based marketing research data
collection market.
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Technology and Intellectual Property
Our systems are based on internally-developed and
third-party software, and have been designed to reduce downtime
in the event of outages or catastrophic occurrences. Our
technology infrastructure provides continuous availability. We
host our primary technology systems at our Wilton, Connecticut
data center. To maintain reliability and to assure even
distribution of work load, survey development and analysis of
panel and survey data, we have replicated the functionality of
the Wilton data center at a UUNET co-location facility under a
co-location service agreement, which provides for redundant
power supply and communications systems. Our Wilton facility is
equipped with our own uninterruptible power supply, heating,
ventilation and fire suppression systems. Data is backed up on a
daily basis at both the UUNET and Wilton locations, and we
routinely remove backed-up data from our primary storage
facilities.
We utilize the
Confirmit
survey
development software program created and licensed by Future
Information Research Management, Inc. to program our surveys so
that they can be displayed through the Internet and taken by our
panelists. We believe that this software represents the current
standard in the Internet-based marketing research data
collection industry.
We regard our copyrights, service marks,
trademarks, trade dress, trade secrets, proprietary technology
and similar intellectual property as critical to our success and
rely on trademark and copyright law, trade secret protection,
confidentiality and assignment of invention agreements and/or
license agreements with employees, customers, independent
contractors, partners and others to protect our proprietary
rights. We strategically pursue the registration of our
trademarks and service marks in the United States and have
applied for and obtained registrations in the United States for
some of our trademarks and service marks, including
FieldSource
. Millward Brown, Inc. owns the rights in the
United States to the names
Greenfield
and
Greenfield
Online,
holds a U.S. registration for the
Greenfield
mark and has a pending registration in the United States of
the
Greenfield Online
mark. We maintain an exclusive,
perpetual, royalty-free license from the Millward Brown, Inc. to
the
Greenfield Online
trademark for Internet qualitative
and quantitative marketing research data collection services and
to use the
Greenfield
name as part of our Internet domain
names.
Power your Research
SM
,
Power Your
Research With Our Experience, Our People, Our
Technology
SM
,
Research Revolution
®,
NetReach
® and
FieldSource
® are our
trademarks, trade names and service marks. Neither we nor
Millward Brown, Inc. have sought trademark registration of the
name outside the United States. Effective trademark, service
mark, copyright and trade secret protection for this name may
not be available in every country in which our products and
services are made available through the Internet.
Governmental Regulation
Do Not Call Registry
In January 2002, the FTC adopted a rule that
created a national Do Not Call registry that allows people to
register their telephone numbers on a list from which
telemarketers are prohibited from calling. In January 2003, two
telemarketing groups filed complaints to block enforcement of
the Do Not Call registry. In response to a decision from the
Oklahoma U.S. District Court, the U.S. Congress passed
the Do Not Call Implementation Act to specifically grant the FTC
authority to create and maintain the Do Not Call registry. In
September 2003, the U.S. District Court for the District of
Colorado issued a decision holding that the Do Not Call registry
was unconstitutional because it violated First Amendment free
speech protections. The FTC immediately filed a motion to the
10th Circuit Court of Appeals to allow it to operate and enforce
the Do Not Call registry pending its appeal to that Court. On
February 17, 2004, the 10th Circuit Court of Appeals
reversed the lower court and held that the Do Not Call registry
was constitutional. At least one telemarketing group has
publicly indicated it will appeal this decision to the
U.S. Supreme Court.
Telephone Consumer Protection
    Act
In 1991, Congress passed the Telephone Consumer
Protection Act (the "TCPA"), granting the FCC the
authority to promulgate rules protecting the privacy rights of
people with telephones who wanted to avoid unwanted
telemarketing calls. The FCC adopted rules to enforce this
authority and under these rules telemarketers are prohibited
from making telephone calls before 8 a.m. and after
9 p.m. The TCPA, which is
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the authorizing legislation for the FCC's Do
Not Call registry, also prohibits calls made to mobile
telephones if the call is made using an automatic telephone
dialing system (defined as equipment which has the capacity to
store or produce telephone numbers to be called using a random
or sequential number generator and to dial such numbers) or an
artificial or pre-recorded voice, and if the call recipient is
charged for the call.
Controlling the Assault of Non-Solicited
    Pornography and Marketing Act of 2003
The federal Controlling the Assault of
Non-Solicited Pornography and Marketing Act of 2003 (the
"CAN-SPAM Act"), which took effect on January 1,
2004, imposes a series of new requirements on the use of
commercial email messages. The CAN-SPAM Act gives federal civil
and criminal enforcement authorities new tools to combat
unsolicited commercial email, and allows state attorneys general
and Internet access services to enforce its civil provisions.
The Act also directs the FTC to issue new regulations that
define relevant criteria, which have not yet been promulgated,
and to enforce the Act. Among other things, one proposal being
examined by the FTC is a federal "Do Not Email"
registry. The CAN-SPAM Act and the regulations enforcing the Act
may significantly impact the manner in which we recruit and
communicate with our panelists. It may also expose us to
potential liability or require us to change or abandon our
webmaster affiliate program and other recruitment techniques.
The CAN-SPAM Act may require us to develop technology or systems
to comply with its requirements for honoring "opt-out"
requests. The CAN-SPAM Act provides a variety of remedies,
including statutory damages, for each improper email sent.
Additionally, there are at least 37 state statutes that
purport to regulate the distribution of commercial email. Some
of those statutes, or portions thereof, are preempted by the
CAN-SPAM Act, but others may still be enforceable and provide
for civil and criminal enforcement, and the imposition of
penalties and damages for their violation. If we cannot comply
with the requirements of the CAN-SPAM Act or these state
statutes, we may need to cease operating portions of our
business and our business could suffer.
The Internet Tax Freedom Act
The Internet Tax Freedom Act (the
"ITFA"), that was originally passed in 1995,
prohibited states or political subdivisions from
(i) imposing taxes on Internet access and
(ii) imposing multiple and discriminatory taxes on
e-commerce The ITFA expired on November 1, 2003 and has not
been renewed. As a result of the expiration of the ITFA, states
are no longer prohibited under federal law from imposing taxes
that were covered by the ITFA. In the absence of a renewal of
the ITFA, states may begin to impose taxes on Internet access,
related charges and other e-commerce products and services. If
one or more states impose such taxes in a manner that results in
the taxation of Internet access providers, ourselves, our
customers or other parties upon whom these parties' or our
panelists' rely for access to the Internet or other
products or services, it may harm our business.
Telecommunications Act of
    1996
In February 1999, the FCC issued a declaratory
ruling interpreting the Telecommunications Act of 1996 to allow
local exchange carriers to receive reciprocal compensation for
traffic delivered to information service providers, particularly
Internet service providers, on the basis that traffic bound for
Internet service providers is largely interstate. As a result of
this ruling, the costs of transmitting data over the Internet
may increase. If this occurs, our tax liability and operating
expenses may increase, and our business could suffer.
European Commission's Directive on
    Data Protection
The European Commission's Directive on Data
Protection (the "EC Directive") went into effect
in October 1998, and prohibited the transfer of personal data to
non-European Union nations that do not meet the European
"adequacy" standard for privacy protection. The United
States takes a different approach to privacy from that taken by
the European Union. The United States uses a sectoral approach
that relies on a mix of legislation, regulation and
self-regulation. The European Union, however, relies on
comprehensive legislation that, for example, requires creation
of government data protection agencies, registration of
databases with those agencies, and in some instances prior
approval before personal data processing may
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begin. As a result of these different approaches,
the Directive could have significantly hampered the ability of
U.S. companies to engage in many trans-Atlantic
transactions.
In order to bridge these different privacy
approaches and provide a streamlined means for U.S.
organizations to comply with the EC Directive, the U.S.
Department of Commerce in consultation with the European
Commission developed a "safe harbor" framework. To be
assured of safe harbor benefits, an organization needs to self
certify annually to the U.S. Department of Commerce in
writing that it agrees to adhere to the safe harbor's
requirements, which includes elements such as notice, choice,
access, and enforcement. It must also state in its published
privacy policy statement that it adheres to the safe harbor
guidelines. The Department of Commerce maintains a list of all
organizations that file self-certification letters and make both
the list and the self-certification letters publicly available.
To qualify for the safe harbor, an organization
can (1) join a self-regulatory privacy program that adheres
to the safe harbor's requirements; or (2) develop its
own self regulatory privacy policy that conforms to the safe
harbor. We have self-certified to the U.S. Department of
Commerce and have joined
TRUSTe,
a United States-based
self-regulatory privacy program. As a result, we have been
certified as compliant with the "safe harbor"
guidelines.
Facilities
Our headquarters and principal
U.S. operations facility occupies approximately 30,000
square feet and is located at 21 River Road, Wilton,
Connecticut, under a lease that expires in November 2009. Our
other U.S. operations facility is located in San Francisco,
California, where we lease approximately 5,000 square feet of
which we occupy approximately 1,800 square feet under a lease
that expires in December 2004, of which another 1,400 square
feet remains unoccupied. We also lease a data center to support
our operations that occupies approximately 3,100 square feet in
Wilton, Connecticut, along with office space in East Brunswick,
New Jersey and Bethesda, Maryland to support our sales and
marketing team.
Our international offices are based in Gurgaon,
India and Buckinghamshire, United Kingdom. Our operations
facility in Gurgaon, near New Delhi, will occupy approximately
19,300 square feet under a lease that expires in July 2007,
unless renewed at our option for an additional three years. Our
facility in Buckinghamshire, which is used primarily for sales
and marketing, occupies approximately 325 square feet under a
lease that expires in September 2004. In addition to these
facilities, we are currently attempting to sublease
approximately 5,600 square feet of office space in Gurgaon,
India that we formerly occupied prior to our move to the new
Gurgaon space, and we currently sublease approximately 1,800
square feet of office space to Taylor Nelson in our 5,000 square
feet facility in San Francisco, California. We believe that our
current facilities are adequate to meet our needs for the
foreseeable future and that additional or alternative facilities
may be leased on commercially reasonable terms to meet our
future needs, if necessary.
Employees
As of April 5, 2004, we employed a total of
191 people. Of our U.S.-based employees, 29 are in sales
and marketing, 38 are in client service, 11 are in technology
development and 12 are in finance and administration. GFOL India
employed 93 people, all located in Gurgaon, India. GFOL Europe
employs three people, all located in Buckinghamshire, United
Kingdom. Greenfield Online Canada Ltd. employs two people, both
located in Toronto, Ontario. None of our employees are
represented by a collective bargaining agreement. We have not
experienced any work stoppages and consider our relationship
with our employees to be good.
Legal Proceedings
From time to time, we may become involved in
litigation relating to claims arising from our ordinary course
of business. There are no claims or actions currently pending
or, to our knowledge, threatened against us.
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MANAGEMENT
Our Directors and Executive Officers
The following table sets forth certain
information about our directors and executive officers as of the
date of this prospectus.
Name
Age
Position
Dean A. Wiltse
51
President, Chief Executive Officer and Director
Robert E. Bies
45
Executive Vice President, Chief Financial Officer
    and Treasurer
Jonathan A. Flatow
42
Vice President Corporate Development, Secretary
    and General Counsel
Hugh O. Davis
31
Chief Technology Officer
Keith Price
31
Senior Vice President of Sales
Frank Kelly
44
Senior Vice President of Marketing and Strategy
Elizabeth A. Rounds
51
Senior Vice President of Global Partner Strategy
Peter Sobiloff
47
Chairman of the Board of Directors
Jeffrey Horing
40
Director
Joel R. Mesznik(1)(2)(3)
58
Director
Burton J. Manning(2)(3)
72
Director
Lawrence R. Handen
37
Director
Lise J. Buyer(3)(4)
44
Director
Vikas Kapoor(1)(2)(3)
42
Director
(1)
Member of the audit committee.
(2)
Member of the compensation committee.
(3)
Member of the governance and nominating committee.
(4)
Has agreed to become a member of the audit
    committee 30 days after completion of this offering.
Dean A. Wiltse has served as our President and
Chief Executive Officer and a member of our Board of Directors
since April 2001. From February 1999 until April 2001,
Mr. Wiltse was employed by Engage, Inc., where he
served as General Manager of the Software Division from February
1999 to June of 2000, as Executive Vice President from June 2000
to September 2000, and as President of the Software Division,
Engage Software, Inc., from September 2000 to April 2001.
Mr. Wiltse has also held senior management positions with
Avid Technology, Inc., Vivo Software Inc. (acquired by
RealNetworks, Inc.), Vst Technology, Inc. and
Radius Inc. Mr. Wiltse holds a B.A. from American
University, Kogod School of Business.
Robert E. Bies has served as our Chief Financial
Officer since October 1999, Treasurer since December 1999 and
Executive Vice President since August 2002. Prior to joining us,
Mr. Bies was with The Janis Group, Inc., serving as
Chief Financial Officer, Secretary and Treasurer between 1997
and 1999. Mr. Bies holds a B.S. summa cum laude from Long
Island University and an M.B.A. with distinction from Hofstra
University. Mr. Bies is a certified public accountant
licensed in New York.
Jonathan A. Flatow has served as our Secretary
since July 1999, as General Counsel since March 2000 and as Vice
President Corporate Development since May 2001. Prior to joining
us, Mr. Flatow was a partner in the law firm of Wake, See,
Dimes & Bryniczka, which he joined in 1986 as an
associate. Mr. Flatow holds a B.A. from Franklin &
Marshall College and a J.D. from Pace University School of Law.
Hugh O. Davis was a founder of Greenfield Online
in 1994. He joined Greenfield Consulting Group in September 1992
and in January 2001, he was promoted to Chief Technology
Officer, which is his current position. Mr. Davis holds a
B.S. from Fairfield University.
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Keith Price has served as our Senior Vice
President of Sales since September 2001. From June 2000 to
August 2001 he served as Vice President of our FieldSource
division, the predecessor to our current Internet survey
solutions business. From October 1999 to May 2000 he served as
Director, Client Development and launched our FieldSource
division. From 1994 to 1999 he was with Survey
Sampling, Inc., and most recently served as its Manager of
Business Development. Mr. Price holds a B.A. from
Providence College.
Frank Kelly has served as our Senior Vice
President of Marketing and Strategy since January of 2004.
Mr. Kelly was with the ACNielsen Company as Global Vice
President of Marketing for Consumer Research Services from
February 1998 until December 2003. Mr. Kelly holds a B.S.
from Babson College and an M.B.A. from Northeastern University.
Elizabeth A. Rounds has served as our Senior Vice
President of Global Partner Strategy since March 2004. Prior to
joining Greenfield Online she served as senior vice president
with GfK-Custom Research Inc., a custom marketing research
company, between November 1978 and February 2004.
Ms. Rounds holds a B.S. from Trinity University.
Jeffrey Horing has served as a member of our
board of directors since May 1999. From its founding in 1995 to
the present, Mr. Horing has served as a member of Insight
Venture Partners, a venture capital firm. Mr. Horing is a
director of several non-publicly traded companies. He holds a
B.S.E. and B.S. from the University of Pennsylvania's Moore
School of Engineering and The Wharton School of Business and an
M.B.A. from the M.I.T. Sloan School of Management.
Peter Sobiloff has served as a member of our
board of directors since May 1999 and as our chairman since May
2001. Mr. Sobiloff has been a General Partner of Insight
Venture Partners, a venture capital firm, since 1998.
Mr. Sobiloff served as Senior Executive at
i2 Technologies, a software company, from 1997 to 1998.
Mr. Sobiloff is a director of several non-publicly traded
companies. He holds a B.A. from Baruch College.
Lawrence R. Handen has served as a member of our
board of directors since May 2001. Since November 2000,
Mr. Handen has been a General Partner of UBS Capital
Americas. From 1997 to November 2000 he was a partner with
PricewaterhouseCoopers. Mr. Handen holds a B.A. from
Bucknell University and an M.B.A. from New York University.
Mr. Handen currently serves as a director of
DynamicSoft, Inc., Guardent, Inc.,
MetaStorm, Inc., Optum, Inc., Sonexis, Inc. and
Xelus, Inc.
The following directors have been determined to
be independent under the Nasdaq National Market rules by our
current board of directors. The independent directors will hold
regularly scheduled meetings at which only the independent
directors will be present.
Joel R. Mesznik has served as a member of our
board of directors since May 1999. He has been President of
Mesco Ltd., a consulting company, since 1990. He is also a
director of RAIT Investment Trust (listed on the New York
Stock Exchange), Pharma/wHealth Management Company (listed on
the Luxembourg Stock Exchange) and a number of non-publicly
traded companies. Mr. Mesznik holds a B.S. from City
University of New York and an M.B.A. from Columbia
University, Graduate School of Business.
Burton J. Manning has served as a member of our
board of directors since May 1999. From 1987 to March 1997,
Mr. Manning was Chairman and Chief Executive Officer of J.
Walter Thompson Co. From March 1997 to January 1998,
Mr. Manning was chairman of J. Walter Thompson Co.
From January 1998 to present, he has served as president of
Brookbound, Inc. In addition to his service on our board of
directors, he serves on the board of directors of Friendly Ice
Cream Corp. and a number of non-publicly traded companies.
Lise J. Buyer has served as a member of our board
of directors since April 2004. Since April 2003, Ms. Buyer
has served as the Director of Business Optimization at Google
Inc., a privately held technology company focused on search
services. From September 2002 to March 2003, she served as a
consultant and the Director of Research for Vista Research LLC,
an independent equity research firm in New York,
New York. From May 2000 to July 2002 she was a General
Partner at Technology Partners, a Palo Alto, California venture
capital firm. Ms. Buyer was the Director of Internet/ New
Media Research at Credit Suisse First Boston from July 1998 to
May 2000. Prior to that she spent 15 years as an
institutional equity investor
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and analyst of both the technology and media
industries. Ms. Buyer holds a B.A. from Wellesley College
and an M.B.A. from the Owen Graduate School of Management at
Vanderbilt University.
Vikas Kapoor has served as a member of our board
of directors since April 2004. Since September 2003,
Mr. Kapoor has led IntelliRisk Management Corporation, as a
member of the executive committee of the board of directors from
September 2003 to December 2003, and as Chief Executive Officer
since January 2004. From August 2002 to August 2003,
Mr. Kapoor served as Chief Executive Officer of Opera
Solutions, LLC. From October 2001 to July 2002, Mr. Kapoor
served as the Chief Executive Officer of Delano Technology
Corporation. From December 2000 to September 2001,
Mr. Kapoor served as Chief Executive Officer of Opera
Ventures, LLC. From March 2000 to November 2000, Mr. Kapoor
served as President of Walker Digital, LLC. From September 1999
to March 2000, Mr. Kapoor served as a member of the senior
management team of USweb/CKS Corporation. Mr. Kapoor
founded Mitchell Madison Group, LLC in 1994. Mitchell Madison
Group was acquired by USWeb/CKS in September 1999.
Mr. Kapoor holds a B.A. from Princeton University, an M.A.
from Harvard University, Graduate School of Arts &
Sciences and an M.B.A. from the Harvard Business School.
Board Structure and Composition
Currently, eight individuals are serving as our
directors. Following the completion of this offering, we expect
Jeffrey Horing to resign from our board of directors and the
size of the board will be reduced to seven members.
Upon completion of this offering, our board of
directors will be divided into three classes of directors as
provided in our new certificate of incorporation and bylaws and
as set forth below.
Expiration of
Class
Initial Term
Directors
I
2005
Lise Buyer and Vikas Kapoor
II
2006
Burton Manning and Lawrence Handen
III
2007
Peter Sobiloff, Joel Mesznik and Dean Wiltse
Commencing with the annual meeting of
stockholders to be held in 2005, directors for each class will
be elected at the annual meeting of stockholders held in the
year in which the term for that class expires and thereafter
will serve for a term of three years.
Executive officers are appointed by the board of
directors on an annual basis and serve until their successors
have been duly elected and qualified. There are no family
relationships among any of our directors or executive officers.
Board Committees
Our board of directors has established an audit
committee, a governance and nominating committee and a
compensation committee.
Audit Committee.
Our
audit committee oversees our corporate accounting and financial
reporting process. Among other matters, the audit committee
evaluates the independent auditors' qualifications,
independence and performance; determines the engagement of the
independent auditors; pre-approves the retention of the
independent auditors to perform any proposed permissible
non-audit services; monitors the rotation of partners of the
independent auditors as required by law; reviews our
consolidated financial statements; reviews our critical
accounting policies and estimates; oversees our internal audit
function; annually reviews the audit committee charter and the
committee's performance; reviews and approves the scope of
the annual audit and the audit fee; and discusses with
management and the independent auditors the results of the
annual audit and the review of our quarterly consolidated
financial statements. The current members of our audit committee
are Mr. Mesznik (its committee chair) and Mr. Kapoor.
Ms. Buyer will be elected to the audit committee effective
30 days after completion of this offering. As of the completion
of this offering and the appointment of Ms. Buyer, all members
of our audit committee will meet the applicable tests
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Table of Contents
for independence and the requirements for
financial literacy under applicable rules and regulations of the
SEC and the Nasdaq National Market. Our board has determined
that Mr. Mesznik is an audit committee financial expert, as
defined under the SEC rules implementing Section 407 of the
Sarbanes-Oxley Act of 2002, and has the requisite
"accounting or related financial expertise," as
defined by applicable rules and regulations of the Nasdaq
National Market.
Governance and Nominating
Committee.
Our governance and
nominating committee establishes and oversees the process for
identifying and evaluating nominees for directorships, including
identification, interviewing and recruiting of board candidates.
The governance and nominating committee also reviews and makes
recommendations regarding our corporate governance guidelines.
The governance and nominating committee currently consists of
Ms. Buyer and Messrs. Mesznik (its committee chair),
Manning and Kapoor. All members of our governance and nominating
committee meet the applicable tests for independence under the
applicable rules and regulations of the SEC and the Nasdaq
National Market.
Compensation
Committee.
Our compensation committee
reviews and recommends policies relating to compensation and
benefits of our officers and employees, including: reviewing and
approving corporate goals and objectives relevant to
compensation of the chief executive officer and other senior
officers; evaluating the performance of these officers in light
of those goals and objectives; and setting compensation of these
officers based on such evaluations. The compensation committee
also will administer the issuance of stock options and other
awards under our stock and benefit plans. The compensation
committee will review and evaluate, at least annually, the
performance of the compensation committee and its members,
including compliance of the compensation committee with its
charter. The compensation committee currently consists of
Messrs. Mesznik (its committee chair), Manning and Kapoor.
All members of our compensation committee meet the applicable
tests for independence under the applicable rules and
regulations of the SEC, the Nasdaq National Market and the
Internal Revenue Service.
Compensation Committee Interlocks and Insider
Participation
Following the completion of this offering, the
members of our compensation committee will be
Messrs. Mesznik, Manning and Kapoor. Prior to establishing
the compensation committee, the board of directors as a whole
performed the functions delegated to the compensation committee.
No member of the board of directors or the compensation
committee serves as a member of the board of directors or
compensation committee of any entity that has one or more
executive officers serving as a member of our board of directors
or compensation committee.
Code of Business Conduct and Ethics
Our board of directors has adopted a code of
business conduct and ethics applicable to our directors,
executive officers, including our chief financial officer and
other of our senior financial officers performing similar
functions, and employees, in accordance with applicable rules
and regulations of the SEC and the Nasdaq National Market.
Board Compensation
In February 2004, we adopted a Board of
Directors' Compensation Plan that provides for the
compensation of our non-employee directors. Under this plan,
non-employee directors are entitled to an annual stipend of
$16,000, and receive meeting fees for attending each board and
committee meeting. The chairman of the board and the chairman of
each committee receive $2,500 per board and committee
meeting and the members of the board and each committee receive
$1,250 per meeting. In addition, our directors may
participate in the 1999 Option Plan and the 2004 Equity Plan.
Each non-employee director is entitled to be reimbursed the
reasonable costs and expenses incurred in attending board
meetings.
The non-employee members of our board of
directors received the following stock option grants as
compensation for their attendance at our board and committee
meetings. These options vest over four years,
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with 25% vesting after one year and the balance
vesting 12.5% semi-annually over the remaining period, with the
exception of the options granted to Mr. Manning on
October 15, 2003, which immediately vested.
Number of Shares
Weighted Average
Non-Employee Director
Subject to Options
Dates of Grant
Exercise Price
Peter Sobiloff
404
7/1999–7/2001
$
34.62
Jeffrey Horing
404
7/1999–7/2001
34.62
Joel R. Mesznik(1)
404
7/1999–7/2001
34.62
Burton J. Manning(2)
19,264
9/2000–10/2003
2.90
Lawrence R. Handen
—
—
—
(1)
Mr. Mesznik exercised additional options for
    36,978 shares of common stock in 1999.
(2)
Mr. Manning exercised additional options for
    3,074 shares of common stock in 1999.
Pursuant to our 2004 Director Compensation
Plan, upon completion of this offering our non-employee
directors will each receive a one-time grant of options under
the 2004 Equity Plan to purchase 40,000 shares of our
common stock with an exercise price equal to the initial public
offering price of the shares sold in this offering. These
options vested immediately upon grant for those directors who
had been serving on the board for at least two years as of
January 1, 2004. Option grants made to directors who joined
or will join the board on or after January 1, 2004 will
vest over a period of 4 years; 25% on the first anniversary
of the grant and 12.5% each six month period thereafter.
Unvested options are forfeited if and when a director ceases to
be a member of the board of directors.
Executive Compensation
The following table sets forth the total
compensation awarded or paid to, or earned for, services
rendered to us in all capacities during 2003, by our Chief
Executive Officer and our four other most highly compensated
executive officers. These executives are referred to as the
"named executive officers" elsewhere in this
prospectus.
Summary Compensation Table
Long-Term
Compensation
Annual Compensation
Securities
Other Annual
Underlying
All Other
Name and Principal Position
Salary
Bonus
Compensation
Options
Compensation(1)
Dean A. Wiltse
$
250,000
$
416,667
$
107,834
(2)
—
—
President and Chief Executive Officer
Robert E. Bies
185,000
283,333
—
17,857
$
2,400
(3)
Executive Vice President, Chief Financial Officer
    and Treasurer
Jonathan A. Flatow
175,000
150,000
3,895
(4)
17,857
2,400
(3)
Vice President of Corporate Development,
    Secretary and General Counsel
Hugh O. Davis
165,000
150,000
—
17,857
1,650
(3)
Chief Technology Officer
Keith Price
150,000
205,000
132,323
(5)
114,285
2,400
(3)
Senior Vice President
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(1)
In addition to the compensation reflected in this
    table, Messrs. Wiltse, Bies, Flatow and Davis were each
    granted shares of restricted stock in December 2002. One-half of
    these restricted shares vested upon grant and the remaining
    one-half vested in January 2004. See "Certain Relationships
    and Related Transactions — Restricted Stock
    Agreements."
(2)
Represents other compensation consisting of an
    $18,000 car allowance, $5,210 car usage allowance and $84,633 in
    moving expense reimbursement.
(3)
Represents a 20% matching contribution to the
    executives' 401(k) plan.
(4)
Represents reimbursement of disability insurance
    premiums paid by executive.
(5)
Represents sales commissions.
Stock Option Grants in 2003
The following table sets forth information with
respect to stock options granted to each of our named executive
officers during 2003 and includes the potential realizable
value, which is the exercise price before taxes associated with
exercise, over the entire term of the options. This
determination assumes options are exercised at the end of their
terms, based on assumed annually compounded rates of stock
appreciation of 5% and 10% and based on the exercise price per
share. These assumed rates of appreciation comply with the rules
of the SEC and do not represent our estimate of future common
stock prices. Actual gains, if any, on stock option exercises
will depend on the future performance of our common stock. We
granted options to purchase a total of 600,472 shares of
common stock during 2003.
Options granted in 2003 to the named executive
officers were granted under the 1999 Option Plan, the material
terms of which are further described below. All options granted
to the named executive officers are options to purchase our
common stock. One-quarter of the shares subject to each option
grant vest on the first anniversary of the date of grant, and an
additional one-eighth of the shares subject to the option vest
each six months after the first anniversary. All options were
granted at or above fair market value as determined in good
faith by our board of directors on the date of grant.
Option Grants in 2003
Potential Realizable
Individual Grants
Value at Assumed
Annual Stock Price
Number of
Percentage of
Appreciation Rate for
Securities
Total Options
Exercise
Option Term
Underlying
Granted in
Price Per
Expiration
Options
2003
Share
Date
5%
10%
Dean A. Wiltse
—
—
—
—
—
—
Robert E. Bies
17,857
3.0
%
$
2.66
10/15/2013
$
29,872
$
75,702
Jonathan A. Flatow
17,857
3.0
2.66
10/15/2013
29,872
75,702
Hugh O. Davis
17,857
3.0
2.66
10/15/2013
29,872
75,702
Keith Price
114,285
19.0
0.14
03/31/2013
10,062
25,500
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Aggregate Option Exercises in Fiscal Year 2003
and Fiscal Year-End Option Values
The following table sets forth option exercises
during 2003, the value realized upon the exercise of those
options and the number of shares of common stock subject to
exercisable stock options held as of December 31, 2003, by
the named executive officers.
Number of Securities
Underlying Unexercised
Value of Unexercised
Options at
In-the-Money Options at
Shares
December 31, 2003
December 31, 2003(1)
Acquired on
Value
Name
Exercise
Realized
Exercisable
Unexercisable
Exercisable
Unexercisable
Dean A. Wiltse
—
—
44,227
26,536
$
714,274
$
428,566
Robert E. Bies
—
—
17,949
24,860
186,477
360,283
Jonathan A. Flatow
—
—
12,746
23,105
121,089
321,050
Hugh O. Davis
—
—
7,497
22,355
121,089
321,050
Keith Price
—
—
2,403
115,541
33,600
1,897,897
(1)
There was no public trading market for our common
    stock as of December 31, 2003. Accordingly, these values
    have been based on our board of directors' determination
    that the fair market value of the underlying shares as of
    December 31, 2003 was no less than $2.66 per share,
    less the applicable exercise price per share, multiplied by the
    number of shares underlying such options.
Employment Agreements and Change of Control
Provisions
We have entered into employment agreements with
each of our named executive officers. Each of these agreements
may be terminated by either us or the executive officer at any
time with or without cause.
In April 2004, we entered into an employment
agreement with Dean Wiltse, our Chief Executive Officer. The
agreement provides for an annual base salary of $400,000 and
payment of 12 months' base salary if we terminate
Mr. Wiltse without cause. The agreement also provides that
if, prior to a change in control, we terminate Mr. Wiltse
without cause or if he resigns for good reason, he will receive
his base salary for two years following such termination, paid
in monthly installments. If Mr. Wiltse is terminated
without cause upon a change of control or within one year of a
change of control, or if he resigns for good reason within one
year of a change of control, we will pay his base salary for two
years following such termination or resignation in monthly
installments and a fixed bonus of six months' salary in one
lump sum.
The employment agreements with our other
executive officers provide for the payment of base salaries as
follows: Robert Bies — $250,000; Jonathan
Flatow — $200,000; Hugh Davis — $200,000;
Keith Price — $200,000; Frank Kelly —
$150,000; and Elizabeth Rounds — $150,000. In
addition, the agreement with Ms. Rounds provides for the payment
of an annual bonus of $75,000 upon the achievement of certain
performance objectives, and the agreement with Mr. Kelly
provides that he will participate in any performance-based bonus
program that we make available to other members of our senior
management.
In addition, each of the agreements with
Ms. Rounds and Messrs. Wiltse, Bies, Flatow, Davis,
Kelly and Price:
•
provides for participation in any
    performance-based bonus programs that we make available to other
    members of our senior management;
•
prohibits the executive officer, during his or
    her employment with us and for a period of five years
    thereafter, from disclosing confidential information;
•
requires the executive officer to transfer to us
    any inventions he or she develops during his or her employment
    with us; and
•
prohibits the executive officer from competing
    with us, disparaging us or hiring our employees for a period of
    one year after their termination.
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In addition, each of the agreements with
Messrs. Bies, Flatow, Davis and Price:
•
provides for payment to them of
    12 months' base salary plus a pro rata portion of the
    annual bonus to which the named executive officer would have
    been entitled under our performance-based bonus program in the
    year in which a termination occurs if we terminate the named
    executive officer without cause or it the named executive
    officer resigns from employment with us for good reason; and
•
provides that, if we terminate the named
    executive officer upon a change of control or within one year
    after a change of control without cause, or if he resigns for
    good reason within one year after a change of control, we will
    pay his base salary for 18 months in monthly installments
    and pay him a fixed bonus of three months' salary in one
    lump sum plus any unvested stock options or other equity-based
    incentive awards will become immediately vested and remain
    exercisable for 12 months from such termination date.
Stock Based Plans
Amended and Restated 1999 Stock Option
    Plan
The 1999 Option Plan was adopted by our board of
directors and stockholders on May 12, 1999, and amended by
our board of directors on March 3, 2000 and subsequently
approved by our stockholders on March 6, 2000. Upon the
effectiveness of this offering, no further option grants will be
made under the 1999 Option Plan and the 1999 Option Plan will
terminate on May 12, 2009, the tenth anniversary of the
date the 1999 Option Plan was adopted by our board of directors.
The 1999 Option Plan provides for the grant of incentive stock
options and nonqualified stock options, which may be granted to
our employee, including officers and directors, employees and
consultants.
Share Reserve.
The
aggregate number of shares of common stock that may be issued
pursuant to awards granted under the 1999 Option Plan is
987,040 shares. As of April 5, 2004, 44,000 shares of
common stock have been issued as a result of grants made under
the 1999 Option Plan, options to purchase 920,487 shares
are currently outstanding and options to purchase
22,554 shares are available for future grant under the 1999
Option Plan.
Administration.
The
board of directors administers the 1999 Option Plan and may
delegate this authority to administer the plan to a committee.
Subject to the terms of the 1999 Option Plan, the plan
administrator (our board of directors or its authorized
committee) determines recipients, grant dates, the numbers and
types of stock awards to be granted, and the terms and
conditions of the stock awards, including the period of their
exercisability and vesting. Subject to the limitations set forth
below, the plan administrator will also determine the exercise
price of options granted.
Stock Options.
Nonstatutory stock options and incentive stock options are
granted pursuant to nonstatutory stock option agreements and
incentive stock option agreements, respectively. The 1999 Option
Plan administrator determines the exercise price for stock
options. For persons owning more than ten percent of our stock
or of any of our affiliates (ten percent stockholders), the
exercise price for incentive options will be at least 110% of
the fair market value of the shares of common stock underlying
the incentive option on the date such incentive option is
granted and such incentive options will not be exercisable after
the expiration of five years from the date of grant. The plan
administrator determines the vesting period and term of stock
options granted under the 1999 Option Plan.
Unless the terms of an optionee's stock
option agreement provide otherwise, if an optionee's
service relationship with us, or any of our affiliates, ceases
due to disability or death or the optionee dies within a
specified period after termination of service, the optionee, or
his or her beneficiary, may exercise any vested options for a
period of 12 months in the event of disability or death,
after the date such service relationship ends or after death, as
applicable. Unless the option agreement provides for earlier or
later termination, if an optionee's relationship with us,
or any of our affiliates, ceases for any reason other than
disability or death, the optionee may exercise any vested
options for a period of ninety days from cessation of service,
unless discharged for misconduct that was willful or wantonly
harmful to us, in which case the options expire
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immediately upon discharge. In no event, however,
may an option be exercised after the expiration of its term, as
set forth in the stock option agreement.
Acceptable consideration for the purchase of
common stock issued upon the exercise of a stock option will
either be cash, a cashless exercise or other legal consideration
approved by the plan administrator. The plan administrator may
grant stock options with provisions entitling the optionee to a
further option in the event the optionee exercises the option
evidenced by the option agreement, in whole or in part, by
surrendering other shares of our common stock.
Generally, an optionee may not transfer a
nonstatutory option other than by will or the laws of descent
and distribution, unless the nonstatutory option agreement
provides otherwise. Optionees may not transfer incentive options
except by will or by the laws of descent and distribution.
Changes to Capital
Structure.
The number of shares that
may be delivered under the 1999 Option Plan and the number and
price of the shares covered by each outstanding stock award will
be adjusted proportionately in the event of an increase or
decrease in the number of outstanding shares of our common stock
resulting from a stock split or reverse split of shares or any
other capital adjustment or the payment of a stock dividend or
other increase or decrease in such shares effected without
receipt of consideration by us excluding any decrease resulting
from a redemption of our shares.
Changes in Control.
In the event of a change in control of us, all outstanding
options and other awards under the 1999 Option Plan may be
assumed, continued or substituted for by any surviving or
acquiring entity. If the surviving or acquiring entity elects
not to assume, continue or substitute for such awards, the
vesting of such awards held by awardholders whose service with
us or any of our affiliates has not terminated will be
accelerated and such awards will be fully vested and exercisable
immediately prior to the consummation of such transaction,
conditioned upon the effectiveness of the change in control. The
stock awards shall automatically terminate upon consummation of
such transaction if not exercised prior to such event. Options
granted under the 1999 Option Plan to our senior managers
provide for accelerated vesting in the event of a change in
control if, within one year of a corporate transaction, either
(i) the senior manager's employment is terminated by
the successor corporation without cause, or (ii) the senior
manager resigns from the successor corporation for good reason.
2004 Equity Incentive Plan
Our board of directors adopted the 2004 Equity
Plan on April 1, 2004 and our stockholders approved it on
April 1, 2004. The 2004 Equity Plan will become effective
upon the completion of this offering. Unless sooner terminated
by the board of directors, the 2004 Equity Plan will terminate
on March 31, 2014, the day before the tenth anniversary of
the date that the plan is adopted by the board. The 2004 Equity
Plan provides for the grant of incentive stock options,
nonstatutory stock options, stock bonuses, restricted stock
awards, and stock appreciation rights, which may be granted to
our employees (including officers), directors and consultants.
Share Reserve.
The
aggregate number of shares of common stock that may be issued
pursuant to awards granted under the 2004 Equity Plan shall not
exceed 785,714 plus (i) the number of shares that are
available for award under the 1999 Option Plan at the time of
effectiveness of the 2004 Equity Plan and (ii) the number
of shares that are subject to awards under the 1999 Plan that
are forfeited or expire prior to the termination of the 1999
Option Plan that become available for re-grant in accordance
with the provisions of the 1999 Option Plan (and in the case of
clause (i) and (ii) such shares shall no longer be
available for issuance under the 1999 Option Plan);
provided,
that
, the aggregate number of shares issuable under the 2004
Equity Plan shall not exceed 10% of our outstanding common stock
at the time of the completion of this offering calculated on a
fully-diluted basis (assuming the exercise or conversion of all
outstanding options, warrants and other securities convertible
into or exchangeable for shares of our common stock). As of the
date of this prospectus, no shares of common stock have been
issued under the 2004 Equity Plan.
The following types of shares issued under the
2004 Equity Plan may again become available for the grant of new
awards under the 2004 Equity Plan: restricted stock issued under
the 2004 Equity Plan or the
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1999 Plan that is forfeited or repurchased prior
to it becoming fully vested; shares withheld for taxes; shares
tendered to us to pay the exercise price of an option; and
shares subject to awards issued under the 2004 Equity Plan or
the 1999 Option Plan that have expired or otherwise terminated
without having been exercised in full. Shares issued under the
2004 Equity Plan may be previously unissued shares or reacquired
shares bought on the market or otherwise.
Administration.
The
board of directors will administer the 2004 Equity Plan and may
delegate this authority to administer the plan to a committee.
Subject to the terms of the 2004 Equity Plan, the plan
administrator (our board of directors or its authorized
committee) determines recipients, grant dates, the numbers and
types of stock awards to be granted and the terms and conditions
of the stock awards, including the period of their
exercisability and vesting. Subject to the limitations set forth
below, the plan administrator will also determine the exercise
price of options granted, the purchase price for restricted
stock and, if applicable, the strike price for stock
appreciation rights.
Stock Options.
Nonstatutory stock options, or nonstatutory options, and
incentive stock options, or incentive options, are granted
pursuant to nonstatutory stock option agreements and incentive
stock option agreements, respectively. The plan administrator
determines the exercise price for stock options. Subject to the
limitations set forth below regarding persons owning more than
ten percent of our stock or of any of our affiliates (ten
percent stockholders), the exercise price for incentive options
will be at least 100% of the fair market value of the shares of
common stock underlying the incentive option on the date such
incentive option is granted and such incentive options will not
be exercisable after the expiration of ten years from the date
of grant. For ten percent stockholders, the exercise price for
incentive options will be at least 110% of the fair market value
of the shares of common stock underlying the incentive option on
the date such incentive option is granted and such incentive
options will not be exercisable after the expiration of five
years from the date of grant. The plan administrator determines
the vesting period and term of stock options granted under the
2004 Equity Plan.
Unless the terms of an optionee's stock
option agreement provide otherwise, if an optionee's
service relationship with us, or any of our affiliates, ceases
due to disability or death or the optionee dies within a
specified period after termination of service, the optionee, or
his or her beneficiary, may exercise any vested options for a
period of 12 months in the event of disability or
18 months in the event of death, after the date such
service relationship ends or after death, as applicable. If an
optionee's relationship with us, or any of our affiliates,
ceases for any reason other than disability or death, the
optionee may exercise any vested options for a period of three
months from cessation of service, unless the terms of the stock
option agreement provide for earlier or later termination. In no
event, however, may an option be exercised after the expiration
of its term, as set forth in the stock option agreement.
Acceptable consideration for the purchase of
common stock issued upon the exercise of a stock option will
either be cash, common stock owned by the optionee which has
been held by the optionee for at least six months, a deferred
payment arrangement, a cashless exercise or other legal
consideration approved by the plan administrator. The plan
administrator may grant stock options with provisions entitling
the optionee to a further option in the event the optionee
exercises the option evidenced by the option agreement, in whole
or in part, by surrendering other shares of our common stock.
Generally, an optionee may not transfer a
nonstatutory option other than by will or the laws of descent
and distribution unless the nonstatutory option agreement
provides otherwise. Optionees may not transfer incentive options
except by will or by the laws of descent and distribution and
incentive options are exercisable during the lifetime of the
optionee only by the optionee. Optionees may designate a
beneficiary who may exercise the option following the
optionee's death.
Stock Bonus Awards.
Stock bonus awards are granted pursuant to stock bonus
agreements. The purchase price for stock bonus awards may be
payable by the recipient's performance of services for us.
Stock bonus awards may be subject to a repurchase right in
accordance with a vesting schedule determined by the board of
directors. Upon termination of a recipient's service with
us, stock bonus awards which are unvested as of the date of such
termination may be reacquired by us after such time as it would
not result in
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negative accounting consequences. Stock bonus
awards may be transferable only to the extent provided in a
stock bonus agreement.
Restricted Stock
Awards.
Restricted stock awards are
granted pursuant to restricted stock award agreements. The plan
administrator determines the purchase price for restricted stock
awards. The purchase price for a restricted stock award may be
payable in cash, by the recipient's services performed or
to be performed for us, according to a deferred payment
arrangement at the discretion of the plan administrator or any
other form of legal consideration approved by the plan
administrator. Upon termination of a recipient's service
with us, shares of restricted stock that are unvested as of the
date of such termination may be reacquired by us subject to the
terms of the restricted stock award agreement. Restricted stock
awards may be subject to a repurchase right in accordance with a
vesting schedule determined by the board of directors.
Restricted stock awards may be transferable only to the extent
provided in a restricted stock award agreement.
Stock Appreciation
Rights.
Stock appreciation rights are
granted pursuant to a stock appreciation rights agreements. The
plan administrator may grant stock appreciation rights in
connection with stock options or in a stand-alone grant. The
plan administrator determines the strike price for a stock
appreciation right. A stock appreciation right granted under the
2004 Equity Plan vests at the rate specified in the stock
appreciation right agreement.
The plan administrator determines the term of
stock appreciation rights granted under the 2004 Equity Plan.
With respect to stock appreciation rights that are granted in
connection with stock options, such stock appreciation rights
shall be exercisable only to the extent that the related stock
option is exercisable and such stock appreciation rights shall
expire no later than the date on which the related stock options
expire. If an awardholder's relationship with us, or any of
our affiliates, ceases for any reason, any unvested stock
appreciation rights will be forfeited and any vested stock
appreciation rights will be automatically redeemed.
Changes to Capital
Structure.
In the event of a dividend
or other distribution (whether in the form of cash, shares of
common stock, other securities, or other property),
recapitalization, stock split, reorganization, merger,
consolidation, exchange of our common stock or our other
securities, or other change in our corporate structure, the plan
administrator may adjust the number of shares that may be
delivered under the incentive plan and the number and price of
the shares covered by each outstanding stock award.
Changes in Control.
In the event of a change in control of us, all outstanding
options and other awards under the 2004 Equity Plan may be
assumed, continued or substituted for by any surviving or
acquiring entity. If the surviving or acquiring entity elects
not to assume, continue or substitute for such awards, the
vesting of such awards held by awardholders whose service with
us or any of our affiliates has not terminated will be
accelerated and such awards will be fully vested and exercisable
immediately prior to the consummation of such transaction, and
the stock awards shall automatically terminate upon consummation
of such transaction if not exercised prior to such event.
The board of directors may amend (subject to
shareholder approval as required by applicable law), suspend or
terminate the 2004 Equity Plan at any time.
2004 Employee Stock Purchase
    Plan
Our board of directors adopted our Stock Purchase
Plan on April 1, 2004 and our stockholders adopted it on
April 1, 2004. The Stock Purchase Plan will become
effective upon the completion of this offering or as determined
by our board of directors.
Share Reserve.
The
Stock Purchase Plan authorizes the issuance of
250,000 shares of common stock pursuant to purchase rights
granted to certain of our employees or to employees of any of
our subsidiaries that we designate as being eligible to
participate. As of the date hereof, no shares of common stock
have been purchased under the Stock Purchase Plan.
Administration of the Stock Purchase
Plan.
The compensation committee of
the board of directors will administer the Stock Purchase Plan,
and may delegate the administration to a an officer of the
Company. The Stock Purchase Plan provides a means by which
employees may purchase our common stock. We will
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Table of Contents
implement the Stock Purchase Plan by offering to
our eligible employees the right to purchase shares of common
stock.
Under the Stock Purchase Plan, we will conduct
twelve consecutive offerings, each with a maximum duration of
six months. The first offering will commence
ninety days after the effective date of the registration
statement filed in connection with this prospectus and further
offerings will be conducted on each subsequent January 1
and July 1. The final offering under the Stock Purchase
Plan will commence on January 1, 2010 and terminate on
June 30, 2010.
Unless otherwise determined by the plan
administrator (our board of directors or its authorized
committee), common stock may be purchased by the employees
participating in the Stock Purchase Plan at a price per share
equal to the lesser of (i) 85% of the fair market value of
a share of our common stock on the date of commencement of the
offering or (ii) 85% of the fair market value of a share of
our common stock on the last business day of the offering.
Generally, all regular employees, including officers, who are
customarily employed by us or by any of our designated
affiliates for more than 20 hours per week and more than
five months per calendar year may participate in the Stock
Purchase Plan and may contribute (normally through payroll
deductions) up to 10% of their earnings for the purchase of
common stock under the Stock Purchase Plan, as determined by the
plan administrator. If an employee's employment with us, or
any of our affiliates, ceases for any reason, the balance in the
account of such participating employee will be paid to the
employee or his or her estate. Employees may not transfer or
encumber either the payroll deductions credited to their account
or any rights to purchase shares other than by will or the laws
of descent and distribution.
Limitations.
Eligible employees may be granted rights to participate under
the Stock Purchase Plan only if, together with any other rights
granted under other employee stock Stock Purchase Plans, they do
not permit such employee to purchase our common stock at an
accrued rate exceeding $25,000 of the fair market value of such
stock for each calendar year in which such rights are
outstanding. No employee shall be eligible for the grant of any
rights under the Purchase Plan if immediately after such rights
are granted, such employee owns five percent or more of our
outstanding capital stock measured by vote or value.
Changes to Capital
Structure.
In the event of a
reorganization, recapitalization, stock split, stock dividend,
combination of shares, merger, consolidation, offerings of
rights, or any other change in the structure of our common
stock, the plan administrator may make such adjustment, if any,
as it may deem appropriate in the number, kind, and the price of
shares available for purchase under the Purchase Plan, and in
the number of shares which an employee is entitled to purchase.
The board of directors may amend (subject to
shareholder approval as required by applicable law), suspend or
terminate the 2004 Stock Purchase Plan at any time.
Limitation on Liability and
Indemnification
Our certificate of incorporation contains
provisions that limit the liability of our directors for
monetary damages. Our certificate of incorporation provides that
a director will not be personally liable to us or our
stockholders for monetary damages for any breach of fiduciary
duty as a director to the fullest extent permitted by
Section 203 of Delaware General Corporation Law, which
prohibits our certificate of incorporation from limiting the
liability of our directors for the following:
•
any breach of their duty of loyalty to our
    company or our stockholders;
•
acts or omissions not in good faith or which
    involve intentional misconduct or a knowing violation of law;
•
unlawful payments of dividends or unlawful stock
    repurchases or redemptions as provided in Section 174 of
    the Delaware General Corporation Law; or
•
any transaction from which the director derived
    an improper personal benefit.
If Delaware law is amended to authorize corporate
action further eliminating or limiting the personal liability of
a director, then the liability of our directors will be
eliminated or limited to the fullest extent
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permitted by Delaware law, as so amended. Our
certificate of incorporation will not eliminate a
director's duty of care and, in appropriate circumstances,
equitable remedies such as injunctive or other forms of
non-monetary relief remain available under Delaware law. Our
certificate of incorporation will not affect a director's
responsibilities under any other laws, such as the federal
securities laws or state or federal environmental laws.
Our bylaws provide that:
•
we are required to indemnify our directors and
    officers to the fullest extent permitted by the Delaware General
    Corporation Law, subject to limited exceptions where
    indemnification is not permitted by applicable law;
•
we are required to advance expenses, as incurred,
    to our directors and officers in connection with a legal
    proceeding to the fullest extent permitted by the Delaware
    General Corporation Law, subject to limited exceptions; and
•
the rights conferred in the bylaws are not
    exclusive.
Our bylaws provide that we may also indemnify our
other employees and agents to the fullest extent permitted by
Delaware General Corporation Law. Our bylaws also permit us to
secure insurance on behalf of any officer, director, employee or
other agent for any liability arising out of his or her actions
in that capacity, regardless of whether our bylaws would
otherwise permit indemnification. We have entered and expect to
continue to enter into agreements to indemnify our directors,
executive officers and other employees as determined by the
board of directors. These agreements provide for indemnification
for related expenses including attorneys' fees, judgments,
fines and settlement amounts incurred by any of these
individuals in any action or proceeding. We believe that these
bylaw provisions and indemnification agreements are necessary to
attract and retain qualified persons as directors and officers.
We also maintain directors' and officers' liability
insurance.
The limitation of liability and indemnification
provisions in our certificate of incorporation and bylaws may
discourage stockholders from bringing a lawsuit against
directors for breach of their fiduciary duties. They may also
reduce the likelihood of derivative litigation against directors
and officers, even though an action, if successful, might
benefit us and our stockholders. A stockholder's investment
may be adversely affected to the extent we pay the costs of
settlement and damage awards against directors and officers
pursuant to these indemnification provisions.
Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors,
officers or persons controlling us pursuant to the foregoing
provisions, we have been informed that in the opinion of the
SEC, this indemnification is against public policy as expressed
in the Securities Act and is therefore unenforceable.
At present, there is no pending litigation or
proceeding involving any of our directors, officers, employees
or agents where indemnification will be required or permitted.
We are not aware of any threatened litigation or proceeding that
might result in a claim for indemnification.
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CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS
Equity Sales and Related
Transactions
Series A Preferred Stock
    Offering
In March and April of 2001, we issued and sold an
aggregate of 3,107,529 shares of our Series A
Convertible Participating Preferred Stock ("Series A
Preferred Stock") to two of our directors, Joel Mesznik and
Burton J. Manning, in addition to various other investors. Hugh
Davis, our Chief Technology Officer, purchased
193,221 shares of Series A Preferred Stock in
connection with his ownership of membership units in Greenfield
Holdings, LLC. Outstanding shares of our Series A Preferred
Stock are convertible at the option of the holder into shares of
our common stock at a set conversion ratio. Immediately prior to
the completion of this offering, all outstanding shares of our
Series A Preferred Stock will be mandatorily converted into
shares of our common stock.
December 2002
    Recapitalization
In December 2002, we underwent a change in our
capital structure (the "Recapitalization"), which
resulted in the issuance and sale of three newly created classes
of preferred stock. These new classes of preferred stock were
designated the Series B Convertible Participating Preferred
Stock ("Series B Preferred Stock"), the
Series C-1 Convertible Participating Preferred Stock
("Series C-1 Preferred Stock"), and the
Series C-2 Non-Voting Redeemable Preferred Stock
("Series C-2 Preferred Stock"). As part of the
Recapitalization, we also converted our outstanding Class A
and Class B common stock into a new single class of common
stock and then effected a reverse stock split on the resulting
new single class of common stock. Additionally, we issued shares
of our common stock to certain members of our management and an
independent member of our board of directors.
Series C-1 Preferred
Stock.
We offered the Series C-1
Preferred Stock to all holders of our Series A Preferred
Stock. The aggregate number of shares of our Series C-1
Preferred Stock issued and sold in the Recapitalization was
74,627,182, for an aggregate offering price of $4,564,778, which
was payable in cash or through the conversion of existing
principal and accrued interest due under promissory notes issued
by us and held by holders of our Series A Preferred Stock.
Outstanding shares of our Series C-1 Preferred Stock are
convertible at the option of the holder into shares of our
common stock at a set conversion ratio of one-for-14.
Immediately prior to the completion of this offering, all
outstanding shares of our Series C-1 Preferred Stock will
be mandatorily converted into shares of our common stock, in
accordance with the terms of the Series C-1 Preferred Stock.
Series C-2 Preferred
Stock.
We issued and sold
10,000 shares of our Series C-2 Preferred Stock to
Imprimis SB, L.P. ("Imprimis") in exchange for the
cancellation of a promissory note held by Imprimis in an
aggregate principal amount of $2,052,267. Following the
completion of this offering, all of the shares of our
Series C-2 Preferred Stock will be mandatorily redeemed by
us for $2,052,267 in cash in the aggregate.
Series B Preferred
Stock.
We issued and sold
30,211,595 shares of our Series B Preferred Stock in
exchange for the cancellation of certain promissory notes in an
aggregate amount of $16,827,835. In connection with the
Recapitalization, one of our stockholders, Greenfield Holdings,
LLC ("Greenfield Holdings"), dissolved and distributed
to its members their pro rata percentage interest of the
promissory notes that we had issued to Greenfield Holdings (the
"Greenfield Holdings Notes"). In the Recapitalization,
each of the members of Greenfield Holdings, other than Imprimis,
exchanged their portion of the Greenfield Holdings notes for
shares of our Series B Preferred Stock. Imprimis exchanged
its portion of the Greenfield Holdings Notes for shares of
Series C-2 Preferred Stock as described above. Outstanding
shares of the Series B Preferred Stock are convertible at
the option of the holder into shares of our common stock at a
set conversion ratio of one-for-14. Immediately prior to the
completion of this offering, all outstanding shares of our
Series B Preferred Stock will be mandatorily converted into
shares of our common stock, in accordance with the terms of the
Series B Preferred Stock.
Restricted Stock
Agreements.
In connection with the
Recapitalization, we entered into Restricted Stock Agreements
with each of the following executive officers: Dean Wiltse, Bob
Bies, Jonathan Flatow and Hugh
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Davis, and one of our directors, Joel Mesznik, on
December 16, 2002, which were subsequently amended on
January 14, 2004. These agreements permitted these
individuals to purchase an aggregate amount of 15,480,501 shares
of our common stock at par value, $0.0001 per share, in
exchange for services rendered and services to be rendered. As a
result, Dean Wiltse purchased 766,994 shares for $1,073.79,
Robert Bies purchased 191,749 shares for $268.45, Jonathan
Flatow purchased 63,916 shares for $89.48, Hugh Davis
purchased 63,916 shares for $89.48, and Joel Mesznik
purchased 19,175 shares for $26.84. While 50% of the shares
of common stock sold pursuant to these agreements were initially
subject to certain vesting and forfeiture provisions, as of the
date of amendment, 100% of the shares had vested.
Since January 1, 2001, the following
executive officers, directors and holders of more than five
percent of our voting securities purchased securities in the
amounts and as of the dates set forth below. Upon completion of
this offering, all shares of our Series C-2 Preferred Stock
will be redeemed and all outstanding shares of the remaining
series of preferred stock will be converted into shares of our
common stock on a one-for-14 basis. See
"Capitalization."
Number of
Number of
Number of
Number of
Number of
Common Shares
Series A Shares
Series B Shares
Series C-1 Shares
Series C-2 Shares
Issued December 2002
Issued March 2001
Issued December 2002
Issued December 2002
Issued December 2002
for $0.0001
for $0.2913
for $0.5570
for $0.0612
for $205.2267
Name
Per Share
Per Share
Per Share
Per Share
Per Share
Dean A. Wiltse
766,994
—
—
—
—
Joel R. Mesznik
19,175
2,848,903
(1)
1,473,802
(2)
5,448,922
(3)
—
Burton J. Manning
—
258,626
147,448
497,935
—
Jeffrey Horing
—
—
—
—
—
Peter Sobiloff
—
—
—
—
—
Lawrence R. Handen
—
—
—
—
—
Robert E. Bies
191,749
—
—
—
—
Jonathan A. Flatow
63,916
—
—
—
—
Hugh O. Davis
63,916
193,221
221,003
—
—
Keith Price
—
—
—
—
—
Insight Capital Partners III, L.P.
—
14,342,674
12,176,158
27,613,650
—
Insight Capital Partners (Cayman) III, LLC
—
3,552,937
3,703,488
6,840,391
—
Insight Capital Partners III Co-investors,
    L.P.
—
2,514,080
2,026,309
4,840,310
—
MSD Ventures, L.P.
—
4,563,501
4,421,068
5,242,784
—
UBS Capital II LLC
—
11,203,097
3,684,506
21,550,118
—
Imprimis SB
—
—
—
—
10,000
(1)
Includes 1,288,535 shares held by GOL,
    L.L.C, of which Mr. Mesznik is the managing member and
    212,420 shares given by Mr. Mesznik to the
    Joel R. Mesznik 1999 Descendents' Trust for the
    benefit of his family members.
(2)
Shares held by GOL, L.L.C.
(3)
Includes 2,480,780 shares held by GOL, L.L.C.
Loans to Executive Officer
In connection with an earlier recapitalization of
our company in May 1999, one of our executive officers, Hugh O.
Davis, borrowed $75,013 from us in order to purchase shares of
our Class A Common Stock, which were later combined with
our Class B Common Stock into one class of our common stock
as part of the Recapitalization. In connection with the loan,
Mr. Davis issued us a promissory note in the aggregate
principal amount of $75,013, with a compounding annual interest
rate of 5.3% and maturing on May 17, 2004. In connection
with our issuance and sale of our Series A Preferred Stock
to Greenfield Holdings and other investors in March 2001,
Mr. Davis borrowed an additional $56,285 from us in order
to purchase Class B Units from Greenfield Holdings. In
connection with the loan, Mr. Davis issued us a promissory
note
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in the aggregate principal amount of $56,285 with
an annually compounding interest rate of 8%, and maturing on the
earlier of our change of control or May 17, 2004. Under a
pledge agreement dated as of May 17, 1999 and amended
March 9, 2001, Mr. Davis pledged as collateral for the
loans all of his shares of Class A Common Stock, the
Class B Units in Greenfield Holdings and any cash or
securities received in respect of the Class A Common Stock
and Class B Units. In the Recapitalization, Greenfield
Holdings was dissolved and Mr. Davis received shares of our
common stock in exchange for the shares of Class A Common
Stock and shares of our preferred stock in exchange for the
Class B Units of Greenfield Holdings.
I-GAIN contract
We had an arrangement with I-GAIN, an incentive
and loyalty reward company, which provided that I-GAIN would pay
cash awards to panelists on our behalf in exchange for our
payment of a fee of $0.50 per transaction. Hugh O. Davis,
our Chief Technology Officer, formerly held a 10% ownership
interest in I-GAIN. The contract with I-GAIN became null and
void in May 2001 and the total costs that we incurred for this
arrangement with I-GAIN for the year ended December 31,
2001 were $653,000, which included amounts that I-GAIN paid to
panelists. We have had no further transactions with I-GAIN since
May 2001.
Director and Officer Indemnification
Our certificate of incorporation and bylaws
contain provisions limiting the liability of our directors. In
addition, we have entered into agreements to indemnify our
directors and executive officers to the fullest extent permitted
under Delaware law. See "Management — Limitation
on Liability and Indemnification."
Registration Rights
Our stockholders are entitled to registration
rights. See "Description of Capital Stock —
Registration Rights."
Stock Option Grants
We have granted stock options to purchase shares
of our common stock to our executive officers and directors. See
"Management."
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PRINCIPAL AND SELLING STOCKHOLDERS
The following table sets forth information with
respect to the beneficial ownership of our common stock held as
of March 31, 2004, and as adjusted to reflect the sale of
common stock in this offering for:
•
each of our directors;
•
each of our named executive officers;
•
all of our directors and executive officers as a
    group;
•
each person who we know beneficially owns 5% or
    more of our common stock; and
•
each selling stockholder.
Except as otherwise indicated by footnote, and
subject to applicable community property laws, we believe that
the beneficial owners of the common stock listed below have sole
voting power and investment power with respect to their shares.
Beneficial ownership is determined in accordance with the rules
of the SEC. The table below assumes the conversion of all of the
outstanding shares of our convertible preferred stock into
common stock, which will occur immediately prior to the
completion of this offering.
The number of shares of common stock outstanding,
on an as converted basis, used in calculating the percentage for
each listed person or entity includes common stock underlying
options or a warrant held by the person or entity that are
exercisable within 60 days of March 31, 2004 or upon
completion of this offering, but excludes common stock
underlying options or warrants held by any other person or
entity. Percentage of beneficial ownership is based on
12,462,671 shares of common stock outstanding as of
March 31, 2004
and            shares
of common stock outstanding after this offering. The shares
outstanding prior to this offering consist of
2,054,552 shares of common stock, 2,919,616 shares of
common stock issuable upon conversion of the Series A
Preferred Stock, 2,157,977 shares of common stock issuable
upon conversion of the Series B Preferred Stock,
5,330,526 shares of common stock issuable upon conversion
of the Series C-1 Preferred Stock. Upon the completion of
this offering, all shares of our Series C-2 Preferred Stock
will be redeemed and all outstanding shares of the remaining
series of preferred stock will be converted into shares of our
common stock on a one-for-14 basis. The address for those
individuals for which an address is not otherwise indicated is
c/o Greenfield Online, Inc., 21 River Road,
Wilton, Connecticut 06897.
Shares Beneficially Owned
Shares Beneficially Owned
Prior to this Offering
After this Offering
Shares Being
Number
Percentage
Offered(1)
Number
Percentage
Executive Officers and Directors:
Dean A. Wiltse(2)
820,067
6.6
%
71,675
748,392
Lise J. Buyer
—
—
—
—
Lawrence R. Handen(3)
2,759,164
22.1
236,060
2,523,104
Jeffrey Horing(4)
5,964,403
47.9
510,253
5,454,150
Vikas Kapoor
—
—
—
—
Burton J. Manning(5)
89,974
*
7,698
82,276
Joel R. Mesznik(6)
787,778
6.3
67,399
720,379
Peter Sobiloff(7)
354
*
—
354
Robert E. Bies(8)
212,045
1.7
20,068
191,977
Hugh O. Davis(9)
112,655
*
11,423
101,232
Jonathan A. Flatow(10)
78,912
*
8,536
70,376
Keith Price(11)
31,113
*
10,091
21,022
All Executive Officers and Directors as a Group
    (14 persons)
10,856,465
86.3
943,203
9,913,262
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Shares Beneficially Owned
Shares Beneficially Owned
Prior to this Offering
After this Offering
Shares Being
Number
Percentage
Offered(1)
Number
Percentage
5% Stockholders:
Entities affiliated with Insight Venture
    Associates III, LLC(12)
5,963,694
47.9
%
510,253
5,453,441
UBS Capital II LLC
2,759,164
22.1
236,060
2,523,104
MSD Ventures, L.P.
1,122,458
9.0
—
1,122,458
Other Selling Stockholders:
Forrestor Research, Inc.
135,994
1.1
11,635
124,359
Robin Neustein
46,772
*
4,002
42,770
Silicon Valley Bank(13)
26,857
*
2,298
24,559
Andy Greenfield
18,490
*
1,582
16,908
Greenfield/Zeller Family LLC
18,490
*
1,582
16,908
701 Venture Investments LLC(14)
5,356
*
459
4,897
Joan Barten-Kline
2,010
*
172
1,838
Connie R. Collingsworth and
Allen Wilcox
1,786
*
153
1,633
Richard B. Dodd(15)
1,786
*
153
1,633
Charles Purcell(15)
1,786
*
153
1,633
Susan Roth
900
*
37
863
*
Represents beneficial ownership of less than 1%.
(1)
Assumes that the underwriters'
    over-allotment option is not exercised.
(2)
Includes 53,072 shares issuable upon exercise of
    outstanding options exercisable within 60 days of March 31,
    2004.
(3)
Includes 2,759,164 shares held by UBS Capital II
    LLC. Mr. Handen is a partner of UBS Capital II LLC and disclaims
    beneficial ownership of the shares held or controlled by UBS
    Capital II LLC except to the extent of his pecuniary interest
    therein.
(4)
Includes 354 shares issuable upon exercise of
    outstanding options held by Mr. Horing exercisable within 60
    days of March 31, 2004 and shares held by entities
    affiliated with Insight Venture Associates III, LLC. Insight
    Venture Associates III, LLC is the general partner of these
    entities and may be deemed to beneficially own these shares as
    well as the shares subject to currently exercisable warrants
    held by Insight Capital Partners III (Cayman), L.P., and Insight
    Capital Partners-Coinvestors III L.P. (together with Insight
    Capital Partners III, L.P. and Insight Capital Partners III
    (Cayman), L.P., the "Insight Funds"). Jeffrey Horing,
    a director of the Company, and Jerry Murdock, as Designated
    Managing Members of Insight Venture Associates III, LLC, may be
    deemed to beneficially own the shares held by the Insight Funds
    because each of them has voting and dispositive power over such
    shares. The foregoing is not an admission by Insight Venture
    Associates III, LLC, Mr. Horing or Mr. Murdock that
    such persons are the beneficial owners of the shares held by the
    Insight Funds. See footnote 12 below.
(5)
Includes 19,253 shares issuable upon exercise of
    outstanding options held by Mr. Manning exercisable within 60
    days of March 31, 2004.
(6)
Includes (a) 354 shares issuable upon
    exercise of outstanding options held by Mr. Mesznik
    exercisable within 60 days of March 31, 2004,
    (b) 32,998 shares held by the Joel R. Mesznik 1999
    Descendants Trust for the benefit of Mr. Mesznik's
    family, (c) 405,047 shares held by GOL LLC of which
    Mr. Mesznik is the managing member, and (d) 186 shares
    issuable upon exercisable outstanding warrants held by GOL,
    L.L.C.
(7)
Includes 354 shares issuable upon exercise of
    outstanding options held by Mr. Sobiloff exercisable within 60
    days of March 31, 2003. Mr. Sobiloff is a member of
    Insight Venture Associates III, LLC. See footnote 12 below.
(8)
Includes 20,296 shares issuable upon exercise of
    outstanding options held by Mr. Bies exercisable within 60
    days of March 31, 2004.
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(9)
Includes 8,997 shares issuable upon exercise of
    outstanding options held by Mr. Davis exercisable within 60
    days of March 31, 2004, and 28 shares subject to currently
    exercisable warrants.
(10)
Includes 14,995 shares issuable upon exercise of
    outstanding options held by Mr. Flatow exercisable within
    60 days of March 31, 2004.
(11)
Includes 31,113 shares issuable upon exercise of
    outstanding options held Mr. Price exercisable within 60
    days of May 31, 2004.
(12)
Includes (a) 4,155,258 shares held by Insight
    Capital Partners III, L.P. and 1,534 shares subject to currently
    exercisable warrants held by Insight Capital Partners III, L.P.;
    (b) 1,087,365 shares held by Insight Capital Partners III
    (Cayman), L.P. and 459 shares subject to currently
    exercisable warrants held by Insight Capital Partners III
    (Cayman), L.P.; and (c) 718,822 shares held by Insight Capital
    Partners-Coinvestors III L.P. and 256 Shares subject to
    currently exercisable warrants held by Insight Capital
    Partners-Coinvestors III L.P. Insight Venture Associates III,
    LLC is the general partner of these entities and may be deemed
    to beneficially own the shares held by the Insight Funds and the
    shares subject to currently exercisable warrants held by the
    Insight Funds. Jeffrey Horing, a director of the Company, and
    Jerry Murdock, as Designated Managing Members of Insight Venture
    Associates III, LLC, may be deemed to beneficially own the
    shares held by the Insight Funds because each of them has voting
    and dispositive power over such shares. The foregoing is not an
    admission by Insight Venture Associates III, LLC,
    Mr. Horing or Mr. Murdock that such persons are the
    beneficial owners of the shares held by the Insight Funds.
(13)
Includes 26,857 shares issuable upon exercise of
    outstanding warrants held by Silicon Valley Bank.
(14)
Includes partners of Preston Gates & Ellis
    LLP, our outside legal counsel. Robert Jaffe is the partner in
    701 Venture Investments LLC with power to vote and dispose of
    these shares.
(15)
A partner of Preston Gates & Ellis LLP, our
    outside legal counsel.
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DESCRIPTION OF CAPITAL STOCK
General
After this offering, we will be authorized to
issue 100,000,000 shares of common stock, $0.0001 par
value per share, and 5,000,000 shares of undesignated
preferred stock, $0.0001 par value per share. Immediately
after this offering, we estimate that there will
be            shares
of common stock outstanding, 920,487 shares of common stock
will be issuable upon exercise of outstanding options and no
shares of preferred stock will be issued and outstanding based
on shares and options outstanding as of March 31, 2004.
Common Stock
The holders of our common stock are entitled to
one vote per share on all matters submitted to a vote at meeting
of stockholders. The holders of our common stock are not
entitled to vote on any amendment to our certificate of
incorporation, including any certificate of designation filed
with respect to any series of our preferred stock, that relates
solely to the terms of one or more outstanding series of
preferred stock. There are no cumulative voting rights. Subject
to preferences that may be applicable to any outstanding
preferred stock, the holders of our common stock are entitled to
receive dividends, if any, as may be declared by our board of
directors out of funds legally available for dividends. In the
event of liquidation, dissolution or winding up of our company,
the holders of our common stock are entitled to share ratably in
all assets remaining after payment of liabilities, subject to
prior rights of preferred stock, if any, then outstanding. The
common stock has no preemptive or conversion rights or other
subscription rights. There are no redemption or sinking fund
provisions applicable to the common stock. All outstanding
shares of our common stock are fully paid and nonasssessable.
Preferred Stock
Pursuant to our certificate of incorporation, our
board of directors has the authority, without further action by
our stockholders, to issue up to 5,000,000 shares of
preferred stock. The board of directors may issue this stock in
one or more series and may fix the rights, preferences,
privileges and restrictions of this preferred stock. Some of the
rights and preferences that our board of directors may designate
include dividend rights, conversion rights, voting rights, terms
of redemption, liquidation preferences and sinking fund terms.
The board of directors may determine the number of shares
constituting any series or the designation of such series. Any
or all of the rights and preferences selected by our board of
directors may be greater than the rights of the common stock.
The issuance of preferred stock could adversely affect the
voting power of holders of common stock and the likelihood that
stockholders will receive dividend payments and payments upon
liquidation. The issuance of preferred stock could also have the
effect of delaying, deferring or preventing a change in control
of our company.
Warrants and Other Rights
We have the following warrants outstanding as of
March 31, 2004:
•
Warrants for an aggregate of 4,268 shares of
    common stock, each with an exercise price of $117.18 per
    share, issued to Insight Capital Partners III,
    L.P., Insight Capital Partners III (Cayman),
    L.P., Insight Capital Partners III (Co-Investors),
    L.P., UBS Capital II LLC, MSD Ventures, L.P., Imprimis
    SB, L.P., Forrester Research, Inc., GOL, L.L.C., Charles
    Davis, The Friedman Family Foundation, Burton J. Manning, Robin
    Neustein, and Hugh O. Davis, in connection with the
    Recapitalization. These warrants expire in March 2005 and are
    governed by the terms of the Note and Warrant Purchase Agreement
    by and between us and Greenfield Holdings dated as of
    March 3, 2000.
•
A warrant for 26,857 shares of common stock,
    with an exercise price of $7.42 per share, issued to
    Silicon Valley Bank on August 9, 2001 in connection with an
    Accounts Receivable Financing Agreement, which has been
    subsequently amended. This warrant will expire in July 2006.
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•
A warrant for 21,212 shares of common stock,
    with an exercise price of $28.28 per share, issued to
    Greyrock Capital on December 3, 1999 in connection with a
    $6 million credit facility, which has been paid in full and
    terminated. This warrant will expire in December 2004.
Registration Rights
Amended and Restated Registration Rights
    Agreement
The holders of 2,054,552 shares of our
common stock, including 10,408,119 of our common stock issuable
upon the automatic conversion of our preferred stock, and
972,824 shares of our common stock issuable upon the
exercise of outstanding stock options and warrants to purchase
our common stock, or their respective permitted transferees, are
entitled to rights with respect to registration of these shares
under the Securities Act. These rights are provided under an
Amended and Restated Registration Rights Agreement dated as of
December 16, 2002 with all of our existing stockholders.
Under this agreement, we granted these stockholders certain
rights to register the shares of common stock owned by them
under the Securities Act. We also granted the holders of a
majority of the outstanding shares of our Series C-1
Convertible Participating Preferred Stock the right to demand
that we effect a registration of the common stock, or a
designated portion of the common stock, held by them, provided
that such demand relates to an aggregate gross offering of at
least $5 million before underwriter discounts and
commissions. We are required to effect only three registrations
pursuant to these demand rights under the agreement. This
agreement is the basis on which certain of our stockholders are
selling shares of our common stock in this offering.
In addition, all stockholders who have become
parties to the Amended and Restated Registration Rights
Agreement have unlimited "piggyback" registration
rights to have their shares registered under the Securities Act.
The agreement provides that whenever we propose to register
shares of our common stock under the Securities Act, then the
stockholders, with certain exceptions, will have the right to
request that we register their shares of common stock with such
registration. If we are eligible to file a registration
statement on Form S-3, stockholders that are a party to the
agreement have the right to have their shares registered by us
on a Form S-3 registration statement, provided that such
requested registration has an anticipated aggregate gross
offering price of at least $5 million.
The registration rights under this agreement are
subject to the rights of the managing underwriters, if any, to
reduce or exclude certain shares from the registration
(underwriting cutbacks), if their inclusion would interfere with
the marketing or sale of the contemplated offering. The
agreement requires us to pay for all costs and expenses, other
than underwriting discounts and commissions, incurred in
connection with the registration of securities under the
agreement. The agreement will terminate when there are no longer
any registrable shares outstanding under the agreement.
Silicon Valley Bank Registration Rights
    Agreement
We granted registration rights to Silicon Valley
Bank ("SVB") under a Registration Rights Agreement
dated as of August 9, 2001 that was entered into in
connection with a warrant for 26,857 shares of common stock
issued in connection with an accounts receivable financing
agreement. Under this agreement, if we register any of our
securities under the Securities Act prior to August 9,
2008, SVB has the right to include its shares in such
registration (subject to underwriting cutbacks). If we are
eligible to file a registration statement on Form S-3, SVB
has the right to have its shares registered by us on a
Form S-3 registration statement, provided the aggregate
price to the public of such offering would reasonably be
expected to exceed $750,000. The agreement requires us to pay
for all costs and expenses, other than underwriting discounts,
commissions, transfer taxes, and the fees and expenses of
SVB's counsel and accountants, incurred in connection with
the registration of securities under the agreement.
Greyrock Capital Registration Rights
    Agreement
We granted registration rights to Greyrock
Capital ("GC") under a Registration Rights Agreement
dated as of December 3, 1999 that was entered into in
connection with a warrant for 21,212 shares of common stock
issued in connection with an accounts receivable financing
agreement. Under this agreement, if we
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register any of our securities under the
Securities Act, GC has the right to include its shares in such
registration (subject to underwriting cutbacks). The agreement
requires us to pay for all costs and expenses, other than
underwriting discounts and commissions, incurred in connection
with the registration of securities under the agreement.
GC's registration rights under this agreement will
terminate on the third anniversary our initial public offering.
Delaware Anti-takeover Law and Certain Charter
and Bylaw Provisions
Section 203 of Delaware General
    Corporate Law
We are subject to the provisions of
Section 203 of the General Corporation Law of Delaware. In
general, the statute prohibits a publicly held Delaware
corporation from engaging in a "business combination"
with an "interested stockholder" for a period of three
years after the date of the transaction in which the person
became an interested stockholder, unless the business
combination is approved by our board of directors and/or our
stockholders in a prescribed manner. A "business
combination" includes a merger, asset sale or other
transaction resulting in a financial benefit to the interested
stockholder. Subject to certain exceptions, an "interested
stockholder" is a person who, together with affiliates and
associates, owns, or within three years did own, 15% or more of
the corporation's voting stock.
Anti-Takeover Effects of Provisions of Our
Charter Documents
Our certificate of incorporation and bylaws
provide for the division of our board of directors into three
classes as nearly equal in size as possible with staggered
three-year terms. Directors may only be removed for cause by the
affirmative vote of the holders of at least a majority of the
then outstanding shares of our capital stock entitled to vote at
an election of directors. Any vacancy on our board of directors,
including a vacancy resulting from an enlargement of our board
of directors, may only be filled by vote of a majority of our
directors then in office. The classification of our board of
directors and the limitation on filling vacancies could make it
more difficult for a third-party to acquire, or discourage a
third-party from attempting to acquire, control of us. In
addition, our classified board of directors could delay attempts
by stockholders who do not approve of our policies or procedures
to elect a majority of our board of directors.
Our bylaws set forth an advance notice procedure
for stockholder proposals to be brought before an annual meeting
of our stockholders, including proposed nominations of persons
for election to the board of directors. At an annual meeting,
stockholders may only consider proposals or nominations
specified in the notice of meeting or brought before the meeting
by or at the direction of the board of directors. Stockholders
may also consider a proposal or nomination by a person who was a
stockholder of record on the record date for the meeting and who
has given to our secretary timely notice, in proper form, of his
or her intention to bring that business before the meeting. Our
bylaws may have the effect of precluding the conduct of business
at a meeting if the proper procedures are not followed. These
provisions may also discourage or deter a potential acquirer
from conducting a solicitation of proxies to elect the
acquirer's own slate of directors or otherwise attempting
to obtain control of our company.
Under Delaware law, a special meeting of
stockholders may be called by the board of directors or by any
other person authorized to do so in the certificate of
incorporation or the bylaws. Our bylaws authorize a majority of
our board of directors, the chairman of the board or the chief
executive officer to call a special meeting of stockholders.
Because our stockholders do not have the right to call a special
meeting, a stockholder could not force stockholder consideration
of a proposal over the opposition of the board of directors by
calling a special meeting of stockholders prior to such time as
a majority of the board of directors believed, the chairman
believed, or the chief executive officer believed the matter
should be considered or until the next annual meeting provided
that the requestor met the notice requirements. The restriction
on the ability of our stockholders to call a special meeting
means that a proposal to replace the board also could be delayed
until the next annual meeting.
Delaware law provides that stockholders may
execute an action by written consent in lieu of a stockholder
meeting. However, Delaware law also allows us to eliminate
stockholder actions by written consent. Elimination of written
consents of stockholders may lengthen the amount of time
required to take
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stockholder actions since actions by written
consent are not subject to the minimum notice requirement of a
stockholder's meeting. Without the availability of
stockholder's actions by written consent, a holder
controlling a majority of our capital stock would not be able to
amend our bylaws or remove directors without holding a
stockholders' meeting. The holder would have to obtain the
consent of a majority of the board of directors, the chairman of
the board or the chief executive officer to call a
stockholders' meeting and satisfy the notice periods
determined by the board of directors. Under our certificate of
incorporation, our stockholders may not take action by written
consent in lieu of a meeting but must take any actions at a duly
called annual or special meeting.
Our certificate of incorporation provides that
the affirmative vote of the holders of at least eighty percent
(80%) of the voting power of our issued and outstanding capital
stock entitled to vote in the election of directors, is required
to amend the following provisions of our certificate of
incorporation:
•
Article VI, which relates to our classified
    board of directors;
•
Article VII, which relates to the number and
    election of directors, the management of our business, and bylaw
    provisions relating to stockholder action by written consent and
    meetings of stockholders;
•
Article X, which relates to the appointment
    of directors upon an increase in the number of directors or
    vacancy;
•
Article XI, which relates to advance notice
    requirements for new business and stockholder nominations for
    the election of directors; and
•
Article XII, which relates to the
    restrictions on stockholder actions by written consent.
Transfer Agent And Registrar
The Transfer Agent and Registrar for our common
stock is Registrar and Transfer Company Inc.
Nasdaq National Market Quotation
We have applied to have our shares of common
stock quoted on the Nasdaq Stock Market's National Market
under the trading symbol "SRVY."
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SHARES ELIGIBLE FOR FUTURE SALE
Immediately prior to this offering, there was no
public market for our common stock. Future sales of substantial
amounts of our common stock in the public market could adversely
affect prevailing market prices of our common stock.
Furthermore, because only a limited number of shares will be
available for sale shortly after this offering because of
contractual and legal restrictions on resale described below,
sales of substantial amounts of common stock in the public
market after these restrictions lapse could adversely affect the
prevailing market price and our ability to raise equity capital
in the future.
Upon completion of this offering, we will
have           outstanding
shares of common stock, assuming no exercise of the
underwriters' over-allotment option and no exercise of
outstanding options and warrants. All of the shares of common
stock sold in this offering will be freely tradable on the date
of this prospectus unless purchased by "affiliates,"
as that term is defined in Rule 144 promulgated under the
Securities Act. In addition, the following table illustrates the
shares eligible for sale in the public market:
Number Of Shares
Date Available for Sale
150,772
After the date of this prospectus, shares salable
    under Rule 144(k) that are not subject to the 180-day
    lock-up.
219,857
After 90 days from the date of this
    prospectus, shares salable under Rule 144 (subject, in some
    cases, to volume limitations) or Rule 701 that are not
    subject to the 180-day lock-up.
11,126,642
After 180 days from the date of this
    prospectus, the 180-day lock-up is released and these shares are
    salable under Rule 144 (subject, in some cases, to volume
    limitations), Rule 144(k) or Rule 701.
No prediction can be made as to the effect, if
any, that market sales of shares or the availability of shares
for sale will have on the market price prevailing from time to
time. Nevertheless, sales of substantial amounts of our common
stock in the public market after the lapse of the restrictions
described in this section, or the perception that sales may
occur, could adversely affect the prevailing market price and
our ability to raise equity capital in the future at a time and
price that it deems appropriate.
Lock-Up Agreements
We, and each of our directors, executive officers
and our stockholders holding approximately
10,016,223 shares of our common stock,
representing           %
of our common stock after giving effect to this offering, have
agreed not to offer, sell, contract to sell, pledge or otherwise
dispose of, directly or indirectly, any shares of our common
stock or any securities convertible into or exchangeable or
exercisable for any shares of our common stock, or enter into a
transaction which would have the same effect, or enter into any
swap, hedge or other arrangement that transfers, in whole or in
part, any of the economic consequences of ownership of the
shares of common stock, or exercise any right to request or
demand registration pursuant to the Securities Act, or publicly
disclose the intention to make any offer, sale, pledge or
disposition, or to enter into any transaction, swap, hedge or
other arrangement, without the prior written consent of Lehman
Brothers, for a period of 180 days after the public
offering date set forth on the cover of this prospectus. Because
the lock-up agreements will cover a significant portion of our
common stock not already traded in the public market, the sale
of these shares, or the perception that sales may occur, could
adversely affect the prevailing market prices of our common
stock.
Rule 144
In general, under Rule 144 as currently in
effect, a person (or persons whose shares are aggregated) who
has beneficially owned restricted shares for at least one year,
including persons who may be deemed our "affiliates,"
would be entitled to sell within any three-month period a number
of shares that does not exceed the greater of 1% of the number
of shares of common stock then outstanding or the average weekly
trading volume of the common stock as reported through the
Nasdaq National Market during the four calendar weeks preceding
the filing of a Form 144 with respect to such sale. Sales
under Rule 144 are also subject to manner
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of sale provisions and notice requirements and to
the availability of current public information about us. In
addition, a person who is not deemed to have been our affiliate
at any time during the 90 days preceding a sale and who has
beneficially owned for at least two years the shares proposed to
be sold, would be entitled to sell such shares under
Rule 144(k) without regard to the requirements described
above.
Rule 701
In general, Rule 701 permits resales of
shares issued under compensatory benefit plans and contracts
commencing 90 days after the issuer becomes subject to the
reporting requirements of the Securities Exchange Act in
reliance upon Rule 144, but without compliance with certain
restrictions, including the holding period requirements
contained in Rule 144. We will file registration statements
on Form S-8 under the Securities Act to register common
stock issuable under our stock option plans and stock purchase
plan. Such registration will permit the resale of shares so
registered by nonaffiliates in the public market without
restriction under the Securities Act.
Registration Rights
Beginning 180 days after this offering,
holders of approximately 11,530,495 shares of our common
stock are entitled to have their shares registered by us under
the Securities Act. See "Description of Capital
Stock — Registration Rights." After any
registration of these shares, such shares, except for shares
purchased by affiliates, will be freely tradable without
restriction under the Securities Act.
Stock Plans
We intend to file a registration statement under
the Securities Act covering all of the shares of common stock
reserved for issuance under our 1999 Option Plan, 2004 Equity
Plan and Stock Purchase Plan. We expect this registration
statement to be filed and to become effective as soon as
practicable after the completion of this offering.
As of April 5, 2004, options to purchase
920,487 shares of common stock were issued and outstanding.
All of these shares will be eligible for sale in the public
market from time to time, subject to vesting provisions,
Rule 144 volume limitations applicable to our affiliates
and, in the case of some options, the expiration of lock-up
agreements.
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UNDERWRITING
Under the underwriting agreement, which is filed
as an exhibit to the registration statement relating to this
prospectus, each of the underwriters named below, for whom
Lehman Brothers Inc., Friedman Billings Ramsey & Co. Inc.
and Piper Jaffray & Co. are acting as representatives,
has agreed to purchase from us and the selling stockholders the
number of shares of common stock shown opposite its name below:
Underwriters
Number of Shares
Lehman Brothers Inc.
Friedman, Billings, Ramsey & Co.,
    Inc.
Piper Jaffray & Co.
Total
The underwriting agreement provides that the
underwriters' obligations to purchase shares of common
stock depends on the satisfaction of the conditions contained in
the underwriting agreement, including:
•
the obligation to purchase all of the shares of
    common stock offered hereby if any of the shares are purchased
    other than those covered by the over-allotment option described
    below;
•
the representations and warranties made by us and
    the selling stockholders to the underwriters are true;
•
there is no material change in the financial
    markets; and
•
we and the selling stockholders deliver customary
    closing documents to the underwriters.
Over-Allotment Option
The selling stockholders have granted to the
underwriters an option to purchase up to an aggregate
of           additional
shares of common stock, exercisable to cover over-allotments, if
any, at the public offering price less the underwriting discount
shown on the cover page of this prospectus. The underwriters may
exercise this option at any time, and from time to time, until
30 days after the date of the underwriting agreement. To
the extent the underwriters exercise this option, each
underwriter will be committed, so long as the conditions of the
underwriting agreement are satisfied, to purchase a number of
additional shares of common stock proportionate to that
underwriter's initial commitment as indicated in the
preceding table.
Commissions and Expenses
The following table summarizes the underwriting
discounts that we and the selling stockholders will pay. The
underwriting fee is the difference between the public offering
price and the amount the underwriters pay to purchase the shares
from the selling stockholders and us.
Per Share
Total
Without
With
Without
With
Over-Allotment
Over-Allotment
Over-Allotment
Over-Allotment
Paid by us
$
$
$
$
Paid by selling stockholders
$
$
$
$
The underwriters have advised us that they
propose to offer the shares of common stock directly to the
public at the public offering price presented on the cover page
of this prospectus, and to selected dealers, who may include the
underwriters, at the public offering price less a selling
concession not in excess of
$           per
share. The underwriters may allow, and the selected dealers may
reallow, a concession not in excess of
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$           per
share to brokers and dealers. After the offering, the
underwriters may change the offering price and other selling
terms.
Certain of the underwriters and their respective
affiliates have performed and may in the future perform
investment banking and advisory services for us from time to
time for which they have received or may in the future receive
customary fees and expenses. The underwriters may, from time to
time, engage in transactions with or perform services for us in
the ordinary course of their business.
We estimate that the total expenses of this
offering, including registration, filing and listing fees,
printing fees and legal and accounting expenses, but excluding
underwriting discounts, will be approximately $ million. We will
pay all costs and expenses of this offering excluding
underwriting discounts.
Lock-up Agreements
We, and each of our directors, executive
officers, the selling stockholders and certain of our other
stockholders have agreed not to offer, sell, contract to sell,
pledge or otherwise dispose of, directly or indirectly, any
shares of our common stock or any securities convertible into or
exchangeable or exercisable for any shares of our common stock,
or enter into a transaction which would have the same effect, or
enter into any swap, hedge or other arrangement that transfers,
in whole or in part, any of the economic consequences of
ownership of the shares of common stock, or exercise any right
to request or demand registration pursuant to the Securities
Act, or publicly disclose the intention to make any offer, sale,
pledge or disposition, or to enter into any transaction, swap,
hedge or other arrangement, without the prior written consent of
Lehman Brothers, for a period of 180 days after the public
offering date set forth on the cover of this prospectus. Because
the lock-up agreements will cover a significant portion of our
common stock not already traded in the public market, the sale
of these shares, or the perception that sales may occur, could
adversely affect the prevailing market prices of our common
stock.
Offering Price Determination
Prior to this offering, there has been no public
market of our common stock. The initial public offering price
will be negotiated between us and the representatives of the
underwriters. In determining the initial public offering price
of our common stock, we and the representatives will consider:
•
prevailing market conditions;
•
our historical performance and capital structure;
•
estimates of our business potential and earnings
    prospects;
•
an overall assessment of our management; and
•
the consideration of these factors in relation to
    market valuation of companies in related businesses.
Indemnification
We and the selling stockholders have agreed to
indemnify the underwriters against liabilities relating to the
offering, including liabilities under the Securities Act and
liabilities arising from breaches of the representations and
warranties contained in the underwriting agreement, and to
contribute to payments that the underwriters may be required to
make for these liabilities.
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Stabilization, Short Positions and Penalty
Bids
The underwriters may engage in over-allotment,
stabilizing transactions, syndicate covering transactions, and
penalty bids or purchases for the purpose of pegging, fixing or
maintaining the price of our common stock, in accordance with
Regulation M under the Securities Exchange Act:
•
Over-allotment involves sales by the underwriters
    of shares in excess of the number of shares the underwriters are
    obligated to purchase, which creates a syndicate short position.
    The short position may be either a covered short position or a
    naked short position. In a covered short position, the number of
    shares over-allotted by the underwriters is not greater than the
    number of shares that they may purchase in the over-allotment
    option. In a naked short position, the number of shares involved
    is greater than the number of shares in the over-allotment
    option. The underwriters may close out any short position by
    either exercising their over-allotment option and/or purchasing
    shares in the open market.
•
Stabilizing transactions permit bids to purchase
    common stock so long as the stabilizing bids do not exceed a
    specified maximum.
•
Syndicate covering transactions involve purchases
    of the common stock in the open market after the distribution
    has been completed in order to cover syndicate short positions.
    In determining the source of shares to close out the short
    position, the underwriters will consider, among other things,
    the price of shares available for purchase in the open market as
    compared to the price at which they may purchase shares through
    the over-allotment option. If the underwriters sell more shares
    than could be covered by the over-allotment option, creating a
    naked short position, the position can only be closed out by
    buying shares in the open market. A naked short position is more
    likely to be created if the underwriters are concerned that
    there could be downward pressure on the price of the shares in
    the open market after pricing that could adversely affect
    investors who purchase in the offering.
•
Penalty bids permit the underwriters to reclaim a
    selling concession from a syndicate member when the common stock
    originally sold by the syndicate member is purchased in a
    stabilizing or syndicate covering transaction to cover syndicate
    short positions.
These stabilizing transactions, syndicate
covering transactions and penalty bids may raise or maintain the
market price of our common stock or prevent or slow a decline in
the market price of our common stock. As a result, the price of
our common stock may be higher than the price that might
otherwise exist in the open market. These transactions may be
effected on the Nasdaq National Market or otherwise and, if
commenced, may be discontinued at any time.
Neither we nor any of the underwriters make any
representation or prediction as to the direction or magnitude of
any effect that the transactions described above may have on the
price of our common stock. In addition, neither we nor the
underwriters make any representation that the underwriters will
engage in these stabilizing transactions or that any
transaction, once commenced, will not be discontinued without
notice.
Directed Share Program
At our request, the underwriters have reserved
for sale, at the initial public offering price, up
to            shares
offered hereby for officers, directors, employees and other
persons associated with us who have expressed an interest in
purchasing common stock in the offering. The number of shares
available for sale to the general public in this offering will
be reduced to the extent these persons purchase the reserved
shares. Any reserved shares not so purchased will be offered by
the underwriters to the general public on the same terms as the
other shares.
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Table of Contents
Stamp Taxes
Purchasers of the shares of our common stock
offered by this prospectus may be required to pay stamp taxes
and other charges under the laws and practices of the country of
purchase, in addition to the offering price listed on the cover
of this prospectus. Accordingly, we urge you to consult a tax
advisor with respect to whether you may be required to pay those
taxes or charges, as well as any other tax consequences that may
arise under the laws of the country of purchase.
Electronic Distribution
A prospectus in electronic format may be made
available on Internet sites or through other online services
maintained by one or more of the underwriters and/or selling
group members participating in this offering, or by their
affiliates. In those cases, prospective investors may view
offering terms online and, depending upon the particular
underwriter or selling group member, prospective investors may
be allowed to place orders online. The underwriters may agree
with us to allocate a specific number of shares for sale to
online brokerage account holders. Any such allocation for online
distributions will be made by the underwriters on the same basis
as other allocations.
Other than the prospectus in electronic format,
information contained in any other web site maintained by an
underwriter or selling group member is not part of this
prospectus or the registration statement of which this
prospectus forms a part, has not been approved and/or endorsed
by us and should not be relied on by investors in deciding
whether to purchase any shares of common stock. The underwriters
and selling group members are not responsible for information
contained in web sites that they do not maintain.
Discretionary Sales
The underwriters have informed us that they will
not confirm sales to accounts over which they exercise
discretionary authority in excess of 5% of the total number of
shares offered by them.
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Table of Contents
NOTICE TO CANADIAN RESIDENTS
Offers and Sales in Canada
This prospectus is not, and under no
circumstances is to be construed as, an advertisement or a
public offering of shares in Canada or any province or territory
thereof. Any offer or sale of shares in Canada will be made only
under an exemption from the requirements to file a prospectus
with the relevant Canadian securities regulators and only by a
dealer properly registered under applicable provincial
securities laws or, alternatively, pursuant to an exemption from
the dealer registration requirement in the relevant province or
territory of Canada in which such offer or sale is made.
This prospectus is for the confidential use of
only those persons to whom it is delivered by the underwriters
in connection with the offering of the shares into Canada. The
underwriters reserve the right to reject all or part of any
offer to purchase shares for any reason or allocate to any
purchaser less than all of the shares for which it has
subscribed.
Responsibility
Except as otherwise expressly required by
applicable law or as agreed to in contract, no representation,
warranty, or undertaking (express or implied) is made and no
responsibilities or liabilities of any kind or nature whatsoever
are accepted by any underwriter or dealer as to the accuracy or
completeness of the information contained in this prospectus or
any other information provided by the Company or the selling
stockholders in connection with the offering of the shares into
Canada.
Resale Restrictions
The distribution of the shares in Canada is being
made on a private placement basis only and is exempt from the
requirement that we and the selling stockholders prepare and
file a prospectus with the relevant Canadian regulatory
authorities. Accordingly, any resale of the shares must be made
in accordance with applicable securities laws, which will vary
depending on the relevant jurisdiction, and which may require
resales to be made in accordance with exemptions from
registration and prospectus requirements. Canadian purchasers
are advised to seek legal advice prior to any resale of the
shares.
Representations of Purchasers
Each Canadian investor who purchases shares will
be deemed to have represented to us, the selling stockholders,
the underwriters and any dealer who sells shares to such
purchaser that: (i) the offering of the shares was not made
through an advertisement of the shares in any printed media of
general and regular paid circulation, radio, television or
telecommunications, including electronic display, or any other
form of advertising in Canada; (ii) such purchaser has
reviewed the terms referred to above under "Resale
Restrictions" above; (iii) where required by law, such
purchaser is purchasing as principal for its own account and not
as agent; and (iv) such purchaser or any ultimate purchaser
for which such purchaser is acting as agent is entitled under
applicable Canadian securities laws to purchase such shares
without the benefit of a prospectus qualified under such
securities laws, and without limiting the generality of the
foregoing: (a) in the case of a purchaser located in a
province other than Ontario and Newfoundland and Labrador,
without the dealer having to be registered, (b) in the case
of a purchaser located in a province other than Ontario or
Quebec, such purchaser is an "accredited investor" as
defined in section 1.1 of Multilateral Instrument 45-103 –
Capital Raising Exemptions,
(c) in the case of a
purchaser located in Ontario, such purchaser, or any ultimate
purchaser for which such purchaser is acting as agent, is an
"accredited investor", other than an individual, as
that term is defined in Ontario Securities Commission
Rule 45-501 –
Exempt Distributions
and is a
person to which a dealer registered as an international dealer
in Ontario may sell shares, and (d) in the case of a
purchaser located in Québec, such purchaser is a
"sophisticated purchaser" within the meaning of
section 44 or 45 of the
Securities Act
(Québec).
83
Table of Contents
Taxation and Eligibility for
Investment
Any discussion of taxation and related matters
contained in this prospectus does not purport to be a
comprehensive description of all the tax considerations that may
be relevant to a decision to purchase the shares. Canadian
purchasers of shares should consult their own legal and tax
advisers with respect to the tax consequences of an investment
in the shares in their particular circumstances and with respect
to the eligibility of the shares for investment by the purchaser
under relevant Canadian federal and provincial legislation and
regulations.
Rights of Action for Damages or Rescission
(Ontario)
Securities legislation in Ontario provides that
every purchaser of shares pursuant to this prospectus shall have
a statutory right of action for damages or rescission against us
and any selling stockholder in the event this prospectus
contains a misrepresentation as defined in the
Securities
Act
(Ontario). Ontario purchasers who purchase shares
offered by this prospectus during the period of distribution are
deemed to have relied on the misrepresentation if it was a
misrepresentation at the time of purchase. Ontario purchasers
who elect to exercise a right of rescission against us and any
selling stockholder on whose behalf the distribution is made
shall have no right of action for damages against us or the
selling stockholders. The right of action for rescission or
damages conferred by the statute is in addition to, and without
derogation from, any other right the purchaser may have at law.
Prospective Ontario purchasers should refer to the applicable
provisions of Ontario securities legislation and are advised to
consult their own legal advisers as to which, or whether any, of
such rights or other rights may be available to them.
The foregoing summary is subject to the express
provisions of the
Securities Act
(Ontario) and the rules,
regulations and other instruments thereunder, and reference is
made to the complete text of such provisions contained therein.
Such provisions may contain limitations and statutory defences
on which we and the selling stockholders may rely. The
enforceability of these rights may be limited as described
herein under "Enforcement of Legal Rights."
The rights of action discussed above will be
granted to the purchasers to whom such rights are conferred upon
acceptance by the relevant dealer of the purchase price for the
shares. The rights discussed above are in addition to and
without derogation from any other right or remedy which
purchasers may have at law. Similar rights may be available to
investors in other Canadian provinces.
Enforcement of Legal Rights
We are organized under the laws of the State of
Delaware in the United States. All, or substantially all, of our
directors and officers, as well as the selling stockholders and
the experts named herein, may be located outside of Canada and,
as a result, it may not be possible for Canadian purchasers to
effect service of process within Canada upon us or such persons.
All or a substantial portion of our assets and such other
persons may be located outside of Canada and, as a result, it
may not be possible to satisfy a judgement against us or such
persons in Canada or to enforce a judgement obtained in Canadian
courts against us or such persons outside of Canada.
Language of Documents
Upon receipt of this document, you hereby confirm
that you have expressly requested that all documents evidencing
or relating in any way to the sale of the securities described
herein (including for greater certainty any purchase
confirmation or any notice) be drawn up in the English language
only.
Par la réception de ce document, vous confirmez
par les présentes que vous avez expressément
exigé que tous les documents faisant foi ou se rapportant
de quelque manière que ce soit à la vente des valeurs
mobilières décrites aux présentes (incluant, pour
plus de certitude, toute confirmation d'achat ou tout avis)
soient rédigés en anglais seulement.
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Table of Contents
LEGAL MATTERS
Preston Gates & Ellis LLP, Seattle,
Washington, will pass upon the validity of the common stock
offered hereby. Paul, Weiss, Rifkind, Wharton &
Garrison LLP, New York, New York, will pass upon
selected legal matters in connection with this offering for the
underwriters. Partners of Preston Gates & Ellis LLP,
individually and through an investment partnership, hold an
aggregate of 8,928 shares of our common stock.
EXPERTS
The consolidated financial statements as of
December 31, 2002 and 2003, and for each of the three years
in the period ended December 31, 2003 included in this
prospectus have been so included in reliance on the report of
PricewaterhouseCoopers LLP, independent accountants, given on
the authority of said firm as experts in auditing and accounting.
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration
statement on Form S-1 under the Securities Act with respect
to the common stock offered in this offering. This prospectus
does not contain all of the information set forth in the
registration statement. For further information with respect to
Greenfield Online and the common stock offered in this offering,
we refer you to the registration statement and to the attached
exhibits and schedules. Statements made in this prospectus
concerning the contents of any document referred to in this
prospectus are not necessarily complete. With respect to each
such document filed as an exhibit to the registration statement,
we refer you to the exhibit for a more complete description of
the matter involved.
You may inspect our registration statement and
the attached exhibits and schedules without charge at the public
reference facilities maintained by the SEC at 450 Fifth
Street, NW, Washington, DC 20549. You may obtain
copies of all or any part of our registration statement from the
SEC upon payment of prescribed fees. You may obtain information
on the operation of the public reference room by calling the SEC
at 1-800-SEC-0330.
Our SEC filings, including the registration
statement and the exhibits filed with the registration
statement, are also available from the SEC's website at
www.sec.gov, which contains reports, proxy and information
statements and other information regarding issuers that file
electronically with the SEC.
You can obtain a copy of any of our filings, at
no cost, by writing to or telephoning us at:
Greenfield Online, Inc.
21 River Road
Wilton, CT 06897
Attention:  Investor Relations
(203) 834-8585
85
Table of Contents
GREENFIELD ONLINE, INC.
INDEX TO CONSOLIDATED FINANCIAL
STATEMENTS
Page
Report of Independent Auditors
F-2
Consolidated Balance Sheets at December 31,
    2002 and 2003
F-3
Consolidated Statements of Operations for the
    years ended December 31, 2001, 2002 and 2003
F-4
Consolidated Statements of Changes in Convertible
    Preferred Stock and Stockholders' Deficit for the years
    ended December 31, 2001, 2002 and 2003
F-5
Consolidated Statements of Cash Flows for the
    years ended December 31, 2001, 2002 and 2003
F-6
Notes to Consolidated Financial Statements
F-7
F-1
Table of Contents
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors and Stockholders of
Greenfield Online, Inc.
The reverse stock split described in Note 1
to the consolidated financial statements has not occurred at
April 8, 2004. When it has been consummated, we will be in
a position to furnish the following report:
"In our opinion, the accompanying
    consolidated balance sheets and the related consolidated
    statements of operations, of changes in convertible preferred
    stock and stockholders' deficit and of cash flows present
    fairly, in all material respects, the financial position of
    Greenfield Online, Inc. and its subsidiaries at
    December 31, 2002 and 2003, and the results of their
    operations and their cash flows for each of the three years in
    the period ended December 31, 2003, in conformity with
    accounting principles generally accepted in the United States of
    America. These financial statements are the responsibility of
    the Company's management; our responsibility is to express
    an opinion on these financial statements based on our audits. We
    conducted our audits of these statements in accordance with
    auditing standards generally accepted in the United States of
    America, which require that we plan and perform the audit to
    obtain reasonable assurance about whether the financial
    statements are free of material misstatement. An audit includes
    examining, on a test basis, evidence supporting the amounts and
    disclosures in the financial statements, assessing the
    accounting principles used and significant estimates made by
    management, and evaluating the overall financial statement
    presentation. We believe that our audits provide a reasonable
    basis for our opinion."
/s/ PRICEWATERHOUSECOOPERS LLP
Stamford, Connecticut
April 6, 2004
F-2
Table of Contents
GREENFIELD ONLINE, INC.
CONSOLIDATED BALANCE SHEETS
Unaudited
December 31,
December 31,
Pro Forma
2002
2003
2003
Note 1
($ in thousands,
except share data)
ASSETS
Current assets:
Cash and cash equivalents
$
1,864
$
3,721
Accounts receivable trade, net (net of allowances
    of $247 and $219 at December 31, 2002 and 2003,
    respectively)
2,089
4,234
Prepaid expenses and other current assets
681
498
Total current assets
4,634
8,453
Property and equipment, net
2,736
2,420
Other intangible assets, net
543
311
Security deposits
811
745
Total assets
$
8,724
$
11,929
LIABILITIES, TEMPORARY EQUITY AND
    STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable
$
987
$
1,563
$
—
Accrued expenses and other current liabilities
2,986
4,579
Term loan
1,216
—
Current portion of capital lease obligations
895
874
Deferred revenues
435
394
Total current liabilities
6,519
7,410
Capital lease obligations
1,102
705
Other long-term liabilities
367
84
Series C-2 redeemable preferred stock
—
943
Total liabilities
7,988
9,142
Series C-2 redeemable preferred stock; par
    value $0.0001 per share; 10,000 shares authorized and
    outstanding (aggregate liquidation preference of $2,053 as of
    December 31, 2003)
821
—
—
Series B convertible preferred stock; par
    value $0.0001 per share; 30,211,595 shares authorized;
    30,211,595 shares issued and outstanding
8,441
9,114
9,114
Commitments and contingencies
Stockholders' deficit:
Series A convertible preferred stock; par
    value $0.0001 per share; 40,874,511 shares authorized;
    40,874,511 shares issued and outstanding (aggregate
    liquidation preference of $5,953 as of December 31, 2003)
4
4
—
Series C-1 convertible preferred stock; par
    value $0.0001 per share; 74,627,182 shares authorized,
    74,627,182 shares issued and outstanding (aggregate
    liquidation preference of $9,127 as of December 31, 2003)
7
7
—
Common Stock; par value $0.0001 per share;
    12,948,337 and 13,605,479 shares authorized at
    December 31, 2002 and 2003, respectively; 2,050,898 and
    2,054,486 shares issued and outstanding at
    December 31, 2002 and 2003, respectively, and
    12,462,605 shares issued and outstanding pro forma
—
—
1
Additional paid-in capital
78,889
82,440
82,450
Accumulated deficit
(86,037
)
(84,389
)
(84,389
)
Unearned stock-based compensation
(1,256
)
(4,258
)
(4,258
)
Note receivable from stockholder
(133
)
(131
)
(131
)
Total stockholders' deficit
(8,526
)
(6,327
)
(6,327
)
Total liabilities, temporary equity and
    stockholders' deficit
$
8,724
$
11,929
$
11,929
The accompanying notes are an integral part of
these consolidated financial statements.
F-3
Table of Contents
GREENFIELD ONLINE, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
For the Years Ended December 31,
2001
2002
2003
(In thousands, except per share data)
Net revenues
$
13,787
$
14,886
$
25,868
Cost of revenues (including stock-based
    compensation of $143, $33 and $62, respectively and excluding
    depreciation shown below)
8,097
5,409
8,884
Gross profit
5,690
9,477
16,984
Operating expenses:
Selling, general and administrative (including
    stock-based compensation of $2,318, $1,538 and $1,220,
    respectively)
15,148
10,123
12,127
Panel acquisition expenses
351
713
1,421
Depreciation and amortization
2,654
1,802
1,113
Research and development (including stock-based
    compensation of $6, $1 and none, respectively)
1,750
747
626
Total operating expenses
19,903
13,385
15,287
Operating income (loss)
(14,213
)
(3,908
)
1,697
Other income (expense):
Interest expense, net
(971
)
(621
)
(440
)
Related party interest income (expense), net
(2,303
)
69
(55
)
Other income, net
200
1,497
596
Total other income (expense)
(3,074
)
945
101
Income (loss) before income taxes
(17,287
)
(2,963
)
1,798
Provision (benefit) for income taxes
—
(569
)
150
Net income (loss)
(17,287
)
(2,394
)
1,648
Less: Accretion of Series C-2 redeemable
    preferred stock dividends
—
—
(63
)
Charge to common stockholders for Series B
    convertible preferred stock liquidation preference in excess of
    fair market value
—
(3,873
)
—
Cumulative dividends on Series B convertible
    preferred stock
—
(28
)
(673
)
Income allocable to participating preferred
    securities
—
—
(761
)
Net income (loss) available to common stockholders
$
(17,287
)
$
(6,295
)
$
151
Net income (loss) per share available to common
    stockholders:
Basic
$
(17.71
)
$
(6.42
)
$
0.07
Diluted
$
(17.71
)
$
(6.42
)
$
0.06
Weighted average shares outstanding:
Basic
976
981
2,054
Diluted
976
981
2,347
The accompanying notes are an integral part of
these consolidated financial statements.
F-4
Table of Contents
GREENFIELD ONLINE, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS'
DEFICIT
(In thousands)
Series A
Series C-1
Convertible
Convertible
Class A
Class B
Preferred Stock
Preferred Stock
Common Stock
Common Stock
Common Stock
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Balance at December 31, 2000
—
$
—
—
$
—
1,350
$
450
843
$
281
—
$
—
Year ended December 31, 2001:
Net loss for the year
Issuance of preferred stock
40,875
4
Surrender of Class A common stock
Stock option forfeitures
Settlement of notes receivable from stockholders
Issuance of warrants
Amortization of unearned stock based compensation
Exercise of stock options
Balance at December 31, 2001
40,875
4
—
—
1,350
450
843
281
—
—
Year ended December 31, 2002:
Net loss for the year
Issuance of stock options
Stock option forfeitures
Stock issuance and conversion related to the
    Recapitalization (Note 11)
74,627
7
(1,350
)
(450
)
(843
)
(281
)
2,051
—
Effect of modification to Series A
    preferred
stock
Discount on Series C-2 redeemable preferred
    stock liquidation preference
Series B convertible preferred stock
    liquidation preference
Cumulative dividends on Series B convertible
    preferred stock
Amortization of unearned stock based compensation
Fees paid related to stock issuance and
    recapitalization
Balance at December 31, 2002
40,875
4
74,627
7
—
—
—
—
2,051
—
Year ended December 31, 2003:
Net income for the year
Issuance of stock options
Exercise of stock options
3
Accretion of discount on Series C-2
    redeemable preferred stock liquidation preference
Cumulative dividends on Series B convertible
    preferred stock
Amortization of unearned stock based compensation
Balance at December 31, 2003
40,875
$
4
74,627
$
7
—
$
—
—
$
—
2,054
$
—
[Additional columns below]
[Continued from above table, first column(s) repeated]
Class A
Note
Additional
Treasury Stock
Receivable
Unearned
Total
Paid-In
From
Stock Based
Accumulated
Stockholders'
Capital
Shares
Amount
Officer
Compensation
Deficit
Deficit
Balance at December 31, 2000
$
75,601
(1,216
)
$
(16,445
)
$
(500
)
$
(11,382
)
$
(66,356
)
$
(18,351
)
Year ended December 31, 2001:
Net loss for the year
(17,287
)
(17,287
)
Issuance of preferred stock
11,536
11,540
Surrender of Class A common stock
(31
)
(425
)
(425
)
Stock option forfeitures
(4,462
)
4,462
—
Settlement of notes receivable from stockholders
(2,555
)
425
2,555
425
Issuance of warrants
26
26
Amortization of unearned stock based compensation
2,467
2,467
Exercise of stock options
—
2
2
Balance at December 31, 2001
80,146
(1,247
)
(16,868
)
(75
)
(1,898
)
(83,643
)
(21,603
)
Year ended December 31, 2002:
Net loss for the year
(2,394
)
(2,394
)
Issuance of stock options
1,087
(1,087
)
—
Stock option forfeitures
(157
)
157
—
Stock issuance and conversion related to the
    Recapitalization (Note 11)
13,715
1,247
16,868
(58
)
29,801
Effect of modification to Series A
    preferred
stock
(8,430
)
(8,430
)
Discount on Series C-2 redeemable preferred
    stock liquidation preference
1,232
1,232
Series B convertible preferred stock
    liquidation preference
(8,413
)
(8,413
)
Cumulative dividends on Series B convertible
    preferred stock
(28
)
(28
)
Amortization of unearned stock based compensation
1,572
1,572
Fees paid related to stock issuance and
    recapitalization
(263
)
(263
)
Balance at December 31, 2002
78,889
—
—
(133
)
(1,256
)
(86,037
)
(8,526
)
Year ended December 31, 2003:
Net income for the year
1,648
1,648
Issuance of stock options
4,284
(4,284
)
—
Exercise of stock options
3
2
5
Accretion of discount on Series C-2
    redeemable preferred stock liquidation preference
(63
)
(63
)
Cumulative dividends on Series B convertible
    preferred stock
(673
)
(673
)
Amortization of unearned stock based compensation
1,282
1,282
Balance at December 31, 2003
$
82,440
—
$
—
$
(131
)
$
(4,258
)
$
(84,389
)
$
(6,327
)
F-5
The accompanying notes are an integral part of
these consolidated financial statements.
Table of Contents
GREENFIELD ONLINE, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
For the Years Ended
December 31,
2001
2002
2003
(In thousands)
Cash flows from operating activities:
Net income (loss)
$
(17,287
)
$
(2,394
)
$
1,648
Adjustments to reconcile net income (loss) to net
    cash provided by (used in) operating activities:
Depreciation and amortization
4,642
2,490
1,398
Amortization of contract asset
—
183
200
Stock based compensation
2,467
1,572
1,282
Non-cash interest expense (income)
2,755
(69
)
55
Impairment of other intangible assets
481
95
—
Loss on disposal of property and equipment
184
23
—
Gain on sale of Custom Research Business
—
(1,497
)
(600
)
Provision for doubtful accounts and other sales
    allowances
271
6
28
Amortization of debt discount
195
—
—
Changes in assets and liabilities, net:
Accounts receivable
582
(437
)
(2,173
)
Deferred project costs
357
57
(10
)
Other current assets
624
(263
)
(2
)
Additions (refunds) of security deposits
(232
)
52
66
Accounts payable
(3,057
)
(104
)
576
Accrued expenses
(1,795
)
(326
)
2,275
Other current
(26
)
1,809
(652
)
Deferred project revenues
(1,151
)
(500
)
(40
)
Net cash provided by (used in) operating
    activities
(10,990
)
697
4,051
Cash flows from investing activities:
Proceeds from sale of Custom Research Business
—
1,400
600
Expenses paid in connection with the sale of the
    custom research business
—
(303
)
—
Additions to property and equipment and
    intangibles
(1,024
)
(558
)
(305
)
Net cash provided by (used in) investing
    activities
(1,024
)
539
295
Cash flows from financing activities:
Proceeds from issuance of capital stock
11,456
—
—
Proceeds from borrowings under credit facility
1,189
27
—
Repayments under credit facility
—
—
(1,216
)
Other long-term liabilities
—
367
(282
)
Increase (decrease) in book overdraft
—
31
(31
)
Proceeds from borrowings under bridge notes
3,926
—
—
Repayments under term loan
(4,000
)
—
—
Legal fees paid in conjunction with
    recapitalization
—
(263
)
—
Proceeds of options exercised
2
—
2
Proceeds from subscriptions receivable from
    management
—
—
2
Principal payments under capital lease obligations
(821
)
(590
)
(964
)
Net cash (used in) provided by financing
    activities
11,752
(428
)
(2,489
)
Net increase (decrease) in cash and cash
    equivalents
(262
)
808
1,857
Cash and cash equivalents at beginning of year
1,318
1,056
1,864
Cash and cash equivalents at end of year
$
1,056
$
1,864
$
3,721
Supplemental disclosures of cash flow
    information:
Cash paid during the year for:
Interest
$
356
$
599
$
412
Income taxes
—
—
116
Supplemental Schedule of Non-cash Investing
    and
Financing Activities:
Purchase of equipment and internal use software
    financed through capital lease obligations
$
1,612
$
49
$
545
Issuance of warrants in connection with debt
    financing
1,140
—
—
Issuance of Series A convertible preferred
    stock for note receivable
58
—
—
Exchange of bridge notes into equity
—
3,926
—
Exchange of accrued related party interest into
    equity
115
3,348
—
Exchange of notes payable to stockholder into
    equity
—
14,118
—
Issuance of Series C-2 redeemable preferred
    stock
—
2,053
—
Cumulative dividends on Series B convertible
    preferred stock
—
28
673
Accretion of Series C-2 redeemable preferred
    stock dividends
—
—
63
The accompanying notes are an integral part of
these consolidated financial statements.
F-6
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
Note 1
— Organization of Business, Nature
    of Business and Basis of Presentation:
Organization and Basis of
Presentation
Greenfield Online, Inc. (the
"Company" or "Greenfield"), was originally
incorporated in the State of Connecticut on September 28,
1995. Until May 17, 1999, one person owned all of our
capital stock. On May 17, 1999, our then-existing
management and a group of new investors executed a management
buyout (the "Management Buyout"), in which
approximately 97% of the Company's outstanding common stock
was acquired by Greenfield Holdings, LLC ("Greenfield
Holdings"), an entity formed for the sole purpose of the
Management Buyout. This transaction was accounted for as a
leveraged recapitalization, in which the basis of Greenfield
Holdings' investment in the Company was reflected in the
Company's financial statements, giving rise to goodwill and
certain other intangible assets, which have been substantially
amortized or written off prior to 2002. From 1999 until 2002,
the Company expended significant funds to build the Greenfield
Online panel and its Internet-based technology infrastructure.
In December 2002, the Company's controlling
stockholders completed a recapitalization of its capital
structure, which included the issuance of new senior equity
securities, the issuance of common stock and a reverse split of
the previously issued Class A and Class B Common Stock
into common stock at a ratio of 0.41987 to 1 (the
"Recapitalization"), during which Greenfield Holdings
was dissolved. For all periods presented, all share information
reflects the 0.41987 reverse split as part of the
Recapitalization.
For information purposes, we refer to the
"Predecessor" for the period prior to the Management
Buyout (May 17, 1999), the "Successor" for the
period subsequent to the Management Buyout.
Nature of Business
The Company is a leading independent provider of
Internet survey solutions to the global marketing research
industry and derives 100% of its revenues from Internet data
collection products and services. The Company actively manages
the Greenfield Online panel, a 100% Internet-based panel of
1.7 million individuals who participate in the
Company's surveys.
Over the past nine years, the Company has
developed proprietary management techniques and technologies
that allow it to actively manage the Greenfield Online panel. It
uses these techniques to efficiently conduct Internet surveys
and continually seeks to refresh and enhance its panel profiles,
enabling the delivery of higher-value survey data to its
clients. The Company's automated technology platform allows
the Company to perform a large volume of surveys simultaneously,
and its global production capabilities provide a continuous
survey programming, data collection and processing services.
The Company targets its Internet survey solutions
to approximately 2,500 full service marketing research and
consulting firms in the United States and the world's top
25 marketing research companies. The Company employs an
"outsourcing" business model that allows it to partner
with its clients to leverage their global sales forces.
International Expansion — India and
Europe
In July 2003, the Company began operations in
Europe and in addition, it incorporated Greenfield Online
Private Limited in Gurgaon, India ("GFOL India")
for the purpose of providing the Company with data processing
and survey programming services. In August 2003, the Company
incorporated under the laws of the United Kingdom, through its
wholly-owned subsidiary Greenfield Online Europe, Ltd.
("GFOL Europe") to provide the Company with a presence
in Europe to meet the expected increase in demand for the
Company's Internet survey solutions in Europe.
F-7
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
Liquidity and Capital Resources
The Company has a limited operating history and,
until 2003, the Company had historically sustained net losses
and negative cash flows from operations. In addition, the
Company has an accumulated deficit at December 31, 2002 and
2003. The Company's prospects are subject to the risks and
uncertainties frequently encountered by companies in the
relatively new and rapidly evolving markets for Internet
products and services. These risks include, but are not limited
to: the failure to further develop and extend the Company's
Internet survey solutions; the rejection of Internet-based
marketing research by companies in favor of more traditional
methods; the inability of the Company to maintain and increase
the Greenfield Online panel; failure to compete effectively for
new clients; as well as other risks and uncertainties. In
addition, the Company has growth plans, which include hiring new
personnel and expanding internationally. The Company currently
has limited financial flexibility and available borrowing
capacity to execute these plans, and the Company's growth
plans will require capital and further financial flexibility. In
the event the Company does not successfully implement its
business strategy, certain assets may not be recoverable.
Reverse Stock Split
In April 2004, the board of directors of the
Company authorized the filing of a registration statement with
the Securities and Exchange Commission that would permit the
Company to sell shares of its common stock in connection with a
proposed initial public offering of its common stock
("IPO"). These consolidated financial statements give
effect to a reverse one-for-14 split of the Company's
outstanding common stock to be effective prior to the completion
of the IPO. Upon the completion of the IPO, all shares of the
Company's Series C-2 Preferred Stock, par value
$0.0001 ("Series C-2") will be redeemed and all
outstanding shares of the remaining series of Preferred Stock
will be converted into shares of the Company's common stock
on a one-for-14 basis.
Unaudited Pro Forma Balance Sheet
The unaudited pro forma balance sheet gives
effect to the conversion of the convertible preferred stock as
if it occurred on December 31, 2003. The conversion of the
outstanding preferred stock into common stock will automatically
occur upon consummation of the IPO. Upon the closing of the IPO,
all of the outstanding shares of Series A Convertible
Participating Preferred Stock, par value $0.0001
("Series A"), Series B Convertible
Participating Preferred Stock, par value $0.0001
("Series B"), and Series C-1 Convertible
Participating Preferred Stock, par value $0.0001
("Series C-1"), will automatically convert into
an aggregate of 10,408,119 shares of common stock.
Note 2
— Summary of Significant Accounting
    Policies:
The following are the significant accounting
policies followed by the Company:
Consolidation.
The
consolidated financial statements include the accounts of
Greenfield, its wholly owned and controlled subsidiaries GFOL
Europe, as well as GFOL India. All significant intercompany
transactions have been eliminated in consolidation.
Revenue Recognition.
The Company recognizes revenues for services when the research
or survey data is delivered in accordance with the terms of the
agreements. Research products are delivered within a short
period generally ranging from a few days to eight weeks, and
there are no significant obligations remaining after delivery.
An appropriate deferral is made for costs related to projects in
process. Billings rendered in advance of services being
performed, as well as customer deposits received in advance, are
included in deferred revenue. Provision for estimated project
losses, if any, is made in the period such losses are determined
and estimable. Syndicated (recurring) research services are on a
subscription basis for periods of
F-8
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
up to one year. Subscription revenues are
recognized ratably over the term of the related contract as
services were provided.
Except as discussed in Note 3, the Company
did not have multiple element transactions during any periods
presented.
Cash and Cash
Equivalents.
The Company considers all
highly liquid instruments (cash and short-term securities) with
original maturities of three months or less to be cash
equivalents.
Translation of Foreign
Currencies.
The Company began
operations outside the United States during the year ended
December 31, 2003. In all circumstances, the functional
currency is the U.S. Dollar, all assets and liabilities of
foreign subsidiaries are remeasured at the year-end (current)
exchange rates and components of revenues and expenses are
remeasured at average exchange rates for the year.
Concentration of Credit
Risk.
Financial instruments, which
potentially subject the Company to concentrations of credit
risk, consist principally of trade accounts receivable. The
Company periodically reviews its accounts receivable for
collectibility and provides for an allowance for doubtful
accounts to the extent that amounts are not expected to be
collected. For the year ended December 31, 2003, two
customers each accounted for more than 10% of the Company's
net sales. Taylor Nelson Sofres Intersearch ("TNSI")
accounted for approximately 14.5% of the Company's net
sales and Custom Research, Inc. ("CRI") accounted
for approximately 12.7% of the Company's net sales. The ten
largest customers of Greenfield (including TNSI and CRI)
accounted for approximately 37%, 65% and 53% of the
Company's net sales for the years ended December 31,
2001, 2002 and 2003, respectively. The ten largest accounts
receivable balances of Greenfield (including TNSI and CRI)
accounted for approximately 63%, 47% and 38% at
December 31, 2001, 2002 and 2003, respectively.
Property and
Equipment.
The Company depreciates its
assets over their estimated useful lives. The estimated useful
lives range from: 3 to 5 years for equipment; 7 years
for furniture and fixtures; the shorter of the estimated useful
life of the related asset or the life of the lease for leasehold
improvements; and 4 years for automobiles. Property and
equipment are carried at historical cost, include amounts under
capital leases and are depreciated using the straight-line
method. Repair and maintenance expenditures are expensed as
incurred.
Goodwill and Other Intangible
Assets.
The excess of the cost over
the fair value of the net assets acquired in the Management
Buyout were recorded as intangible assets and allocated to
"customer base," "workforce" and "panel
members," which were amortized on a straight-line basis
over the estimated useful lives of the related assets,
2.5 years, 3.5 years and 4 years, respectively.
Based on the Company's financial condition of recurring
operating losses, management performed an evaluation of the
recoverability of these assets and concluded during 2001 that an
impairment existed. As a result, the Company recorded an
impairment charge of $73,000 for the year ended
December 31, 2001, which represented the remaining net book
value of the "workforce" at December 31, 2001.
The Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards No. 142
"Goodwill and Other Intangible Assets"
("SFAS 142") in June 2001, which was effective
for the Company on January 1, 2002. SFAS 142 requires
that goodwill no longer be amortized, and instead, be tested for
impairment when changes in circumstances indicate that an
impairment may exist, and at least on an annual basis. The
Company conducted its initial review as of January 1, 2002
and determined that an impairment existed. The Company therefore
recorded an impairment charge of $93,000 for the year ended
December 31, 2002, which is included in "Selling,
general and administrative" expense in the accompanying
statement of operations.
Long-lived Assets.
The Company reviews other long-lived assets, including property
and equipment and internal use software for impairment whenever
events or changes in circumstances indicate that the carrying
amount of such an asset may not be recoverable. Management
determines whether there has been any impairment on such assets
by comparing anticipated undiscounted cash flows from the use
and eventual
F-9
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
disposition of the asset or asset group to the
carrying value of the asset. The amount of any resulting
impairment is calculated by comparing the carrying value to the
fair value, which is estimated, primarily using the present
value of the estimated future cash flows.
Software Costs.
The
Company follows the provisions of Statement of
Position 98-1,
"Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use"
("SOP 98-1") to account for the costs of
computer software. Costs associated with development of code and
the purchase or license of software from external vendors,
including upgrades, which are used to run the Company's
Internet survey solutions are capitalized and amortized to cost
of services over the estimated useful life, typically two years.
The Company expenses as incurred all costs
associated with new product development whether performed by
employees or outside consultants, including reengineering,
process mapping, feasibility studies, data conversion, and
training incurred solely to extend the useful life of the
existing software. In addition, the Company expenses as incurred
the costs associated with maintenance of current technologies.
Income Taxes.
Deferred taxes are determined under the asset and liability
approach. Deferred tax assets and liabilities are recognized on
differences between the book and tax basis of assets and
liabilities using presently enacted tax rates. Further, deferred
tax assets are recognized for the expected benefits of available
net operating loss carryforwards, capital loss carryforwards and
foreign tax credit carryforwards. A valuation allowance is
recorded to reduce a deferred tax asset to an amount, which the
Company expects to realize in the future. The Company
continually reviews the adequacy of the valuation allowance and
recognizes these benefits only as reassessment indicates that it
is more likely than not that these benefits will be realized. In
addition, the Company continuously evaluates its tax
contingencies and recognizes a liability when it believes that
it is probable that a liability exists and can be reasonably
estimated.
Fair Value of Financial
Instruments.
The Company's
financial instruments primarily consist of cash, short-term
securities, accounts receivable, capital lease obligations,
accounts payable, accrued expenses, and other short and
long-term borrowings. The face value of the Company's debt
approximates its fair value and is included in the balance sheet
at its face amount net of an applicable discount. The fair value
of such debt is estimated based on quoted market prices for the
same or similar issues offered to the Company for debt with the
same or similar remaining maturities and terms. Where
applicable, discounts are based upon the estimated relative fair
value of common stock purchase warrants issued with the debt.
Panelist Incentives.
The Company's panelists receive incentives for
participating in the surveys from the Company, which are earned
by the panelist when the Company receives a timely survey
response. A panelist has the right to claim his or her incentive
payment at any time prior to its expiration, which is generally
one year. The Company accrues incentives as incurred, and
reverses expirations to the statement of operations as they
occur. For the years presented, unclaimed incentives represented
less than 10% of total incentives accrued.
Panel Acquisition
Expenses.
Costs associated with
establishing and maintaining panels of potential survey
respondents are expensed as incurred. These costs include
payments to third parties who source panelists from their
databases and websites.
Research and
Development.
Research and development
costs are expensed as incurred. Such costs primarily include
direct costs for salaries, employee benefits and sub-contractors
engaged in product development activities.
Stock-Based
Compensation.
The Company accounts for
stock-based compensation using the intrinsic-value method in
accordance with Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to Employees"
("APB No. 25"), and related interpretations, and
has adopted the disclosure-only provisions of Statement of
Financial Accounting Standards No. 123,
"Accounting
for Stock-Based Compensation"
("SFAS No. 123"), for such awards. Under
APB No. 25, compensation is determined to the extent that
the
F-10
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
fair value of the underlying stock on the date of
grant exceeds the exercise price of the employee stock option or
stock award. Compensation so determined is deferred in
stockholders' deficit and then recognized over the
service period for the stock option or award.
In December 2002, the FASB issued
SFAS No. 148, "Accounting for Stock-Based
Compensation — Transition and Disclosure, an amendment
of FASB Statement No. 123"
("SFAS 148"). SFAS 148 amends FASB Statement
No. 123 "Accounting for Stock-Based Compensation"
("SFAS 123"), to provide alternative methods of
transition for an entity that voluntarily changes to the fair
value based method of accounting for stock-based employee
compensation prescribed by SFAS 123. SFAS 148 also
amends the disclosure provisions of SFAS 123 to require
prominent disclosure in both annual and interim financial
statements about the effects on reported net income of an
entity's accounting policy decisions with respect to
stock-based employee compensation. The Company has adopted the
disclosure requirements of SFAS 123 in these financial
statements and the information regarding the net income (loss)
determined as if the Company had accounted for its stock options
under the fair value method.
The following table illustrates the effect on net
income (loss) available to common stockholders and income (loss)
per share if the Company had applied the fair value recognition
provisions of SFAS 123 for the years ended
December 31, 2001, 2002 and 2003 (in thousands, except per
share data).
For the Years Ended December 31,
2001
2002
2003
Net income (loss) as reported
$
(17,287
)
$
(2,394
)
$
1,648
Add: Stock-based employee compensation expense
    included in net income (loss) as recorded
2,467
1,572
1,282
Deduct: Total stock-based employee compensation
    expense determined under the fair value method for all awards,
    net of related tax effects
(3,847
)
(3,542
)
(3,593
)
Pro forma net loss
$
(18,667
)
$
(4,364
)
$
(663
)
Net Income (loss) per share as reported:
Basic
$
(17.71
)
$
(6.42
)
$
0.07
Diluted
$
(17.71
)
$
(6.42
)
$
0.06
Pro forma loss per share:
Basic
$
(19.13
)
$
(8.43
)
$
(0.68
)
Diluted
$
(19.13
)
$
(8.43
)
$
(0.68
)
The following table illustrates the weighted
average assumptions for the Black-Scholes option-pricing model
used in determining the fair value of options granted to
employees.
Years Ended
December 31,
2001
2002
2003
Risk-free interest rate
4.70
%
1.45
%
2.35
%
Weighted average expected life (years)
5
5
5
Volatility factor
82
%
63
%
72
%
Forfeiture rates
—
—
—
Expected dividend yield
—
—
—
Stock compensation arrangements to nonemployees
are accounted for in accordance with SFAS 123, as amended
by SFAS 148 and FASB Interpretation No. 44
"Accounting for Certain Transactions involving
F-11
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
Stock Compensation, an interpretation of
APB 25", using the fair value approach. The
compensation costs of these arrangements are amortized to
expense over the service period as earned.
Net income (loss) per
share.
The Company reports net income
(loss) per share in accordance with Statement of Financial
Accounting Standards No. 128 "Earnings per Share"
("SFAS 128"). Under SFAS 128, basic earnings
per share, which excludes dilution, is computed by dividing net
income or loss available to common stockholders by the weighted
average number of common shares outstanding for the period.
Diluted earnings per share reflects the potential dilution of
securities that could be exercised or converted into common
shares, and is computed by dividing net income or loss available
to common stockholders by the weighted average of common shares
outstanding plus the dilutive potential common shares. Diluted
earnings per share includes in-the-money stock options and
warrants using the treasury stock method and also includes the
assumed conversion of preferred stock using the if-converted
method if dilutive. Due to the participation features of the
Company's Series A, Series B and Series C-1
Preferred Stock, basic and diluted earnings per share has been
calculated using the "two-class" method, which is an
earnings allocation formula that determines earnings per share
for each class of common stock and participating security
according to dividends declared (or accumulated) and
participation rights in undistributed earnings. In loss periods,
no amounts are allocated to the participating securities. During
a loss period, the assumed exercise of in-the-money stock
options and warrants and the conversion of convertible preferred
stock has an anti-dilutive effect and therefore, these
instruments are excluded from the computation of dilutive
earnings per share. Weighted average potential common shares of
2,351,929, 3,543,714 and none were excluded from the computation
of diluted earnings per share for the years ended
December 31, 2001, 2002 and 2003, respectively, as they
would be anti-dilutive.
The following is a reconciliation of basic number
of common shares outstanding to diluted number of common and
common stock equivalent shares outstanding (in thousands):
For the Years Ended
December 31,
2001
2002
2003
Weighted average number of common and potential
    common shares outstanding:
Basic number of common shares outstanding
976
981
2,054
Dilutive effect of stock option grants
—
—
289
Dilutive effect of warrants
—
—
4
Diluted number of common and potential common
    shares outstanding
976
981
2,347
Use of Estimates.
The preparation of these consolidated financial statements, in
conformity with accounting principles generally accepted in the
United States of America, requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities
at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Some of
the more significant assumptions and estimates relate to the
determination of accrued expenses, liabilities for panelist
incentives and stock-based compensation, certain asset
valuations including deferred tax asset valuations and the
useful lives of property and equipment and internal use
software. Actual results could differ from those estimates.
Recently Issued Accounting
Standards.
In August 2001, the FASB
issued SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets"
("SFAS 144"). SFAS 144 provides new guidance
on the recognition of impairment losses on long-lived assets,
excluding goodwill, to be held and used or to be disposed of and
also broadens the definition of what constitutes a discontinued
operation and how the results of a discontinued operation are to
be measured and presented. SFAS 144 also requires
long-lived assets that are to be abandoned, be treated as held
for use and depreciated over their remaining expected lives and
F-12
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
broadens the presentation of discontinued
operations in the statement of operations to a component of an
entity rather than a segment of a business. SFAS 144 was
effective for the Company beginning January 1, 2002 and had
no material impact on the Company's financial position or
results of operations.
In June 2002, the FASB issued
SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities"
("SFAS 146"). SFAS 146 requires that a
liability for a cost associated with an exit or disposal
activity be recognized and measured, initially at fair value,
only when the liability is incurred. SFAS 146 nullified
Emerging Issues Task Force Issue No. 94-3, "Liability
Recognition for Certain Employee Termination benefits and Other
Costs to Exit an Activity (including Certain Costs Incurred in a
Restructuring)" ("EITF 94-3"), which
required a liability for an exit cost to be recognized at the
date of an entity's commitment to an exit plan. The
adoption of SFAS 146 is expected to result in delayed
recognition for certain types of costs as compared to the
provisions of EITF 94-3, especially for facility closure
costs. The provisions of SFAS 146 are effective for exit or
disposal activities that are initiated after December 31,
2002. The adoption of SFAS 146 could affect the types and
timing of costs included in future business consolidation and
restructuring programs. SFAS 146 did not have a material
impact on the Company's financial position or results of
operations.
In November 2002, the FASB issued Interpretation
No. 45 "Guarantor's Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees
of Indebtedness of Others, (an interpretation of FASB Statements
No. 5, 57, and 107 and rescission of FASB interpretation
No. 34)" ("FIN 45"). FIN 45
elaborates on the disclosures to be made by a guarantor in its
interim and annual financial statements about its obligations
under certain guarantees that it has issued. FIN 45 also
clarifies that a guarantor is required to recognize, at the
inception of a guarantee, a liability for the fair value of the
obligation undertaken in issuing the guarantee. The initial
recognition and measurement provisions of FIN 45 are
applicable on a prospective basis to guarantees issued or
modified after December 31, 2002. The disclosure
requirements of FIN 45 were effective for interim and
annual financial statements for periods ending after
December 15, 2002. The initial recognition and initial
measurement provisions did not have a material impact on the
Company's financial position or results of operations.
In December 2002, the Emerging Issues Task Force
("EITF") issued EITF Issue 00-21,
"Accounting for Revenue Arrangements with Multiple
Deliverables ("EITF 00-21"). EITF 00-21
provides guidance on determining whether a revenue arrangement
contains multiple deliverable items and if so, requires that
revenue be allocated among the different items based on fair
value. EITF 00-21 also requires that revenue on any item in
a revenue arrangement with multiple deliverables not delivered
completely must be deferred until delivery of the item is
completed. The guidance in EITF 00-21 is effective for
revenue arrangements entered into in fiscal years beginning
after June 15, 2003. EITF 00-21 is not expected to
have a material impact on the Company's financial position
or results of operations.
In January 2003, the FASB issued Interpretation
No. 46 "Consolidation of Variable Interest
Entities" ("FIN 46"). FIN 46 requires
that if an entity is the primary beneficiary of a variable
interest entity, the assets, liabilities, and results of
operations of the variable interest entity should be included in
the Consolidated Financial Statements of the entity. In December
2003, the FASB issued FIN 46R to provide additional
clarifications to FIN 46 and deferred the latest date by
which FIN 46 must be applied by a Company for variable
interest entities acquired after January 31, 2003, to the
first annual reporting period beginning after December 15,
2004. FIN 46 is currently effective for all variable
interest entities created or acquired after January 31,
2003.
In May 2003, the FASB issued Statement of
Financial Accounting Standards No. 150
("SFAS 150"), "Accounting for Certain
Financial Instruments with Characteristics of both Liability and
Equity." SFAS 150 improves the accounting for certain
financial instruments that, under previous guidance, issuers
could account for as equity and requires that those instruments
be classified as liabilities (or assets in certain
circumstances) in statements of financial position.
SFAS 150 affects the issuer's accounting for certain
types of freestanding
F-13
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GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
financial instruments and also requires
disclosure about alternative ways of settling the instruments
and the capital structure of entities — all of whose
shares are mandatorily redeemable. SFAS 150 is generally
effective for all financial instruments entered into or modified
after May 31, 2003, and otherwise is effective in the
interim period beginning July 1, 2003 for the Company. As a
result of the adoption of SFAS 150, the Series C-2
Preferred Stock has been classified between liabilities and
equity at December 31, 2002 and was reclassified to a
liability at December 31, 2003 since the Company must
redeem all of the Series C-2 Preferred Stock (see
Note 10).
Note 3
— Sale of Custom Research
    Business:
The Company entered into an asset purchase
agreement (the "Asset Purchase Agreement") to sell the
assets of its custom research business (the "Custom
Research Business") to Taylor Nelson Sofres Operations,
Inc. ("TNSO"), which was completed on January 31,
2002. For the sale, the Company received approximately
$2,000,000 at closing and an additional $600,000 during 2003,
when certain conditions in the Asset Purchase Agreement were
met. The sale of the Custom Research Business comprised the
conveyance of 19 full-time employees, all contracts of the
Custom Research Business and a sublease of certain office space.
Further, the Company gave up its right to perform custom
research for end-user clients for a period of three years.
Contemporaneously with the execution of the Asset
Purchase Agreement, the Company entered into an Alliance,
License and Supply Agreement (the "Alliance
Agreement") with TNSI, an affiliate of TNSO, originally
maturing on January 30, 2007. During the term of the
Alliance Agreement, TNSI was required to bring substantially all
of its U.S.-based custom marketing research and Internet sample
requirements business to the Company, with a contractual minimum
of $200,000 per month of qualifying revenue (as defined in
the Alliance Agreement) from purchases of sample and other
services in the first year, increasing to a minimum of
$300,000 per month in the second year, for a total of
$5,400,000 in guaranteed payments over the first two years. The
Alliance Agreement also specified no payments for the first
three months' services in 2002. Since the Company was
required to provide the services, we treated $600,000 of the
cash received upon sale of the Custom Research Business as an
advance deposit on the first three months of services under the
Alliance Agreement. Accordingly, we viewed the total contractual
payments for the Alliance Agreement to be approximately
$6,000,000. In December 2003, the minimum purchases, as required
under the Alliance Agreement, were satisfied by TNSI.
The Company determined that the two agreements
with TNSO and TNSI constituted a multiple element arrangement in
which the stipulated proceeds from the sale, and the stipulated
guaranteed payments in the Alliance Agreement, are required to
be allocated between the sale transaction and the Alliance
Agreement. The Company obtained an independent valuation of the
Custom Research Business sold and the Alliance Agreement. The
Company also compared the pricing in the Alliance Agreement to
that of similarly situated customers using the guidance in
EITF 00-21. In determining the most appropriate allocation
of fair value, the Company weighted most significantly the value
of its research services sold separately to these customers
based upon the fact that the Company's prices for services
to third parties are more objective and verifiable than
estimating the value of the business disposed of. Accordingly,
at the time, the Company determined that the fair value of the
future services amounted to approximately $5,600,000. The
$400,000 difference between the contractual amount of $6,000,000
and the fair value of the services of $5,600,000 was recorded as
a contract asset upon sale of the Custom Research Business and
the simultaneous signing of the Alliance Agreement. This asset
was amortized against revenue during 2002 and 2003 on a
straight-line basis, which is substantially similar to the
pattern in which the services were provided. The Company
recorded a pre-tax gain on the sale of the Custom Research
Business in the amount of $1,497,000 and $600,000 in year ended
December 31, 2002 and 2003, respectively, as a result of
this transaction, which is included in "other income
(expense)" in the accompanying statement of operations. The
$600,000 gain was recorded in 2003, when the associated
contingencies lapsed and the cash was received.
F-14
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
On November 26, 2003, the Company and TNSI
amended the Alliance Agreement to provide that: the term would
expire on December 31, 2006, with no automatic renewal
rights; that the Company would be allowed to sell Internet data
collection services to end-users; and that during the term of
the Alliance Agreement, TNSI and NFO Worldgroup, Inc
("NFO"), which Taylor Nelson Sofres plc, the parent
company of TNSO, had acquired in 2003, would provide the Company
with an opportunity to bid on substantially all of TNSI and
NFO's third-party U.S.-based Internet consumer sample
business.
Note 4 — Prepaid expenses and
other current assets:
Prepaid expenses and other current assets
consisted of the following at December 31 (in thousands):
2002
2003
Other non-trade receivables
$
328
$
28
Prepaid expenses
60
355
Deferred project costs
58
68
Contract asset (Note 3)
217
17
Other
18
30
$
681
$
498
Note 5 — Property and
Equipment, net:
Property and equipment, net consisted of the
following at December 31 (in thousands):
Estimated
Useful
Life-Years
2002
2003
Computer and data processing equipment
3 - 5
$
5,006
$
5,581
Leasehold improvements
2 - 7
*
1,320
1,366
Furniture and fixtures
7
1,097
1,097
Telephone system
5
123
123
Automobile
4
—
88
7,546
8,255
Less: Accumulated depreciation
(4,810
)
(5,835
)
Property and equipment, net
$
2,736
$
2,420
*
Lesser of the estimated life of the asset or the
    life of the underlying lease.
Depreciation expense amounted to $2,099,000,
$1,624,000 and $1,025,000 for the years ended December 31,
2001, 2002 and 2003, respectively including amounts recorded
under capital leases. In the years ended December 31, 2001
and 2002, the Company disposed of assets with a net book value
of $184,000 and $23,000, respectively, primarily leasehold
improvements and computer equipment.
F-15
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
Included in property and equipment above are
assets acquired under capital leases, which are summarized below
at December 31 (in thousands)
:
2002
2003
Computer and data processing equipment
$
2,784
$
3,271
Furniture and fixtures
947
947
Automobile
—
58
3,731
4,276
Accumulated depreciation
(2,354
)
(3,024
)
Assets under capital leases, net
$
1,377
$
1,252
Note 6 — Other intangible
assets, net:
Other intangible assets consists of the following
at December 31 (in thousands):
Estimated
Useful
Life-Years
2002
2003
Internal use software
2
$
1,907
$
2,047
Panel members (fully amortized at
    December 31, 2003)*
4
712
712
2,619
2,759
Less: Accumulated amortization
(2,076
)
(2,448
)
Other intangible assets, net
$
543
$
311
*
Asset recorded in connection with the
    "Management Buyout" in 1999
Amortization of internal use software amounted to
$1,988,000, $688,000 and $285,000 for the years ended
December 31, 2001, 2002 and 2003, respectively, which is
included in cost of revenues in the accompanying statement of
operations. Amortization of other intangible assets (excluding
internal use software) amounted to $555,000, $178,000 and
$88,000 for the years ended December 31, 2001, 2002 and
2003.
As a result of the recurring losses from
operations, as well as certain downsizing efforts, management
performed an evaluation of the recoverability of these assets
and determined that the estimated fair value was less than the
carrying value of certain software costs that had no future use
and recorded an impairment charge of $408,000 and $2,000,
respectively for the years ended December 31, 2001 and
2002, which is included in "Selling, general and
administrative" expenses in the accompanying statement of
operations in each respective year.
Note 7 — Accrued expenses and
other current liabilities:
Accrued expenses and other current liabilities
consisted of the following at December 31 (in thousands):
2002
2003
Accrued payroll and commissions
$
824
$
1,499
Panelist incentives
659
1,118
Customer deposits
322
235
Other
1,181
1,727
$
2,986
$
4,579
F-16
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
For the years ended December 31, 2001, 2002
and 2003, the Company reversed panelist incentives accrual of
none, $85,000, and $250,000, respectively, for the expirations
of the incentives. For the year ended December 31, 2001,
the Company had an arrangement with a consultant to provide the
payment of the awards to the panelists, which included the cost
of unclaimed incentives that benefited the consultant.
The Company has arrangements with Microsoft
Corporation through Microsoft Network ("MSN"). Through
these arrangements, the Company pays MSN for network traffic
routed to the Company's website where participants respond
to its surveys. The Company also incurs a fee to MSN for surveys
completed and delivered to clients. Fees for first time traffic
routed to our website through MSN, which are included in panel
acquisition expense, amounted to $621,000 and $1,147,000 for the
years ended December 31, 2002 and 2003, respectively. In
2003, MSN began charging the Company fees for surveys completed
and delivered through MSN referrals. Such fees for completed
surveys, which are included in cost of revenues, amounted to
$214,000 for the year ended December 31, 2003.
Note 8 — Related
Parties:
During 2003, the Company paid $83,000 in
consulting fees to shareholders of GFOL India in connection with
its incorporation. This agreement related primarily to
recruiting and training employees.
Notes receivable from
    Stockholders
In conjunction with the Management Buyout, the
Company paid $500,000 to the former sole stockholder of the
Predecessor on behalf of two officers of the Company,
Mr. Nadilo and Mr. Davis. In exchange, Mr. Nadilo
and Mr. Davis issued the Company two non-recourse
promissory notes (the "Promissory Notes") in the
amounts of $425,000 and $75,000, respectively. The cash paid to
Mr. Nadilo and Mr. Davis was used to purchase
1,048,050 and 184,950 shares, respectively, of the
Company's Class A Common Stock
("Class A") from the sole stockholder of the
Predecessor in 1999. The Promissory Notes were collateralized
with the shares of Class A, bear interest at a rate of
5.3% per annum, and one Note that matures on May 17,
2004 and may be repaid in whole or in part at any time without
penalty. The Company's sole recourse against
Mr. Nadilo and Mr. Davis is limited to the shares of
Class A, which were later combined with the Company's
Class B Common Stock ("Class B") into one
class of common stock as part of the Recapitalization.
The Class A Stock, purchased by
Mr. Nadilo and Mr. Davis with the proceeds of the
Promissory Notes is restricted because the Company has the right
to repurchase the Class A for its original purchase price
from either one of these officers if their employment terminates
for any reason. The restrictions on the Class A lapse and
the Class A becomes vested 25% one year after the
Management Buyout and 12.5% each six-month period thereafter
until four years have expired from the date of the Management
Buyout. Under Emerging Issues Task Force Abstract 95-16,
"Accounting for Stock Compensation Arrangements with
Employer Loan Features"
("EITF 95-16"),
these Promissory Notes were treated as stock option awards with
variable plan accounting treatment.
On March 3, 2000, Greenfield's
management and these two officers agreed to amend these
Promissory Notes to make them full recourse notes (the
"Recourse Note(s)"). In accordance with
EITF 95-16, variable plan accounting treatment ceased and
the Company recorded unearned stock-based compensation expense
in the amount of $8,039,000. This unamortized unearned
stock-based compensation is being amortized to expense over the
remaining service term.
In April 2001, the Company accepted the
resignation of Mr. Nadilo, the Company's then Chief
Executive Officer, who surrendered all of his Class A in
full payment of his Recourse Note and the Company reversed the
remaining $2,555,000 unearned stock-based compensation to
additional paid in capital, with respect to Mr. Nadilo. In
the aggregate, with respect to these Notes, the Company
amortized $1,444,000,
F-17
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
$192,000 and $48,000 of stock-based compensation
expense in the statement of operations for the years ended
December 31, 2001, 2002 and 2003, respectively, leaving a
remaining balance of $44,000 to be amortized through
March 3, 2004. At December 31, 2003, the principal
amount of $131,000 is recorded as a "Note receivable from
stockholder" in stockholders' deficit.
In connection with the Company's issuance of
Series A Convertible Participating Preferred Stock to other
investors in March 2001, Mr. Davis borrowed $56,000 from
the Company to purchase Class B from Greenfield Holdings.
In exchange for the cash, Mr. Davis issued a promissory
note in the aggregate amount of $56,000 with an annual
compounding interest rate of 8% and maturing on May 17,
2004. The loan is collateralized by the shares of Class B,
which were later combined with Class A into one class of
common stock as part of the Recapitalization.
I-GAIN contract
The Company had an arrangement with I-GAIN, an
incentive and loyalty reward company, which provided that I-GAIN
would pay cash awards to panelists on behalf of the Company in
exchange for the Company's payment of a fee of
$0.50 per transaction. Hugh O. Davis, the Company's
Chief Technology Officer, formerly held a 10% ownership interest
in I-GAIN. The contract with I-GAIN became null and void in May
2001 and the total costs incurred by the Company for this
arrangement with I-GAIN for the year ended December 31,
2001 was $653,000, which included amounts that I-GAIN paid to
panelists and is included in cost of revenues. There have been
no further transactions with I-GAIN since May 2001.
Greenfield Consulting
    Group, Inc.
On May 14, 1999, the Company entered into a
three-year agreement with Greenfield Consulting
Group, Inc., ("Greenfield Consulting").
Greenfield Consulting is wholly owned by the sole stockholder of
the Predecessor. Under the three-year agreement, Digital
Idea, Inc., a subsidiary of Greenfield Consulting, would
exclusively purchase qualitative and quantitative market
research data from the Company at discounted rates. In turn, the
Company agreed not to enter into any exclusive provider
arrangement with any other internet-focused strategic consulting
services company in the marketing services category. During the
year ended December 31, 2001, the Company earned revenues
of approximately $330,000 from Digital Idea, Inc. related
to these services. There have been no further transactions with
Digital Idea, Inc. since 2001.
Note 9 — Revolving Credit
Facility:
The Company has a credit facility with Silicon
Valley Bank (the "SVB Credit Facility") in the amount
of $1,875,000 at December 31, 2002 and 2003 based upon an
80% advance rate on eligible accounts receivable (the
"Borrowing Base"). The SVB Credit Facility bears
interest at a rate equal to the prime rate plus 1% (prime plus
1.75%, or 5.75%, at December 31, 2002), plus a collateral
handling fee of 0.375% of the monthly average daily financed
receivable balance. The SVB Credit Facility is collateralized by
the general assets of the Company, matures on August 22,
2005 and is subject to a covenant, which requires the Company to
achieve certain performance targets each month that the SVB
Credit Facility is outstanding. The Company had an outstanding
balance of $1,216,000 at December 31, 2002. In addition,
the Company paid interest in the amount of $23,000, $158,000 and
$122,000, respectively, for each of the years ended
December 31, 2001, 2002 and 2003 associated with the SVB
Credit Facility. No amounts were outstanding under the SVB
Credit Facility at December 31, 2003.
F-18
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
Note 10 — Redeemable or
Convertible Preferred Stock:
Series C-2 Redeemable Preferred
    Stock
During the Recapitalization described in
Note 11, the Company issued an aggregate of
10,000 shares of Series C-2 Redeemable Preferred
Stock, par value $0.0001 per share
("Series C-2"), in satisfaction of debt then
outstanding of $1,537,000, plus accrued interest of $516,000
("Series C-2 Aggregate Proceeds") of the existing
stockholders. At the date of issuance, the Company recorded a
discount of $1,232,000, which is the difference between the
stated value and the estimated fair market value of
Series C-2 and was recorded as a component of additional
paid-in capital. The initial carrying value is being accreted to
redemption value over the redemption period.
Commencing on the second anniversary of the
Recapitalization, the Series C-2 holders shall be entitled
to receive aggregate cumulative dividends at an annual rate of
10.5% on the Series C-2 Aggregate Proceeds. The dividends
shall be paid when, as and if declared by the board, upon
liquidation or redemption, as defined.
Series C-2 holders have liquidation rights
equal to the Series C-2 Aggregate Proceeds, plus all
accrued and unpaid dividends. The Series C-2 is pari passu
with the Series C-1 with regard to liquidation preference,
and senior to all other equity securities of the Company.
The Company may redeem the Series C-2 at any
time, in whole or in part, for an amount, prorated according to
the number of shares redeemed, equal to the Series C-2
Aggregate Proceeds, plus accrued and unpaid dividends, if any.
The Series C-2 is mandatorily redeemable by the Company on
May 17, 2009, or earlier upon the occurrence of: (i) a
qualified initial public offering of its securities of not less
than $30 million in aggregate proceeds and a per share
offering price greater than $1.00 ("Qualified IPO") or
(ii) the Company enters into any transaction of merger or
consolidation where aggregate cash consideration received by the
Company is in excess of $20 million.
As discussed in Note 2, the Company adopted
the provisions of SFAS 150. As a result of adopting
SFAS 150, Series C-2, which had been included within
the balance sheet caption "Series C-2 mandatorily
redeemable preferred stock" classified between liabilities
and equity in the Company's Consolidated Balance Sheet at
December 31, 2002, was reclassified to
"Series C-2 mandatory redeemable preferred
stock," a new liability caption, upon adoption of
SFAS 150 as of July 1, 2003. As of December 31,
2003, the mandatorily redeemable preferred stock balance was
$943,000. Subsequent to the adoption of SFAS 150, the
accretion related to this instrument, which was previously
reported as "accretion of preferred stock dividends"
in the Company's Consolidated Statements of Operations, are
now accounted for as a component of interest expense. SFAS 150
does not permit reclassification of prior year amounts to
conform to the current year presentation.
Series B Convertible Preferred
    Stock
During the Recapitalization described in
Note 11, the Company issued an aggregate of
30,211,595 shares of Series B. The Series B was
issued in satisfaction of the then outstanding Greenfield
Holdings Promissory Notes of $12,600,000, plus accrued interest
of $4,228,000, (the "Series B Aggregate
Proceeds").
The holders of Series B shall be entitled to
receive a cumulative dividend at an annual rate of 4% of the
Series B Aggregate Proceeds. Dividends shall be payable upon
conversion into shares of common stock by the Company. Dividends
are being accreted to the carrying value of Series B in the
accompanying balance sheet. No dividends shall be paid until the
Series C-2 has been redeemed in full. All Series B
stockholders have liquidation rights equal to $0.2785 per
share, plus declared and unpaid dividends. These liquidation
rights are junior to both Series C-1 and Series C-2,
and senior to all other equity securities of the Company.
F-19
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
The Series B securities contain settlement
provisions, which require the holder to receive cash and common
stock upon redemption. Each holder of Series B shall have
the option to convert such holder's shares of Series B
into shares of Common Stock of the Company at an initial
conversion price of $0.2785, subject to equitable adjustments
for stock splits, stock dividends, recapitalizations, and the
like. Upon conversion, such holder shall also receive its per
share portion of the Series B liquidation rights plus all
declared and unpaid dividends.
As the liquidation rights are redeemable by the
holders upon conversion, the Company has classified the
Series B between liabilities and equity in the accompanying
balance sheet. In addition, upon issuance of Series B, the
Company recorded a charge of $3.9 million to income
available to common shareholders based upon the difference
between the estimated fair value of the Series B at such
time and the liquidation preference amount.
Series B shall be automatically converted
into common stock upon the occurrence of either (i) a
Qualified IPO, (ii) upon the election of 66 2/3% of
the Series B stockholders and subject to the Company's
consent or (iii) at the election of the Company. Upon such
conversion, the Company will also pay to the Series B
holders the Series B liquidation right.
In accordance with EITF Topic D-42,
The Effect
of the Calculation of Earnings per Share for the Redemption or
Induced Conversion of Preferred Stock,
at the time of
redemption, in calculating earnings per share, the Company will
be required to subtract from net earnings available to common
shareholders, the excess of (1) fair value of the
consideration transferred to the holders of Series B over
(2) the carrying amount of the preferred stock in the
Company's balance sheet.
Note 11 — Stockholders'
Equity:
Recapitalization
On December 27, 2002, our stockholders, who
were also the holders of all of our outstanding subordinated
indebtedness, completed the Recapitalization. The
Recapitalization resulted in the issuance by the Company of
three newly created classes of Preferred Stock, an amendment to
the rights and preferences of the currently outstanding
Series A, the conversion of the currently outstanding
Class A and Class B Common Stock
("Class A" and "Class B,"
respectively) into a single class of common stock, and a
combination (reverse-split) of the resulting class of common
stock. The newly created classes of Preferred Stock are
designated respectively as the Series B, Series C-1
and Series C-2. Because the Recapitalization was a
transaction exclusively among the existing holders of our
subordinated debt and equity securities, the transaction is
considered to be merely a change in the legal form and in the
rights and preferences of the Company's subordinated debt
and equity securities. Accordingly, there was no gain or loss
recognized from the exchange of the preferred and common equity
securities and no gain or loss on the early subordinated debt
extinguishment following the guidance of Footnote 1 of
APB No. 26, "Early Extinguishment of Debt."
Instead, the Recapitalization is considered to be a capital
transaction between related parties.
As a result of the Recapitalization, on an
aggregate basis, the holders of Series C-1, Series B,
Series A and common stock represent approximately 85% of
the voting interest in the Company. These same shareholders also
maintained approximately the same voting interest as they held
prior to the Recapitalization.
Common Stock
The Company's Certificate of Incorporation,
as amended, authorizes the Company to issue up to
13,605,479 shares of $0.001 par value common stock.
F-20
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
Effective with the Management Buyout and up until
the Recapitalization, the Company had two classes of common
stock, Class A and Class B. In liquidation,
Class B had a preference over the Class A, and would
receive a 7% cumulative return on its original price per share.
As a result of the Recapitalization, the Company
converted all of its then outstanding Class B and
Class A into a single class of Common Stock and
reverse-split such class. As a result, the Company had
945,147 shares of common stock outstanding immediately
following this conversion.
The Company also sold 1,105,750 shares of
common stock to certain members of the Company's management
and an independent member of the board of directors, (the
"Restricted Common Stock"). The Restricted Common
Stock was sold for par value and, for the members of management,
was restricted stock subject to a vesting schedule. The
Restricted Common Stock will vest 50% upon grant, and the
balance over a two-year period, which will accelerate upon
certain conditions. The holders of the Restricted Common Stock
entered into a voting agreement with the Company and its largest
shareholders which provides that management has the right to
vote only its vested stock, and only then for so long as the
individual remains employed by the Company. The major
shareholders share a proxy for each individual's unvested
stock in all circumstances and his vested stock if he leaves the
Company. Further, the Company and all holders of the Restricted
Common Stock entered into Sale Bonus Agreements, (the "Sale
Bonus Agreements") under which the holders of the
Restricted Common Stock will receive a cash bonus in the event
of a sale of the Company. In the event of a sale, the sales
bonus provides for a cash payout of $0.0865 per dollar of
net liquidation proceeds above $14 million as long as net
liquidation proceeds are approximately $26.7 million. At
the date of the Recapitalization, 543,287 Restricted Common
Stock shares were subject to restriction and 562,462 vested
immediately.
At the date of Recapitalization, the Company
recorded a deferred compensation charge of approximately
$534,000 for unvested Restricted Common Stock and charged to
compensation expense $553,000 for the Restricted Common Stock
that vested immediately as the estimated fair market value of
the underlying Restricted Common Stock shares exceeded the
amount paid in by management. As the restricted unvested
underlying common stock issued to management is subject to a
vesting schedule, the compensation charge has been deferred and
is amortized on a straight-line basis over the vesting period.
Accordingly, the Company amortized $11,000 and $267,000 for the
years ended December 31, 2002 and 2003. As of
December 31, 2003, unearned stock-based compensation
related to Restricted Common Stock was approximately $256,000.
Series A Preferred Stock
During 2001, the Company completed the offering
of 40,874,511 shares of preferred stock, designated as
Series A Preferred Stock, par value $0.0001 per share,
("Series A") for $0.2913 per share for
aggregate proceeds of $11,456,000, net of cash issuance costs of
$279,000 and inclusive of the conversion of unsecured
10% subordinated promissory notes, plus accrued interest
and the receipt of a note receivable from a stockholder (see
Note 8).
During the Recapitalization the original terms of
the Series A were modified. The modifications included
(i) a reduction in voting strength from 49.13% to 22.81%,
(ii) a 50% reduction in the Series A liquidation
rights coupled with a downgrade in seniority, (iii) waiver
of all guaranteed dividends and accrued dividends which may have
existed prior to the Recapitalization, (iv) adjustment to
the Series A conversion price and (v) waiver of all
protective provisions originally granted to Series A
holders and all rights to anti-dilution adjustments to the
Series A conversion price.
The holders of Series A are entitled to
receive dividends when, as, and if, declared by the Board of
Directors and with the Common Stock on an
"as-converted" basis. No dividends will be paid until
the Series C-2 has been redeemed in full (see Note 10).
F-21
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
Series A stockholders have liquidation
rights aggregating to $5,953,000 plus declared and unpaid
dividends. These amounts are to be received upon a liquidation
and after the deduction of the liquidation rights due to the
Series C-2, Series C-1 and Series B and all
amounts due under the Sale Bonus Agreement.
At the option of the stockholder, each share of
Series A can be converted into common stock at an initial
conversion price of $0.2913 per share, subject to
adjustments. Upon conversion, declared and unpaid dividends, if
any, convert into common stock at a price equal to the fair
value of the Common Stock at the time of conversion. The
Series A shall be automatically converted into common stock
upon the occurrence of (i) the closing of a Qualified IPO,
or (ii) the affirmative vote of the holders of at least
66 2/3% of the issued and outstanding Series A.
Series C-1 Preferred
    Stock
During the Recapitalization, the Company issued
an aggregate of 74,627,182 shares of Series C-1 in
satisfaction of the then outstanding bridge notes of $4,007,000,
plus accrued interest of $557,000, (the "Series C-1
Aggregate Proceeds") of the existing stockholders.
Each outstanding share of Series C-1 is
entitled to receive dividends when, as and if declared by the
Board of Directors. No dividends shall be paid until
Series C-2 has been redeemed in full (see Note 10).
All Series C-1 stockholders have liquidation
rights equal to $0.1223 per share, plus declared and unpaid
dividends. Series C-1 ranks pari passu with the
Series C-2 with regard to liquidation preference, and
senior to all other equity securities of the Company and will be
entitled to liquidation preference equal to two times its
original purchase price plus accrued and unpaid dividends.
At the option of the stockholder, each share of
Series C-1 can be converted into common stock at an initial
conversion price of $0.0612 per share, subject to
adjustments. Upon conversion, declared and unpaid dividends, if
any, convert into common stock at a price equal to the fair
value of the Common Stock at the time of conversion. The
Series C-1 shall be automatically converted into common
stock upon a qualified initial public offering, as defined, of
at least $30 million in aggregate proceeds and a per-share
offering price greater than $1.00 or upon the election of
66 2/3% of the Series C-1 stockholders.
Unearned Stock-Based
    Compensation
The Company has awarded certain stock option and
warrant grants in which the fair value of its underlying stock
on the date of grant exceeded the exercise price. As a result,
the Company has recorded unearned stock-based compensation,
which is being amortized over the service period, generally four
years. Accordingly, the Company has amortized $2,467,000 and
$1,572,000 and $1,282,000 of stock based compensation expense in
the statement of operations for the years ended
December 31, 2001, 2002 and 2003, respectively, related to
these option grants. Stock-based compensation cost for the year
ended December 31, 2003 totaled $1,282,000, including
compensation cost of $48,000 related to the notes receivable
from stockholder. Stock-based compensation expense for the year
ended December 31, 2002 totaled $1,572,000, including
compensation cost of $192,000 related to the notes receivable
from stockholders. Stock-based compensation expense for the year
ended December 31, 2001 totaled $2,467,000, including
compensation expense of $1,444,000 related to the notes
receivable from stockholders. In connection with options
forfeited during the year ended December 31, 2002, the
Company wrote off $157,000 of unearned stock-based compensation
as a reduction of additional paid-in capital, respectively.
Warrants
On December 3, 1999, in conjunction with the
establishment of a bank facility, the Company issued a warrant
to purchase 11,986 shares of Class A at an exercise
price of $50.12 per share ("Warrant") to a debt
holder. The Warrant is exercisable immediately, expires on
December 3, 2004 and contains anti-dilution
F-22
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
provisions. In connection with the Company's
Recapitalization, the issuance of additional potentially
dilutive securities, and the combination of Class A and
Class B and their reverse split, the Warrant was adjusted
to be exercisable to purchase 21,212 of Common Stock at an
exercise price of $28.28 per share. The Warrant with
respect to all 21,212 shares was outstanding at
December 31, 2002 and 2003.
On March 3, 2000, in connection with a debt
financing, the Company issued a warrant to purchase
9,990 shares of Class A at an exercise price of $50.12
to Greenfield Holdings (the "Holdings Warrant"). The
Holdings Warrant is exercisable immediately, expires on
March 3, 2005 and contains anti-dilution provisions. In
connection with the Company's Recapitalization, the
issuance of additional potentially dilutive securities, and the
combination of Class A and Class B and their reverse
split, the Holdings Warrant was adjusted to be exercisable to
purchase 4,268 shares of Common Stock at an exercise price of
$117.18 per share. In December 2002, Greenfield Holdings
was dissolved and the Holdings Warrant was distributed to the
members of Greenfield Holdings. As of December 31, 2002 and
2003, the Holdings Warrant with respect to all 4,268 shares was
outstanding.
In August 2001, in connection with establishing
the SVB Credit Facility, the Company issued a warrant to
purchase 49,041 shares of Class A at an exercise price
of $4.08 per share to the creditor (the "SVB
Warrant"). The SVB Warrant was immediately exercisable,
expires on August 9, 2006 and contains anti-dilution
provisions. In connection with the Company's
Recapitalization, the issuance of additional potentially
dilutive securities, and the combination of Class A and
Class B and their reverse split, the SVB Warrant was
adjusted to be exercisable to purchase 26,857 shares of Common
Stock with an exercise price of $7.42 per share. The SVB
Warrant with respect to all 26,857 shares was outstanding
at December 31, 2002 and 2003.
Note 12 — Stock
Options:
1999 Stock Option Plan
The Company maintains a nonqualified stock option
plan that enables key employees, directors and consultants of
the Company to purchase shares of common stock of the Company
(the "Plan"). The Company grants options to purchase
its common stock based upon valuations determined by management
and the Board of Directors. Options generally vest and become
exercisable in four equal annual increments commencing on the
first anniversary of the date of grant and expire after
10 years from the date of grant.
On September 12, 2003 the Company amended
the Plan to increase the number of shares of Common Stock, par
value $0.0001 available under the Plan by 657,143 shares,
from 329,897 to 987,040. There were 181,985 shares
available for future grant at December 31, 2003.
Weighted
Average
Number of
Option Price
Price Per
Shares
Range
Share
Outstanding at December 31, 2000
100,631
$
10.22-$168.84
$
43.68
Granted
206,555
$
0.42-$  9.80
$
0.70
Canceled
(100,900
)
$
0.42-$168.84
$
27.58
Exercised
(164
)
$
10.36-$ 17.08
$
11.34
Outstanding at December 31, 2001
206,122
$
0.42-$168.84
$
8.68
Granted
1,873
$
0.42-$  0.42
$
0.42
Canceled
(30,214
)
$
0.42-$168.84
$
15.68
Outstanding at December 31, 2002
177,781
$
0.42-$168.84
$
7.42
F-23
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
Weighted
Average
Number of
Option Price
Price Per
Shares
Range
Share
Granted
600,471
$
0.14-$  2.66
$
2.10
Canceled
(13,567
)
$
0.42-$168.84
$
11.06
Exercised
(3,588
)
$
0.42-$ 10.36
$
0.70
Outstanding at December 31, 2003
761,097
$
0.14-$168.84
$
3.22
Exercisable at December 31, 2003
133,660
$
0.14-$168.84
$
3.22
Available for future option grants at
    December 31, 2003
181,985
The following table summarizes information
regarding stock options granted during the years ended
December 31, 2001, 2002 and 2003.
Weighted
Weighted
Average
Average
Fair Value
Number of
Option Price
Price Per
at date of
Shares
Range
Share
grant
Year ended December 31, 2001:
Options granted with an exercise price equal to
    market
178,196
$
0.42-$0.42
$
0.42
$
0.28
Options granted with an exercise price greater
    than market
28,359
$
0.42-$9.80
$
3.08
$
2.10
Year ended December 31, 2002:
Options granted with an exercise price greater
    than market
1,873
$
0.42-$0.42
$
0.42
$
0.28
Year ended December 31, 2003:
Options granted with an exercise price less than
    market
600,472
$
0.14-$2.66
$
2.10
$
7.84
The weighted average fair value per option at
grant date was $0.56, $0.28 and $7.84, for options granted in
the years ended December 31, 2001, 2002 and 2003,
respectively.
The following table summarizes information
regarding stock options outstanding and exercisable at
December 31, 2003:
Options Outstanding
Options Exercisable
Weighted
Weighted
Number
Weighted
Number of
Average
Average
of
Average
Outstanding
Remaining
Exercise
Exercisable
Exercise
Range of Exercise Prices
Options
Contractual Life
Price
Options
Price
$  0.00 - $ 0.70
256,772
8.2 years
$
0.28
91,057
$
2.94
$  0.71 - $ 2.80
479,889
9.8 years
$
2.66
19,174
$
2.66
$  2.81 - $14.00
9,693
6.8 years
$
9.94
9,693
$
9.94
$ 14.01 - $28.00
6,687
5.8 years
$
17.08
6,687
$
17.08
$ 28.01 - $42.00
3,163
6.1 years
$
29.40
2,788
$
29.40
$ 42.01 - $140.00
509
6.2 years
$
106.82
404
$
106.82
$140.01 - $168.84
4,384
6.1 years
$
168.84
3,857
$
168.84
F-24
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
Note 13 — Taxes on
Income:
Income (loss) before income taxes and the
provision (benefit) for income taxes are comprised of (in
thousands):
For the Years Ended December 31,
2001
2002
2003
Income (loss) before income taxes:
Domestic
$
(17,287
)
$
(2,963
)
$
1,853
Foreign
—
—
(55
)
$
(17,287
)
$
(2,963
)
$
1,798
Provision (benefit) for income taxes:
Currently payable:
Federal
$
—
$
—
$
74
State
—
(569
)
73
Foreign
—
—
3
Total income tax provision (benefit)
$
—
$
(569
)
$
150
During the year ended December 31, 2002, the
Company received a tax refund from the State of Connecticut in
the amount of $569,000 relating to research and development tax
credits.
Deferred income taxes are provided on temporary
differences between the financial reporting basis and tax basis
of the Company's assets and liabilities. The principal
temporary differences, which give rise to deferred tax assets
and liabilities at December 31, 2002 and 2003 are as
follows:
December 31, 2002
December 31, 2003
(in thousands)
Deferred tax assets (liabilities):
Net operating loss carryforwards
$
18,691
$
17,884
Unearned stock-based compensation
2,421
3,018
Capitalized panel costs
1,030
892
Federal and state tax credits
421
430
Other deferred tax assets
397
479
Other deferred tax liabilities
(437
)
—
Net Deferred Tax Asset
22,523
22,703
Valuation Allowance
(22,523
)
(22,703
)
Total Net Deferred Tax Assets
$
—
$
—
At December 31, 2003, net operating loss
carryforwards ("NOL(s)") of $64,000 and $44,065,000,
respectively are available to reduce future foreign and domestic
income taxes. The majority of the NOLs begin to expire in 2020
and 2005, respectively. During the year ended December 31,
2003, the Company began operations in India. The Indian tax
authority granted the Company a tax holiday for a six-year
period ending in June 2009.
Pursuant to Internal Revenue Code
Section 382, certain substantial ownership changes may
result in an annual limitation on the amount of net operating
loss or tax credit carryforwards that may be utilized to offset
future income tax liabilities.
F-25
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
The Company establishes valuation allowances in
accordance with the provisions of Statement of Financial
Accounting Standards No. 109, "Accounting for Income
Taxes" ("SFAS 109"). At December 31,
2002 and 2003, the valuation allowance fully offset the gross
deferred tax asset. Because the Company incurred cumulative
losses in recent years, management did not believe there was
sufficient evidence to indicate that the Company would more
likely than not realize its domestic deferred tax assets.
The Company is subject to ongoing tax
examinations and assessments in various jurisdictions.
Accordingly, the Company provides for additional tax expense
based upon the probable outcomes of such matters. In addition,
when applicable, the Company adjusts the previously recorded tax
expense to reflect examination results.
The reconciliation of the computed
"expected" (benefit) provision (determined by applying
the United States Federal statutory income tax rate of 34% to
(loss) income before income taxes) to the actual tax provision
is as follows:
For the Years Ended
December 31,
2001
2002
2003
Statutory federal income tax rate
34.0
%
34.0
%
34.0
%
State income taxes, net of federal income tax
    benefit
—
—
2.7
State research and development credit refunds
—
(19.2
)
—
Alternative minimum taxes
—
—
4.1
Deferred compensation and other
(2.1
)
(2.4
)
1.4
Change in deferred tax asset valuation allowance
(31.6
)
(31.7
)
(33.5
)
Goodwill amortization
(1.2
)
—
—
Other reconciling items
0.9
0.1
(0.4
)
Total
—
(19.2
)%
8.3
%
Note 14 — Commitments and
Contingencies:
Lease Commitments and Obligations
Future minimum annual lease payments under
capital leases and noncancelable operating leases are as follows
at December 31, 2003 (in thousands):
Fiscal Years Ending December 31,
Capital
Operating
2004
$
982
$
1,413
2005
575
1,067
2006
134
1,067
2007
29
1,127
2008
—
1,127
2009 and thereafter
—
990
Total minimum lease payments
$
1,720
$
6,791
Amount representing interest
(141
)
Present value of minimum capital lease payments
$
1,579
At December 31, 2003, $705,000, ($1,102,000
at December 31, 2002) is included in "Other long-term
liabilities" representing the long-term portion of the
present value of minimum capital lease payments, and
F-26
Table of Contents
GREENFIELD ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
— (Continued)
$874,000, ($895,000 at December 31, 2002) is
included in current liabilities representing the current portion
of the present value of minimum lease payments.
Rental expense on operating leases amounted to
approximately $1,139,000, $1,589,000 and $1,551,000 for the
years ended December 31, 2001, 2002 and 2003, respectively.
Legal Contingencies:
From time to time, in the ordinary course of
business, the Company is subject to legal proceedings. While it
is impossible to determine the ultimate outcome of such matters,
it is management's opinion that the resolution of any
pending issues will not have a material adverse effect on the
consolidated financial position, cash flows or results of
operations of the Company.
NOTE 15 — Employee Benefit
Plan:
The Company sponsors a 401(k) Profit Sharing Plan
(the "401(k) Plan") within the United States. The
401(k) Plan covers employees who are at least 21 years of
age and have completed three months of service. To participate
in the 401(k) Plan, employees must work for the Company for at
least 1,000 hours each year. The 401(k) Plan was amended
during 2003 and currently provides for the option for employee
contributions up to statutory limits, of which the Company
matches 20% of the employee's contribution (the
"Matching Contributions"). An employee will not be
considered vested in the Matching Contributions until he or she
shall have completed three years of continuous service. Amounts
expensed under the 401(k) Plan were none, none and $42,000 in
the years ended December 31, 2001, 2002 and 2003,
respectively.
NOTE 16 — Subsequent Event
(unaudited):
Acceleration of Vesting of Restricted
    Management Common Stock
On January 14, 2004, the Company accelerated
the vesting of the remaining 25% of the Management common stock.
Extension of Credit to
    Affiliate
In March 2004, GFOL India, a subsidiary of the
Company, entered into a $1.5 million loan facility
agreement with the Company. Borrowing under the facility carries
an interest rate of LIBOR plus 2% and matures in three years.
F-27
Table of Contents
Quarterly Financial Data
(unaudited):
Summarized quarterly financial data for the years
ended December 31, 2002 and 2003 are as follows (in
thousands, except per share data):
Quarter
Fiscal Year Ended December 31, 2002
(1)
First
Second
Third
Fourth
Net revenues
$
2,819
$
3,495
$
4,130
$
4,442
Cost of revenues
1,252
1,216
1,389
1,552
Gross profit
1,567
2,279
2,741
2,890
Operating expenses
3,822
2,853
3,054
3,656
Operating loss
(2,255
)
(574
)
(313
)
(766
)
Interest expense, net
(163
)
(156
)
(156
)
(77
)
Other income, net
1,497
—
—
—
Loss before income taxes
(921
)
(730
)
(469
)
(843
)
Benefit for income taxes
(569
)
—
—
—
Net loss
(352
)
(730
)
(469
)
(843
)
Less: Charge to common stockholders for
    Series B convertible preferred stock liquidation preference
    in excess of fair market value
—
—
—
(3,873
)
Cumulative dividends on Series B convertible
    preferred stock
—
—
—
(28
)
Net loss available to common stockholders
$
(352
)
$
(730
)
$
(469
)
$
(4,744
)
Net loss per share — basic and diluted:
Basic
$
(0.38
)
$
(0.78
)
$
(0.50
)
$
(4.25
)
Diluted
$
(0.38
)
$
(0.78
)
$
(0.50
)
$
(4.25
)
Weighted average shares outstanding:
Basic
936
936
936
1,116
Diluted
936
936
936
1,116
(1)
The sum of quarterly income (loss) per share may
    differ from the full-year amounts due to rounding and the effect
    of weighting shares outstanding in the quarters rather than the
    full year.
F-28
Table of Contents
Quarter
Fiscal Year Ended December 31, 2003
(1)
First
Second
Third
Fourth
Net revenues
$
4,591
$
5,948
$
7,048
$
8,281
Cost of revenues
1,531
1,956
2,574
2,823
Gross profit
3,060
3,992
4,474
5,458
Operating expenses
3,162
3,291
3,994
4,840
Operating income (loss)
(102
)
701
480
618
Interest expense, net
(125
)
(112
)
(128
)
(130
)
Other (income) expense, net
600
—
—
(4
)
Income before income taxes
373
589
352
484
Provision for income taxes
23
40
17
70
Net income
350
549
335
414
Less: Accretion of preferred stock dividends
(32
)
(31
)
—
—
Cumulative
    dividends on Series B convertible preferred stock
(168
)
(168
)
(168
)
(169
)
Income allocable to
    participating preferred securities
(125
)
(292
)
(139
)
(205
)
Net income available to common stockholders
$
25
$
58
$
28
$
40
Net income per share — basic and
    diluted:
Basic
$
0.01
$
0.03
$
0.01
$
0.02
Diluted
$
0.01
$
0.02
$
0.01
$
0.01
Weighted average shares outstanding:
Basic
2,054
2,054
2,054
2,054
Diluted
2,184
2,339
2,439
2,836
(1)
The sum of quarterly income (loss) per share may
    differ from the full-year amounts due to rounding, or in the
    case of diluted earnings per share, because securities that are
    anti-dilutive in certain quarters may not be anti-dilutive on a
    full-year basis.
F-29
Table of Contents
Shares
Common Stock
PROSPECTUS
,
2004
LEHMAN BROTHERS
FRIEDMAN BILLINGS RAMSEY
PIPER JAFFRAY
Table of Contents
PART II
INFORMATION NOT REQUIRED IN THE
PROSPECTUS
Item 13.
Other Expenses of Issuance and
    Distribution
The following table sets forth the costs and
expenses, other than underwriting discounts and commissions,
payable by the Company in connection with the sale of common
stock being registered. All amounts are estimates except the SEC
registration fee and the NASD filing fee. The Registrant will
pay all these expenses.
Amount to be
Paid
SEC Registration Fee
$
9,503
NASD Filing Fee
8,000
Nasdaq National Market Listing Fee
Printing Fees and Expenses
Legal Fees and Expenses
Accounting Fees and Expenses
Blue Sky Fees and Expenses
Transfer Agent and Registrar Fees
Miscellaneous
Total
$
Item 14.
Indemnification of Directors and
    Officers
As permitted by Section 145 of the Delaware
General Corporation Law, the registrant's certificate of
incorporation includes a provision that eliminates the personal
liability of its directors for monetary damages for breach of
their fiduciary duty as directors. In addition, as permitted by
Section 145 of the Delaware General Corporation Law, the
bylaws of the registrant provide that: (1) the registrant
is required to indemnify its directors and officers for serving
the registrant in those capacities or for serving other business
enterprises at the registrant's request, to the fullest
extent permitted by Delaware law, including in those
circumstances in which indemnification would otherwise be
discretionary; (2) the registrant may, in its discretion,
indemnify employees and agents in those circumstances where
indemnification is not required by law; (3) the registrant
is required to advance expenses, as incurred, to its directors
and officers in connection with defending a proceeding, except
that such director or officer shall undertake to repay such
advances if it is ultimately determined that such person is not
entitled to indemnification; (4) the registrant will not be
obligated pursuant to the bylaws to indemnify a person with
respect to proceedings initiated by that person, except with
respect to proceedings authorized by the registrant's board
of directors or brought to enforce a right to indemnification;
(5) the rights conferred in the bylaws are not exclusive,
and the registrant is authorized to enter into indemnification
agreements with its directors, officers, employees and agents
and to obtain insurance to indemnify such persons; and
(6) the registrant may not retroactively amend the bylaw
provisions to reduce its indemnification obligations to
directors, officers, employees and agents in these matters
arising prior to such time.
The registrant's policy is to enter into
indemnification agreements with each of its directors and
executive officers that provide the maximum indemnity allowed to
directors and executive officers by Section 145 of the
Delaware General Corporation Law and the bylaws, as well as
certain additional procedural protections. The registrant has
also obtained directors and officers insurance to insure such
persons against certain liabilities. In addition, the
underwriting agreement for this offering contains provisions
indemnifying the registrant's directors and officers
against certain liabilities.
II-1
Table of Contents
Item 15.
Recent Sales of Unregistered
    Securities
Since March 2001, we have issued and sold the
following unregistered securities. The following information is
not adjusted to reflect the one-for-14 reverse split of our
common stock to be effected immediately prior to consummation of
the offering contemplated by this Registration Statement.
December 2002 Recapitalization
In December 2002, we underwent a change in our
capital structure (the "Recapitalization"), which
resulted in the issuance and sale of three newly created classes
of preferred stock. These new classes of preferred stock were
designated the Series B Convertible Participating Preferred
Stock ("Series B Preferred Stock"), the
Series C-1 Convertible Participating Preferred Stock
("Series C-1 Preferred Stock"), and the
Series C-2 Non-Voting Redeemable Preferred Stock
("Series C-2 Preferred Stock"). As part of the
Recapitalization, we also converted the outstanding Class A
and Class B common stock into a new single class of common
stock and then effected a reverse stock split on the resulting
new single class of common stock. Additionally, we issued shares
of our common stock to certain members of our management and an
independent member of our board of directors.
Series C-1 Preferred
Stock.
We offered the Series C-1
Preferred to all holders of our Series A Preferred Stock.
The aggregate number of shares of our Series C-1 Preferred
Stock issued and sold in the Recapitalization was 74,627,182 for
an aggregate offering price of $4,564,778, which was payable in
cash or through the conversion of existing principal and accrued
interest due under promissory notes issued by us and held by
holders of our Series A Preferred Stock. Outstanding shares
of out Series C-1 Preferred Stock are convertible at the
option of the holder into shares of our common stock at a set
conversion ratio.
Series C-2 Preferred
Stock.
We issued and sold
10,000 shares of our Series C-2 Preferred Stock to
Imprimis SB, L.P. ("Imprimis") in exchange for the
cancellation of a promissory note held by Imprimis in an
aggregate amount of $2,052,267.
Series B Preferred
Stock.
We issued and sold
30,211,595 shares of our Series B Preferred Stock in
exchange for the cancellation of certain promissory notes in an
aggregate amount of $16,827,835. In connection with the
Recapitalization, one of our stockholders, Greenfield Holdings,
LLC ("Greenfield Holdings"), dissolved and distributed
to its members their pro rata percentage interest of the
promissory notes that we had issued to Greenfield Holdings (the
"Greenfield Holdings Notes"). In the Recapitalization,
each of the members of Greenfield Holdings, other than Imprimis,
exchanged their portion of the Greenfield Holdings notes for
shares of our Series B Preferred Stock. Imprimis exchanged
its portion of the Greenfield Holdings Notes for Series C-2
Preferred Stock as described above. Outstanding shares of the
Series B Preferred Stock are convertible at the option of
the holder into shares of our common stock at a set conversion
ratio.
Restricted Shares
We issued and sold 15,480,501 shares of our
common stock to certain members of our management team and one
independent director (the "Restricted Shares") as
consideration for services rendered and services to be rendered.
The Management Shares were issued to Dean A. Wiltse, Robert E.
Bies, Hugh O. Davis, Jonathan A. Flatow, and Joel R. Mesznik.
The Restricted Shares were sold for par value, $0.0001 per
share, and, for the members of management, were restricted stock
subject to a vesting schedule, which would accelerate upon
satisfaction certain conditions.
Reverse Stock-Split
In connection with the Recapitalization, the
Company's Class A Common Stock and Class B Common
Stock were converted into one share of a new class of our common
stock. Additionally, we effected a reverse stock-split such that
for each one outstanding share of common stock held by a
stockholder prior to the reverse stock-split, such stockholder
would hold 0.41987 new shares of our common stock after the
reverse stock split.
II-2
Table of Contents
Exemption From Registration
The sales of the Series B Preferred Stock,
Series C-1 Preferred Stock, Series C-2 Preferred Stock
and Management Shares were exempt from registration in reliance
under Section 4(2) of the Securities Act or
Regulation D promulgated thereunder. The securities issued
in connection with the reverse stock-split were exempt from
registration in reliance on Section 3(a)(9) of the
Securities Act.
March and April 2001 Series A Preferred
Stock
In March and April 2001, we issued and sold a
total of 40,874,511 shares of our Series A Preferred
Stock for an aggregate offering price of $11,906,745 to
Greenfield Holdings and various other investors. The shares of
our Series A Preferred Stock were convertible securities,
and at the option of the holder could be converted into shares
of our common stock at a set conversion ratio. Immediately prior
to the completion of this offering, shares of our Series A
Preferred Stock will be mandatorily converted into shares of our
common stock. These sales of our Series A Preferred Stock
were exempt from registration under Section 4(2) of the
Securities Act or Regulation D promulgated thereunder.
June and September 2001 10% Convertible
Subordinated Promissory Notes
In June 2001, we sold $2,443,943 of our
10% Convertible Subordinated Promissory Notes (the
"June 2001 Notes") to various investors. In September
2001, we sold $1,491,832 of our 10% Convertible
Subordinated Promissory Notes (the "September 2001
Notes") to various investors. All of the principal and
interest under the June 2001 Notes and the September 2001 Notes
were subsequently converted into Series C-1 Preferred Stock
in the Recapitalization. The sales of the June 2001 Notes and
September 2001 Notes and the subsequent conversion of these
Notes were exempt from registration in reliance on
Section 4(2) of the Securities Act or Regulation D
promulgated thereunder.
Stock Option Grants and Issuances
Since March 2001, we have granted options to
employees (including officers), directors and consultants to
purchase an aggregate of 13,712,637 shares of our common
stock. During this same period, we have issued a total of
53,168 shares of our common stock upon exercise of such
stock options. The stock option grants and issuances of shares
thereunder were exempt under Section 4(2) and/or
Rule 701 under the Securities Act.
Item 16.
Exhibits and Financial Statement
    Schedules
(a) The following exhibits are filed
herewith:
Exhibit
Number
Exhibit Description
1.1*
—
Form of Underwriting Agreement.
3.1
—
Amended and Restated Certificate of
    Incorporation, to be effective upon completion of the offering.
3.2
—
Amended and Restated Bylaws, to be effective upon
    completion of the offering.
4.1*
—
Form of Common Stock Certificate of Greenfield
    Online, Inc.
4.2
—
Amended and Restated Registration Rights
    Agreement, dated as of December 16, 2002, by and among
    Greenfield Online, Inc. and the shareholders listed therein.
4.3
—
Registration Rights Agreement, dated
    August 9, 2001, by and between Silicon Valley Bank and
    Greenfield Online, Inc.
4.4
—
Registration Rights Agreement, dated
    December 13, 1999, by and between Greyrock Capital and
    Greenfield Online, Inc.
5.1*
—
Opinion of Preston Gates & Ellis LLP.
10.1
—
Form of Indemnification Agreement.
10.2
—
Amended and Restated 1999 Stock Option Plan.
II-3
Table of Contents
Exhibit
Number
Exhibit Description
10.3
—
2004 Equity Incentive Plan.
10.4
—
2004 Employee Stock Purchase Plan.
10.5
—
Form of Stock Option Agreement under Amended and
    Restated 1999 Stock Option Plan.
10.6*
—
Form of Stock Option Agreement under 2004 Equity
    Incentive Plan.
10.7
—
Restricted Stock Agreement, dated
    December 16, 2002, by and between Dean A. Wiltse and
    Greenfield Online, Inc. and an amendment thereto.
10.8
—
Restricted Stock Agreement, dated
    December 16, 2002, by and between Robert E. Bies and
    Greenfield Online, Inc. and an amendment thereto.
10.9
—
Restricted Stock Agreement, dated
    December 16, 2002, by and between Jonathan A. Flatow and
    Greenfield Online, Inc. and an amendment thereto.
10.10
—
Restricted Stock Agreement, dated
    December 16, 2002, by and between Hugh O. Davis and
    Greenfield Online, Inc. and an amendment thereto.
10.11
—
Restricted Stock Agreement, dated
    December 16, 2002, by and between Joel R. Mesznik and
    Greenfield Online, Inc.
10.12
—
License Agreement, dated December 22, 1999,
    by and between Greenfield Consulting Group, Inc. and
    Greenfield Online, Inc. and an amendment and supplement
    thereto.
10.13
—
Note and Warrant Purchase Agreement, dated
    March 3, 2000, by and between Greenfield Holdings, LLC and
    Greenfield Online, Inc. and an amendment thereto.
10.14
—
Form of Warrant to purchase common stock of
    Greenfield Online, Inc.
10.15
—
Non-Recourse Promissory Note, dated May 17,
    1999, made by Hugh O. Davis in favor of Greenfield
    Online, Inc.
10.16
—
Full Recourse Promissory Note, dated
    March 9, 2001, made by Hugh O. Davis in favor of Greenfield
    Online, Inc.
10.17
—
Pledge Agreement, dated May 17, 1999, by and
    between Hugh O. Davis and Greenfield Online, Inc. and an
    amendment thereto.
10.18
—
Warrant for the purchase of shares of
    Class A Common Stock, dated December 3, 1999, issued
    by Greenfield Online, Inc. to Greyrock Capital.
10.19
—
Warrant for the purchase of shares of
    Class A Common Stock, dated August 9, 2001, issued by
    Greenfield Online, Inc. to Silicon Valley Bank.
10.20
—
Accounts Receivable Financing Agreement, dated
    August 9, 2001, by and between Silicon Valley Bank and
    Greenfield Online, Inc. and amendments thereto.
10.21
—
Lease, dated October 20, 1999, by and
    between Wilton Campus Properties, LLC and Greenfield
    Online, Inc.
10.22
—
Agreement to Lease, dated July 19, 2003, by
    and between Tafsir Ahmad, Tanweer Ahmad, Saeed Ahmad, Salman
    Ahmad, and Shadab Ahmad (lessors) and M/s Agilis
    Information Technologies International Private Limited.
10.23
—
Agreement to Lease, dated March 3, 2004, by
    and between M/s Unitech Business Parks Limited and M/s
    Greenfield Online PVT. Ltd.
10.24
—
Lease Agreement, dated September 15, 1999,
    by and between Somerset Capital Group Ltd and Greenfield
    Online, Inc.
10.25†
—
FieldSource Agreement, dated October 31,
    2001, by and between Custom Research Inc. and Greenfield
    Online, Inc. and an amendment thereto.
10.26†
—
Enterprise User License Agreement, dated
    October 21, 2002, by and between Future Information
    Research Management, Inc. and Greenfield Online, Inc.
    and an addendum thereto.
10.27†
—
Commercial Agreement, dated November 28,
    2001, by and between Microsoft Corporation and Greenfield
    Online, Inc. and amendments thereto.
10.28†
—
Alliance, License and Supply Agreement, dated
    January 31, 2002, by and between Taylor Nelson Sofres
    Intersearch Corporation and Greenfield Online, Inc. and
    amendments thereto.
II-4
Table of Contents
Exhibit
Number
Exhibit Description
10.29
—
Form of Partnering Agreement of Greenfield
    Online, Inc.
10.30*
—
Amended and Restated Employment Agreement, by and
    between Dean A. Wiltse and Greenfield Online, Inc.
10.31*
—
Amended and Restated Employment Agreement, by and
    between Robert E. Bies and Greenfield Online, Inc.
10.32*
—
Amended and Restated Employment Agreement, by and
    between Jonathan A. Flatow and Greenfield Online, Inc.
10.33*
—
Amended and Restated Employment Agreement, by and
    between Hugh Davis and Greenfield Online, Inc.
10.34*
—
Employment Agreement, by and between Keith Price
    and Greenfield Online, Inc.
10.35
—
Employment Agreement, dated December 10,
    2003, by and between Frank Kelly and Greenfield Online, Inc.
10.36
—
Employment Agreement, dated February 5,
    2004, by and between Beth Rounds and Greenfield Online, Inc.
21.1
—
List of Subsidiaries of Greenfield
    Online, Inc.
23.1
—
Consent of PricewaterhouseCoopers
    LLP, Independent Accountants.
23.2*
—
Consent of Preston Gates & Ellis LLP
    (included in Exhibit 5.1).
24.1
—
Power of Attorney (reference is made to the Power
    of Attorney included on the signature page).
*
To be filed by amendment
†
Certain information in these exhibits has been
    omitted and filed separately with the Securities and Exchange
    Commission pursuant to a confidential treatment request under
    17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406.
(b) Financial Statement Schedules
Certain exhibits, attachments and schedules to
the exhibits above have not been filed herewith. Greenfield
Online, Inc. will furnish any such exhibits, attachments and
schedules supplementally to the Securities and Exchange
Commission upon request.
Item 17.
Undertakings
The undersigned registrant hereby undertakes to
provide to the underwriters at the closing specified in the
underwriting agreement certificates in such denominations and
registered in such names as required by the underwriters to
permit prompt delivery to each purchaser.
Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors,
officers and controlling persons of the registrant pursuant to
the provisions described in Item 14 or otherwise, the
registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Securities Act and will be governed by the final
adjudication of such issue.
The undersigned registrant undertakes that:
(1) for purposes of determining any
    liability under the Securities Act, the information omitted from
    the form of prospectus filed as part of this registration
    statement in reliance upon Rule 430A and
II-5
Table of Contents
contained in the form of prospectus filed by the
    registrant pursuant to Rule 424(b)(1) or (4) or 497(h)
    under the Securities Act shall be deemed to be a part of this
    registration statement as of the time it was declared
    effective, and
(2) for the purpose of determining any
    liability under the Securities Act, each post-effective
    amendment that contains a form of prospectus shall be deemed to
    be a new registration statement relating to the securities
    offered therein, and the offering of such securities at that
    time shall be deemed to be the initial bona fide offering
    thereof.
II-6
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, the registrant certifies that it has reasonable
grounds to believe that it meets all of the requirements for
filing on Form S-1 and has duly caused this its
Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Wilton,
State of Connecticut, on the 12
th
day of April,
2004.
GREENFIELD ONLINE, INC.
By:
/s/ DEAN A. WILTSE
Dean A. Wiltse
President and Chief Executive
    Officer
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints
Jonathan A. Flatow and Robert E. Bies, and each of them, his
attorney-in-fact, for him in any and all capacities, to sign any
and all amendments to this registration statement (including
post-effective amendments and abbreviated registration
statements), and any and all registration statements filed
pursuant to Rule 462 or Rule 429 under the Securities
Act of 1933, as amended, in connection with the registration
under the Securities Act of 1933, as amended, of equity
securities of Greenfield Online, Inc., and to file or cause
to be filed the same, with exhibits thereto and other documents
in connection therewith, with the Securities and Exchange
Commission, hereby ratifying and confirming all that said
attorneys-in-fact, or their substitutes, may do or cause to be
done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, as amended, this Registration Statement on
Form S-1 has been signed by the following persons in the
capacities indicated on April 12, 2004.
Signature
Title
/s/ DEAN A. WILTSE
Dean A. Wiltse
President and Chief Executive Officer,
    Director
(Principal Executive Officer)
/s/ ROBERT E. BIES
Robert E. Bies
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
/s/ JEFFREY HORING
Jeffrey Horing
Director
/s/ PETER SOBILOFF
Peter Sobiloff
Director
/s/ JOEL R. MESZNIK
Joel R. Mesznik
Director
/s/ LAWRENCE R. HANDEN
Lawrence R. Handen
Director
/s/ BURTON J. MANNING
Burton J. Manning
Director
/s/ LISE J. BUYER
Lise J. Buyer
Director
/s/ VIKAS KAPOOR
Vikas Kapoor
Director
II-7
Table of Contents
EXHIBIT INDEX
Exhibit
Number
Exhibit Description
1.1*
—
Form of Underwriting Agreement.
3.1
—
Amended and Restated Certificate of
    Incorporation, to be effective upon completion of the offering.
3.2
—
Amended and Restated Bylaws, to be effective upon
    completion of the offering.
4.1*
—
Form of Common Stock Certificate of Greenfield
    Online, Inc.
4.2
—
Amended and Restated Registration Rights
    Agreement, dated as of December 16, 2002, by and among
    Greenfield Online, Inc. and the shareholders listed therein.
4.3
—
Registration Rights Agreement, dated
    August 9, 2001, by and between Silicon Valley Bank and
    Greenfield Online, Inc.
4.4
—
Registration Rights Agreement, dated
    December 13, 1999, by and between Greyrock Capital and
    Greenfield Online, Inc.
5.1*
—
Opinion of Preston Gates & Ellis LLP.
10.1
—
Form of Indemnification Agreement.
10.2
—
Amended and Restated 1999 Stock Option Plan.
10.3
—
2004 Equity Incentive Plan.
10.4
—
2004 Employee Stock Purchase Plan.
10.5
—
Form of Stock Option Agreement under Amended and
    Restated 1999 Stock Option Plan.
10.6*
—
Form of Stock Option Agreement under 2004 Equity
    Incentive Plan.
10.7
—
Restricted Stock Agreement, dated
    December 16, 2002, by and between Dean A. Wiltse and
    Greenfield Online, Inc. and an amendment thereto.
10.8
—
Restricted Stock Agreement, dated
    December 16, 2002, by and between Robert E. Bies and
    Greenfield Online, Inc. and an amendment thereto.
10.9
—
Restricted Stock Agreement, dated
    December 16, 2002, by and between Jonathan A. Flatow and
    Greenfield Online, Inc. and an amendment thereto.
10.10
—
Restricted Stock Agreement, dated
    December 16, 2002, by and between Hugh O. Davis and
    Greenfield Online, Inc. and an amendment thereto.
10.11
—
Restricted Stock Agreement, dated
    December 16, 2002, by and between Joel R. Mesznik and
    Greenfield Online, Inc.
10.12
—
License Agreement, dated December 22, 1999,
    by and between Greenfield Consulting Group, Inc. and
    Greenfield Online, Inc. and an amendment and supplement
    thereto.
10.13
—
Note and Warrant Purchase Agreement, dated
    March 3, 2000, by and between Greenfield Holdings, LLC and
    Greenfield Online, Inc. and an amendment thereto.
10.14
—
Form of Warrant to purchase common stock of
    Greenfield Online, Inc.
10.15
—
Non-Recourse Promissory Note, dated May 17,
    1999, made by Hugh O. Davis in favor of Greenfield
    Online, Inc.
10.16
—
Full Recourse Promissory Note, dated
    March 9, 2001, made by Hugh O. Davis in favor of Greenfield
    Online, Inc.
10.17
—
Pledge Agreement, dated May 17, 1999, by and
    between Hugh O. Davis and Greenfield Online, Inc. and an
    amendment thereto.
10.18
—
Warrant for the purchase of shares of
    Class A Common Stock, dated December 3, 1999, issued
    by Greenfield Online, Inc. to Greyrock Capital.
10.19
—
Warrant for the purchase of shares of
    Class A Common Stock, dated August 9, 2001, issued by
    Greenfield Online, Inc. to Silicon Valley Bank.
10.20
—
Accounts Receivable Financing Agreement, dated
    August 9, 2001, by and between Silicon Valley Bank and
    Greenfield Online, Inc. and amendments thereto.
10.21
—
Lease, dated October 20, 1999, by and
    between Wilton Campus Properties, LLC and Greenfield
    Online, Inc.
Table of Contents
Exhibit
Number
Exhibit Description
10.22
—
Agreement to Lease, dated July 19, 2003, by
    and between Tafsir Ahmad, Tanweer Ahmad, Saeed Ahmad, Salman
    Ahmad, and Shadab Ahmad (lessors) and M/s Agilis
    Information Technologies International Private Limited.
10.23
—
Agreement to Lease, dated March 3, 2004, by
    and between M/s Unitech Business Parks Limited and M/s
    Greenfield Online PVT. Ltd.
10.24
—
Lease Agreement, dated September 15, 1999,
    by and between Somerset Capital Group Ltd and Greenfield
    Online, Inc.
10.25†
—
FieldSource Agreement, dated October 31,
    2001, by and between Custom Research Inc. and Greenfield
    Online, Inc. and an amendment thereto.
10.26†
—
Enterprise User License Agreement, dated
    October 21, 2002, by and between Future Information
    Research Management, Inc. and Greenfield Online, Inc.
    and an addendum thereto.
10.27†
—
Commercial Agreement, dated November 28,
    2001, by and between Microsoft Corporation and Greenfield
    Online, Inc. and amendments thereto.
10.28†
—
Alliance, License and Supply Agreement, dated
    January 31, 2002 by and between Taylor Nelson Sofres
    Intersearch Corporation and Greenfield Online, Inc. and
    amendments thereto.
10.29
—
Form of Partnering Agreement of Greenfield
    Online, Inc.
10.30*
—
Amended and Restated Employment Agreement by and
    between Dean A. Wiltse and Greenfield Online, Inc.
10.31*
—
Amended and Restated Employment Agreement by and
    between Robert E. Bies and Greenfield Online, Inc.
10.32*
—
Amended and Restated Employment Agreement by and
    between Jonathan A. Flatow and Greenfield Online, Inc.
10.33*
—
Amended and Restated Employment Agreement by and
    between Hugh Davis and Greenfield Online, Inc.
10.34*
—
Employment Agreement by and between Keith Price
    and Greenfield Online, Inc.
10.35
—
Employment Agreement, dated December 10,
    2003, by and between Frank Kelly and Greenfield Online, Inc.
10.36
—
Employment Agreement, dated February 5,
    2004, by and between Beth Rounds and Greenfield Online, Inc.
21.1
—
List of Subsidiaries of Greenfield
    Online, Inc.
23.1
—
Consent of PricewaterhouseCoopers
    LLP, Independent Accountants.
23.2*
—
Consent of Preston Gates & Ellis LLP
    (included in Exhibit 5.1).
24.1
—
Power of Attorney (reference is made to the Power
    of Attorney included on the signature page).
*
To be filed by amendment
†
Certain information in these exhibits has been
    omitted and filed separately with the Securities and Exchange
    Commission pursuant to a confidential treatment request under
    17 C.F.R. Sections 200.80(b)(4), 200.83 and 230.406.
Certain exhibits, attachments and schedules to
the exhibits above have not been filed herewith. Greenfield
Online, Inc. will furnish any such exhibits, attachments and
schedules supplementally to the Securities and Exchange
Commission upon request.